Cram Fluid Power Pty Ltd v Green

[2015] NSWCA 250

Court of Appeal

Supreme Court

New South Wales

Medium Neutral Citation:

Cram Fluid Power Pty Ltd v Green [2015] NSWCA 250

Hearing dates:

30 June 2015

Decision date:

27 August 2015

Before:

Beazley ACJ at [1];
Emmett JA at [2];
Gleeson JA at [13]

Decision:

1.   Dismiss the respondent’s notice of motion dated 30 June 2015.
2.   Grant leave to appeal.
3.   Direct the applicant to file a notice of appeal in the form of the draft contained within the White Book within 14 days.
4.   Appeal allowed.
5.   Set aside the orders in the Commission below, and in place order:
(a)   the appeal from the decision of the Arbitrator is upheld;
(b)   the decision of the Arbitrator made on 7 August 2014, and confirmed by written notice dated 8 August 2014, is revoked;
(c)   the Commission notes that the respondent worker (Mr Green) has no entitlement to pursue his claim for further permanent impairment compensation;
(d)   the respondent worker’s claim filed 3 March 2014 for further permanent impairment compensation is dismissed.
6.   The respondent to pay the appellant’s costs in this Court.

Catchwords:

WORKERS’ COMPENSATION – entitlement to lump sum compensation for permanent impairment – Workers Compensation Act 1987 (NSW) (1987 Act) s 66, and Sch 6, Pt 19H, cl 15 – Workers Compensation Regulation 2010 (NSW) Sch 8, cl 11 – one claim limitation in s 66(1A) of the 1987 Act introduced with effect on and after 19 June 2012 (Critical Date) – whether claim for lump sum compensation made prior to Critical Date distinct from further claim made after Critical Date – whether cl 15 of transitional provisions had effect that one claim limitation applies to claim for lump sum compensation made on or after Critical Date – whether cl 11 of transitional regulations had effect that making earlier claim for lump sum compensation (which had been resolved) excluded one claim limitation in respect of further claim made on or after Critical Date

 

WORKERS’ COMPENSATION – ss 66(1A) and 66A(3)(c) of the 1987 Act – whether s 66A(3)(c) permits further claim for lump sum compensation after Critical Date additional to that payable under a complying agreement made prior to Critical Date – Commission’s power to award additional compensation under s 66A(3)(c) dependent upon worker’s entitlement to claim under s 66 as amended

WORKERS’ COMPENSATION – meaning of “one claim” in s 66(1A) of the 1987 Act – whether “one claim” means one further claim for lump sum compensation on or after Critical Date – one claim limitation operates on facts antecedent to Critical Date

Legislation Cited:

Interpretation Act 1987 (NSW) s 34(1)(a)
Supreme Court Act 1970 (NSW) s 75A(8)
Workers Compensation Act 1987 (NSW) ss 2A, 4, 9, 17, 66, 66A, 67, Sch 6 Pt 19H cls 3, 15
Workers Compensation Legislation Amendment Act 2012 (NSW) Sch 12
Workers Compensation Amendment (Miscellaneous) Regulation 2012 (NSW)
Workers Compensation Amendment (Transitional) Regulation 2012 (NSW)
Workers Compensation Regulation 2010 (NSW) Sch 8 cl 11
Workplace Injury Management and Workers Compensation Act 1998 (NSW) ss 254, 260, 261, 263

Cases Cited:

ADCO Constructions Pty Ltd v Goudappel [2014] HCA 18; 88 ALJR 624
Akins v National Australia Bank (1994) 34 NSWLR 155
Goudappel v ADCO Constructions Pty Ltd [2013] NSWCA 94; 11 DDCR 534
Institute of Patent Agents v Lockwood [1894] AC 347
Martin v Abbott Australasia Pty Ltd [1981] 2 NSWLR 430
Moore v Greater Taree City Council [2009] NSWWCCPD 17
Project Blue Sky Inc v Australian Broadcasting Authority [1998] HCA 28; 194 CLR 355
Sukkar v Adonis Electrics Pty Ltd [2014] NSWCA 459
Taheri v Vitek [2014] NSWCA 209; 87 NSWLR 403
Taylor v The Owner – Strata Plan No 11564 [2014] HCA 9; 88 ALJR 473
Tjiong v Tjiong [2012] NSWCA 201
Tozanis v KU Children's Services [2010] NSWWCCPD 51

Category:

Principal judgment

Parties:

Cram Fluid Power Pty Ltd (Applicant)
Michael George Green (Respondent)

Representation:

Counsel:
J K Kirk SC / S L Flett / B Lim (Applicant)
C T Barry QC / M Boulton (Respondent)

  Solicitors:
Hicksons (Applicant)
RMB Compensation Lawyers (Respondent)

File Number(s):

2015/10256

 Decision under appeal 

Court or tribunal:

Workers Compensation Commission

Citation:

Cram Fluid Power Pty Ltd v Green [2014] NSWWCCPD 84

Date of Decision:

17 December 2014

Before:

Keating P

File Number(s):

A1-999/14

HEADNOTE

[This headnote is not to be read as part of the judgment]

Mr Green, an employee of Cram Fluid Power Pty Ltd (the applicant), suffered a back injury at work on 24 May 2005. It was not disputed that Mr Green made a claim for compensation against the applicant within 6 months of his injury.

On 14 December 2010, Mr Green made a claim for lump sum compensation for permanent impairment under s 66 of the Workers Compensation Act 1987 (NSW) (1987 Act) (2010 Claim). The 2010 Claim was in respect of 7% whole person impairment, and was resolved when Mr Green and the applicant entered into a complying agreement under s 66A of the 1987 Act. Section 66A(3)(c) provided that the Workers Compensation Commission (Commission) may award compensation additional to that payable under a complying agreement if, since the date the agreement was entered into, there has been an increase in the degree of permanent impairment beyond that so agreed.

Section 66 and other provisions of the 1987 Act were amended by legislation commencing on 27 June 2012 (2012 Amending Act). Those amendments included a new s 66(1A) which provided that only one claim can be made under the 1987 Act for permanent impairment compensation. Clause 15 of Pt 19H of Sch 6 to the 1987 (cl 15), a transitional provision, provided that the 2012 Amending Act extends to a claim for compensation made on or after 19 June 2012 but not to such a claim made before that date. This provision was liable to be affected by regulation.

A transitional regulation affecting the operation of cl 15 was inserted into the Workers Compensation Regulation 2010 (NSW) (2010 Regulation) at Sch 8, cl 11 (cl 11). Clause 11 relevantly provided that the 2012 Amending Act extends to a claim made before 19 June 2012 but not to a claim that specifically sought compensation under s 66 of the 1987 Act.

Mr Green’s condition deteriorated and required surgery in September 2012. On 29 October 2013, Mr Green made a further claim under s 66 for lump sum compensation (2013 Claim). This claim was for 22% whole person impairment (with credit for the amount paid in respect of the 2010 Claim). This claim was not resolved by agreement.

Mr Green commenced proceedings in the Commission on 3 March 2014. An Arbitrator concluded that Mr Green was not precluded by the 2012 Amending Act from bringing his 2013 Claim, and remitted the matter for referral to an approved medical specialist. The applicant appealed. President Keating confirmed the Arbitrator’s determination and found that the one claim limitation introduced by the 2012 Amending Act did not apply to Mr Green’s 2013 Claim, and that s 66(1A) only applied prospectively to claims for lump sum compensation made on or after 19 June 2012.

The applicant sought leave to appeal to the Court of Appeal. There were two issues on appeal. First, whether the one claim limitation in s 66(1A) applied to Mr Green’s 2013 Claim. Secondly, whether the words “one claim” in s 66(1A) are to be interpreted as meaning only one further claim may be made on or after 19 June 2012.

Held per Gleeson JA (Beazley ACJ [and Emmett JA] agreeing):

As to the first issue:

(1) The 2013 Claim was distinct from the 2010 Claim (which had been resolved) and was a “claim for compensation” made after 19 June 2012 for the purposes of cl 15. Accordingly the 2013 Claim was subject to the disentitling effect of the one claim limitation in s 66 as amended, unless the transitional cl 11 provided otherwise: [66]-[73].

Considered: ADCO Constructions Pty Ltd v Goudappel [2014] HCA 18; 88 ALJR 624; Goudappel v ADCO Constructions Pty Ltd [2013] NSWCA 94; 11 DDCR 534.

(2) The 2013 Claim does not answer the description in cl 11 of a claim that “specifically sought compensation under s 66 … made before 19 June 2012.” Accordingly cl 11 did not apply to exclude the operation of the one claim limitation in s 66 as amended: [74]-[93].

Considered: Taylor v The Owner – Strata Plan No 11564 [2014] HCA 9; 88 ALJR 473; Sukkar v Adonis Electrics Pty Ltd [2014] NSWCA 459; Goudappel v ADCO Constructions Pty Ltd [2013] NSWCA 94; 11 DDCR 534.

(3) Following the insertion of the new s 66(1A), the power of the Commission to award lump sum compensation under s 66A(3)(c) additional to that payable under a complying agreement is limited to circumstances where the further claim under s 66 is made before 19 June 2012. This is because the Commission’s power under s 66A(3)(c) to award additional compensation is not independent of a worker’s entitlement to receive compensation under s 66: [94]-[100].

Applied: Taheri v Vitek [2014] NSWCA 209; 87 NSWLR 403; Project Blue Sky Inc v Australian Broadcasting Authority [1998] HCA 28; 194 CLR 355; Institute of Patent Agents v Lockwood [1894] AC 347.

As to the second issue:

(4) Accepting that s 66 as amended applies to the 2013 Claim, Keating P erred by approaching the application of s 66 by reference to notions of prospectivity, retrospectivity or accrued rights. The 2012 amendments had a non-beneficial operation to the detriment of injured workers: [109]-[118].

Considered: ADCO Constructions Pty Ltd v Goudappel [2014] HCA 18; 88 ALJR 624.

(5) A construction of s 66(1A) that only one further claim can be made after the commencement of the 2012 Amending Act requires reading in the word “further” or adopting a gloss on the language of the provision when there is no warrant for doing so. Section 66(1A) operates on facts antecedent to the 2012 Amending Act coming into force, including the existence of an earlier claim for lump sum compensation under s 66: [119]-[123].

Applied: Sukkar v Adonis Electrics Pty Ltd [2014] NSWCA 459.

(6) Accordingly the 2010 Claim was Mr Green’s one claim for lump sum compensation and s 66(1A) disentitled him from making his 2013 Claim for further lump sum compensation: [124].

Appeal allowed with costs.

Judgment

1. BEAZLEY ACJ: I have had the advantage of reading in draft the reasons of Gleeson JA. I agree with his Honour's reasons and with the orders he proposes.

2. EMMETT JA: The question in this appeal is whether the respondent, Mr Michael Green (the Worker), is entitled to pursue a second claim for compensation in respect of permanent impairment resulting from an injury received in the course of his employment by the appellant, Cram Fluid Power Pty Ltd (the Employer). The question turns on the construction of provisions of the Workers Compensation Act 1987 (NSW) (the 1987 Act) introduced by the Workers Compensation Legislation Amendment Act 2012 (NSW) (the 2012 Amendments).

3. The Worker was employed by the Employer as a maintenance fitter. On 24 May 2005, he injured his lower back when he was crouching down to lift parts off a hose assembly. On 14 December 2010, the Worker made a claim for lump sum compensation under s 66 of the 1987 Act. That claim was accepted and compensation of $8,750 was paid in respect of the injury, pursuant to a complying agreement entered into on 22 December 2010.

4. The Worker’s condition deteriorated and on 21 September 2012 he underwent spinal surgery. By letter dated 29 October 2013, his solicitors made a claim on his behalf for further lump sum compensation under s 66 of the 1987 Act. The Employer rejected the claim on the basis that, in the light of amendments made to the 1987 Act by the 2012 Amendments, the Worker was precluded from pursuing such a claim for further lump sum compensation.

5. On 3 March 2014, the Worker applied for his dispute with the Employer to be referred to the Workers Compensation Commission (the Commission). On 8 August 2014, following an arbitration held on 7 August 2014, an arbitrator made orders that the matter be remitted to the Registrar of the Commission for referral to an approved medical specialist for the purpose of making an assessment of whole person impairment in respect of the Worker’s disability. On 4 September 2014, the Employer appealed against the decision of the arbitrator. On 17 December 2014, the President of the Commission confirmed the Arbitrator’s decision. By summons filed on 17 March 2015, the Employer seeks leave to appeal under s 353(4) of the Workplace Injury Management and Workers Compensation Act 1998 (NSW) (the 1998 Act) from the decision of the President of the Commission. The Worker does not oppose the grant of leave since the question is one of importance and relevance for other claims by other workers.

The Legislative Context

6. Prior to the amendments made by the 2012 Amendments, s 66(1) of the 1987 Act relevantly provided that a worker who receives an injury that results in permanent impairment was entitled to receive from the worker’s employer compensation for that permanent impairment. The amount of permanent impairment compensation was to be calculated as provided in s 66(2).

7. The relevant parts of the 2012 Amendments came into force on 27 June 2012. By Sch 2 to the 2012 Amendments, s 66(1A) was inserted into the 1987 Act. The terms of s 66(1A) are as follows:

Only one claim can be made under this Act for permanent impairment compensation in respect of the permanent impairment that results from an injury.

The question is whether that provision precludes the Worker’s claim of 29 October 2013.

8. Part 19H of Sch 6 to the 1987 Act, which Part was also inserted by the 2012 Amendments, contains transitional provisions consequent on the enactment of the 2012 Amendments. Clause 3(1) of Pt 19H relevantly provides that, except as provided by Pt 19H and the regulations, an amendment made by the 2012 Amendments extends to:

1. an injury received before the commencement of the amendment, and

2. a claim for compensation made before the commencement of the amendment, and

3. proceedings pending in the Commission or a court immediately before the commencement of the amendment.

9. That provision was qualified by cl 15 of Pt 19H and by cl 11 of Sch 8 to the Workers Compensation Regulation 2010 (NSW) (the Regulations). Clause 15 relevantly provides that an amendment made by Sch 2 to the 2012 Amendments does not extend to a claim for compensation made before 19 June 2012. However, cl 15 is to be read subject to sub-cl (1) of cl 11. Clause 11(1) relevantly provides that the amendments made by Sch 2 to the 2012 Amendments do not extend to a claim for compensation made before 19 June 2012 “that specifically sought compensation” under s 66 of the 1987 Act.

The Appeal

10. In essence, the question raised by the appeal is whether the letter from the Worker’s solicitors of 29 October 2013 is a “claim” within the meaning of s 66(1A) of the 1987 Act, such that it is precluded by the operation of that provision. The Worker contends that it is not because, by his permanent impairment claim dated 14 December 2010, he claimed compensation under s 66 as then in force in respect of the injury he sustained on 24 May 2005. He contends that cl 11 of Sch 8 to the Regulations applies, such that the 2012 Amendments do not extend to that claim, which, he asserts, is a claim for compensation made before 19 June 2012 that specifically sought compensation under s 66 of the 1987 Act.

11. The short answer to the Worker’s contention is that, by the letter of 29 October 2013, the Worker made a further claim under s 66 of the Act. While the claim made by the letter of 29 October 2013 was a claim that specifically sought compensation under s 66, it was not made before 19 June 2012. Of course, the Worker had in fact made an earlier claim for compensation that specifically sought compensation under s 66. He made such a claim on 14 December 2010. However, that claim was resolved by the complying agreement entered into on 22 December 2010. The claim made on 14 December 2010 was no longer on foot. It was a totally separate and discrete claim from the claim made by the letter of 29 October 2013. It follows that Mr Green is not entitled to the benefit of cl 11, and s 66(1A) operates to preclude any further claim for compensation for permanent impairment arising out of the injury that he suffered in May 2005.

12. I have had the advantage of reading in draft form the proposed reasons of Gleeson JA. I agree with the orders proposed by his Honour for the reasons proposed by him.

13. GLEESON JA: The question raised by this application is whether a worker who specifically sought lump sum compensation for permanent impairment before 19 June 2012 (and whose claim had been accepted and paid in December 2010) is entitled to make a second claim after 19 June 2012 for such compensation arising out of the same injury. The answer to this question turns upon the application and construction of certain amendments to the Workers Compensation Act 1987 (NSW) (the 1987 Act), which were inserted in June 2012.

Factual background

14. The relevant facts are not in dispute. The respondent, Mr Green, was employed by the applicant as a maintenance fitter. He suffered an injury at work on 24 May 2005 when he was crouching down to lift parts off a hose assembly. He injured his lower back. It was not disputed that he made a claim for compensation against the applicant within six months after the injury happened, as required by s 261(1) of the Workplace Injury Management and Workers Compensation Act 1998 (NSW) (the 1998 Act).

15. It is to be noted that the 1987 Act is to be construed with, and as if it formed part of the 1998 Act. In the event of inconsistency, the 1998 Act prevails: see ss 2A(2) and (3) of the 1987 Act.

16. On 14 December 2010, Mr Green made a claim for lump sum compensation under s 66 of the 1987 Act for permanent impairment (the 2010 Claim). He claimed 7% whole person impairment in respect of the injury to his lumbar spine sustained on 24 May 2005. No claim was made by Mr Green for pain and suffering under s 67 of the 1987 Act. This claim was resolved on 22 December 2010 when the applicant and Mr Green entered into a Complying Agreement pursuant to s 66A of the 1987 Act. Under that agreement the applicant agreed to pay to Mr Green the amount of $8,750 representing his 7% permanent impairment.

17. Mr Green’s condition deteriorated and he underwent spinal surgery in September 2012. On 29 October 2013 he made a claim for further compensation pursuant to s 66 (the 2013 Claim). He claimed a further sum of $23,750 representing a permanent impairment assessed at 22% (with credit for the $8,750 already paid under the 2010 Claim in respect of his 7% permanent impairment). He also claimed compensation under s 67 of the 1987 Act for pain and suffering.

Proceedings in the Commission

18. On 3 March 2014, Mr Green filed an Application to Resolve a Dispute in the Workers Compensation Commission (Commission) claiming, amongst other things, lump sum compensation in accordance with his 2013 Claim.

19. The applicant’s workers compensation insurer, Allianz Australia Workers Compensation (NSW) Ltd (Allianz), denied liability for further impairment compensation under s 66 and for pain and suffering under s 67. The latter claim was subsequently resolved. As to the claim under s 66, Allianz asserted that, by reason of amendments made to s 66 on 27 June 2012, Mr Green was precluded from bringing a further claim for lump sum compensation. The amendment introduced by s 66(1A) had the effect that only one claim can be made under the 1987 Act for permanent impairment compensation in respect of permanent impairment that results from an injury.

20. Mr Green’s entitlement to make a second claim for compensation in respect of permanent impairment depended upon the operation of transitional provisions introduced by the Workers Compensation Legislation Amendment Act 2012 (NSW) (2012 Amending Act) which commenced on 27 June 2012. The 2012 Amending Act provided that the amendments applied to claims for compensation made on and after 19 June 2012, but not to such a claim made before that date. Mr Green contended that his further claim was exempted from the one claim limitation in the new s 66(1A) by reason of a transitional regulation inserted in the Workers Compensation Regulation 2010 (NSW) on 1 October 2012. The relevant regulation, cl 11 of Sch 8, provided that the 2012 amendments did not extend to a claim for compensation made before 19 June 2012 that specifically sought compensation under ss 66 or 67 of the 1987 Act.

18. In the Commission, Arbitrator Harris concluded that Mr Green was not precluded from bringing his further claim for lump sum compensation. The Arbitrator ordered that the matter be remitted to the Registrar for referral to an approved medical specialist for assessment of whole person impairment.

19. The applicant appealed the Arbitrator’s determination. The President of the Commission, Keating P, rejected the appeal and confirmed the Arbitrator’s determination: Cram Fluid Power Pty Ltd v Green [2014] NSWWCCPD 84.

20. Keating P found that the amendments to s 66 introduced by the 2012 Amending Act did not apply to Mr Green’s 2013 Claim in respect of permanent impairment. Although strictly unnecessary to determine, Keating P also found that if the new s 66(1A) applied in the present case, it only applied prospectively to claims for lump sum compensation made on or after 19 June 2012. Adopting this approach, Mr Green’s 2013 Claim was his “one claim” made after 19 June 2012 and could be pursued in the Commission.

Leave to appeal

24. An appeal in respect of an interlocutory decision of the Commission may be brought to this Court, only with leave: s 353(4)(a) of the 1998 Act.

25. In the Commission, Keating P took the view that an order by a Commission Arbitrator to remit the matter to the Registrar for referral to an approved medical specialist is interlocutory. His Honour referred to Tozanis v KU Children's Services [2010] NSWWCCPD 51 and Moore v Greater Taree City Council [2009] NSWWCCPD 17. The applicant did not challenge that view, nor suggest that the decision of Arbitrator Harris, which was the subject of the appeal before Keating P, was final rather than interlocutory.

26. The applicant sought leave to appeal, if leave was required on this basis and Mr Green consented to the grant of leave. Since the appeal raises a question of law which is both novel and complex, and other applications may be expected to depend upon the answer, there should be a grant of leave to appeal.

27. An understanding of how the “one clam” limitation arises in the present case is assisted by an outline of the legislative framework and the terms of the 2012 Amending Act.

Legislative framework

28. Section 9(1) of the 1987 Act relevantly provides that a worker who has received an injury shall receive compensation from the worker’s employer in accordance with the Act. Part 3 of the 1987 Act headed “Compensation – Benefits” provides for different types of benefits relating to injured workers, including: death benefits (Div 1); weekly benefits (Div 2); medical benefits (Div 3); non-economic loss (Div 4); and property damage (Div 5). The present case is concerned with compensation for non-economic loss, that is lump sum compensation for permanent impairment under Div 4. The entitlement to compensation for permanent impairment is found in s 66.

29. Prior to the 2012 Amending Act, s 66(1) of the 1987 Act provided that a worker who received an injury that resulted in “permanent impairment” was entitled to receive compensation as provided by s 66, and such “permanent impairment” compensation, was in “addition to any other compensation” under the 1987 Act.

30. The manner of calculation of the amount of permanent impairment compensation was specified in s 66(2). In particular, if the degree of permanent impairment was not greater than 10%, the amount was calculated as D x $1,375, where D is the number derived by expressing the degree of permanent impairment as D%. Other calculations were specified where the degree of permanent impairment was greater than 10% but not greater than 20%; greater than 20% but not greater than 40%; greater than 40% but not greater than 75%; and greater than 75%. The detail of these calculations is not relevant to this appeal.

31. The claim procedures for compensation are contained in the 1998 Act. Chapter 7 of the 1998 Act is headed “New Claims Procedures”. Part 2 deals with the giving of notice of injury and making a claim. The scheme of these provisions requires an injured worker to give notice of the injury to the employer as soon as possible after the injury happened: s 254(1). The failure to give notice of injury as required is not a bar to the recovery of compensation if in proceedings to recover the compensation, it is found that there are special circumstances as set out in s 254(3): s 254(2).

32. Section 260(1) of the 1998 Act provides that a claim must be made in accordance with the applicable requirements of the WorkCover Guidelines. Section 261 concerns the time within which a claim for compensation must be made. Relevantly, s 261(1) provides that compensation cannot be recovered unless a claim for compensation has been made within 6 months after the injury or accident happened or, in a case of death, within 6 months after the date of death.

33. Section 261(3) provides that for the purposes of that section, the person is considered to have made a claim for the compensation when the person makes any claim for compensation in respect of the injury or death concerned, even if the person’s claim did not relate to the particular compensation in question. Subsections (4) and (5) address circumstances where there has been a failure to make a claim within the 6 month period after the injury or accident happened. An injured worker is taken to have received an injury when the worker first became so aware: s 261(6).

34. Section 263(1) of the 1998 Act provides that all claims for permanent impairment compensation in respect of an injury must, as far as practicable, be made at the same time.

2012 Amending Act

35. The 2012 Amending Act amended s 66(1) and (2) and inserted a new s 66(1A). Accordingly, s 66(1) and (1A) as amended now reads:

(1) A worker who receives an injury that results in a degree of permanent impairment greater than 10% is entitled to receive from the worker's employer compensation for that permanent impairment as provided by this section. Permanent impairment compensation is in addition to any other compensation under this Act.

Note. No permanent impairment compensation is payable for a degree of permanent impairment of 10% or less.

(1A) Only one claim can be made under this Act for permanent impairment compensation in respect of the permanent impairment that results from an injury.

36. The 2012 Amending Act amended s 66 in two relevant respects. First, under the amended s 66(1), the entitlement to permanent impairment compensation would arise only where a worker “received an injury that results in a degree of permanent impairment greater than 10%”. Consistently with the amendment to s 66(1) was the removal of paragraph (a) from s 66(2), which provided the mechanism for calculating compensation when the degree of permanent impairment was less than 10%. The effect of these amendments was to remove any lump sum compensation for permanent impairment where the permanent impairment was not greater than 10%.

37. Secondly, the new s 66(1A) permits “only one claim” for permanent impairment compensation in respect of an injury. “Injury” is relevantly defined in s 4 of the 1987 Act as “personal injury arising out of or in the course of employment”.

38. The application of the amendments made by the 2012 Amending Act are governed by three transitional provisions, the first two being statutory provisions in the 1987 Act and last being the provision found in regulations.

(1) Statutory transitional provisions

39. The savings and transitional provisions introduced by Sch 12 to the 2012 Amending Act are now found in Pt 19H of Sch 6 to the 1987 Act. Relevantly, cl 3 and cl 15 provide:

3 Application of amendments generally

(1) Except as provided by this Part or the regulations, an amendment made by the 2012 amending Act extends to:

(a) an injury received before the commencement of the amendment, and

(b) a claim for compensation made before the commencement of the amendment, and

(c) proceedings pending in the Commission or a court immediately before the commencement of the amendment.

(2) An amendment made by the 2012 amending Act does not apply to compensation paid or payable in respect of any period before the commencement of the amendment, except as otherwise provided by this Part.

...

15 Lump sum compensation

An amendment made by Schedule 2 to the 2012 amending Act extends to a claim for compensation made on or after 19 June 2012, but not to such a claim made before that date.

40. It was common ground that cl 15 constituted an exception to the general provision stated in cl 3.

41. In ADCO Constructions Pty Ltd v Goudappel [2014] HCA 18; 88 ALJR 624 (Goudappel) at [13], the High Court (French CJ, Crennan, Kiefel and Keane JJ) said:

In summary, cl 15 protected entitlements the subject of claims made before 19 June 2012 from the general application of cl 3 and, therefore, from the disentitling effect of the new s 66(1). … The protection provided by cl 15 was, however, liable to be affected by regulation.

Gageler J expressed a similar view at [41].

42. Such a regulation is to be found in cl 11 of Sch 8 to the Workers Compensation Regulation 2010 (NSW) (the 2010 Regulations), the validity of which was confirmed by the High Court in Goudappel.

(2) Transitional regulation

43. The 2010 Regulations were amended in two relevant respects following the amendments to s 66 in June 2012.

44. On 17 September 2012, the Workers Compensation Amendment (Miscellaneous) Regulation 2012 (NSW) came into operation. Schedule 1, Item 3 inserted a new Sch 8 to the 2010 Regulations. Relevantly, cl 1 of Sch 8 provides:

1 Interpretation

(1) Words and expressions used in this Part have the same meaning as in Part 19H of Schedule 6 to the 1987 Act.

(2) the provisions of Part 19H of Schedule 6 to the 1987 Act are deemed to be amended to the extent necessary to give effect to this Part.

45. Next, on 1 October 2012 the Workers Compensation Amendment (Transitional) Regulation 2012 (NSW) came into operation. Schedule 1, item 5 inserted into Sch 8 to the 2010 Regulations, relevantly:

11 Lump Sum Compensation

(1)    The amendments made by Schedule 2 to the 2012 amending Act extend to a claim for compensation made before 19 June 2012, but not to a claim that specifically sought compensation under section 66 or 67 of the 1987 Act.

(2) Clause 15 of Part 19H of Schedule 6 to the 1987 Act is to be read subject to subclause (1).

46. In this Court in Goudappel v ADCO Constructions Pty Ltd [2013] NSWCA 94; 11 DDCR 534 at [22] Basten JA explained:

Clause 11 purports to provide for the operation of the amending provisions, not by excepting all "claims for compensation" made before 19 June 2012 (as the Act had done), but by excepting only those claims that "specifically sought compensation under s 66 or s 67 of the 1987 Act" and were lodged before that date. As it expressly states, it varies the operation of cl 15 in Sch 6, Part 19H to the Act.

Relevant definitions

47. The definition of various terms in the 1987 Act is found in the 1998 Act. The following definitions in the 1998 Act are relevant:

4 Definitions

claim means a claim for compensation or work injury damages that a person has made or is entitled to make.

…

compensation means compensation under the Workers Compensation Acts, and includes any monetary benefit under those Acts.

…

injury:

(a) means a personal injury arising out of or in the course of employment, and

…

permanent impairment compensation means compensation for permanent impairment under section 66 of the 1987 Act.

Complying agreements under s 66A of the 1987 Act

48. In considering the “one claim” limitation in the new s 66(1A), it is also necessary to refer to s 66A dealing with a “complying agreement”, as it stood at the time the agreement was made with respect to Mr Green’s 2010 claim.

49. A “complying agreement” is defined in s 66A(1). Prior to the 2012 Amending Act a complying agreement was defined as a written agreement under which a worker who has received an injury, and an employer or insurer:

• agree as to either or both of:

1. the degree of permanent impairment that has resulted from the injury,

2. the amount of pain and suffering compensation to which the worker is entitled in respect of the injury; and

• the agreement contains a provision in which the employer or insurer certifies that it is satisfied that the worker has obtained independent legal advice before entering into the agreement.

50. Section 66A(2) relevantly provided that if a worker enters into such a complying agreement in relation to an injury, the permanent impairment compensation to which the worker is entitled in respect of the injury is the compensation payable in respect of the degree of impairment so agreed.

51. Section 66A(3) relevantly provided:

(3) The Commission may award compensation additional to the compensation payable under subsection (2) by virtue of a complying agreement if it is established that:

…

(c) since the agreement was entered into, there has been an increase in the degree of permanent impairment beyond that so agreed.

52. The 2012 Amending Act amended the terms of s 66A by deleting the references in s 66A to an agreement as to the amount of pain and suffering compensation to which the worker is entitled in respect of the injury. This had no relevant effect on the complying agreement in the present case. Section 66A(3) was not otherwise amended in a way that concerns this appeal.

Issues on appeal

53. The applicant identified two issues of construction, one relating to whether the new s 66(1A) applied to Mr Green’s 2013 Claim (grounds 1 and 2) and the other relating to the effect of the “one claim” limitation in s 66(1A) (ground 3). The applicant accepted that the second issue only arises if it is found that s 66(1A) does apply to Mr Green’s 2013 Claim.

54. The question raised by the first issue, is whether the 2013 Claim is a “claim for compensation made on or after 19 June 2012” to which the one claim limitation in s 66(1A) applies, or is “a claim for compensation made before that date”, within the meaning of the transitional provision in cl 15 of Pt 19H of Sch 6 to the 1987 Act.

55. The second issue is whether s 66(1A) should be construed to mean that only one “further” claim for lump sum compensation can be made after the commencement of the 2012 Amending Act, as Keating P held, or whether Mr Green’s 2013 Claim is not maintainable, because he has already made “one claim” for lump sum compensation under the 1987 Act, namely his 2010 Claim.

Application to adduce further evidence on appeal

56. By notice of motion dated 30 June 2015, Mr Green sought an order from this Court that four documents, not tendered before the Commission, now be admitted into evidence. Two of the documents (a claim form and an employer’s report of injury form) related to Mr Green’s initial claim made on 14 June 2005 and the other two documents (employee’s recurrence claim forms) related to recurrence of Mr Green’s injury on 23 May 2008. Mr Green did not submit that the evidence was not available to him at the time of the hearing before the Commission.

57. Under s 75A(8) of the Supreme Court Act 1970 (NSW) where the appeal is from a judgment after a trial or hearing on the merits, the Court shall not receive further evidence except on special grounds. Neither party directed any attention to whether the hearing before the Arbitrator, or the appeal before Keating P, although interlocutory in nature, was a “hearing on the merits” within the meaning of s 75A(8).

58. It has been said that the expression “hearing on the merits”, does not on its face exclude interlocutory matters: Martin v Abbott Australasia Pty Ltd [1981] 2 NSWLR 430 at 434 (Hunt J). At 435-436, Hunt J expressed the view that the phrase should be construed as meaning the hearing of any interlocutory matter in which both parties appeared and in which the issue between them in that interlocutory matter (whether of fact and/or law) was investigated by the relevant tribunal. His Honour added that there is no need for the issues between the parties in the proceedings as a whole to be investigated or determined for the hearing to be one “on the merits”.

59. In the absence of argument to the contrary, the Court should proceed on the basis that the interlocutory hearing before the Arbitrator, and the appeal before Keating P, satisfied this threshold of a “hearing on the merits”.

60. In oral argument the applicant modified its initial opposition to the grant of leave and neither consented nor opposed the grant of leave to Mr Green to rely upon the four documents.

61. Akins v National Australia Bank (1994) 34 NSWLR 155 at 160 and cases which have followed it, such as Tjiong v Tjiong [2012] NSWCA 201 at [166], establish that, in general, three conditions need to be met to satisfy the requirement of “special grounds” in s 75A(8):

1. the evidence could not have been obtained with reasonable diligence for use at the trial;

2. the evidence must be such that there must be a high degree of probability that there would be a different verdict; and

3. the evidence must be credible.

62. In the present case, there is no issue as to the third condition – the proposed further evidence is credible. Mr Green did not address why he ought be excused from the first condition. The matters bearing on this question need not be addressed as, in my view, the second condition has plainly not been met. The further evidence would not have had an important influence on the result of the case because it would not have assisted Mr Green’s case at all. The evidence was not required to explain nature of the claim which Mr Green ultimately made in 2010. Nor was the evidence required to establish that Mr Green had made a claim within six months of the happening of the injury. As already mentioned, there was no issue that Mr Green had satisfied the time limitation in s 261(1) of the 1998 Act. The application to admit the four documents on appeal should accordingly be rejected.

First issue: Does the new s 66(1A) apply to Mr Green’s 2013 Claim?

The Commission’s reasons

63. In the Commission, the dispositive reasoning of Keating P on the first issue was expressed at [78]-[80] as follows:

78.   First, in [Goudappel] it was the fact that the worker had not made a claim for lump sum compensation prior to 19 June 2012, that was fatal to his entitlement to pursue a claim under the amended s 66. That is not the case here. Mr Green has made a prior claim for permanent impairment compensation in which he “specifically sought” compensation under s 66. Far from being “problematic”, the fact of the prior claim puts Mr Green precisely in the category of claimants who, by reason of the findings of the High Court in [Goudappel] (at [36]) are exempt from the application of the amending Act. It is prudent to keep in mind the use of the past tense – “specifically sought” – rather than the present tense – “specifically seeking”.

79.   Second, contrary to Mr Flett’s submission, it does not follow from the High Court’s finding, referred to above, that a claim for additional lump sum compensation arising from a deterioration of an injury, that had been the subject of a prior claim that had been made and resolved, is a “new claim” in respect of the same injury and is thereby caught by the amendments. The findings in [Goudappel] are expressly to the contrary.

80. Third, had the legislature intended that the application of the amendments apply to “new claims” it could readily have so stated. Neither the amending Act nor cl 11 of Sch 8 of the 2010 Regulation use the words “new claim”. For the reasons I have given, an acceptance of Mr Flett’s submission can only be achieved by writing words into the legislation, which for the reasons explained above, is not open.

64. At [83], Keating P stated his conclusion:

As the High Court made clear, the amendments introduced by the amending Act apply to claims for compensation under s 66 made on or after 19 June 2012 “where the worker has not made a claim specifically seeking compensation under s 66 or s 67 before 19 June 2012” ([36] quoted in full at [72] above). On the facts in this case, Mr Green made a claim specifically seeking compensation under s 66 before 19 June 2012. It is clear, on that basis, that the amendments to s 66 and s 67 introduced by the amending Act do not apply to him and therefore he is free to pursue his claim. It follows that, as that was the conclusion reached by the Arbitrator, no error has been demonstrated and therefore this ground of appeal fails.

Submissions

The applicant’s submissions

65. The focus of the applicant’s submissions was on demonstrating by reference to the legislative scheme, that Mr Green’s 2013 Claim has a separate identity from his 2010 Claim, with the consequence that the 2013 Claim is a “claim” within cl 15 of Pt 19H of Sch 6 to the 1987 Act. Accordingly it is said that s 66(1A) applies to the 2013 Claim.

66. The applicant submitted that the words “a claim for compensation made” in cl 15 must be given a meaning consonant with the 1987 Act and the 1998 Act read congruently as a whole. This required the conclusion, it was said, that multiple claims of permanent impairment compensation are separate and distinct from each other and not properly characterised as parts or aspects of a single claim, although there may be a single injury.

67. In support of its argument, the applicant pointed to the use of the distinct concepts of “injury”, “compensation”, “entitlement” and “claim” for the purposes of the 1987 Act and the 1998 Act. The applicant also pointed to the use of the term “claim” in various provisions of the 1998 Act in a manner consistent with multiple claims for permanent impairment being treated as separate and distinct claims. Reference was made to ss 260, 261 and 263 of the 1998 Act. It is unnecessary to refer to the detail of these provisions in view of the concession made by counsel for Mr Green which is noted below.

Mr Green’s submissions

68. Counsel for Mr Green accepted in oral argument that Mr Green had made two claims for permanent impairment compensation, one in 2010 (which had been resolved and paid) and another in 2013 (which was the subject of the application in the Commission) (tcpt, CA at 31, lines 38-49; at 32, lines 11-16). That concession was properly made.

69. The area of dispute on the first construction issue was ultimately quite narrow.

70. Mr Green contended that the one claim limitation in s 66(1A) did not apply to the 2013 Claim because cl 11 of Sch 8 to the 2010 Regulations exempted the 2010 Claim from s 66(1A).

71. The argument, which was put concisely, was that since the 2010 Claim was a claim made before 19 June 2012 that “specifically sought compensation under s 66 … of the 1987 Act” the effect of cl 11 of Sch 8 to the 2010 Regulations is to exclude the 2010 Claim from the ordinary operation of s 66(1A). The consequence was said to be that the 2012 amendments did not apply to Mr Green and accordingly, the 2013 Claim may be brought under s 66 as amended.

72. Alternatively, Mr Green contended that notwithstanding the one claim limitation in s 66(1A), his 2013 Claim can be pursued in the Commission because, having previously entered into a “complying agreement” in resolution of his 2010 Claim, s 66A(3)(c) permits him to make a further claim for permanent impairment compensation based on his deterioration since the “complying agreement” was entered into in December 2010.

The applicant’s response

73. The applicant disputed that cl 11 of Sch 8 to the 2010 Regulations was the operative provision in this case. The applicant contended that cl 11 does not confer an immunity on the claimant or worker, Mr Green, from the application of s 66(1A) to his 2013 Claim. Rather cl 11 is directed to exempting certain “claims” for compensation (as distinct from “claimants” or “workers”) from the one claim limitation in s 66(1A), if the claim answers the description of a claim made before 19 June 2012 which “specifically sought lump sum compensation”. It was emphasised that Mr Green’s 2013 Claim did not satisfy that temporal requirement which was necessary to engage the exemption from the new s 66(1A) provided by cl 11.

74. As to Mr Green’s reliance upon s 66A(3)(c) with respect to deterioration in his impairment since entering into the complying agreement in 2010, the applicant accepted that there was some tension between ss 66 (as amended) and 66A(3)(c).

75. Nonetheless the applicant contended that these provisions could be read together and given a harmonious operation without rendering s 66A(3)(c) superfluous. It was submitted that s 66A(3)(c) should be given a limited operation with respect to those further claims for permanent impairment compensation based on deterioration in a claimant’s permanent impairment since entering into a complying agreement, but only where such further claim for permanent impairment compensation had been made before 19 June 2012.

Consideration

76. The scheme of the transitional provisions has been outlined above at [39]-[47]. As already indicated, the focus of the parties’ submissions was on whether cl 15 of Pt 19H of Sch 6 to the 1987 Act, or cl 11 of Sch 8 to the 2010 Regulations was the operative provision in the present case.

77. The starting position is that, cl 15 relevantly provides that the 2012 amendments extend to a claim for compensation made on or after 19 June 2012, but not to such a claim made before that date. However, as the High Court stated in Goudappel (at [13]), although cl 15 protected entitlements the subject of claims made before 19 June 2012 from the disentitling effect of the new s 66(1), in particular s 66(1A), that protection was liable to be affected by regulation.

78. Clause 11 of Sch 8 to the 2010 Regulations is such a regulation which varies the operation of cl 15 of the transitional provisions. Clause 11 does so by extending the operation of the 2012 amendments to claims for compensation made before 19 June 2012, subject to one exception. The exception is limited to those claims made before 19 June 2012 “that specifically sought compensation under section 66 or 67 of the 1987 Act.”

79. It is to be observed that the exemption provided by cl 11 from the new s 66(1A), is directed to those “claims” for compensation which answer the relevant description, not the “claimant” or “worker”, nor the “injury” to the worker.

80. Mr Green’s 2013 Claim answers the description of a “claim for compensation” made after 19 June 2012. Counsel for Mr Green conceded so much in oral argument. If the operative provision were cl 15, that conclusion would result in the first issue being answered favourably to the applicant. Keating P took a different view. He held that notwithstanding that the 2010 Claim had been made and resolved, the 2013 Claim was not a “new claim” in respect of the same injury and thereby caught by the amendments to s 66. His Honour considered (at [78]) that the High Court’s decision in Goudappel (at [36]) required that view to be taken of the 2013 Claim. Counsel for Mr Green did not seek to support his Honour’s reasoning. He was correct not to do so.

81. Nothing in the High Court’s decision in Goudappel supports the meaning of “claim” favoured by his Honour. The question of what is meant by a “claim” for compensation was not in issue before the High Court. The issue before the High Court was the validity of cl 11 of Sch 8 to the 2010 Regulations. So much is clear from [3] and [9] of the reasons in Goudappel.

82. At [9] of the High Court’s reasons, it was noted that the conclusion in this Court concerning Mr Goudappel’s claim for permanent impairment compensation being subsumed in his original claim for compensation made prior to the 2012 amendments was not in issue: see Goudappel v ADCO Constructions Pty Ltd at [1], [2], [16]. As will be seen, this Court’s decision concerning the worker’s “claim” in Goudappel v ADCO Constructions Pty Ltd does not assist Mr Green, because Mr Green did not contend that his 2010 Claim (which had been resolved) could be taken as subsuming his 2013 Claim.

83. Keating P erred, with respect, in treating the High Court’s answer to the question of the validity of the regulation as addressing the meaning of “claim” for the purposes of s 66 and the transitional provisions.

84. Accepting that the 2013 Claim answers to the description in cl 15 of a claim for compensation made after 19 June 2012, one turns to the contention of Mr Green that the effect of cl 11 of Sch 8 to the 2010 Regulations is that if a worker had specifically sought a s 66 entitlement to lump sum compensation for permanent impairment before 19 June 2012 (as Mr Green had done in 2010), then the operation of the 2012 amending provisions did not apply to that claimant or worker, so that the worker could make a further claim for lump sum compensation after that date (tcpt, CA at 31, lines 18-29).

85. Counsel for Mr Green accepted that the construction of cl 11 contended for required reading cl 11 as having the effect of providing that the 2012 amendments do not extend to a claim for s 66 compensation made after 19 June 2012, if there has been a previous claim for s 66 compensation before that date (tcpt, CA at 30, lines 31-36). The difficulty with this construction, as pointed out in debate during oral argument, is that those words were not used in cl 11.

86. Counsel for Mr Green sought to meet this difficulty by contending that if one reverses the order in which the two parts of cl 11 are expressed, the meaning is the same as the construction contended for by Mr Green (tcpt, CA at 30, lines 41-42). This submission should be rejected. Whichever order in which cl 11 is read, Mr Green’s construction involves reading additional words into the clause. Counsel for Mr Green was reluctant to accept that this was so, but that reluctance cannot obscure the effect of Mr Green’s construction (tcpt, CA at 30, lines 44-46).

87. A number of further observations should be made. First, the clear object of cl 11 of Sch 8 to the 2010 Regulations was to extend the 2012 amendments to claims made before 19 June 2012, except where the “claim” specifically sought lump sum compensation. The regulation went no further.

88. Secondly, no attempt was made in Mr Green’s submissions to justify reading cl 11 as if it contained additional words with the effect of expanding its field of operation: see Taylor v The Owner – Strata Plan No 11564 [2014] HCA 9; 88 ALJR 473 at [38]–[40] in the context of statutory construction. It was not suggested that cl 11 should be read as it if contained additional words because of simple, grammatical, drafting errors which if uncorrected would defeat the object of the regulation.

89. Thirdly, counsel for Mr Green did not point to any contextual or other basis for reading cl 11 in the manner contended for.

90. Fourthly, cl 11 does not purport to vary the operation of cl 15 of Pt 19H with respect to claims for compensation made on or after 19 June 2012. The language of cl 11 cannot be tortured in the way Mr Green suggests to apply to a different subject matter. Clause 11 says nothing about claims for compensation made on or after 19 June 2012.

91. In short, the 2013 Claim which Mr Green sought to pursue before the Commission does not answer the description in cl 11 of a claim that “specifically sought compensation under s 66 … made before 19 June 2012”. The fact that the 2010 Claim may have answered that description is not to the point. Once it is accepted, as it must be, that the 2013 Claim although arising out of the same injury was a different claim to the 2010 Claim, the effect of cl 15 of Pt 19H is that Mr Green’s 2013 Claim is subject to the operation of the amending provisions, including the one claim limitation in s 66(1A).

92. This is sufficient to dispose of the first argument raised by Mr Green. It is unnecessary to address the other criticisms of the reasoning of Keating P advanced by the applicant.

93. For completeness however, reference should be made to two authorities which the parties placed reliance upon.

94. First, the applicant referred to the following statement by Basten JA (with whom Beech-Jones J agreed) in Sukkar v Adonis Electrics Pty Ltd [2014] NSWCA 459 at [106] as supporting its construction of cl 11:

The effect of cl 11 was to preclude reliance on the old form of s 66 with respect to a claim made prior to 19 June 2012, unless the claim specifically sought lump sum compensation. The 1996 claim fell within the exception. However, that did not assist the applicant because, not only had that claim been disposed of, but it could not give rise to an entitlement to compensation for loss of hearing after August 1996. It followed that the 2012 Amendment Act applied to the only extant claim, namely that made on 19 June 2012. [Emphasis added.]

95. The applicant contended that the above statement is consistent with the applicant’s argument that Mr Green’s 2010 Claim and his 2013 Claim were distinct. So much may be accepted, but it must be recognised that the meaning of “injury” for the purpose of a “claim” in Sukkar v Adonis Electrics Pty Ltd turned on the deeming provisions applicable to hearing loss claims, which do not apply to the present case.

96. Under s 17 of the 1987 Act, where an injury from a loss or further loss of hearing is caused by a gradual process, the injury is deemed to have happened at the time when a notice is given to the employer or insurer. Notice had been given by Mr Sukkar in 1996 and that claim had been resolved. Further notice had been given by Mr Sukkar on 19 June 2012 and the issue was whether the 2012 amendments applied to that latter claim, which s 17 required to be treated as a deemed “injury”, separate to the injury the subject of the 1996 claim. That is different from the present case, which involves only one injury, but two claims.

97. Next, the applicant was on firmer ground insofar as it pointed to the observation of Beech-Jones J (at [123]) that the “immunity” argument is misconceived. In Sukkar v Adonis Electrics Pty Ltd, Mr Sukkar had contended that cl 11 of Sch 8 to the 2010 Regulations conferred some form of immunity from the 2012 amendments, if the worker just happened to have previously made a claim for lump sum compensation prior to the critical date of 19 June 2012. This was, in effect, the same argument as Mr Green relied upon here.

98. Beech-Jones J explained, correctly in my view, that the reference to “claim” in cl 15 of Pt 19H of Sch 6 to the 1987 Act and cl 11 of Sch 8 to the 2010 Regulations is clearly directed to the claim under consideration which in that case, like the present, was a claim made on or after 19 June 2012. Basten JA expressed a similar view at [113]:

A claim for lump sum compensation for permanent impairment made on or after 19 June 2012 is a claim to which the 2012 Amending Act applies by virtue of the transitional provision in cl 15, Pt 19H, Sch 6 to the 1987 Act. If there is an unresolved claim, specifically for lump sum compensation for permanent impairment, made before 19 June 2012, the 2012 Amending Act will not apply to it.

99. Finally, in written submissions, Mr Green pointed to the statement in this Court by Basten JA in GoudappelvADCO Constructions Pty Ltd at [11]. There his Honour, referring to the meaning of the words “claim”, “compensation” and “lump sum compensation” under the 1987 and 1998 Acts, said that: “[h]ad it been intended to require an extant claim for lump sum compensation as at the specified date, cl 15 could have so stated, but it did not”.

100. That statement however was directed to a different circumstance than the present case.

101. Goudappel v ADCO Constructions Pty Ltd involved a worker who had lodged a claim for compensation in April 2010, but had not specifically sought any permanent impairment compensation under s 66 until 20 June 2010, being after the critical date for the application of the 2012 amendments. The worker’s claim for permanent impairment compensation was below the 10% threshold now required under s 66(1). Accordingly, the claim under s 66 could be maintained only if the 2012 Amending Act did not apply to the worker’s claim.

102. In this Court, Basten JA held that the 2012 amendments did not apply to Mr Goudappel’s claim under s 66. His Honour reasoned that a worker was not required under the 1987 Act to make a “separate claim” for lump sum compensation payments: see at [11]-[17]. Accordingly, his Honour concluded that an extant general claim for compensation made before 19 June 2012, subsumes a later specific claim under s 66. That however is not the present case. His Honour was not called on to consider the relationship between two specific claims (one resolved) each for permanent impairment compensation.

103. Insofar as the applicant challenged aspects of the reasoning of Basten JA concerning a “claim”, it is unnecessary to address those matters here. There is no issue that Mr Green relevantly made a claim for lump sum compensation before 19 June 2012, and that claim had been resolved before that critical date. Unlike the injured worker in Goudappel v ADCO Constructions Pty Ltd, Mr Green did not seek to escape the operation of the 2012 Amending Act by relying upon an extant general claim for compensation made before 19 June 2012 as subsuming a specific claim for lump sum compensation first advanced after 19 June 2012.

Section 66A(3)(c)

104. Section 66A(3)(c) contemplates that where a worker who has received an injury enters into a complying agreement, there may be an increase in the degree of permanent impairment beyond that which is the subject of the agreement. In such event, the Commission may award additional compensation notwithstanding the earlier agreement as to the compensation payable to the worker.

105. In this respect, the “one claim” limitation in the new s 66(1A) may be seen to conflict with the assumption underlying the Commission’s power to award additional lump sum compensation under s 66A(3). The question which arises is how should seemingly conflicting provisions be reconciled. Two observations may be made.

106. First, there is a general presumption against surplusage in statutes: Taheri v Vitek [2014] NSWCA 209; 87 NSWLR 403 at [121] (Leeming JA).

107. Secondly, as the High Court explained in Project Blue Sky Inc v Australian Broadcasting Authority [1998] HCA 28; 194 CLR 355 at [70], citing Institute of Patent Agents v Lockwood [1894] AC 347 at 360 (Lord Herschell LC), reconciling conflicting provisions will often require the Court to determine which is the leading provision and which the subordinate provision, and which must give way to the other. The High Court continued (at [70]) “only by determining the hierarchy of the provisions will it be possible in many cases to give each provision the meaning which best gives effect to its purpose and language while maintaining the unity of the statutory scheme”.

108. Here, giving effect to the purpose and language of the 2012 amendments while maintaining the unity of the statutory scheme, requires that the one claim limitation in the new s 66(1A) be taken to be the leading provision and the Commission’s power under s 66A(3) must give way to it. This is because the Commission’s power to award additional compensation under s 66A(3)(c) is not independent of a worker’s entitlement to receive compensation under s 66. So much was accepted by counsel for Mr Green (tcpt, CA at 34, lines 29-47).

109. It should be accepted, as the applicant contended, that following the introduction of s 66(1A), s 66A(3) only has a limited operation with respect to claims for lump sum compensation additional to that payable under a complying agreement, where the further claim is made before 19 June 2012. Such a claim would answer the description in cl 11 of a claim that specifically sought lump sum compensation before 19 June 2012 and thus would be exempted from the one-claim limitation in the new s 66(1A).

110. It follows that s 66A(3)(c) does not assist Mr Green because his further claim for lump sum compensation, based on his deterioration since the 2010 complying agreement, was not made before 19 June 2012.

Second issue: Meaning of “only one claim” in s 66(1A)

The Commission’s reasons

111. In the Commission, Keating P identified the second issue as whether s 66(1A) is to be read prospectively, so that a worker is only restricted to “one claim” after the commencement of the 2012 Amending Act, or whether it applies retrospectively by construing s 66(1A) as extending to claims made before its commencement: at [99].

111. In the circumstances of the present case, his Honour noted that when Mr Green made his claim in 2010 he was entitled to make subsequent claims if his level of impairment increased. His Honour considered that if the applicant’s arguments were accepted, the accrued right of Mr Green would be extinguished by the making of his 2010 Claim: at [100]. He concluded that this was not the statutory intention of the 2012 Amending Act.

112. His Honour’s essential reasoning is expressed at [104]-[107] as follows:

104. The High Court held that the contrary intention was clear in Mr Goudappel’s circumstances, namely, where he had not previously sought compensation under s 66 or s 67. However, there is no clear statement in either the text or context of the legislation, nor the transitional provisions in Pt 19H and cl 11 of Sch 8 of the 2010 Regulation, to support the proposition that it was intended that the one claim referred to in s 66(1A) is intended to refer to a claim or claims made before 19 June 2012.

105. That s 66(1A) is not intended to have retrospective effect is evidenced by the fact that the clear words of cl 15 of Pt 19H which expressly provides that an amendment introduced by Sch 2 of the amending Act, which includes s 66(1A), extends to claims for compensation made on or after 19 June 2012, but not to such a claim made before that date. It follows that the “one claim” referred to in s 66(1A) cannot be a reference to a claim or claims made before 19 June 2012.

106. This conclusion is reinforced by cl 11 of Sch 8 of the 2010 Regulation. As I have discussed with respect to ground one, cl 11 clearly provides that the amendments introduced by the amending Act, including s 66(1A) and the one claim limitation, do not apply to claims that specifically sought lump sum compensation under s 66 or s 67 before 19 June 2012.

107. It must follow from the plain reading of these provisions that the one claim limitation referred to in s 66(1A) is a limitation that applies to claims for lump sum compensation made on or after 19 June 2012. That is, the provision applies prospectively to claims made on or after 19 June 2012 and claims made under s 66 or s 67 are not counted as the one claim for the purposes of the amended provision.

Submissions

The applicant’s submissions

114. The applicant contended that Keating P adopted an erroneous approach in concluding that s 66(1A) applies prospectively to claims made on and after 19 June 2012, so that a claim made before that date is not to be counted as the “one claim” that s 66(1A) permits to be made. The error was said to be that whilst notions of prospectivity and retrospectivity are relevant to determining whether s 66(1A) applies to a claim for lump sum compensation made on or after 19 June 2012, being the first issue, once it is concluded that s 66(1A) does apply, then it falls to be applied according to the natural and ordinary meaning of the text, understood in context.

115. The applicant further contended that the effect of the construction adopted by Keating P is that the words “only one claim” are to be read as “only one further claim”. It was said that there is no warrant in the text or context for adopting that gloss on the natural and ordinary meaning of the words.

116. The applicant accepted that s 66(1A) operates to the detriment of a person in the position Mr Green. Nonetheless, the applicant said that this is the effect of the legislative policy of the 2012 Amending Act, which was clear in its intended, non-beneficial operation. Reference was made to the observations to this effect by the High Court in Goudappel at [29] and by Beech-Jones J in Sukkar v Adonis Electrics Pty Ltd at [132]-[133]. Reference was also made to certain extrinsic materials, including the second reading speech on 19 June 2012 and the Joint Select Committee Report on the New South Wales Workers Compensation Scheme dated 13 June 2012.

Mr Green’s submissions

117. Mr Green did not seek to uphold Keating P’s reasoning relying on notions of prospectivity and retrospectivity. In written submissions, Mr Green contended that for the purpose of s 66(1A) of the 1987 Act, his “one claim” was that made on 29 October 2013 (that is, the 2013 Claim). This submission essentially repeated Mr Green’s argument with respect to the first issue. It was said that Mr Green’s 2010 Claim cannot be the “one claim” to which s 66(1A) refers because the effect of cl 11 of Sch 8 to the 2010 Regulations is that the 2012 amendments do not extend to his 2010 Claim. Accordingly, it was said that the 2013 Claim is Mr Green’s “one clam” for the purpose of s 66(1A).

118. Counsel for Mr Green did not expand upon these submissions in oral argument.

Consideration

119. The transitional provisions with respect to the 2012 amendments make plain that the new “one claim” limitation applies, relevantly, to claims for lump sum compensation made on or after the critical date (19 June 2012).

120. Once it is accepted, as it should be, that the new s 66 applies to Mr Green’s 2013 Claim, it was an error, with respect, for Keating P to approach the question of the application of the new s 66 by reference to notions of “prospective” or “retrospective” operation.

121. It was also an error by his Honour to approach the question by reference to a consideration of accrued rights of the worker to claim compensation under s 66. The High Court acknowledged in Goudappel (at [29]) that the 2012 amendments had a non-beneficial operation. It could not be in doubt that the effect of the new s 66 operated to the detriment of workers who claimed an entitlement to lump sum compensation after 19 June 2012.

122. It should be accepted that the 2012 amendments disclose a cost-savings objective. Part of the reforms to the existing scheme under the 1987 and 1998 Acts was to disentitle workers from making more than one claim for lump sum compensation. The Court must give effect to this legislative intention, notwithstanding the detrimental impact on injured workers.

123. A consideration of the secondary materials does not lead to a conclusion different to that which is suggested by the plain words of the new s 66: Interpretation Act 1987 (NSW), s 34(1)(a).

124. The Explanatory Note to the Workers Compensation Legislation Amendment Bill 2012 (NSW) (para (d), Overview) describes the object of the Amendment Bill as including to amend the 1987 and 1998 Acts such that the scheme for lump sum compensation for permanent impairment will be changed, relevantly, that “only one claim for permanent impairment compensation will be able to be made”.

125. The Treasurer’s Second Reading Speech on 19 June 2012 announced that the amending legislation was to deliver urgently needed reforms to the New South Wales Workers Compensation Scheme. The Treasurer said that “[w]ith a deficit in excess of $4 billion, the scheme is currently unsustainable”. The critical part of the Second Reading Speech for present purposes is the following statement made by the Treasurer:

The amendment proposes only one assessment of the level of impairment for the purposes of permanent impairment commutation and common law work injury claims and allows workers to waive their requirement to obtain legal advice before agreeing to a lump sum. These initiatives will help to reduce disputes and reduce administration costs while allowing the scheme to focus on the more seriously injured workers.

126. The Joint Select Committee Report on the New South Wales Workers Compensation Scheme dated 13 June 2012 had observed in relation to the proposed one claim limitation for lump sum compensation (at [3.185]):

The Committee however believes that in some isolated cases, an injustice may be done if there were a limit of one assessment where there has been a significant deterioration in a worker’s condition.

127. The Committee had recommended (Recommendation 12) that the New South Wales Government ensure that, under the Workers Compensation Scheme, after the determination of a claim for whole person impairment, only up to two further claims be permitted and in each case only if there has been a deterioration of whole person impairment of at least 5% since the last determination. That recommendation was not adopted in the 2012 Amending Act.

128. Instead, Parliament has limited the entitlement to benefits provided under the 1987 Act in respect of lump sum compensation by imposing the one-claim limitation and the 10% threshold for permanent impairment. The 2012 amendments marked a legislative policy favouring cost-saving and administrative reforms to the existing scheme for lump sum compensation under the 1987 and 1998 Acts.

129. The construction favoured by Keating P also suffers from the difficulty identified by the applicant, that his Honour construed the new s 66 to mean that “only one further claim” after the commencement of the 2012 Amending Act can be made. That construction should not be accepted.

130. First, that is not what the words of the provision provide.

131. Secondly, in view of the plain language used and the evident purpose of the 2012 amendments there is no warrant for either adopting a gloss on those words, or reading an additional word such as “further” into s 66(1A), so as to qualify the one claim limitation: Taylor v The Owner – Strata Plan No 11564 at [38]-[40].

132. Thirdly, contrary to the view expressed by Keating P, the application of the new s 66 does not turn on the injustice suffered by Mr Green as a result of the 2012 amendments. To reason in this manner is to ignore that the new s 66 plainly operates to the detriment of injured workers in the position of Mr Green. The Joint Select Committee report had recognised the injustice of the proposed one claim limitation where there had been a significant deterioration in the worker’s condition. The legislature could have provided that claims for lump sum compensation made prior to the critical date were not to be counted for the purpose of the amended s 66. But the legislature chose not to adopt that course.

133. The correct position, in my view, is that stated by Beech-Jones J in Sukkar v Adonis Electrics Pty Ltd (at [132]-[133]). His Honour said that the new s 66(1A):

mandates that there shall only be one claim for permanent impairment compensation in respect of the permanent impairment that results from an injury. … [and] may operate on facts antecedent to it coming into force including the existence of an earlier claim…

134. Here Mr Green has already made his one claim for lump sum compensation, being his 2010 Claim. Accordingly, the new s 66(1A) disentitles Mr Green from making his 2013 Claim for further lump sum compensation.

Conclusion

135. For the above reasons, the appeal should be allowed. The orders I would propose are as follows:

1.   Dismiss the respondent’s notice of motion dated 30 June 2015.

2.   Grant leave to appeal.

3.   Direct the applicant to file a notice of appeal in the form of the draft contained within the White Book within 14 days.

4.   Appeal allowed.

5.   Set aside the orders in the Commission below, and in place order:

(a)   the appeal from the decision of the Arbitrator is upheld;

(b)   the decision of the Arbitrator made on 7 August 2014, and confirmed by written notice dated 8 August 2014, is revoked;

(c)   the Commission notes that the respondent worker (Mr Green) has no entitlement to pursue his claim for further permanent impairment compensation;

(d)   the respondent worker’s claim filed 3 March 2014 for further permanent impairment compensation is dismissed.

6.   The respondent to pay the appellant’s costs in this Court.

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