State of New South Wales v Skinner

The Court of Appeal of New South Wales considered an appeal by the State of New South Wales and a cross-appeal by Kristen Skinner. The dispute concerned claims of negligence brought by Ms Skinner, a former police officer, against the State, alleging that the State was vicariously liable for the negligence of its police officers and for its own failure to provide a safe system of work. Ms Skinner contended that her employment as a police officer exposed her to traumatic events, leading to a major depressive disorder and post-traumatic stress disorder, and that the State failed to take reasonable steps to prevent this harm.

The primary legal issues before the Court were whether the State breached its duty of care to Ms Skinner, whether any such breach caused her psychiatric injuries, and whether Ms Skinner was contributorily negligent. Specifically, the court had to determine the appropriate standard of care owed by an employer to an employee suffering from mental illness, the foreseeability of psychiatric harm to Ms Skinner, and whether the State's actions or omissions were causative of her condition. The court also considered whether Ms Skinner's own conduct contributed to her injuries and the application of provisions relating to workers compensation and interest on damages.

The Court of Appeal found that the State had breached its duty of care to Ms Skinner by failing to implement adequate systems to identify and manage the risks of psychiatric injury to its officers exposed to traumatic events. The court reasoned that the State ought to have foreseen the risk of psychiatric harm and should have had in place procedures for regular psychiatric assessments or referrals for officers experiencing significant trauma. The court also determined that the State's negligence was a factual cause of Ms Skinner's injuries, finding that she likely would have disclosed her condition and received treatment earlier had she been referred for assessment. The court rejected the argument of contributory negligence, finding that Ms Skinner's failure to report her symptoms was understandable given her condition and the workplace culture.

The Court of Appeal dismissed the State's appeal. However, it upheld Ms Skinner's cross-appeal, setting aside the original District Court judgment and entering judgment in her favour for a revised amount of $857,948, with the judgment to take effect from 9 April 2021.