Kovacs v Strathfield Municipal Council

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CERTIFICATE OF DETERMINATION OF MEMBER 
CITATION: Kovacs v Strathfield Municipal Council [2024] NSWPIC 151
APPLICANT: Ovidiu 'Vince' Kovacs
RESPONDENT: Strathfield Municipal Council
MEMBER: Rachel Homan
DATE OF DECISION: 26 March 2024
CATCHWORDS:

WORKERS COMPENSATION - Workers Compensation Act 1987; claim for lump sum compensation, weekly compensation and treatment expenses in respect of psychological injury; whether applicant sustained an injury; credibility; whether real events occurred; whether defence pursuant to section 11A(1) made out; Held – the applicant sustained an injury pursuant to section 4(b)(i); the respondent failed to discharge its onus of establishing that injury was wholly or predominantly caused by reasonable action with respect to performance appraisal, discipline, dismissal or provision of employment benefits; matter remitted to President for referral to a Medical Assessor to assess the degree of permanent impairment.

DETERMINATIONS MADE:

The Commission determines:

1. The applicant sustained a psychological injury arising out of or in the course of employment to which employment with the respondent was the main contributing factor pursuant to s 4(b)(i) of the Workers Compensation Act 1987.

2. The injury was not wholly or predominantly caused by reasonable action taken or proposed to be taken by or on behalf of the respondent with respect to performance appraisal, discipline, dismissal or provision of employment benefits pursuant to s 11A(1) of the Workers Compensation Act 1987.

3.     The matter is remitted to the President for referral to a Medical Assessor for assessment as follows:

Date of injury:      24 January 2022 (deemed)

Body system:      psychological

Method:               whole person impairment.

4.     The materials to be referred to the Medical Assessor are to include:

a.     Application to Resolve a Dispute and attached documents;

b.     Reply and attached documents;

c.     documents attached to an Application to Admit Late Documents lodged by the applicant on 11 January 2024, and

d.     documents attached to an Application to Admit Late Documents lodged by the respondent on 12 January 2024.

5.     The matter to be listed for further preliminary conference upon receipt of the Medical Assessment Certificate.

STATEMENT OF REASONS

BACKGROUND

  1. Mr Ovidiu 'Vince' Kovacs (the applicant) was employed as a team member by Strathfield Municipal Council (the respondent).

  2. The applicant claims to have sustained physical injuries in the course of his employment to his left elbow and left ankle. The applicant also claims to have suffered a psychological injury due to various adverse interactions with his supervisors and being required to perform duties with insufficient staffing support.

  3. Liability in respect of the applicant’s physical injuries was accepted by the respondent’s insurer.

  4. Liability for the psychological injury was disputed in a notice issued pursuant to s 78 of the Workplace Injury Management and Workers Compensation Act 1998 (the 1998 Act) on 28 March 2022. That decision was maintained in a further notice issued pursuant to s 78 of the 1998 Act on 10 August 2022.

  5. Notices disputing ongoing liability to pay compensation in respect of the physical injuries and maintaining the disputes in relation to the psychological injury were issued on
    15 November…

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Details
Case
[2024] NSWPIC 151
Decision Date

CaseChat Overview and Summary

In the case of Kovacs v Strathfield Municipal Council, the applicant, Kovacs, sought compensation for psychological injury sustained during employment with the council. The dispute involved claims for lump sum compensation, weekly compensation, and treatment expenses. The matter was heard in the New South Wales Civil and Administrative Tribunal.

The central legal issue was whether Kovacs sustained a compensable injury under the Workers Compensation Act 1987. A further issue was the credibility of the applicant's account of events and whether the council could successfully rely on section 11A(1) of the Act, which pertains to injuries caused by reasonable actions related to performance appraisal, discipline, dismissal, or employment benefits. The council argued that the applicant's injury was wholly or predominantly caused by such reasonable actions, which would negate compensability.

The tribunal found that Kovacs did indeed sustain an injury within the meaning of section 4(b)(i) of the Workers Compensation Act 1987. The council did not discharge the onus of proving that the injury was wholly or predominantly caused by reasonable actions. Consequently, the tribunal held that the applicant's claim was valid, and the matter was remitted to the President for referral to a Medical Assessor to determine the degree of permanent impairment.

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Background

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