Scanlin and Military Rehabilitation and Compensation Commission (Compensation)

This matter concerned an application by Mr Scanlin to review a decision by the Military Rehabilitation and Compensation Commission regarding compensation for injuries sustained to his left leg. The applicant, a member of the Royal Australian Navy, suffered these injuries in a moped accident on Langkawi Island while on shore leave during a deployment. The core of the dispute was whether the injury arose out of, or in the course of, his employment with the Commonwealth.

The court was required to determine whether Mr Scanlin's moped accident, which occurred while he was on shore leave and travelling to attend a volleyball game, constituted an injury that arose out of, or in the course of, his employment for the purposes of the Safety, Rehabilitation and Compensation (Defence-Related Claims) Act 1988. This involved considering the extent to which the employer exercised control over crew members during shore leave and the nature of the encouragement provided for participation in organised sporting events.

The court found that while Mr Scanlin was on shore leave and not on duty, his participation in the volleyball game was strongly encouraged by his employer, and the employer sought to exercise a degree of control over the conduct of crew members ashore. The evidence indicated that the employer expected crew members to participate in such events and that attendance was viewed favourably by the command. Applying the principles of the Act, the court determined that the encouragement and expectation of participation, coupled with the employer's interest in the conduct of its personnel ashore, created a sufficient nexus between the injury and Mr Scanlin's employment.

Consequently, the reviewable decision of the Commission was set aside. The court substituted a decision that the Commonwealth was liable to compensate Mr Scanlin in respect of his injury.