Farrell v Metromix Pty Ltd

Case [2001] NSWCA 166


CITATION: Farrell v Metromix Pty Limited [2001] NSWCA 166
FILE NUMBER(S): CA 40199/00
HEARING DATE(S): 29 May 2001
JUDGMENT DATE:
8 June 2001

PARTIES :


John Farrell v Metromix Pty Limited
JUDGMENT OF: Stein JA at 1; Hodgson JA at 33; Ipp AJA at 34
LOWER COURT JURISDICTION : Compensation Court
LOWER COURT
FILE NUMBER(S) :
CC 33608/98
LOWER COURT
JUDICIAL OFFICER :
Moran CCJ
COUNSEL: Appellant - L King SC/D T Kell
Respondent - C Hoeben SC/D Priestley
SOLICITORS: Appellant - W G McNally & Co
Respondent - Sparke Helmore
CATCHWORDS: WORKERS COMPENSATION - The Worker's Compensation Act 1987 - exercise of discretion imposed by s 40(1) - whether non injury factors can be taken into account when determining loss of earning capacity - ND
LEGISLATION CITED: Worker's Compensation Act 1987
CASES CITED:
Australian Iron and Steel v Elliott (1966) 67 SR (NSW) 87
Australian Wheat Board v Pantaleo (1984) 3 NSWLR 350
Australian Wire Industries Limited v Nicholson (Unreported, Court of Appeal, 4 February 1985)
J C Ludowici & Son Pty Limited v Cutri (1992) 26 NSWLR 580
Kesen v Luke Singer Pty Ltd (1989) 18 NSWLR 566
Kraturn Pty Limited v Quinn (1990) 6 NSWCCR 326
Malco Engineering v Ferreira (1994) 10 NSWLR 117
Mitchell v Central West Health Service [1997] 14 NSWCCR 527
DECISION: 1. Appeal allowed with costs. 2. Award of weekly compensation under s 40 of the Worker's Compensation Act 1987 set aside. 3. There be substituted therefor an award in favour of the appellant pursuant to s 40 of the Act of $75 per week from 15 July 1997 to 11 June 1999. 4. The issue of the amount of weekly compensation payable post 11 June 1999 be remitted to the Compensation Court for determination according to law.


    IN THE SUPREME COURT
    OF NEW SOUTH WALES
    COURT OF APPEAL

                    CA 40199/00
    CC 33608/98
                            STEIN JA
                            HODGSON JA

    IPP AJA

    Friday, 8 June 2001
    John FARRELL v METROMIX PTY LIMITED


    Facts:

    The appellant was involved in a motor vehicle accident when employed by the respondent as a truck driver. As a result of the accident he suffered neck and back pain At the time of the accident the appellant was working significant overtime. Commissioner Hogg of the Compensation Court assessed the appellant’s loss of earnings utilising the discretion conferred by s 40(1) of the Workers Compensation Act 1987. He accepted that the reduction in earnings following the accident was not entirely due to the appellant’s injury, but also resulted from an attitudinal shift on the part of his employer with respect to the allocation of overtime. An appeal to a judge of the Compensation Court was dismissed. The appellant complains that the Commissioner’s discretion miscarried and further, that he gave no reasons to indicate those factors he regarded as relevant to the discretion.

    Held:

    Per Stein JA, Hodgson JA and Ipp AJA agreeing:

    1) The loss of income caused by a change in the employer’s attitude with respect to offering the appellant overtime was…

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Farrell v Metromix Pty Ltd [2001] NSWCA 166
Case
[2001] NSWCA 166
Decision Date

CaseChat Overview and Summary

The appeal in *Farrell v Metromix Pty Ltd* concerned the exercise of discretion under section 40(1) of the *Workers Compensation Act 1987* (NSW). The dispute arose from a decision regarding the appellant worker's entitlement to weekly compensation payments.

The primary legal issue before the Court of Appeal was whether non-injury factors could be taken into account when determining a worker's loss of earning capacity for the purposes of section 40(1) of the Act.

The Court of Appeal held that the Compensation Court had erred in its approach. It reasoned that while section 40(1) requires an assessment of loss of earning capacity, this assessment must be based on the injury sustained. Non-injury factors, such as the worker's personal circumstances or the availability of suitable employment in the general labour market, could not be the sole or primary basis for determining the extent of that loss. The court allowed the appeal, setting aside the original award of weekly compensation. It substituted an award of $75 per week for a specified period and remitted the question of future weekly compensation to the Compensation Court for redetermination.

Orders

Orders of the court

1. Appeal allowed with costs. 2. Award of weekly compensation under s 40 of the Worker's Compensation Act 1987 set aside. 3. There be substituted therefor an award in favour of the appellant pursuant to s 40 of the Act of $75 per week from 15 July 1997 to 11 June 1999. 4. The issue of the amount of weekly compensation payable post 11 June 1999 be remitted to the Compensation Court for determination according to law.

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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