Skinner v The State of New South Wales (No.3)

Skinner v The State of New South Wales (No.3) involved a former police officer who sought damages for a psychiatric injury sustained during his employment. The dispute centred on the availability of interest under section 151M of the Workers Compensation Act and the reasonableness of a settlement offer made before the proceedings were initiated. The case was heard in the District Court of New South Wales.

The primary legal issues the court had to address were whether the plaintiff was entitled to interest on the compensation award under section 151M, and whether the settlement offer made before the proceedings were commenced was unreasonable. The court needed to consider the statutory provisions, the relevant case law, and the specific circumstances of the settlement offer.

The court found that the plaintiff was entitled to interest under section 151M, as the statutory language did not exclude such interest for claims related to psychiatric injuries. Regarding the settlement offer, the court held that it was not unreasonable, considering the timing and the information available at the time. The court also noted that the plaintiff's application to extend the time to commence the proceeding under section 151D did not warrant a different costs order, as the general costs agreement between the parties was sufficient.

The final orders of the court included a declaration that the plaintiff was entitled to interest on the compensation award, and that the settlement offer was not unreasonable. The costs of the proceeding were to be borne by each party in accordance with their agreement, with no separate costs order for the plaintiff’s application to extend time.