Sydney South West Area Health Service v Dyer

In this case, the respondent, Ms Dyer, sought workers compensation for a psychological injury that arose out of her employment. The applicant, Sydney South West Area Health Service, argued that the injury did not arise out of her employment, and that it was not caused by an accepted physical injury. The dispute was heard in the Dust Diseases Tribunal of NSW. The tribunal had to decide whether the psychological condition arose out of employment, whether it resulted from the accepted physical injury, and whether it was a primary or secondary psychological injury. It also had to consider whether the principle of novus actus interveniens applied.

The tribunal found that Ms Dyer did suffer from a psychological condition that arose out of her employment. The tribunal held that the condition resulted from the accepted physical injury and that it was a primary psychological injury. The tribunal also found that the principle of novus actus interveniens did not apply. The tribunal relied on the principles set out in Kooragang Cement Pty Ltd v Bates (1994) 35 NSWLR 452, which held that a psychological injury can arise out of employment even if it is not caused by a specific incident. The tribunal found that Ms Dyer's psychological condition was a direct result of her employment and the physical injury she suffered.

The tribunal revoked the Arbitrator’s determination of 22 March 2012 and made the following orders: award for the respondent and each party is to pay her or its own costs. The tribunal also ordered that each party is to pay her or its own costs of the appeal.