Grant Sheean and Repatriation Commission

Case [2014] AATA 594


[2014] AATA 594

Division GENERAL ADMINISTRATIVE DIVISION

File Number

2012/5837

Re

Grant Sheean

APPLICANT

And

Repatriation Commission

RESPONDENT

DECISION

Tribunal

Dr M Denovan, Member

Date 22 August 2014
Place Brisbane

The Tribunal affirms the decision under review.

...........................[Sgd]..........................................

Dr M Denovan, Member

CATCHWORDS

VETERANS’ AFFAIRS – Service pension – Special rate of pension – Whether applicant ceased remunerative work for reasons other than his war-caused incapacity, intermediate rate – Whether war-caused injury or disease is sole or substantial cause of applicant’s inability to obtain work – Decision under review affirmed

LEGISLATION

Veterans’ Entitlements Act 1986 (Cth) ss 15, 19, 23, 24

CASES

Flentjar v Repatriation Commission (1997) 48 ALD 1
Forbes v Repatriation Commission (2000) 58 ALD 394
Leane v Repatriation Commission [2004] FCAFC 83

Repatriation Commission v Hendy [2002] FCAFC 424

REASONS FOR DECISION

Dr M Denovan, Member

22 August 2014

  1. Mr Grant Sheean is the applicant in these proceedings. He served in the Australian Army for 42 years, and in the last ten years he was employed in the Range safety sector. He discharged on 29 October 2010.

  2. Mr Sheean has a number of medical conditions that have been accepted as war caused: sensorineural hearing loss of the left ear, posttraumatic stress disorder (“PTSD”), lumbar spondylosis, non melanotic malignant neoplasm of the skin, Barrett’s oesophagus, and solar keratosis. He has been in receipt of 100% of the general rate of disability pension from 26 April 2011.

  3. Mr Sheean believes he is entitled to pension at above the general rate. He claims that because of his accepted conditions of PTSD and lumbar spondylosis he became increasingly unwell and as a result he was discharged from the Army. Mr Sheean sought to remain in the Army past his expected retirement age, however he claims his application was denied because of his PTSD.

  4. The respondent contends that Mr Sheean was discharged on the basis of his age, and that he has not made any genuine attempts at seeking employment since that time.

  5. On 25 October 2012 the Veterans’ Review Board affirmed the decision of the Repatriation Commission, which assessed disability pension at 100% of the general rate. Mr Sheean applied for review of the decision by this Tribunal on 21 December 2012.

    STATUTORY FRAMEWORK

  6. The requirements, which must be satisfied before the special rate of pension can be paid, are set out in s 24 of the Veterans’ Entitlement Act 1986 (Cth) (“the Act”). The eligibility criteria are different for applicants who are under 65 years of age, and are dealt with under s 24(1) of the Act. For Mr Sheean, who was under 65 years of age when he lodged his claim, to be eligible for special rate he must, amongst other things:

    ·Have a degree of incapacity due to a war-caused injury or disease, or both, of at least 70% (s 24(1)(a));

    ·be incapable of undertaking remunerative work for more than 8 hours per week (s 24(1)(b)); and

    ·

    the war-caused injury or disease, or both, alone, prevented…

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Grant Sheean and Repatriation Commission [2014] AATA 594
Case
[2014] AATA 594
Decision Date

CaseChat Overview and Summary

In the case of Grant Sheean and the Repatriation Commission, the primary issue was determining whether Mr Sheean qualified for a special rate of pension under the relevant legislation. The case was heard in the Federal Court of Australia. The dispute centred around Mr Sheean's claim that his inability to engage in remunerative work was solely due to his war-caused incapacity, specifically post-traumatic stress disorder (PTSD). The Repatriation Commission, however, found that other factors contributed to Mr Sheean's inability to secure employment, and thus, he did not meet the criteria for an intermediate rate pension.

The court was tasked with deciding whether Mr Sheean's war-caused injuries or diseases were the sole or substantial cause of his inability to obtain remunerative work. This involved examining whether Mr Sheean was genuinely seeking employment and if his war-caused condition was the primary barrier to his employment. The court considered the four questions set out in Flentjar v Repatriation Commission, focusing particularly on whether Mr Sheean's PTSD was the only factor preventing him from working.

After reviewing the evidence, the court found that there was no objective evidence indicating that Mr Sheean was genuinely seeking employment. The court concluded that Mr Sheean did not intend to seek work upon his discharge from the military and had made no genuine attempts to obtain employment since then. The substantial reason for his lack of employment was attributed to factors such as his age, lack of employment skills, the availability of the service pension, and his intention to retire. The court held that Mr Sheean did not satisfy the statutory requirements for an intermediate rate pension, affirming the decision under review.

The court's decision affirmed that Mr Sheean did not qualify for an above-general rate pension as he did not meet the criteria under sections 24(1)(c) or 23(1)(c) of the relevant Act. Additionally, he did not satisfy the ameliorating provisions in section 24(2)(b). Consequently, the decision to deny Mr Sheean a special rate of pension was upheld.

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

There is no objective evidence which I accept indicates that Mr Sheean was genuinely seeking to obtain remunerative work. Considering the evidence as a whole, I find that Mr Sheean did not intend to seek remunerative work when he discharged from the military. He has made no genuine attempts to obtain work since that time. The substantial reason for him not seeking or obtaining remunerative work is not his PTSD. Rather, it is due to a number of factors discussed above, including his age, lack of employment skills, the accessibility of the service pension and possibly superannuation and his intention and desire to retire. DECISION Mr Sheean does not satisfy s 24(1)(c) or s 23(1)(c) of the Act. Nor does he satisfy the ameliorating provisions in s 24(2)(b). He therefore does not qualify for above the general rate of pension. The decision under review is affirmed.

Ratio Decidendi

Legal Principle Established

I must decide whether Mr Sheean satisfies the requirements of s 24(1)(c).CONSIDERATIONDo Mr Sheean’s war-caused injuries or diseases alone prevent him from continuing to undertake remunerative work that he was undertaking, and because of this, is he suffering a loss of salary, wages or earnings that he would not be suffering if he were free of his service related incapacity? It is usual for decision-makers to approach consideration of s 24(1)(c) of the Act, having regard to the four questions propounded in Flentjar v Repatriation Commission (1997) 48 ALD 1 at 2, as per Branson J (“Flentjar”).1. What was the relevant work that Mr Sheean was undertaking within the meaning of s 24(1)(c) of the Act? Mr Sheean first joined the Army in 1968, and was discharged in 1974. He re-joined the Army 18 months later in August 1975 and served for another 35 years. For the last 10 years of his service he was a full time Range Control Officer. 2. Is Mr Sheean, by reason of war-caused injury or war-caused disease, or both, prevented from continuing to undertake that work? Psychiatrist Dr Klug opined that Mr Sheean is unable to work any hours a week due to his PTSD. There is no evidence to the contrary. I find that Mr Sheean is unable to work due to his war-caused PTSD.3. If the answer to question two is yes, is the war-caused injury or war-caused disease, or both, the only factor or factors preventing Mr Sheean from continuing to undertake that work? Although Dr Klug has opined that Mr Sheean is currently unable to work at all because of PTSD, Dr Klug was not treating Mr Sheean in 2010 when he ceased his last remunerative work. Dr Klug claims that PTSD was the reason for his retirement; however the contemporaneous medical evidence indicates that at the time of his retirement, this condition was not interfering with his capacity to work. In the discharge medical report prepared by BRIG Duncan on 23 October 2010, it was noted that Mr Sheean required no treatment for his PTSD, and that the condition did not interfere with his functional capacity. The retirement age in the Army was previously 55 years of age. When Mr Sheean was approaching the age of 55 he wrote a minute applying for extension. His request was granted, and soon after the compulsory retiring age was changed from 55 to 60. Mr Sheean said when he was approaching 60 years old he applied again. This time his application was refused. Mr Sheean said that prior to being refused an extension he would put in extra hours at work to make sure everything was safe and sound. There is no suggestion that Mr Sheean had any undue absence from his work for any medical conditions. After being refused an extension, he said he basically lost confidence in what he was doing. From that time he would do his job but he would not put in the extra bit of effort he previously would have done. Mr Sheean has claimed his loss of confidence at this time was as a result of his PTSD. The contemporaneous medical evidence however indicates his work performance dropped after his application for an extension was refused. In a staff in confidence report dated 26 August 2010, his supervisor opined that this drop in performance was due to Mr Sheean’s extreme disappointment.