Horton and Australian Capital Territory (Compensation)

This matter concerned an appeal by Mr Horton against decisions made by Comcare, which were subsequently to be effected by the Australian Capital Territory. The dispute centred on whether Mr Horton was entitled to compensation for two psychological conditions arising from his employment, specifically an adjustment disorder with mixed emotional features and an aggravation of that condition. Comcare had revoked 22 previous determinations that had accepted liability for compensation in respect of Mr Horton's conditions.

The primary legal issues before the Tribunal were the scope of its jurisdiction in relation to the reviewable decisions, and whether Mr Horton's conditions were excluded from compensation by the operation of the reasonable administrative action exception under section 5A of the relevant Act. The Tribunal was required to determine whether the 22 revoked determinations related to the initial condition or the subsequent aggravation, and to assess the validity of Comcare's reconsideration decision.

The Tribunal found that Mr Horton suffered two distinct psychological conditions: a primary condition in May 2014 and an aggravation of that condition in February 2015, which constituted a new condition. It determined that the 22 revoked determinations all related to the 2015 condition. Crucially, the Tribunal found that the reasonable administrative action exception under section 5A was not established, as the Drumgold inquiry, which was the basis for the administrative action, was not undertaken in respect of Mr Horton's employment.

Consequently, the Tribunal set aside Comcare's decision of 7 October 2016, substituting a decision that Mr Horton was entitled to compensation for the 22 determinations relating to the 2015 condition. The Tribunal also set aside the reviewable decisions of 1 February 2017 and 26 May 2017, finding instead that Mr Horton was entitled to compensation for major depressive disorder and adjustment disorder with anxiety, with a date of injury of 16 February 2015. The Tribunal ordered that Mr Horton's costs be paid by the Australian Capital Territory.