Military Rehabilitation & Compensation Commission v Pollanen

The Military Rehabilitation & Compensation Commission (MR&CC) appealed against a decision of the Administrative Appeals Tribunal (AAT) that had overturned a previous decision by the MR&CC that it was not liable to pay compensation for the provision and/or installation of cruise control for the respondent's Nissan Patrol 4WD. The MR&CC contended that the AAT erred in law by failing to have regard to the appropriate legislative provisions and case law when it determined that the MR&CC was liable to pay compensation. The Federal Court was required to determine whether the AAT erred in concluding that the MR&CC was liable to pay compensation.

The Court held that the AAT erred in its determination. The MR&CC was not liable to pay compensation as it was not authorised by the relevant legislation to pay for the provision and/or installation of cruise control. The AAT failed to have regard to the appropriate legislative provisions and case law when it determined that the MR&CC was liable to pay compensation. The Court set aside the decision of the AAT and in substitution made a decision confirming the determination made 16 December 2002 that the MR&CC was not liable to pay compensation for the provision and/or installation of cruise control for the respondent's Nissan Patrol 4WD.