On a rehearing under s 134AD of the Accident Compensation Act 1985 (Vic), the Court of Appeal must put aside the trial judge's conclusions on all questions including credit and decide the serious injury question for itself. Where the trial judge's credibility findings rest on the manner in which evidence was given, the trial judge must explain in sufficient detail what occurred, failing which the appellate court cannot take those findings into account. The severity of a mental disorder for serious injury purposes is assessed by reference to the consequences (here, loss of earning capacity), not by comparison with other psychiatric disorders. An untreated mental condition with a real prospect of significant improvement after appropriate treatment may not be established as 'permanent'.
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