O'Connell and Comcare (Compensation)

This matter concerned two applications by Ms O’Connell for review of decisions by Comcare that denied liability for her claims for compensation. The applications related to an adjustment disorder allegedly suffered by Ms O’Connell, with one claim arising from a meeting on 7 February 2013 and the other from a notice requiring her to attend a medical assessment on 13 January 2014. The Administrative Appeals Tribunal was required to determine whether Comcare was liable to pay compensation under the *Safety, Rehabilitation and Compensation Act 1988* (Cth) (SRC Act).

The primary legal issues before the Tribunal were whether Ms O’Connell’s adjustment disorders constituted an “injury” as defined by the SRC Act, and if so, whether any such injury was excluded from compensation by reason of being a result of reasonable administrative action taken in a reasonable manner. Specifically, the Tribunal had to consider if the meeting on 7 February 2013 and the direction to attend a medical assessment were reasonable administrative actions taken reasonably. The Tribunal also considered whether the evidence supported liability for “elevated stress” in addition to the adjustment disorders.

The Tribunal found that while the significant contribution of employment to Ms O’Connell’s adjustment disorders was conceded, the exclusion for reasonable administrative action was not applicable. Regarding the 2013 incident, the Tribunal determined that the meeting conducted by Mr Rugari was not reasonable administrative action taken in a reasonable manner, as the feedback provided to Ms O’Connell lacked particularity and detail, and she was not afforded an opportunity to respond adequately. Similarly, the direction to attend a medical assessment was also found not to be reasonable administrative action taken in a reasonable manner. The Tribunal applied the principles of s 14 and s 5A of the SRC Act, noting that an injury includes a disease contributed to significantly by employment, unless it arises from reasonable administrative action taken reasonably.

Consequently, the Tribunal set aside Comcare’s decisions under review. In substitution, the Tribunal decided that Comcare was liable to pay compensation to Ms O’Connell for an adjustment disorder, with the date of injury being 7 February 2013 for the first application and 21 January 2014 for the second application.