State of New South Wales v Donnelley

The State of New South Wales appealed to the Court of Appeal of New South Wales against a District Court decision that extended the limitation period for a claim brought by Mr Donnelley. The dispute concerned whether the District Court judge had erred in exercising discretion to extend the time for Mr Donnelley to file his claim, which alleged acts and omissions by the police department over a prolonged period.

The central legal issue before the Court of Appeal was whether the District Court judge had correctly exercised their discretion under section 151D of the *Workers Compensation Act 1987* (NSW) to extend the limitation period. Specifically, the court had to determine if the judge had erred in finding that there was no presumptive prejudice to the State of New South Wales, despite the significant delay and the nature of the claim.

The Court of Appeal found that while the District Court judge had not erred in their statement of discretion or in their explanation for the delay, they had erred in their assessment of prejudice. The court reasoned that the extensive and long-standing nature of the claim, involving numerous acts and omissions by the police department, meant that memories would have faded and evidence would have been lost simply because it was forgotten. This, the court held, created a real likelihood that a fair trial would not be possible, and therefore the extension of time should have been refused.

Consequently, the Court of Appeal allowed the appeal, set aside the District Court orders that extended the limitation period, and dismissed Mr Donnelley's notice of motion with costs. The State of New South Wales was also awarded the costs of the appeal.