WDS (Mining) Pty Ltd v Piper

Case [2013] NSWWCCPD 19


WORKERS COMPENSATION COMMISSION
DETERMINATION OF APPEAL AGAINST A DECISION OF THE COMMISSION CONSTITUTED BY AN ARBITRATOR
CITATION: WDS (Mining) Pty Ltd v Piper [2013] NSWWCCPD 19
APPELLANT: WDS (Mining) Pty Ltd
RESPONDENT: Mark Anthony Piper
INSURER: CGU Workers Compensation (NSW) Ltd
FILE NUMBER: A1-6344/12
ARBITRATOR: Ms E Grotte
DATE OF ARBITRATOR’S DECISION: 22 November 2012
DATE OF APPEAL DECISION: 16 April 2013
SUBJECT MATTER OF DECISION: Settlement of claim for lump sum compensation; effect of complying agreement made under s 66A of the Workers Compensation Act 1987; interpretation of contract; principles involved; difference between an “injury” and a consequential condition that has resulted from an injury
PRESIDENTIAL MEMBER: Deputy President Bill Roche
HEARING: On the papers
REPRESENTATION: Appellant: Rankin Nathan Lawyers
Respondent: Carroll & O’Dea Lawyers

ORDERS MADE ON APPEAL:

1.   Leave to appeal is granted.

2.   The Senior Arbitrator’s determination of 22 November 2012 is confirmed.

3.   The appellant employer is to pay the respondent worker’s costs of the appeal, as agreed or assessed.

INTRODUCTION  

  1. Section 66A of the Workers Compensation Act 1987 (the 1987 Act) provides for a worker who has received an injury, and an employer or insurer, to agree on the degree of permanent impairment that has resulted from the injury. An agreement made under this section is called a “complying agreement”.

  2. The issue in the present appeal concerns the interpretation and effect of a complying agreement made between the worker and the insurer, which provided for the payment of lump sum compensation in respect of an eight per cent whole person impairment due to an injury to the worker’s right upper limb (right shoulder), and whether that agreement precludes the worker from claiming lump sum compensation for symptoms in his left shoulder said to have resulted from the accepted injury to the right shoulder.

BACKGROUND

  1. The respondent worker, Mark Piper, injured his right shoulder in the course of his employment for the appellant employer, WDS (Mining) Pty Ltd, on or about 21 December 2006. That injury was aggravated in June 2007, but the aggravation is of no consequence to the current appeal. Liability has been accepted for the shoulder injury. As a result of the injury, Mr Piper alleges that he has overused his left shoulder and developed symptoms and restrictions in that shoulder.

  2. Mr Piper also injured his back at work for the appellant. Though that injury is not relevant to the present appeal, I mention it because the letter of 26 May 2011 (see [13] below), and the Senior Arbitrator’s decision, refer to a claim for lump sum compensation for a back injury.

  3. On 8 August 2010, Dr Alan Searle, orthopaedic surgeon, examined Mr Piper at the request of his solicitors. In his report of 5 September 2010, he took a history of the injury to the right shoulder (which he wrongly recorded as having occurred on 12 October 2010) and recorded that, because of symptoms in the right shoulder (continued aching), Mr Piper tended to suppress use of that shoulder and was…

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AGLC
Wds (Mining) Pty Ltd v Piper [2013] NSWWCCPD 19
Case
[2013] NSWWCCPD 19
Decision Date

CaseChat Overview and Summary

WDS (Mining) Pty Ltd sought to appeal against a decision of the Senior Arbitrator, who had determined that the appellant employer was liable to pay the respondent worker a lump sum compensation for injuries sustained. The dispute centred around the interpretation of a complying agreement made under section 66A of the Workers Compensation Act 1987 and the distinction between an injury and a consequential condition that resulted from an injury. The Court of Appeal was tasked with interpreting the complying agreement and assessing the liability of the employer for the worker's compensation claim.

The key legal issue before the Court of Appeal was whether the complying agreement between the parties, executed under section 66A of the Workers Compensation Act 1987, constituted an agreement to settle the worker's claim for compensation. The Court also needed to determine whether the injuries sustained by the worker were compensable under the Act. Furthermore, the Court had to decide whether the worker's injuries were separate from any consequential conditions that may have arisen from those injuries.

The Court of Appeal held that the complying agreement did not constitute a settlement of the worker's claim for compensation. Instead, it was a legally binding agreement that acknowledged the worker's entitlement to compensation for injuries sustained. The Court found that the worker's injuries were compensable under the Act, and that the consequential conditions that arose from those injuries were also compensable. The Court further determined that the distinction between an injury and a consequential condition was not as clear-cut as the employer had suggested, and that the worker was entitled to compensation for both the injuries and the consequential conditions that resulted from those injuries.

The Court of Appeal granted leave to appeal, confirmed the Senior Arbitrator's determination, and ordered the employer to pay the worker's costs of the appeal. The Court's decision emphasised the importance of properly interpreting complying agreements and the need for employers to understand their obligations under the Workers Compensation Act 1987. The Court also highlighted the distinction between an injury and a consequential condition, and the need for employers to provide adequate compensation for both.

Orders

Orders of the court

1. Leave to appeal is granted.

2. The Senior Arbitrator’s determination of 22 November 2012 is confirmed.

3. The appellant employer is to pay the respondent worker’s costs of the appeal, as agreed or assessed.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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