Comcare v Power (No 2)

Case [2016] FCA 39


FEDERAL COURT OF AUSTRALIA

Comcare v Power (No 2) [2016] FCA 39

File number: ACD 76 of 2015
Judge: KATZMANN J
Date of judgment: 5 February 2016
Catchwords: COSTS — appeal from decision of the Administrative Appeals Tribunal — where appellant successful on one of several grounds — where respondent made an approach  before hearing to settle on an “in principle” basis which conformed to the findings ultimately made on the appeal and appellant had not agreed to the approach
Legislation:

Federal Court of Australia Act 1976 (Cth) s 43(2)

Federal Proceedings (Costs) Act 1981 (Cth) ss 3(1), 6

Cases cited:

Jaycar Pty Ltd v Lombardo [2011] NSWCA 284

Vata-Meyer v Commonwealth of Australia (No 2) [2015] FCAFC 167

Date of hearing: Heard on the papers
Date of last submissions: 29 January 2016
Registry: Australian Capital Territory
Division: General Division
National Practice Area: Administrative and Constitutional Law and Human Rights
Category: Catchwords
Number of paragraphs: 9
Solicitor for the Applicant: Mr S Marris of Sparke Helmore
Solicitor for the Respondent: Mr N Blumer of Blumers Personal Injury Lawyers

ORDERS

ACD 76 of 2015
BETWEEN:

COMCARE

Applicant

AND:

SHIREE POWER

Respondent

JUDGE:

KATZMANN J

DATE OF ORDER:

5 FEBRUARY 2016

THE COURT ORDERS THAT:

1.Save in relation to ground 3 of the notice of appeal, in respect of which each party should bear its or her own costs, the applicant pay half the respondent’s costs as agreed or taxed.

Note:    Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.


REASONS FOR JUDGMENT

  1. Shiree Power is, or was at all relevant times, a Commonwealth employee.  She claimed workers compensation from Comcare for an injury to her lower back and an adjustment disorder.  Her entitlement to compensation was disputed but on appeal to the Administrative Appeals Tribunal her claims were largely accepted.  Comcare appealed from the Tribunal’s decision.  Four grounds of appeal were pressed, which challenged the decision-making process in relation to both claims.  I dismissed three grounds but held that the Tribunal’s finding that the pain Ms Power experienced from the back injury contributed to a significant degree to the development of her adjustment disorder was infected by legal error.  I made orders allowing the appeal in part and remitting the matter to the Tribunal for hearing on a limited basis.  In my reasons for judgment I expressed some provisional views about costs but reserved the question to give the parties the opportunity to make submissions should they wish to argue for a different order.  I foreshadowed making an order that Ms Power pay half of Comcare’s costs excluding some particular costs which I considered wasteful.

  2. On 15 January 2016 I received submissions from Ms Power’s solicitors.  Those submissions contained a proposal that orders be made to the effect that Comcare pay half of Ms Power’s costs and that each party bear its or her own costs with respect to the appeal ground upon which Comcare succeeded (ground 3).

  3. Ms Power noted that I had…

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AGLC
Comcare v Power (No 2) [2016] FCA 39
Case
[2016] FCA 39
Decision Date

CaseChat Overview and Summary

The case of Comcare v Power (No 2) was heard in the Federal Court of Australia, where Comcare appealed a decision of the Administrative Appeals Tribunal (AAT). The dispute centred on the costs incurred during the appeal process, specifically whether the appellant, Comcare, should be liable for the respondent's costs after successfully arguing on one of several grounds.

The court needed to determine the appropriate allocation of costs given that the appeal was successful on one ground, while the respondent had proposed a settlement that aligned with the findings on that ground. The key issue was whether Comcare was obligated to pay half of the respondent's costs since the settlement proposal was not accepted.

The court concluded that since Comcare was successful on one of the grounds of appeal, it should bear half of the respondent's costs, except for the specific ground on which the settlement proposal was made. The court emphasised that the respondent's settlement approach, which was consistent with the findings, did not require Comcare to contribute to the costs for that particular ground. Consequently, each party was to bear their own costs regarding that specific ground, while for the others, Comcare was responsible for half of the respondent's costs.

The final orders stipulated that Comcare should pay half of the respondent's costs, except for the costs relating to the specific ground where the settlement proposal was made. Each party was to bear its own costs for that ground. The entry of these orders was governed by Rule 39.32 of the Federal Court Rules 2011.

Orders

Orders of the court

1. Save in relation to ground 3 of the notice of appeal, in respect of which each party should bear its or her own costs, the applicant pay half the respondent’s costs as agreed or taxed.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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