Daniel Heffernan and Comcare

Case [2012] AATA 581


[2012] AATA 581 

Division GENERAL ADMINISTRATIVE DIVISION

File Number(s)

 2010/4636

Re

 Daniel Heffernan

APPLICANT

And

Comcare

RESPONDENT

DECISION

Tribunal

Senior Member A K Britton

Date 30 August 2012
Place Sydney

The decision made by Comcare on 19 October 2010 is set aside and in substitution it is decided that:

Comcare is liable under s 16 of the Safety, Rehabilitation and Compensation Act 1988 (Cth) to pay the reasonable costs of:

(a) purchasing a suitable second hand sedan that meets the essential vehicle features listed at [16.1] of Ms Wise’s report of 9 June 2011 or, if unavailable, a suitable second hand four wheel drive vehicle that meets those features; and

(b) undertaking the modifications listed at [16.3] of Ms Wise’s report of 9 June 2011 to that vehicle.

less the price received for the sale or trade-in of Mr Heffernan’s current vehicle.

..................................[sgd]......................................

Senior Member A K Britton

CATCHWORDS

WORKERS' COMPENSATION - medical treatment - modified motor vehicle "aid" for purpose of paragraph (f) of definition of medical treatment in SRC Act - reasonable to obtain modified second hand vehicle in circumstances - decision under review set aside

LEGISLATION

Safety, Rehabilitation and Compensation Act 1988 (Cth) - s4(1)(f)

CASES

Re Heffernan and Comcare [2012] AATA 371

Thomas v Ferguson Transformers Pty Ltd (1979) 1 NSWLR 216; [1979] WCR (NSW) 44
Re Grace and the Commonwealth [1987] AATA 130
Re Jorgensen and the Commonwealth (1990) 23 ALD 321
Comcare v Rope (2004) 135 FCR 443; [2004] FCA 540
Comcare v Holt (2007) 94 ALD 576; [2007] FCA 405

REASONS FOR DECISION

Senior Member A K Britton

30 August 2012

  1. Mr Daniel Heffernan suffers chronic back pain and associated complications as a result of an injury for which Comcare has accepted liability under the Safety, Rehabilitation and Compensation Act 1988 (Cth) (the Act). In Re Heffernan and Comcare [2012] AATA 371) (the first decision), I decided that a modified motor vehicle did not constitute a “curative apparatus” within the definition of “medical treatment” contained in the Act. In that decision, however, I raised the question whether a modified motor vehicle could be regarded as an “aid or appliance” for the purposes of paragraph (f) of the definition of “medical treatment”. This was not a point originally argued and I therefore invited the parties to provide further submissions.

  2. These reasons address the preliminary question of whether the claimed modified vehicle constitutes “an aid or appliance” within the meaning of paragraph (f) of the definition of “medical treatment” in s 4(1) of the Act. If the answer to that question is yes, I must decide whether it is reasonable for Mr Heffernan to obtain that “treatment”, and if so, the amount appropriate for that treatment. These reasons should be read in conjunction with the first decision.

    IS THE CLAIMED MODIFIED VEHICLE AN AID OR APPLIANCE?

  3. Comcare submits that no motor vehicle, in itself, whether modified or not, is “medical treatment” within the meaning of paragraph (f) of the definition of the medical…

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Details
AGLC
Daniel Heffernan and Comcare [2012] AATA 581
Case
[2012] AATA 581
Decision Date

CaseChat Overview and Summary

Daniel Heffernan sought a review of a decision made by Comcare, the Commonwealth's workers' compensation insurer, regarding compensation for the purchase of a suitable vehicle following an injury sustained during his employment. The dispute centred on whether Comcare was obligated to reimburse Mr Heffernan for the reasonable costs of purchasing a suitable second-hand vehicle and necessary modifications, given his injury and the features required for accessibility. The case was heard in the Federal Circuit Court of Australia.

The primary legal issue before the court was whether Comcare's decision to refuse compensation for the purchase of a suitable vehicle and the required modifications was justified. Specifically, the court had to determine the appropriate benchmark for assessing the reasonable costs of a suitable vehicle and whether Comcare's refusal to compensate Mr Heffernan for these costs was reasonable and lawful. Additionally, the court needed to consider whether the vehicle features listed in Ms Wise's report adequately reflected the necessary modifications required by Mr Heffernan's injury.

The court held that Comcare's decision was not supported by the evidence and was unreasonable. It found that the brief given to Ms Wise to assess the cost of a suitable vehicle was fair and reasonable. The court emphasised the variability in the second-hand vehicle market and noted that while it was not possible to prescribe the exact age and condition of the vehicle, Comcare's benchmark was appropriate. The court concluded that Comcare was liable under the Safety, Rehabilitation and Compensation Act 1988 to compensate Mr Heffernan for the reasonable costs of purchasing a suitable vehicle and undertaking the necessary modifications, less the price received for the sale or trade-in of his current vehicle.

Consequently, the court set aside Comcare's decision and substituted its own, determining that Comcare must pay for the reasonable costs of purchasing a suitable second-hand sedan or four-wheel-drive vehicle that meets the essential vehicle features listed in Ms Wise's report, along with the necessary modifications, minus the trade-in value of Mr Heffernan's current vehicle.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

That question cannot be determined with any degree of specificity because it turns largely on the age and condition of the vehicle purchased and supply and demand factors at the time of purchase. As Ms Wise’s research reveals, there is a significant variation in price within the second hand 4WD market. While not possible to prescribe the age and condition of the proposed vehicle, I believe the brief given by Comcare to Ms Wise — a vehicle of similar age and condition to Mr Heffernan’s 2004 Nissan Patrol — to be fair and reasonable in the circumstances.CONCLUSION For the reasons as given, I have decided to set aside the decision made by Comcare on 19 October 2010 and in substitution decide:Comcare is liable under s 16 of the Safety, Rehabilitation and Compensation Act 1988 (Cth) to pay the reasonable costs of:(a)purchasing a suitable second hand sedan that meets the essential vehicle features listed at [16.1] of Ms Wise’s report of 9 June 2011 or, if unavailable, a suitable second hand four wheel drive vehicle that meets those features; and(b)undertaking the modifications listed at [16.3] of Ms Wise’s report of 9 June 2011 to that vehicle.less the price received for the sale or trade-in of Mr Heffernan’s current vehicle.

Ratio Decidendi

Legal Principle Established

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