| IN THE COURT OF APPEAL OF NEW ZEALAND |
| CA582/2013 [2014] NZCA 94 |
| BETWEEN | TREVOR CULLEN |
| AND | ACCIDENT COMPENSATION CORPORATION |
| Hearing: | 17 March 2014 |
Court: | Stevens, White and French JJ |
Counsel: | P G Schmidt for Applicant |
Judgment: | 26 March 2014 at 10.30 am |
JUDGMENT OF THE COURT
The application for special leave to appeal is declined.
____________________________________________________________________
REASONS OF THE COURT
(Given by White J)
The applicant, Mr Cullen, seeks special leave to appeal to this Court on the following question:
Is the [Accident Compensation] Corporation required to pay interest on the whole amount of retained weekly compensation [to which the applicant was entitled] notwithstanding any repayment to WINZ of income support benefit paid to the [applicant]?
The question arises because from October 1988 to 2006 Mr Cullen received income support from Work and Income New Zealand (WINZ) when he had been entitled in fact to continue to receive weekly compensation from the Accident Compensation Corporation (the Corporation). Arrears of compensation were calculated to be $198,288.07. $185,498.63 was paid as reimbursement by the Corporation to WINZ under the Accident Compensation Act 2001 (the Act). The difference between the compensation payable and the benefits WINZ had paid, $12,789.45, was then paid to Mr Cullen. Mr Cullen claimed interest on the total compensation arrears (from 1992 when the entitlement to interest was created), but the Corporation paid interest calculated on only the balance of $12,789.45 in arrears paid to Mr Cullen.
The question was answered in the negative first by the District Court on appeal from the Corporation.[1] That Court then declined Mr Cullen’s application for leave to appeal to the High Court on the question.[2]
[1]Cullen v Accident Compensation Corp [2011] NZACC 206.
[2]Cullen v Accident Compensation Corp [2012] NZACC 306.
The High Court granted Mr Cullen special leave to appeal, but then also answered the question in the negative.[3] The High Court declined Mr Cullen’s application for leave to appeal to this Court.[4]
This Court has power to grant special leave to appeal under s 163(2) of the Act. The principles applicable to an application for leave under s 67 Judicature Act 1908 apply equally to an application under s 163 of the Act.[5] The Court will exercise this power if satisfied that there is a serious question of law capable of bona fide and serious argument in a case involving some interest, public or private, of sufficient importance to outweigh the cost and delay of a further appeal.[6] Other relevant considerations include the desirability of finality of litigation and the overall interests of justice.[7] The primary focus is on whether the question of law is worthy of consideration.[8]
[5]Knight v Accident Compensation Corp HC Christchurch CIV-2005-485-1582, 6 April 2006 at [18].
[6]Impact Manufacturing Ltd v Accident Rehabilitation and Compensation Insurance Corp HC Wellington AP266/00, 6 July 2001; Khan…
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- Case
- [2014] NZCA 94
- Decision Date
CaseChat Overview and Summary
The Court reviewed the statutory provisions governing compensation and interest payments, particularly sections 114 and 252 of the Accident Compensation Act 2001. Section 114 requires ACC to pay interest on any payment of weekly compensation if payment is not made within the stipulated period. Section 252 deals with situations where a claimant receives income-tested benefits and establishes a claim to compensation in respect of the same period. The Court interpreted these sections to mean that interest under section 114 is only payable on late payments of weekly compensation received by the claimant, and not on refunds made to WINZ under section 252.
The Court found that Mr. Cullen was entitled to interest on the late payment of arrears of compensation of $12,789.45, which he received. However, he was not entitled to interest on the refund of $185,498.63 made by ACC to WINZ under section 252. This conclusion was based on the interpretation that interest is only payable on late payments actually received by the claimant. The Court rejected arguments that this outcome resulted in a windfall for ACC or that it was inconsistent with Mr. Cullen’s entitlement to the gross amount of compensation.
The Court of Appeal declined Mr. Cullen's application for special leave to appeal, finding that the question of law was not capable of serious argument. The Court emphasized that the statutory scheme ensures that claimants do not retain benefits from both schemes and that ACC has met its obligations by making the appropriate refunds to WINZ.
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