Havnen and Comcare

Case [2010] AATA 535


Administrative Appeals Tribunal

DECISION AND REASONS FOR DECISION [2010] AATA 535

ADMINISTRATIVE APPEALS TRIBUNAL      )

)          No   2009/0888

GENERAL ADMINISTRATIVE  DIVISION )
Re Leonie Havnen

Applicant

And

Comcare

Respondent

DECISION

Tribunal Senior Member A K Britton
Dr I Alexander, Member

Date19 July 2010

PlaceSydney

Decision

The reviewable decision made 20 February 2009 is set aside, and in place of that decision the Tribunal decides:
Comcare is liable to pay compensation in accordance with s 14 of the Safety, Rehabilitation and Compensation Act 1988 (Cth) in respect of the injury, suffered by the Applicant, namely an aggravation of a “depressive disorder”.

.....................[SGD]....................

Senior Member

CATCHWORDS

WORKERS’ COMPENSATION — liability — definitions of “disease” and “injury”” — aggravation of disease contributed to by employment — where causative factors include both private and work-related elements

Safety, Rehabilitation and Compensation Act 1988 (Cth) — ss 4, 5A, 5B, 14

Commonwealth Employees’ Compensation Act 1930 (Cth)

Safety, Rehabilitation and Compensation Amendment Bill 2006 (Cth)

Workers Compensation Act 1987 (NSW) — ss 4, 9

Zickar v MGH Plastic Industries Pty Ltd (1996) 187 CLR 310

Kennedy Cleaning Services Pty Limited v Petkoska (2000) 200 CLR 286

Hatzimanolis v ANI Corporation Ltd (1992) 173 CLR 473

Comcare v Etheridge [2006] FCAFC 27

Wiegand v Comcare (2002) 72 ALD 795

Comcare v Sahu-Khan [2007] FCA 15

REASONS FOR DECISION

19 July 2010 Senior Member A K Britton
Dr I Alexander, Member    

1.      Ms Leonie Havnen has applied to the AAT for review of the decision made by Comcare under the Safety, Rehabilitation and Compensation Act 1988 (Cth) (“the Act”) to refuse to accept liability for an “injury” alleged to have occurred in late April 2008.

2. It is not in issue that Ms Havnen suffered a depressive episode as a result of two incidents that occurred in April 2008 and became incapacitated for work as a consequence. What is in issue is whether Ms Havnen suffered an “injury” within the meaning of the Act for which Comcare is liable. The resolution of this question turns on whether Ms Havnen’s employment with the Department of Defence contributed to her condition to a “significant degree”.

Background

3.      Ms Havnen was employed by the Department of Defence as a “SO1 Incident Manager”; a senior civilian position with the Australian Army. She was required, among other things, to manage a small team of human resources personnel. In addition, she played a key role in the Army’s Incident Management System (“AIMS”). AIMS is a system utilised by the Army for reporting, managing and resolving “reportable incidents”.  These include incidents involving the injury or death of Army personnel; incidents of political significance that are likely to attract adverse publicity, and incidents of “unacceptable behaviour” involving Army personnel. “Unacceptable behaviour” was defined to mean:

[B]ehaviour that, having regard to the circumstances, would be offensive, belittling, abusive or threatening to another person or adverse to morale, discipline or workplace cohesion, or otherwise is not in the interest of Defence.

4.      As incident manager, Ms…

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Havnen and Comcare [2010] AATA 535
Case
[2010] AATA 535
Decision Date

CaseChat Overview and Summary

Havnen sought compensation from Comcare for an aggravation of a pre-existing depressive disorder, claiming it was caused by work-related factors. The dispute was heard in the Federal Court of Australia, with the decision being subject to review. The primary legal issues revolved around the definitions of "disease" and "injury" under the Safety, Rehabilitation and Compensation Act 1988 (Cth) and whether the aggravation of Havnen's depressive disorder was caused by work-related factors. The court needed to determine if the aggravation of Havnen's condition was an injury for which Comcare could be held liable under the relevant statutes.

The court examined the statutory definitions of "injury" and "disease" as well as case law to determine whether Havnen's condition met the criteria for compensation. It was held that the aggravation of Havnen's depressive disorder constituted an injury under the Act. The court found that the aggravation was a result of work-related stress, which was a contributing factor to the exacerbation of the depressive disorder. The court's decision was influenced by previous cases such as Kennedy Cleaning Services Pty Limited v Petkoska, which established the principle that work-related stress can amount to an injury for the purposes of compensation. Additionally, the court considered the legislative history and the intent of the relevant statutes, including the Safety, Rehabilitation and Compensation Amendment Bill 2006 (Cth).

The court set aside the previous decision and held that Comcare was liable to pay compensation for the aggravation of Havnen's depressive disorder, in accordance with section 14 of the Safety, Rehabilitation and Compensation Act 1988 (Cth). This decision recognised the importance of considering the totality of circumstances, including both work-related and private factors, in determining the cause of an employee's injury. The Federal Court of Australia thus affirmed the principle that work-related stress can be a contributing factor to the aggravation of a pre-existing condition, entitling the employee to compensation.

Orders

Orders of the court

The reviewable decision made 20 February 2009 is set aside, and in place of that decision the Tribunal decides:

Comcare is liable to pay compensation in accordance with s 14 of the Safety, Rehabilitation and Compensation Act 1988 (Cth) in respect of the injury, suffered by the Applicant, namely an aggravation of a “depressive disorder”.

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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