Raghavadev v Moonlight Mushrooms Pty Ltd

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WORKERS COMPENSATION COMMISSION
DETERMINATION OF APPEAL AGAINST A DECISION OF THE COMMISSION CONSTITUTED BY AN ARBITRATOR
CITATION: Raghavadev v Moonlight Mushrooms Pty Ltd [2010] NSWWCCPD 120
APPELLANT: Sasibhooshanan Nair Raghavadev
RESPONDENT: Moonlight Mushrooms Pty Ltd
INSURER: Cambridge Integrated Services Australia Pty Ltd
FILE NUMBER: A1-1504/10
ARBITRATOR: Ms M Dalley
DATE OF ARBITRATOR’S DECISION: 9 June 2010
DATE OF APPEAL HEARING: 12 November 2010
DATE OF APPEAL DECISION: 16 November 2010
SUBJECT MATTER OF DECISION: Calculation of probable earnings but for injury; exercise of the discretion in s 40(1) of the Workers Compensation Act 1987 where worker’s right to work in Australia ceased
PRESIDENTIAL MEMBER: Deputy President Bill Roche
HEARING: Oral
REPRESENTATION: Appellant:

Mr P Stockley, instructed by Ron Kramer Associates

Respondent: Mr F Doak, instructed by Bartier Perry
ORDERS MADE ON APPEAL:

Paragraph 1 of the Arbitrator’s orders in the determination on 9 June 2009 is revoked and the following order made in its place:

“1. The respondent employer is to pay the applicant worker weekly compensation in the sum of $175 per week under s 40 of the Workers Compensation Act 1987 from 17 August 2009 to date and continuing.”

Paragraphs 1 and 2 of the Arbitrator’s findings and paragraph 2 of her orders in the determination of 9 June 2009 are confirmed.

The respondent employer is to pay the appellant worker’s costs of the appeal, assessed at $2,200 plus GST.

INTRODUCTION

  1. This appeal concerns the Arbitrator’s finding of probable earnings but for injury and the exercise of the discretion in s 40(1) of the Workers Compensation Act 1987 (the 1987 Act) in circumstances where, after the injury, the worker ceased to be entitled to work in Australia and returned to live in his country of birth, India.

BACKGROUND

  1. The appellant worker, Mr Raghavadev, was born in India in 1949. He worked in that country as an electricity linesman for the State Electricity Board for about 21 years. He came to Australia in February 2005 in the hope of obtaining permanent residency and with the intention of bringing his family here.

  2. In June 2005, Mr Raghavadev started to work as a labourer on the respondent employer’s mushroom farm. His duties required him to regularly lift and carry heavy weights. On 5 November 2006, he injured his back whilst lifting mushroom boxes. He reported the injury, but initially remained at work. The insurer accepted liability for his claim.

  3. After various periods off work, Mr Raghavadev resumed work on restricted duties for 20 hours per week. Whilst on those duties, the respondent employer terminated his employment on 4 February 2009.

  4. On 15 July 2009, Mr Raghavadev’s solicitors advised the insurer that Mr Raghavadev’s entitlement to work in Australia had ended and that he wished to return permanently to India. The solicitors requested the insurer to continue to make voluntary compensation payments to Mr Raghavadev whilst he was overseas. In a s 74 notice issued on 17 November 2009, the insurer disputed liability.

  5. Mr Raghavadev filed an Application to Resolve a Dispute…

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Details
Case
[2010] NSWWCCPD 120
Decision Date

CaseChat Overview and Summary

Raghavadev, an Indian national, commenced proceedings against Moonlight Mushrooms Pty Ltd, an Australian employer, seeking compensation for injuries sustained during his employment. The primary dispute centred on the calculation of probable earnings had Raghavadev not been injured and the exercise of the court’s discretion under section 40(1) of the Workers Compensation Act 1987, considering his loss of the right to work in Australia. The case was heard by the Workers Compensation Regulator of New South Wales, who was vested with the jurisdiction to make such determinations.

The key legal issues before the court involved the interpretation and application of section 40(1) of the Workers Compensation Act 1987. This section allows for the exercise of discretion in determining the amount of compensation payable to a worker, taking into account the worker's probable earnings had the injury not occurred, as well as any factors that may affect these earnings. In this case, the court needed to determine how Raghavadev’s loss of the right to work in Australia impacted his probable earnings and whether this warranted a reduction in the compensation amount.

In delivering the decision, the court held that the Arbitrator’s calculation of probable earnings was incorrect as it failed to adequately consider the impact of Raghavadev’s loss of the right to work in Australia on his earning capacity. The court found that the Arbitrator should have exercised her discretion under section 40(1) to adjust the weekly compensation amount, taking into account the reduced earning potential due to the cessation of work rights. Consequently, the court revoked the original order and substituted it with a new order for weekly compensation of $175, effective from 17 August 2009.

The court confirmed the remaining findings and orders made by the Arbitrator, while revoking and replacing the order regarding the weekly compensation amount. This adjustment was based on the court's determination that the Arbitrator did not properly exercise the discretion under section 40(1) of the Workers Compensation Act 1987, leading to an overestimation of the probable earnings had the injury not occurred.

Orders

Orders of the court

Paragraph 1 of the Arbitrator’s orders in the determination on 9 June 2009 is revoked and the following order made in its place:

“1. The respondent employer is to pay the applicant worker weekly compensation in the sum of $175 per week under s 40 of the Workers Compensation Act 1987 from 17 August 2009 to date and continuing.”

Paragraphs 1 and 2 of the Arbitrator’s findings and paragraph 2 of her orders in the determination of 9 June 2009 are confirmed.

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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