Gales v Lovett, McCracken & Bray

The parties to this matter were Gales (the worker) and Lovett, McCracken & Bray (the employer). The dispute concerned the worker's entitlement to a lump sum payment for permanent impairment arising from skin cancer, following a previous commutation of the employer's liability under the *Workers Compensation Act 1987* (NSW). The case was heard in the Court of Appeal of New South Wales.

The central legal issues before the Court of Appeal were whether the deemed date of injury for the worker's skin cancer was the date of the claim, pursuant to section 15 of the Act; whether the employer's liability for this injury had been extinguished by a prior commutation and lump sum payment; and, if so, whether this extinguishment of liability extended to the amended Division 4 of Part 3 of the Act, which provided for permanent impairment lump sums.

The Court of Appeal reasoned that the commutation under the former section 51 of the Act had the effect of redeeming and discharging the employer's liability for the worker's injury. This discharge was agreed by the worker to remove liability under Division 4 of Part 3. The Court found that the subsequent amendment to Division 4 did not revive the employer's liability, as the prior commutation had definitively settled the matter. Therefore, the employer's liability for the worker's skin cancer was removed by the commutation and lump sum payment, and this removal applied to the amended Division 4.

The appeal was dismissed with costs.