Stern v AAI Limited t/as AAMI - [2024] NSWPIC 497

CERTIFICATE OF DETERMINATION OF MEMBER
CITATION:	Stern v AAI Limited t/as AAMI [2024] NSWPIC 497
CLAIMANT:	Harry Stern
INSURER:	AAI Limited t/as AAMI
SENIOR MEMBER:	Brett Williams
DATE OF DECISION:	9 September 2024
CATCHWORDS:	MOTOR ACCIDENTS - Motor Accident Injuries Act 2017; sections 3.11(1) and 3.28(1); miscellaneous claims assessment; whether accident caused wholly by the fault of the claimant; where claimant’s vehicle collided with vehicle stationary at set of lights; claimant’s case was that the brakes failed and accident not caused by his fault; whether accident caused by the fault of the owner of the vehicle; no history of the claimant experiencing problems with brakes prior to accident; road surface was wet and slippery; vehicle started sliding forward when claimant put his foot on the brakes; more likely than not that the brakes were applied forcefully, the vehicle skidded on the wet and slippery road, and collided with stationary vehicle; no fault on the part of the owner of the vehicle; collision occurred because claimant failed to maintain control of the vehicle and failed to drive to the prevailing conditions; accident was not caused by the fault of any other person; Held – sections 3.11(1) and 3.28(1) are concerned with causation of the accident that involved fault; given claimant’s conduct was the only cause of the accident that involved fault, the accident was caused wholly by the fault of the claimant.
DETERMINATIONS MADE:	CERTIFICATE For the purposes of s 3.11 of the Motor Accident Injuries Act 2017 the motor accident on 25 March 2023 was caused wholly by the fault of the claimant. For the purposes of s 3.28 of the Motor Accident Injuries Act 2017 the motor accident on 25 March 2023 was caused wholly by the fault of the claimant. The insurer is to pay the claimant’s costs in the sum of $3,838.72 plus GST. A statement of reasons for this determination are attached to this certificate.

STATEMENT OF REASONS

BACKGROUND

Harry Stern (claimant) was injured in a motor accident at Drummoyne on 25 March 2023 (accident). He subsequently made a claim for statutory benefits under the Motor Accident Injuries Act 2017 (MAI Act) on AAI Limited t/as AAMI (insurer).
On 12 April 2023 the insurer admitted liability to pay statutory benefits for up to 26 weeks after the accident. Following this decision, there have been twists and turns in the liability status of the claim. The claim was denied on 30 June 2023, and subsequently accepted following an internal review.[1] Further liability decisions were made thereafter.[2] Ultimately, on 22 March 2024 an internal reviewer affirmed the decision made by the insurer to deny liability for the claim on the basis that, for the purposes of ss 3.11 and 3.28, the claimant was wholly at fault for the accident[3].
[1] Internal Review decision dated 19 July 2023; Liability notice dated 20 July 2023.
[2] Decisions dated 19 February 2024 and 20 February 2024.
[3] 20 February 2024 decision.
The claimant disputes that the accident was caused by…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2024] NSWPIC 497
Decision Date: 9 September 2024

CaseChat Overview and Summary

Stern initiated proceedings against AAI Limited trading as AAMI, in the context of a motor accident injury claim under the Motor Accident Injuries Act 2017. Stern alleged that his vehicle had collided with a stationary vehicle at a set of traffic lights due to a failure in the vehicle's brakes. Stern argued that the accident was not due to his fault and sought compensation from AAMI. AAMI, on the other hand, contested the claim, asserting that the accident was caused by Stern's failure to maintain control of his vehicle and adapt to the slippery road conditions.

The central legal issue before the court was whether the accident was caused wholly by Stern's fault under sections 3.11(1) and 3.28(1) of the Motor Accident Injuries Act 2017. The court had to determine if the accident was attributable to the claimant's actions, specifically whether Stern's conduct constituted the fault required by the legislation. The court examined the evidence regarding the condition of the vehicle's brakes, the road conditions at the time of the accident, and Stern's driving behaviour. It also considered whether there was any history of brake failure prior to the incident.

The court found that there was no history of brake problems prior to the accident, and the road conditions were wet and slippery, which contributed to the vehicle skidding. The court reasoned that it was more likely than not that Stern forcefully applied the brakes, leading to the vehicle skidding and colliding with the stationary vehicle. The court concluded that Stern's failure to maintain control of his vehicle and adapt to the road conditions constituted the fault that caused the accident. As a result, the court held that the accident was caused wholly by Stern's fault under the relevant sections of the Motor Accident Injuries Act 2017.

Consequently, the court dismissed Stern's claim for compensation against AAMI, finding that the accident was not caused by the fault of any other person. The decision hinged on the interpretation of fault under the statutory provisions and the evidence presented regarding the circumstances of the accident. The court's ruling underscores the importance of driver responsibility and adaptation to road conditions in determining liability in motor accident claims.

Orders