Della Flora v Workers Rehab & Comp Corp of SA No. Scgrg-98-297 Judgment No. S6691

The appeal in Della Flora v Workers Rehabilitation and Compensation Corporation of South Australia, heard by Doyle CJ, Millhouse, and Nyland JJ in the Full Court, pertains to the enforceability of a lump sum compensation payment determined under the Workers Rehabilitation and Compensation Act 1986. The central issue was whether a determination made by the Workers Rehabilitation and Compensation Corporation of South Australia, awarding a lump sum for non-economic loss, becomes enforceable before or after a notice of dispute is lodged. A secondary issue was whether the worker was entitled to claim interest on the sum if it was not paid on the due date.

The plaintiff, who suffered a compensable disability, was awarded a lump sum of $38,635.06 under section 43 of the Act. However, the employer disputed the amount, lodging a notice of dispute, which triggered a series of review and arbitration processes. Despite the arbitrator affirming the Corporation's initial determination, the employer did not pursue a judicial determination, and the Corporation eventually paid the sum to the worker. The worker subsequently filed an amended claim for a declaration of entitlement to payment and interest.

The court held that a determination made in favour of a worker is not enforceable until the dispute is resolved by the Tribunal. The court reasoned that the statutory scheme of the Act indicates that until a dispute is finalised, the determination remains subject to challenge, and therefore, no enforceable right to payment arises. The court concluded that when the worker initiated the proceedings, a notice of dispute was already lodged, which deferred enforcement until the dispute was resolved. Consequently, the worker had no enforceable right to payment when the summons was issued, and the appeal was dismissed. The judges also expressed a view that the Act should be reconsidered to provide clearer provisions on the enforceability of compensation payments.