Maurice Blackburn Cashman v Brown [2011] HCA 22 (22 June 2011)
Last Updated: 14 September 2011
HIGH COURT OF AUSTRALIA
FRENCH CJ,
HAYNE, CRENNAN, KIEFEL AND BELL JJ
MAURICE BLACKBURN CASHMAN APPELLANT
AND
FIONA HELEN BROWN RESPONDENT
Maurice Blackburn Cashman v Brown [2011] HCA 22
22 June 2011
M176/2010
ORDER
1. Appeal allowed.
- Set
aside so much of the order of the Court of Appeal of the Supreme Court of
Victoria made on 25 August 2010 as answered the questions
reserved for its
opinion and in place thereof order that the questions reserved be answered as
follows:
Question 1: Do any, and if so which, of the estoppels pleaded in paragraph
1A(i) of the plaintiff's amended reply to amended defence
arise?
Answer: No.
Question 2: Is this honourable court obliged to accept as final and
conclusive in any trial of this action, any, and if so which,
of the matters
pleaded by the plaintiff at paragraph 1B(a) and (b) of her amended reply to
amended defence?
Answer: No.
Question 3: Is the defendant precluded from acting in any, and if so which,
of the ways claimed by the plaintiff in paragraph 1B(c)
of her amended reply to
amended defence?
Answer: No.
- The
appellant pay the respondent's costs of the appeal to this Court.
On appeal from the Supreme Court of Victoria
Representation
M F Wheelahan SC with S A O'Meara for the appellant (instructed by Minter
Ellison)
P W Tree SC with S R McCredie for the respondent (instructed by Lennon
Mazzeo)
Notice: This copy of the Court's Reasons for Judgment is subject to formal
revision prior to publication in the Commonwealth Law
Reports.
CATCHWORDS
Maurice Blackburn Cashman v Brown
Torts – Negligence – Applicability and effect of legislation –
Plaintiff alleged she had suffered injury including
psychiatric injury as result
of employer's negligence – Plaintiff made claim against employer pursuant
to s 98C of Accident Compensation Act 1985 (Vic) ("Act") for
compensation for non-economic loss – Pursuant to s 104B(9) of Act,
Victorian WorkCover Authority referred questions to Medical Panel about extent
of plaintiff's impairment – As result of Medical
Panel finding, plaintiff
deemed to have a "serious injury" for purposes of Act – As entitled under
s 134AB(2) of Act, plaintiff commenced common law proceedings against
employer for damages – Section 68(4) of Act provided that "[f]or the
purposes of determining any question or matter", opinion of Medical Panel was to
be applied by "any court,
body or person" – In pleadings, employer denied
plaintiff had suffered injury, loss and damage – Whether employer
precluded
by operation of Act from making that and other contentions in evidence
or argument – Whether employer so precluded as a matter of issue
estoppel.
Words and phrases – "for the purposes of determining any question or
matter", "serious injury".
Accident Compensation Act 1985 (Vic), ss 68(4), 98C, 104B,
134AB.
- FRENCH CJ,
HAYNE, CRENNAN, KIEFEL AND BELL JJ. The respondent to this appeal ("the
plaintiff") was a salaried partner employed by
the appellant firm ("the
employer") in its legal practice in Melbourne. In 2007 the plaintiff commenced
proceedings against the
employer in the County Court of Victoria claiming
damages for personal injuries she alleged she had suffered as a result of the
employer's
negligence. She alleged that between January and November 2003 she
had been "systematically undermined, harassed and humiliated"
by a fellow
employee, despite complaints and requests for intervention made to the
employer's managing partner, and that, as a result,
she had suffered injury,
including psychiatric injury.
- The
central issue in the appeal to this Court is whether, as the Court of Appeal of
the Supreme Court of Victoria
held[1], the
employer is precluded by operation of the Accident Compensation Act 1985
(Vic) ("the Act") from making certain contentions in evidence or argument in the
plaintiff's action in the County Court or is estopped from making
those
contentions as a matter of issue estoppel. (The question of issue estoppel was
argued in, but not decided by, the Court of
Appeal and is raised in this Court
by the plaintiff on a notice of contention.)
- Both
the issue decided by the Court of Appeal and the issue raised by the notice of
contention should be resolved in the employer's
favour. The employer is not
precluded in the manner alleged by the plaintiff, whether by the Act or as a
matter of issue estoppel. The appeal should be allowed.
The asserted preclusions
- To
identify the subject of the alleged preclusions it is necessary to deal first
with the parties' pleadings in the County Court.
- By
its amended defence the employer denied, among other things, that the plaintiff
had suffered injury, loss and damage. The plaintiff
filed an amended reply to
the amended defence which joined issue with the employer and asserted that the
employer was estopped from
"making any assertion whether by pleading, submission
or otherwise" and from "leading, eliciting or tendering evidence, whether in
chief or in cross-examination or re-examination" that was inconsistent with four
particular matters described in par 1A(i) of the
pleading in the following
terms:
"(A) the panel opinion;
(B) the plaintiff having, as at 28 June 2006, a serious injury as defined in
s 134AB(37)(c) of the Act;
(C) the plaintiff having, as at 28 June 2006, a permanent severe mental
disturbance or disorder;
(D) the plaintiff having, as at 28 June 2006, a psychological injury arising out
of her employment with the defendant."
In par 1B of her pleading the plaintiff described the subjects of the
alleged preclusions in different terms but nothing turns on
those differences.
By its rejoinder the employer admitted the facts that were alleged to give rise
to the preclusions but denied
that it was precluded in the manner
alleged.
- What
was described in the plaintiff's reply as "the panel opinion", and each of the
other matters identified in the reply as a subject
of preclusion, depended upon
steps that had been taken under the Act in consequence of the plaintiff
notifying the employer that she claimed to have suffered "an injury arising out
of or in the course
of ...
employment"[2].
To explain what those matters were, and how they arose, it is necessary to trace
a number of steps that were taken under the Act by the plaintiff or by others in
relation to her claim.
The plaintiff's claim for compensation
- In
December 2005, the plaintiff had made a claim against the employer, pursuant to
s 98C of the Act, for compensation for non-economic loss.
Section 98C(1) provided for payment of compensation "in respect of an
injury resulting in permanent impairment as assessed in accordance with
section 91". Section 91 prescribed how the assessment of a degree of
impairment of a worker was to be made. In most cases the assessment was to be
made
in accordance with a specified edition of the American Medical
Association's Guides to the Evaluation of Permanent Impairment ("the
AMA
Guides") as modified by the Act and any regulations made under the
Act[3]. In the
case of psychiatric impairment the AMA Guides were modified pursuant to
s 91(6), but the detail of the modifications made need not be noticed.
- The
amount of compensation to be allowed under s 98C was calculated according
to the particular statutory formula that was engaged. Where, as in this case,
the permanent impairment
that the plaintiff claimed she suffered was permanent
psychiatric impairment, s 98C(3) prescribed the formula that was to be
applied. The variable in the formula was "the worker's degree of impairment
expressed as a
number". No compensation was payable if the degree of impairment
was less than 30 per
cent[4].
- One
of the functions of the Victorian WorkCover Authority ("the Authority") under
the Act is[5] to
"receive and assess and accept or reject claims for compensation". The
Authority also has the
function[6] of
paying "compensation to persons entitled to compensation under" the Act. It
can[7], and in
this case did, perform those functions by an agent but it is convenient to
describe the steps that were to be taken as if
they were taken by the
Authority.
- The
plaintiff's claim under s 98C having been made, the Authority was
bound[8], within
a limited time, to take a number of steps. So far as presently relevant, the
Authority was bound to accept or reject liability
for each injury included in
the claim[9], to
obtain an assessment or assessments in accordance with s 91 of the Act as
to the degree of permanent impairment (if any) of the worker resulting from the
injury or injuries in respect of which liability
is
accepted[10],
to determine the degree of permanent impairment (if any) of the
worker[11], to
calculate any entitlement to
compensation[12],
and to advise the worker of the result of each of these
steps[13].
- In
February 2006, the Authority accepted that the plaintiff had a psychological
injury arising out of her employment with the employer.
"The panel opinion"
- The
first of the preclusions alleged by the plaintiff in her reply was that the
employer could not dispute "the panel opinion".
The other preclusions alleged
are to be understood as articulations of the issues that were alleged to have
been decided by "the
panel opinion". The reference to "the panel opinion" was
to an opinion given by a Medical Panel constituted under the Act. The opinion
in question was given on the date stated in other alleged preclusions:
28 June 2006.
- It
is necessary to refer to the statutory provisions that dealt with Medical Panels
and the provisions that were engaged in this
case to produce "the panel opinion"
referred to by the plaintiff in her reply. Division 3 of Pt III of
the Act (ss 63-68) provided, among other things, for the establishment and
constitution of Medical
Panels[14], for
their procedures and
powers[15], for
the examination of a claimant by a
Panel[16], and
for the formation and expression by a Panel of its opinion on a medical question
referred to
it[17]. As the
name "Medical Panels" suggests, all members of a Medical Panel were to be
medical practitioners. The members of any particular
Panel were to be drawn
from a list of members appointed by the Governor in
Council[18].
- Section 104B(9)
of the Act required the Authority "within 14 days of being advised by the worker
that the worker disputes the [Authority's] determinations of
impairment or total
loss in respect of the injury or injuries claimed" to refer two questions "to a
Medical Panel for its opinion
under section 67" of the Act. Those medical
questions were stated, in s 104B(9), as being:
"(a) the degree of impairment assessed in accordance with section 91
resulting from the injury or injuries claimed for which liability is accepted or
established; and
(b) whether the worker has an injury or injuries claimed for which liability is
accepted or established which is a total loss mentioned
in the Table to
section 98E(1)".
- In
March 2006, pursuant to s 104B(9), the Authority referred to a Medical
Panel for its opinion the following questions concerning the plaintiff:
"Question 1. What is the degree of impairment resulting from the accepted
injuries assessed in accordance with s 91, and is the impairment
permanent?
Question 2. Does the [plaintiff] have an accepted injury which has resulted in a
total loss injury mentioned in the table in
s 98E(1)?"
It being accepted that the reference was made under s 104B(9), it may be
assumed that the plaintiff had disputed the determination of her impairment that
had been made by the Authority. The
questions referred to the Panel took a form
different from that found in s 104B(9) but both parties have at all times
treated the questions as being those for which s 104B(9)
provided.
- In
June 2006, the Medical Panel provided its opinion. The answers that the Panel
gave were:
"Answer to question 1. The Panel is of the opinion that there is a 30%
psychiatric impairment resulting from the accepted psychological
injury, when
assessed in accordance with s 91(2) for the purposes of s 98C and
134AB(3) & (15) of the Act. The degree of psychiatric impairment is
permanent within the meaning of the Act.
Answer to question 2. No."
The degree of impairment
- The
Medical Panel's assessment in answering questions posed pursuant to
s 104B(9), that the degree of impairment suffered by the plaintiff was
30 per cent, was significant for two reasons. First, as has already
been
noted, no compensation for non-economic loss in respect of permanent psychiatric
impairment was to be allowed if the degree
of impairment was less than
30 per
cent[19].
Second, and of immediate relevance in this matter, because the assessment made
under s 104B was 30 per cent, the injury suffered by the plaintiff was
deemed[20] to
be a "serious injury". And because her injury was deemed to be a "serious
injury" she was
entitled[21] to
bring proceedings against her employer at common law. It is necessary to say
more about this second consequence of the Panel's
answers, not least because it
is to be recalled that several of the preclusions alleged in this case were cast
in terms that directly
or indirectly referred to the definition in s 134AB
of the Act of "serious injury". That is, the plaintiff alleged that the
employer was precluded from making any assertion or adducing any evidence
in her
common law action inconsistent with her having suffered what the Act identified
as a "serious injury".
"Serious injury" and common law action
- Section 134AB(1)
of the Act provided, in effect, that except "as permitted by and in accordance
with" the section, a "worker who is, or the dependants of a worker
who are or
may be, entitled to compensation in respect of an injury arising out of or in
the course of, or due to the nature of,
employment on or after 20 October
1999", "shall not, in proceedings in respect of the injury, recover any damages"
for non-pecuniary
or pecuniary loss. Section 134AB(2) provided the
exception to that prohibition which is presently relevant. It provided
that:
"A worker may recover damages in respect of an injury arising out of, or in the
course of, or due to the nature of, employment if
the injury is a serious injury
and arose on or after 20 October 1999."
- Section 134AB
made several different provisions concerning the subject of "serious injury".
The term itself was defined in s 134AB(37). It will be recalled that one
of the preclusions alleged by the plaintiff was preclusion from contending that,
as at the date of
the Medical Panel's opinion, the plaintiff was not in fact
suffering an injury that was "a serious injury as defined in s 134AB(37)(c)
of the Act". The form of "serious injury" identified in par (c) of the
definition was "permanent severe mental or permanent severe behavioural
disturbance or disorder". The plaintiff further alleged that the employer was
precluded from contending that, as at the date of
the Medical Panel's opinion,
she was not in fact suffering an injury that was "a permanent severe mental
disturbance or disorder".
- Section 134AB(38)(b)
amplified what was meant by the terms "serious" and "severe" but the sub-section
provided that this was "[f]or the purposes of the
assessment of serious
injury in accordance with sub-sections (16) and (19)" (emphasis
added). Those sub-sections (directed to cases where an assessment under
s 104B of the degree of impairment was less than 30 per cent) were not
engaged in this matter.
- Section 134AB
provided for five different ways in which the existence of a serious injury
could be established. Of relevance to the plaintiff's
claim was that provided
by sub-s (15), which said:
"If the assessment under section 104B made before an application under
sub-section (4) is made of the degree of impairment of the worker as a
result of the injury is 30
per centum or more, the injury is deemed to be a
serious injury within the meaning of this
section."
The reference in sub-s (15) to an application under sub-s (4) may be
put aside from consideration. There was no dispute in this
case that the
procedures required by s 134AB(4) had been followed.
- The
other ways in which "serious injury" could be established were:
(a) under sub-s (7)(a), by the Authority (or a self-insuring employer)
advising the worker, as a result of a determination under
s 104B of the
degree of impairment of the worker, "that the worker is deemed to have a serious
injury"; or
(b) under sub-s (7)(b), by the Authority (or a self-insuring employer)
issuing a certificate under s 134AB(16)(a) that it was "satisfied that the
injury is a serious injury"; or
(c) under sub-s (9), by the worker being deemed to have a serious injury if
the Authority (or a self-insuring employer) failed to
advise the worker, within
a fixed time of its decision, whether the worker had a serious injury;
or
(d) under sub-s (19)(a), by a court, other than the Magistrates' Court, on
an application of the worker being "satisfied on the balance
of probabilities
that the injury is a serious injury".
In the case of sub-s (19)(a), the court would give leave, under
sub-s (16)(b), to the worker to bring a proceeding.
- The
Act thus provided for the ways in which a worker would be deemed to have
suffered a serious
injury[22], by
which the Authority or a self-insuring employer could certify that it was
satisfied of this
fact[23] and by
which a court could determine whether it was satisfied of this
fact[24]. The
deeming or determination of the existence of a serious injury, once made, met
the first of the two conditions for a worker
to be allowed to recover damages in
respect of a work-related injury prescribed by the concluding words of
s 134AB(2): "if the injury is a serious injury and arose on or after
20 October 1999".
- If
examination of the relevant provisions of the Act were to stop at this point it
would readily be seen that the only fact relevant to the institution or
prosecution of a common law
action that related to the subject of "serious
injury" was that either the Act deemed a plaintiff to have suffered such an
injury, or the Authority (or self-insuring employer) or a court was satisfied of
that
fact. It is necessary, however, to notice two other provisions of
s 134AB as it stood at the times relevant to this matter.
- First,
sub-s (19) provided that:
"For the purposes of sub-section (16)(b)—
...
(c) no finding (other than a finding that the injury is a serious injury) made
on an application for leave to bring proceedings shall
give rise to an issue
estoppel."
It will be recalled that s 134AB(16)(b) provided for a court to give leave
to commence proceedings and that s 134AB(19)(a) provided that a court must
not do that unless satisfied that the injury is a serious injury. The
introductory words of sub-s (19),
"[f]or the purposes of
sub-section (16)(b)", do not sit easily with par (c) of
sub-s (19). Paragraph (c) of sub-s (19) was evidently
intended
to look forward from the proceedings (seeking leave) with which
sub-s (16)(b) dealt. Paragraph (c) of sub-s (19) "looked
forward" in the sense that it was concerned with what estoppels (necessarily in
proceedings other than the leave proceeding) could arise from findings
made in a leave proceeding. To speak of these provisions being made for
the purposes of the provision governing the leave proceeding would
be apposite
only if some meaning were to be given to the phrase "for the purposes of" wider
than it might normally have.
- It
is not necessary to decide in this case whether that should be done. In this
case, no application for leave to commence proceedings
was made or was
necessary. The plaintiff was deemed by operation of s 134AB(15) to have a
serious injury. It is important to notice, however, that if s 134AB(19)(c)
were to be construed as speaking to proceedings other than leave proceedings
brought under s 134AB(16)(b), the only estoppel that could arise
from the determination of an application for leave would preclude debate about
whether there was a finding
that the injury in question was a serious
injury[25].
That is, the preclusion provided by s 134AB(19)(c) would prevent a
defendant in the common law proceeding from disputing that a plaintiff had met
the first of the two conditions prescribed
by s 134AB(2). That preclusion
would not prevent the defendant from disputing whatever may have been the
factual bases upon which a conclusion
had been reached that the plaintiff had
suffered a serious injury.
- The
other provision of s 134AB to which reference must be made is
sub-s (23). It provided:
"In the trial of a proceeding brought under this section, a jury must not be
informed—
(a) of the monetary thresholds and statutory maximums specified by or under
sub-section (22); or
(b) that any injury in respect of which the proceeding has been brought has been
deemed, found, or required to be found, to be a
serious injury; or
(c) that the Authority or self-insurer has been satisfied that the injury is a
serious injury; or
(d) that the Authority or self-insurer has issued a certificate under
sub-section (16)(a)."
The reference, in par (b) of sub-s (23), to an injury being "found" to
be a serious injury is evidently a reference to a finding
made under
sub-ss (16)(b) and (19)(a). Thus sub-s (23) prohibits a jury being
told of such a finding. When read as a whole, sub-s
(23) points strongly
to the conclusion that the Act treats the steps taken under the Act before
common law proceedings may be brought as wholly irrelevant to those common law
proceedings. That is, the matters mentioned
in sub-s (23) are not to be
mentioned to the jury because they are irrelevant.
- Apart
from sub-ss (19)(c) and (23), nothing in the provisions of s 134AB
with respect to the determination or deeming of the existence of a serious
injury speaks in any way to the conduct of an action brought
in accordance with
s 134AB(2). And the Court of Appeal did not decide to the contrary.
Proceedings in the County Court
- In
the present case, the plaintiff's action against the employer came on for
hearing in the County Court before a judge (Judge Lacava)
and a jury. Before a
jury was empanelled, counsel for the plaintiff informed the trial judge that he
would object to the employer
cross-examining the plaintiff or her witnesses "in
a way which suggests the plaintiff suffered no injury, or no serious injury" and
that the plaintiff would also object to the employer calling evidence to that
effect. Having regard to what was understood to be
the then state of authority
in Victoria, particularly the decision of the Court of Appeal in Pope v
W S Walker & Sons Pty
Ltd[26],
the parties asked the trial judge to reserve questions in the form of a special
case for the opinion of the Court of Appeal pursuant
to s 76(1) of the
County Court Act 1958 (Vic). The trial judge concluded that in light of
the state of authority, the expected length of the trial of the action and the
pendency of an appeal to the Court of Appeal against the judgment of
Beach J of the Supreme Court of Victoria in the matter of Norris v
Brumar (Victoria) Pty
Ltd[27]
(which raised similar but not identical issues) it was appropriate to
reserve three questions for the opinion of the Court of Appeal.
Those questions
were:
"(1) Do any, and if so which, of the estoppels pleaded in paragraph 1A(i) of
the plaintiff's amended reply to the amended defence
arise?
(2) Is this honourable court obliged to accept as final and conclusive in any
trial of this action, any, and if so which, of the
matters pleaded by the
plaintiff at paragraph 1B(a) and (b) of her amended reply to amended
defence?
(3) Is the defendant precluded from acting in any, and if so which, of the
ways claimed by the plaintiff in paragraph 1B(c) of
her amended reply to amended
defence?"
Proceedings in the Court of Appeal
- The
special case in the present matter was heard at the same time as the appeal
against the judgment in Brumar. In the present matter, the Court of
Appeal (Ashley and Mandie JJA and Ross AJA)
ordered[28]
that the questions reserved should be answered as follows:
"Question (1): Unnecessary to answer.
Questions (2) and (3): The defendant is prohibited in this proceeding
from –
(a) making any assertion, whether by pleading, submission or otherwise; and
(b) leading or eliciting evidence, whether in evidence-in-chief,
cross-examination or re-examination;
which is inconsistent with the opinion of the Medical Panel provided on or about
28 June 2006; and in particular from making any
assertion, or leading or
eliciting evidence, to the contrary of the following:
(i) that the plaintiff as at 28 June 2006, suffered a permanent (in the
sense of being likely to last into the foreseeable future)
mental or behavioural
disturbance or disorder which was severe by reference to its consequences with
respect to pain and suffering
and loss of earning capacity when judged by
comparison with other cases in the range of possible mental or behavioural
disturbances
or disorders.
(ii) that it was the pain and suffering and loss of earning capacity
consequences of the accepted psychological injury which constituted
the
permanent mental or behavioural disturbance or disorder which was
severe."
- The
reasons of the Court of Appeal were delivered by Ashley JA. Those reasons
dealt with both the appeal in Brumar and the special case in this
matter.
- Ashley JA
concluded[29]
that the questions raised by the special case in this matter were resolved by
reference to the operation of s 68(4) of the Act in the context of the
operation of s 134AB. Section 68(4) of the Act provided that:
"For the purposes of determining any question or matter, the opinion of a
Medical Panel on a medical question referred to the Medical
Panel is to be
adopted and applied by any court, body or person and must be accepted as final
and conclusive by any court, body or
person irrespective of who referred the
medical question to the Medical Panel or when the medical question was
referred."
Two reasons were
given[30] for
holding that the opinion of the Medical Panel "was final and conclusive".
First, reference was made to the provision in s 68(4) that the opinion was
"to be adopted and applied by any court, body or person and must be accepted as
final and conclusive by any
court, body or person". The second reason was said
to lie in s 104B(12)(a) of the Act. That sub-section provided
that:
"No appeal lies to any court or Tribunal from a determination or
opinion—
(a) as to the degree of permanent impairment of a worker resulting from an
injury".
It may be noted in respect of this second consideration that the Court of Appeal
of Victoria has
held[31] that a
provision like s 104B(12) preventing an appeal from the opinion of a
Medical Panel does not prevent a person dissatisfied with an opinion expressed
by a Medical
Panel from seeking judicial review of that opinion, whether
pursuant to the Administrative Law Act 1978 (Vic) or otherwise. The
plaintiff did not submit that these decisions of the Court of Appeal were wrong.
It is, however, unnecessary
to consider whether or to what extent the
availability of such relief should be understood as qualifying a description of
the Panel's
opinion as "final and
conclusive"[32].
- Ashley JA
concluded[33]
that, in her pleading, the plaintiff had expressed the effect of s 68(4) of
the Act too narrowly. That being so, his Honour
reframed[34]
the preclusions which he considered followed from the application of
s 68(4) in the broader fashion ultimately incorporated in the answer given
by the Court of Appeal to the second and third questions reserved.
Section 68(4)
- At
first sight, s 68(4) of the Act is cast in terms of very general
application. Reference is twice made to "any court, body or person". But the
sub-section is introduced
by the expression "[f]or the purposes of determining
any question or matter". Those words should not be given a literal
meaning[35].
The meaning of the phrase that best accords with its context, and which should
be adopted, is "for the purposes of determining
any question or matter
arising under or for the purposes of the Act". Those are the purposes
for which the opinion of a Medical Panel on a medical question is to be adopted
and applied and accepted
as final and conclusive.
- Once
that step is taken, it is then clear that s 68(4) does not speak at all to
the litigation of questions or matters that are not questions or matters arising
under or for the purposes
of the Act. More particularly, s 68(4) does not
speak at all to an action for damages brought by a worker against an
employer.
- An
action of that kind presents no question or matter to which the opinion of a
Medical Panel could be said to relate that is a question
or matter arising under
or for the purposes of the Act. The action that a worker brings against an
employer (commonly for the tort of negligence, but sometimes for other causes of
action
such as breach of contract or breach of statutory duty) is an action for
a cause of action which is not one created by the Act. Each cause of action
either is a common law cause of action or has its origin in a statute other than
the Act. Of course, as an examination of the provisions of s 134AB of the
Act shows, the worker's
bringing[36] of
an action against his or her employer, the damages that may be
awarded[37] in
the action, the amount of interest that may be
allowed[38] on
damages, and even the orders that are to be
made[39] for
costs are all regulated by the Act. And s 134AB makes frequent reference
to an action which a worker may bring against an employer as one which is
brought "in accordance
with"[40] or
"under"[41] the
Act. But none of these provisions detracts from the force of the observation
that none of the causes of action on which the worker sues
the employer is
created by the Act. And because the relevant causes of action are not created
by the Act, no question or matter arises in the action, to which the opinion of
a Medical Panel could be said to relate, that can be described
as a question or
matter arising under or for the purposes of the Act.
- Nor
does s 104B(12) point to any different result. It provides that there is to be
no appeal against a Medical Panel's opinion. That says nothing about
when a
Medical Panel's opinion must be applied. To the extent to which s 68(4)
provides that the opinion of a Medical Panel as to the degree of permanent
impairment of a worker resulting from an injury is "final
and conclusive", it is
necessary to identify from some source other than s 104B(12) the purposes
for which, or circumstances in which, that description is legally significant.
It is only if s 68(4) is treated as applying to an action brought by a
worker against the worker's employer that the description of the Panel's opinion
as final and conclusive is significant to the hearing or the determination of
that action. And for the reasons given, s 68(4) does not apply to a
worker's action for damages against the worker's employer, there not being any
question or matter in that action
that is a question or matter arising under or
for the purposes of the Act.
- As
the plaintiff submitted in argument in this Court, s 134AB of the Act
regulates when an action for damages may be brought by a worker against an
employer. But contrary to the plaintiff's submission,
once the steps required
by s 134AB have yielded the result that there is either a determination or
a deeming that a serious injury has been suffered, and the conditions
prescribed
by s 134AB have been satisfied, the prosecution of an action brought by the
worker is not a matter with which the Act deals in any respect that permits or
requires the application of s 68(4).
Issue estoppel
- The
conclusions reached with respect to the construction and application of
s 68(4) entail the further conclusion that no issue estoppel arises out of
the opinions expressed by a Medical Panel under s 104B(9) in an action
later brought by a worker against the worker's employer.
- It
is a necessary condition for an issue estoppel to exist between parties that the
decision from which the estoppel arises was a
final
decision[42].
Where, as here, the statute establishing the body in question prescribes that
its decisions are final for the purposes of that
Act, no greater ambit of
finality should be attributed to its decisions than the Act itself marks out.
Thus no estoppel arises because the quality of "finality" which the Act gives to
an opinion expressed by a Medical Panel (in this case under s 104B(9)) is
finality for the purposes of determining any question or matter arising under or
for the purposes of the Act. No wider finality should then be ascribed to a
Panel's opinion.
- These
are reasons enough to conclude that the issue estoppels alleged in this case do
not arise from the Panel's opinion. It is
not necessary in these circumstances
to consider the further questions agitated in argument about who should be
regarded as the "parties"
immediately affected by a Panel expressing its
opinion, who should be regarded as a privy of those parties, or whether the
opinion
expressed by a Panel about degree of impairment can or should be
regarded as a "decision" of some question arising between parties.
Conclusion and orders
- The
appeal to this Court should be allowed. The Court of Appeal's order answering
the questions reserved for its opinion should
be set aside. In place of that
order there should be an order that the questions reserved be answered as
follows:
Question 1: Do any, and if so which, of the estoppels pleaded in
paragraph 1A(i) of the plaintiff's amended reply to amended defence
arise?
Answer: No.
Question 2: Is this honourable court obliged to accept as final and conclusive
in any trial of this action, any, and if so which,
of the matters pleaded by the
plaintiff at paragraph 1B(a) and (b) of her amended reply to amended
defence?
Answer: No.
Question 3: Is the defendant precluded from acting in any, and if so which, of
the ways claimed by the plaintiff in paragraph 1B(c)
of her amended reply
to amended defence?
Answer: No.
- In
accordance with the undertaking given at the time of the grant of special leave,
the appellant should pay the respondent's costs
of the appeal to this Court.
The appellant applied for an order that the plaintiff pay its costs in the Court
of Appeal. This being
a test case on a point of general application and the
undertaking having been given, the orders for costs made by the Court of Appeal
in favour of the plaintiff should not be disturbed.
[1] Brumar (Vic) Pty Ltd v Norris;
Brown v Maurice Blackburn Cashman [2010] VSCA 206.
[2] Accident Compensation Act
1985 (Vic), s 82(1).
[3] s 91(8).
[4] s 98C(3)(a).
[5] s 20(1)(aa).
[6] s 20(1)(b).
[7] s 23.
[8] s 104B(2).
[9] s 104B(2)(a).
[10] s 104B(2)(b).
[11] s 104B(2)(c).
[12] s 104B(2)(e).
[13] s 104B(2)(f).
[14] s 63.
[15] s 65.
[16] s 67.
[17] s 68.
[18] s 63(2) and (4).
[19] s 98C(3)(a).
[20] s 134AB(15).
[21] s 134AB(2).
[22] s 134AB(7)(a), (9) and
(15).
[23] s 134AB(7)(b) and
(16)(a).
[24] s 134AB(16)(b) and
(19)(a).
[25] Dwyer v Calco Timbers Pty
Ltd [2008] HCA 13; (2008) 234 CLR 124 at 130 [11]; [2008] HCA 13.
[26] (2006) 14 VR 435.
[27] [2009] VSC 214.
[28] [2010] VSCA 206.
[29] [2010] VSCA 206 at [161].
[30] [2010] VSCA 206 at [163].
[31] Masters v McCubbery
[1996] 1 VR 635 at 647-648 per Winneke P, 652 per Ormiston JA,
656-658 per Callaway JA; Lianos v Inner & Eastern Health Care
Network (2001) 3 VR 136 at 141-142 [20] per Chernov JA (Tadgell and
Batt JJA agreeing at 137 [1], [2]).
[32] cf Kirk v Industrial Court
(NSW) (2010) 239 CLR 531 at 581 [99]-[100]; [2010] HCA 1.
[33] [2010] VSCA 206 at [176].
[34] [2010] VSCA 206 at [191].
[35] cf Pope v
W S Walker & Sons Pty Ltd (2006) 14 VR 435 at 444 [37] per
Eames JA.
[36] s 134AB(1) and (2).
[37] s 134AB(24) and (32).
[38] s 134AB(34).
[39] s 134AB(28).
[40] s 134AB(1), (3), (5),
(11), (12), (22), (28) and (34).
[41] s 134AB(23), (24) and
(30).
[42] See, for example, Blair v
Curran; Curran and Perpetual Trustee Co Ltd v Blair [1939] HCA 23; (1939) 62 CLR 464 at
531-532 per Dixon J; [1939] HCA 23; Administration of Papua and New
Guinea v Daera Guba [1973] HCA 59; (1973) 130 CLR 353 at 453 per Gibbs J; [1973] HCA
59; Kuligowski v Metrobus (2004) [2004] HCA 34; 220 CLR 363 at 373 [21], 375 [25] per
Gleeson CJ, McHugh, Gummow, Kirby, Hayne, Callinan and Heydon JJ;
[2004] HCA 34.