Hollis and Comcare (Compensation)

Case [2017] AATA 49


Hollis and Comcare (Compensation) [2017] AATA 49 (24 January 2017)

Division:GENERAL DIVISION

File Number(s):      2014/4105

Re:Janelle Hollis

APPLICANT

AndComcare

RESPONDENT

DECISION

Tribunal:Mr P W Taylor SC, Senior Member

Date:24 January 2017  

Place:Sydney

The decision under review is set aside.  The Applicant’s 11 October 2013 claim is remitted to Comcare for reconsideration in accordance with these reasons for decision.

...........................[sgd].............................................

Mr P W Taylor SC, Senior Member

Catchwords

COMPENSATION – anxiety and depression – ailment – pre-existing depressive condition – major depressive episode – whether “aggravation” of underlying condition – whether contributed to by employment – whether reasonable administrative action – meaning of “suffered as a result of” – code of conduct investigation – termination of employment – decision under review set aside and remitted for reconsideration

Legislation

Safety, Rehabilitation and Compensation Act 1988 (Cth) ss 4, 5A(1), (2), 5B(1), 7(4), 14, 16, 67(8)

Cases

Asioty v Canberra Abattoir Pty Ltd (1989) 167 CLR 533
Canute v Comcare [2006] HCA 47; (2006) 226 CLR 535
Carpenter and Comcare [2010] AATA 62; (2010) 116 ALD 190
Comcare v Canute (2005) 148 FCR 232
Comcare v Martin [2016] HCA 43
Comcare v Martinez (No 2) (2013) 212 FCR 272; (2013) 137 ALD 481; (2013) 302 ALR 608
Comcare v Mooi [1996] FCA 508; (1996) 69 FCR 439
Comcare v Sahu-Khan [2007] FCA 15; (2007) 156 FCR 536
Commonwealth Bank of Australia v Reeve [2012] FCAFC 21; (2012) 199 FCR 463; (2012) 125 ALD 181
Commonwealth Banking Corporation v Percival (1988) 20 FCR 176
Drenth v Comcare [2012] FCAFC 86; (2012) 128 ALD 1
Dunstan and Comcare [2012] AATA 567
Federal Broom Co Pty Ltd v Semlitch (1964) 110 CLR 626
Ferguson and Commonwealth Bank of Australia [2012] AATA 718; (2012) 133 ALD 200
Hart v Comcare [2005] FCAFC 16; (2005) 145 FCR 29
Konstandopolous and Comcare [2014] AATA 741
Lim and Comcare [2015] AATA 189
Lim v Comcare [2016] FCA 709
Lucas and Comcare [2008] AATA 1142
McMillan and Anor and Comcare [2010] AATA 628; (2010) 118 ALD 275
Military Rehabilitation and Compensation Commission v May [2016] HCA 19
National Australia Bank Ltd v KRDV [2012] FCA 543; (2012) 129 ALD 500
RLDZ and Comcare [2015] AATA 735
Silk and Comcare [2012] AATA 638; (2012) 131 ALD 517
Thompson and Comcare [2012] AATA 752
Tippett v Australian Postal Corporation (1998) 27 AAR 40
Wang and Comcare [2012] AATA 242; (2012) 127 ALD 416
Wiegand and Comcare [2010] AATA 790
Wiegand v Comcare (No 2) [2007] FCA 237; (2007) 94 ALD 154
Wiegand v Comcare [2006] FCA 1620
Yu and Comcare [2010] AATA 960; (2010) 121 ALD 583
Zdziarski v Telstra Corporation Limited [2015] FCA 207

REASONS FOR DECISION

Mr P W Taylor SC, Senior Member

24 January 2017

  1. Ms Hollis challenged Comcare’s 30 May 2014 rejection of her October 2013 compensation claim.  The review of that decision, in which Ms Hollis has…

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AGLC
Hollis and Comcare (Compensation) [2017] AATA 49
Case
[2017] AATA 49
Decision Date

CaseChat Overview and Summary

This matter concerned an appeal by Ms Hollis against a decision by Comcare regarding her claim for compensation for an ailment, specifically anxiety and depression. The dispute centred on whether Ms Hollis' depressive condition was an "ailment" suffered as a result of her employment, particularly in light of a pre-existing depressive condition and the termination of her employment following a code of conduct investigation. The decision was made by Mr P W Taylor SC, Senior Member, of the Tribunal.

The legal issues before the Tribunal were whether Ms Hollis suffered an "aggravation" of an underlying depressive condition, whether this aggravation was contributed to by her employment, and whether the termination of her employment constituted "reasonable administrative action" that did not cause her ailment. The Tribunal was required to determine the meaning of "suffered as a result of" in the context of employment and administrative actions.

The Tribunal reasoned that Ms Hollis' evidence indicated she suffered a major depressive episode after receiving notice of her termination, which she viewed as a consequence of voicing concerns about unethical behaviour. The Tribunal concluded that the termination decision, being administrative action, became an operative cause of her resultant depressive condition after approximately 24 December 2013. Crucially, the Tribunal found that Ms Hollis suffered an aggravation of an ailment in September 2012, to which her employment made a significant contribution. This aggravation was deemed an injury for the purposes of the *Safety, Rehabilitation and Compensation Act 1988* (Cth).

Consequently, the Tribunal set aside the decision under review and remitted Ms Hollis' October 2013 claim to Comcare for reconsideration in accordance with the Tribunal's reasons. The Tribunal deferred making any order in relation to costs, allowing the parties an opportunity to consider the decision and potentially resolve the matter by agreement, or to agree on a timetable for further submissions if agreement could not be reached.

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

Ms Hollis’ evidence was that she was shocked by the decision to terminate her employment, and that she “could not believe that I was being terminated for voicing my concerns about unethical behaviour”. She reported to Dr Himmelhoch feeling perplexed, struggling emotionally and by early January 2014 she ceased work and went on sick leave. In those circumstances, the proper conclusion is that after about 24 December 2013, when she had received notice of the termination of her employment, Ms Hollis’ ongoing depressive ailment had acquired that termination decision, which plainly was administrative action, as another operative cause of her resultant depressive condition.CONCLUSION Ms Hollis suffered the aggravation of an ailment in about September 2012 to which her employment made a significant contribution. That aggravation constituted an injury for the purposes of SRC Act ss 5A, 5B, 14 and 16. The date of that injury, for the purposes of SRC Act s 7(4) was 11 September 2012. That conclusion means that the decision under review must be set aside, and Ms Hollis’ October 2013 claim must be remitted to Comcare, for determination in accordance with these reasons. Ms Hollis’ submissions sought an order for costs under SRC Act s 67(8), in the event that the decision under review was set aside. However neither those submissions, nor those of Comcare, addressed the possibility of an outcome where the decision under review was set aside, but only in relation to one aspect of the injury on which the claim had been based, and where Comcare had substantially succeeded in relation to the matters raised in the review proceedings. In those circumstances I will defer making any order in relation to the costs of the proceedings until the parties have had an opportunity to consider these reasons and the review decision. If the matter of costs cannot be resolved by agreement between the parties, they should agree on a timetable for further submissions, and request the Tribunal to make appropriate directions consistent with that agreed timetable.

Ratio Decidendi

Legal Principle Established

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