State Transit Authority of New South Wales v Fritzi Chemler

The State Transit Authority of New South Wales appealed to the Court of Appeal of New South Wales against a decision of a Presidential Member of the Workers Compensation Commission. The dispute concerned a claim for workers compensation by Fritzi Chemler, who alleged she suffered a psychiatric injury arising out of or in the course of her employment.

The primary legal issues before the Court of Appeal were the nature and scope of an appeal by way of review from an Arbitrator to a Presidential Member under s 352 of the *Workplace Injury Management and Workers Compensation Act 1998* (NSW), and the extent of the Presidential Member's power to review such decisions. The court also considered the principles of causation and compensation applicable to psychiatric injuries, including the "eggshell psyche" principle.

The Court of Appeal held that the appeal by way of review under s 352 of the *Workplace Injury Management and Workers Compensation Act 1998* (NSW) was not an appeal in the traditional sense but a review of the Arbitrator's decision. The Presidential Member was empowered to review the evidence and make their own findings of fact and law, effectively standing in the shoes of the Arbitrator. The court affirmed that the "eggshell psyche" principle, which holds an employer liable for the full extent of a psychiatric injury even if the employee was unusually susceptible, applied in this context. The court found no error in the Presidential Member's application of these principles to the facts of the case.

The appeal was dismissed with costs.