WATKINS LTD. v. RENATA (1985) 8 FCR 65
Workers' Compensation
COURT
IN THE FEDERAL COURT OF AUSTRALIA
NORTHERN TERRITORY DISTRICT REGISTRY
GENERAL DIVISION
Toohey(1), McGregor(2) and Morling(1) JJ.
CATCHWORDS
Workers' Compensation - "Loss of capacity for work" - Relevant considerations - Redemption - Whether based on gross weekly earnings or after tax earnings - Application for redemption made by workman - No injustice to workman - Whether Tribunal bound to accede to application - Retrospective increase in weekly rates following judgment of court below - Whether Federal Court can vary order of court below to take account of increase - Role of Federal Court in appeal from Supreme Court - Workmen's Compensation Act 1981 (NT), s 7(1), cll (1B), (12), (12A) of Sched 2 - Federal Court of Australia Act 1976 (Cth), s 28.
HEADNOTE
Held: (1) The expression "loss of capacity for work" in cl (1B) of Sched 2 to the Workmen's Compensation Act 1981 means physical incapacity for actually doing work in the labour market in which the worker works or may reasonably be expected to work. It is not physical incapacity resulting in actual economic loss.
Arnotts Snack Products Pty. Ltd. v. Yacob (1985) 59 ALJR 215, applied.
(2) A relevant consideration in determining loss of capacity for work is the restriction of opportunities open to a person who is disabled by reason of his injuries.
Ball v. William Hunt & Sons Pty. Ltd. (1912) AC 496; Clark v. Gas Light and Coke Co. (1905) 21 TLR 184, followed.
(3) The lump sum payable by way of redemption of weekly payments should be based upon the workman's gross weekly earnings before tax, not after-tax earnings. This follows from the terms of the Act as a whole, but particularly cl (12) of Sched 2 where the reference to redemption of "the liability for that weekly payment" is a reference to the redemption of the employer's liability to make the payment.
Michaelis, Hallenstein and Co. Pty. Ltd. v. Lewis (1944) 68 CLR 613, per Starke J. at 625, referred to.
(4) Per Toohey and Morling JJ., (McGregor J. dissenting) - When a workman applies for redemption in circumstances which meet the requirements of the Act, the Workmen's Compensation Tribunal is bound to accede to the application, unless it would be unjust to the workman to do so.
Kendall & Gent Ltd. v. Pennington (1912) 5 BWCC 335; Elliott Ltd. v. Hobbs (1929) 22 BWCC 509; Michaelis Hallenstein and Co. Pty. Ltd. v. Lewis (1944) 68 CLR 613; Harrington v. Harrington (1981) 55 ALJR 566 at 569 per Gibbs C.J.; Clawley v. Carlton Main Colliery Co. Ltd. (1918) AC 744 at 569 per Gibbs C.J., applied.
(5) Per Toohey and Morling JJ. - Once the primary judge ordered redemption, the employer's liability to the workman was merged in the judgment and was unaffected by a subsequent regulation which retrospectively increased the weekly rates of compensation. This appeal was an appeal in the strict sense and not…
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- AGLC
- Watkins Ltd v. Renata, W. [1985] FCA 254 ((1985) 8 FCR 65)
- Case
- [1985] FCA 254
- Decision Date
CaseChat Overview and Summary
The primary legal issue before the court was the interpretation of the relevant provisions of the Workers' Compensation Act, particularly sections 7(1), clauses (1B), (12), and (12A) of Schedule 2. The court needed to determine the correct basis for calculating Renata's loss of capacity, as well as the extent to which the Federal Court could adjust the Supreme Court's decision in light of a post-judgment increase in weekly rates. The court also considered whether it was bound to accede to Renata's application for redemption of compensation.
The court found that the proper basis for calculating Renata's loss of capacity for work should be after-tax earnings, aligning with the statutory provisions. It concluded that the Federal Court had the discretion to vary the Supreme Court's order to reflect the retrospective increase in weekly rates. The court held that it was not bound to accept Renata's application for redemption, provided no injustice was caused to her. In this instance, the court determined that the application for redemption did not result in any injustice.
The final orders of the court were to affirm the Supreme Court's judgment, with modifications to reflect the retrospective increase in weekly rates. The court also ruled that Renata's application for redemption did not require acceptance unless it could be shown that such a refusal would cause her injustice.
Orders
Orders of the court
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Background
Background to the litigation
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Evidence Before The Court
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Decision
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