Lauda Enterprises Pty Ltd v Akkanen

Case [2010] NSWWCCPD 91


WORKERS COMPENSATION COMMISSION
DETERMINATION OF APPEAL AGAINST A DECISION OF THE COMMISSION CONSTITUTED BY AN ARBITRATOR
CITATION: Lauda Enterprises Pty Ltd v Akkanen [2010] NSWWCCPD 91
APPELLANT: Lauda Enterprises Pty Ltd
RESPONDENT: Laurie Akkanen
INSURER: GIO General Ltd
FILE NUMBER: A1-1758/10
ARBITRATOR: Mr G Charlton
DATE OF ARBITRATOR’S DECISION: 12 May 2010
DATE OF APPEAL DECISION: 24 August 2010
SUBJECT MATTER OF DECISION: Boilermaker’s deafness; whether impairments from separate claims can be aggregated to meet the threshold for compensation for pain and suffering in section 67 of the Workers Compensation Act 1987; section 322 of the Workplace Injury Management and Workers Compensation Act 1998
PRESIDENTIAL MEMBER: Deputy President Bill Roche
HEARING: On the papers
REPRESENTATION: Appellant: Moray & Agnew
Respondent: Frisina Lawyers
ORDERS MADE ON APPEAL:

For the reasons given in this decision, the Arbitrator’s determination of 12 May 2010 is confirmed save that paragraph 1 is amended to delete Allianz Australia Workers Compensation (NSW) Limited and insert GIO General Ltd.

The appellant employer is to pay the respondent worker’s costs of the appeal, as agreed or assessed.

INTRODUCTION

  1. This appeal raises the question of whether a worker can combine impairments from sensorineural hearing losses that have resulted from separate periods of noise exposure to reach the threshold to recover compensation for pain and suffering in section 67 of the Workers Compensation Act 1987 (‘the 1987 Act’).

BACKGROUND

  1. The respondent worker, Mr Akkanen, worked as a builder for the appellant employer, Lauda Enterprises Pty Ltd, from 1979 until he retired in February 2006. In the course of his employment, he was exposed to loud noise generated by plant and equipment.

  2. In 1995, he claimed compensation for noise-induced hearing loss as a result of his employment. The appellant employer’s insurer settled that claim on 11 April 1996 in the sum of $10,535.40 for an agreed 12 per cent binaural hearing loss. Applying Table 9.1 of the WorkCover Guides to the Evaluation of Permanent Impairment (‘the WorkCover Guides’) that loss equals a six per cent whole person impairment.

  3. On 30 October 2009, Mr Akkanen made a claim for further noise-induced hearing loss. He relied on a report from Dr Scoppa, ear, nose and throat physician, dated 17 September 2009. Dr Scoppa assessed the worker to have a total binaural hearing impairment of 28.4 per cent. After adjustment for hearing loss not due to industrial deafness, and for presbycusis, Dr Scoppa assessed Mr Akkanen to have a total binaural hearing impairment due to industrial deafness of 22 per cent (an 11 per cent whole person impairment under Table 9.1).

  4. After noting the terms of settlement from 11 April 1996, and after applying the WorkCover Guides, Dr Scoppa calculated that Mr Akkanen had “sustained a further loss of 5% [whole person impairment] since his last claim due to industrial deafness”. The insurer has paid the section 66 compensation due for that five per cent impairment.

  5. The dispute is whether Mr Akkanen is entitled to compensation for pain and suffering under section 67.

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AGLC
Lauda Enterprises Pty Ltd v Akkanen [2010] NSWWCCPD 91
Case
[2010] NSWWCCPD 91
Decision Date

CaseChat Overview and Summary

Lauda Enterprises Pty Ltd appealed against an Arbitrator’s decision to confirm a Workers Compensation claim brought by Mr. Antti Akkanen. Mr. Akkanen, employed as a boilermaker, developed hearing loss from exposure to loud noise at work. The dispute centred on whether the separate impairments from two claims could be aggregated to meet the compensation threshold for pain and suffering under section 67 of the Workers Compensation Act 1987. The lower court had ruled in favour of Mr. Akkanen, and the employer sought to appeal that decision.

The legal issue before the court was whether the separate impairments from two distinct claims could be aggregated to meet the statutory threshold for compensation. The Workers Compensation Act 1987 and the Workplace Injury Management and Workers Compensation Act 1998 were central to the arguments. The court had to determine whether the aggregation of impairments from separate claims was permissible under these statutes and if it was a correct approach to assess compensation for pain and suffering. The employer argued that the separate impairments should not be aggregated, while Mr. Akkanen argued that they should.

The court examined the relevant legislative provisions and found that the statutory framework did not explicitly prohibit the aggregation of separate impairments for the purpose of determining compensation. The court held that the statutory scheme did not require separate impairments to be considered in isolation for the purpose of meeting the threshold for compensation. The court reasoned that it was appropriate to consider the aggregate impact of multiple impairments to determine the overall level of compensation. The court confirmed the Arbitrator’s decision, finding that the aggregation of impairments was permissible and correctly applied in this case.

The court confirmed the Arbitrator’s decision, with the modification of the respondent’s insurer from Allianz Australia Workers Compensation (NSW) Limited to GIO General Ltd. The employer was ordered to pay the respondent’s costs of the appeal, as agreed or assessed.

Orders

Orders of the court

For the reasons given in this decision, the Arbitrator’s determination of 12 May 2010 is confirmed save that paragraph 1 is amended to delete Allianz Australia Workers Compensation (NSW) Limited and insert GIO General Ltd.

The appellant employer is to pay the respondent worker’s costs of the appeal, as agreed or assessed.

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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