Insurance Australia Ltd v Marsh

Case [2022] NSWCA 31


Court of Appeal


Supreme Court


New South Wales

Medium Neutral Citation: Insurance Australia Ltd v Marsh [2022] NSWCA 31
Hearing dates: 17 February 2022
Date of orders: 07 March 2022
Decision date: 07 March 2022
Before: Basten JA at [1];
Macfarlan JA at [21];
White JA at [22]
Decision:

(1) Appeal allowed.

(2) Set aside the orders of the court below of 4 June 2021.

(3) In lieu thereof order that the summons be dismissed with costs.

(4) Order that the first respondent pay the appellant’s costs of the appeal and be granted an indemnity certificate under s 6 of the Suitors’ Fund Act 1951 (NSW).

Catchwords:

ADMINISTRATIVE LAW – judicial review – jurisdictional error – Motor Accidents Compensation Act 1999 (NSW), s 63(3) – power requiring decision maker to consider whether there was reasonable cause to suspect material error in medical assessment – whether decision maker exceeded statutory role by determining asserted error on the merits

ADMINISTRATIVE LAW – judicial review – jurisdictional error – Motor Accidents Compensation Act 1999 (NSW), s 63(3) – power requiring decision maker to consider whether there was reasonable cause to suspect material error in medical assessment – whether decision maker exceeded his bounds of authority by declining to refer a matter to a review panel where there was significant differences of opinion among medical practitioners

ADMINISTRATIVE LAW – judicial review – jurisdictional error – Motor Accidents Compensation Act 1999 (NSW), s 63(3) – power requiring decision maker to consider whether there was reasonable cause to suspect material error in medical assessment – whether the inevitable result of the presence of conflicting medical opinions is that there must be reasonable cause to suspect that the medical assessment is incorrect in a material respect

ADMINISTRATIVE LAW – judicial review – Motor Accidents Compensation Act 1999 (NSW), s 63(3) –– whether primary judge erred in ordering that the medical assessment be referred to a review panel rather than referring the matter back to a proper officer

Legislation Cited:

Civil Liability Act 2002 (NSW), s 5D

Motor Accidents Compensation Act 1999 (NSW), ss 57, 58, 60, 61, 62, 63, 74, 81; Pt 3.4

Suitors’ Fund Act 1951 (NSW), s 6

Supreme Court Act 1970 (NSW), s 69

Victorian Accident Compensation Act 1985

Motor Accident Permanent Impairment Guidelines, cl 1.6

Cases Cited:

AAI Ltd t/as AAMI v Chan [2021] NSWCA 19; 95 MVR 166

Insurance Group Ltd t/as NRMA Insurance v Keen [2021] NSWCA 287

Marsh v Insurance Group Ltd t/as NRMA Insurance Ltd [2021] NSWSC 619

Meeuwissen v Boden (2010) 78 NSWLR 143; [2010] NSWCA 253

Wingfoot Australia Partners Pty Ltd v Kocak (2013) 252 CLR 480; [2013] HCA 43

Category:Principal judgment
Parties: Insurance Australia Ltd t/as NRMA Insurance Ltd (Appellant)
Robert William Marsh (First Respondent)
The President of the Personal Injury Commission (Second Respondent)
Representation:

Counsel:
M A Robinson SC with O Dinkha (Appellant)
C A W Hart (First Respondent)
Submitting appearance for Second Respondent

Solicitors:
Hall & Wilcox Lawyers (Appellant)
Michael…

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Insurance Australia Ltd v Marsh [2022] NSWCA 31
Case
[2022] NSWCA 31
Decision Date

CaseChat Overview and Summary

Insurance Australia Ltd (the appellant) appealed to the Court of Appeal of New South Wales against a decision of the primary judge concerning the interpretation and application of section 63(3) of the *Motor Accidents Compensation Act 1999* (NSW). The dispute arose from a decision by a proper officer of the Motor Accidents Authority (now the State Insurance Regulatory Authority) to decline to refer a medical assessment to a review panel, despite the presence of conflicting medical opinions. The primary judge had found that the proper officer erred and ordered that the matter be referred to a review panel.

The central legal issues before the Court of Appeal were whether the proper officer had exceeded their statutory role by determining the asserted material error in the medical assessment on its merits, and whether the existence of significant differences of opinion among medical practitioners necessarily constituted reasonable cause to suspect a material error. The court was also required to consider whether the primary judge erred in ordering a referral to a review panel rather than remitting the matter back to a proper officer.

The Court of Appeal reasoned that section 63(3) of the Act required the decision maker to consider whether there was reasonable cause to suspect a material error, not to determine the existence of such an error on the merits. The court held that the presence of conflicting medical opinions did not, in itself, automatically create reasonable cause to suspect a material error. The decision maker was entitled to form a view on the weight of the evidence presented. Consequently, the court found that the proper officer had not exceeded their statutory authority by declining to refer the matter to a review panel.

The Court of Appeal allowed the appeal, set aside the orders of the primary judge, and dismissed the summons. The first respondent was ordered to pay the appellant's costs of the appeal and was granted an indemnity certificate.

Orders

Orders of the court

(1) Appeal allowed.

(2) Set aside the orders of the court below of 4 June 2021.

(3) In lieu thereof order that the summons be dismissed with costs.

(4) Order that the first respondent pay the appellant’s costs of the appeal and be granted an indemnity certificate under s 6 of the Suitors’ Fund Act 1951 (NSW).

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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