Commonwealth of Australia v. Pisani & Anor [1987] FCA 70
Federal Court of Australia
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TO
CATCHWORDS
. 24
id 7 AL
HORRRS "Gheeteng' yt - Commonwealth Employee - Employed at
" fe)
munitions ~ factory Blow to head of employee by bomb cap -
~~} 1
Physical injury not incapacitating - Blow to head causing
employee to suffer an aggravation, acceleration or recurrence of
a depressive state - Whether s.27 or s.29 of Compensation
{Commonwealth Government employees) Act applies - Whether there
was any evidence before the Tribunal to satisfy a finding made
under s.29(3) of the Act that no wilful and false representation
was made - Whether any evidence before the Tribunal as to the
finding that the employee was totally incapcitated for work
pursuant to s.26 of the Act - Matter remitted to Commissioner for
reconsideration in accordance with directions given by Court.
Compensation (Commonwealth Government Employees) Act 1971, ss. 5,
26, 27, 29, 45.
Administrative Appeals Tribunal Act 1975, s.44.
Favelle Mort Limited v Murray (1976) 133 CLR 580.
Commonwealth v Whillock (1983) 48 ALR 433.
Hockey v Yelland (1985) 157 CLR 124.
Re Ellis and Commonwealth of Australia (1985) 3 AAR 146.
Collins v Minister for Immigration and Ethnic Affairs (1981) 36
ALR 598.
Delahunty v Commonwealth (1981) 53 FLR 9.
Australian Telecom Commission v King (1985) 5 FCR 42.
COMMONWEALTH OF AUSTRALIA v VICTOR PISANI AND RITA PISANI
G252/1985
Evatt J
Sydney
26 February 1987
IN THE FEDERAL COURT OF AUSTRALIA )
NEW SOUTH WALES DISTRICT REGISTRY ) No. G252 of 1985
GENERAL DIVISION )
IN THE MATTER of the Compensation
(Commonwealth Government Employees)
Act 1971
BETWEEN: COMMONWEALTH OF AUSTRALIA
Applicant
D: VICTOR PISANI
First Respondent
AND: RITA PISANI
Second Respondent
CORAM: Evatt J
DATE :
26 January 1987
PLACE: Sydney
MINUTES OF ORDER
COURT ORDERS THAT:
THE
1)
That the determinations of the Delegate of the Commissioner
appointed under the Compensation (Commonwealth Government
Employees) Act 1971 (the Act) in respect of Victor Pisani
(the employee), dated 18 May 1983 and 16 December 1983, be
set aside.
That the matter be remitted to the Commissioner for
determination in accordance with the following directions:
(1)
(it)
(iit)
(iv)
(v)
(vi)
Le)
That personal injury arising out of or in the course
of his employment was caused to the employee on 31
March 1981, namely a blow to the head;
That as aresult of the said blow to the head, the
employee suffered an aggravation, acceleration or
recurrence of an anxiety depressive illness, a disease
within the meaning of the Act;
That the employment of the employee by the
Commonwealth was a contributing factor to the
aggravation, acceleration or recurrence of the said
disease;
That in accordance with the provisions of s.26 of the
Act the employee should be deemed totally
incapacitated for work;
That such total incapacity for work of the employee
resulted from the aggravation, acceleration or
recurrence of the said disease;
The aggravation, acceleration or recurrence of the
said disease is deemed to be a personal injury to the
employee arising out of the employment of the employee
by the Commonwealth in accordance with s.29(2)(f) of
the Act;
(vil) Calculations of compensation shall be made in
accordance with s.45 of the Act for total incapacity.
(viii) The commencement of the period of total incapacity and
the duration thereof are to be determined by the
Commissioner in accordance with these directions and
any further evidence that might be available.
(ix) The question of any dependency governing the
appropriate rate of compensation is also to be
determined by the Commissioner.
3) The applicant pay the respondents' costs of and incidental to
the appeal.
Note: Settlement and entry of orders is dealt with in Order 36
of the Federal Court Rules.
IN THE FEDERAL COURT OF AUSTRALIA )
NEW SOUTH WALES DISTRICT REGISTRY ) No. G252 of 1985
GENERAL DIVISION )
IN THE MATTER of the Compensation
(Commonwealth Government Employees)
Act 1971
BETWEEN: COMMONWEALTH OF AUSTRALIA
Applicant
AND: VICTOR PISANI
First Respondent
AND: RITA PISANI
Second Respondent
CORAM: Evatt J
DATE : 26 February 1987
PLACE: Sydney
REASONS FOR JUDGMENT
Before the Court is an appeal brought by the Commonwealth
pursuant to s.44 of the Administrative Appeals Tribunal Act 1975
from a decision of the General Administrative Division of the
Administrative Appeal Tribunal constituted by Mr J.0O. Ballard,
Mrs J.H. McClintock and Dr H.D. Browne made on 2 August 1985
wherein the Tribunal determined that two determinations in favour
of the abovenamed first respondent, Victor Pisani (the employee)
made by Delegates of the Commissioner for Employees' Compensation
under the Compensation (Commonwealth Government Employees) Act
2.
1971 (the Act) on 18 May 1983 and 6 December 1983 should be set
aside and the matter remitted to the Commissioner with the
following directions:
(i) that personal injury, arising out of or in the course
of his employment, was caused to the employee on 31
March 1981, namely a blow to the head;
(ii) as a sequel to (such) personal injury the employee
suffered an aggravation of an underlying disease,
namely mixed anxiety depressive illness;
(iii) in accordance with the provisions of section 27 of
(the Act), the Commonwealth is liable to pay
compensation in respect of the said personal injury;
(iv) in accordance with the provisions of section 26 of
(the Act), the respondent is deemed totally
incapacitated for work and he is entitled to
compensation for total incapacity under section 45 of
the Act.
Section 44 of the Administrative Appeals Tribunal Act 1975
provides the present appeal be on a question of law only.
The questions of law raised on the appeal as set out in the
Notice of Appeal are:
(a) whether the Tribunal made findings of fact in support of
which there was no evidence before it;
(b) whether the Tribunal properly construed and applied
sections 5 (the definition of injury), 27, 29, 45 and 46
of (the Act)
(c) whether the Tribunal made findings that it was required
to make before giving a direction as to the application
of section 26 of the Act.
The orders sought in such notice read:
(a)
(b)
(c)
(d)
3.
that this appeal be allowed;
that the decision of the Tribunal be set aside;
that the determinations of the Commissioner for
Employees Compensation on 18 May 1983 and 6 December
1983 be set aside;
such other orders as the Court may think fit.
the grounds of the appeal therein being:
(a)
(bd)
(c)
(d)
(e)
(f)
that the Tribunal erred in law in that it failed to
construe, and to so apply, the definition of "injury" in
section 5 of the Act as requiring the exclusion, from
the meaning of "injury", of disease or the aggravation,
acceleration or recurrence of a disease;
that the Tribunal erred in law in that it construed, and
so applied, the definition of "injury" in section 5 of
the Act so as to include the aggravation, acceleration
or recurrence of a disease;
that the Tribunal erred in law in that if it had
properly directed itself as to the meaning of the word
"injury" as defined in section 5 of the Act it was not
open to it, on the material before it, to conclude that
the respondent suffered an injury within the definition
of that word;
that the Tribunal erred in law in that upon the material
before 1t, it was required to apply the provisions of
section 29 of the Act, and to be satisfied as to the
requirements specified therein, whereas it failed to do
sO;
that the Tribunal erred in law in that it:
(1) failed to distinguish, for the purposes of section
27 of the Act, between the injury constituted by
the blow to the head in March 1981 and the injury
constituted by the aggravation of the respondent's
underlying mixed anxiety depressive illness;
(il) and it thereby failed to distinguish for the
purposes of sections 45 and 46 of the Act the
separate incapacities (for work) resulting from
each such injury.
that the Tribunal erred in law that it was not open to
it, on the material before it, to find that any
incapacity for work resulted from the injury constituted
by the blow to the head;
(g) that the Tribunal erred in law in that upon the material
before it the only finding open to it was that the
provisions of section 29(3) of the Act had been
satisfied;
(h) that the tribunal erred in law in that before giving the
direction in paragraph 27(iv) of its reasons for
decision it should have considered, and have been
satisfied as to the requirements of, section 26 of the
Act which it failed to do so.
(1) that the tribunal erred in law in that it was not open
to it, on the material before it, to find that the
requirements of section 26 of the Act had been
satisfied.
Pursuant to notice of motion dated 15 April 1986 brought by Rita
Pisani as the widow of Victor Pisani, the Court ordered that the
said Rita Pisani be added as a second respondent to the appeal to
represent the estate of the first respondent for the purposes of
the appeal, the Court being satisfied that the first respondent
had died on or about 9 April 1986 in circumstances set out in the
affidavit of Rita Pisani sworn 18 April 1986. There is no
evidence before the Court that the death of the employee was or
was not related to the injury or the disease being considered on
this appeal and it is not to be taken that the Court has any view
in that regard.
The employee was born on 27 December 1950 and migrated to
Australia from Malta in 1965. At all relevant times, he was
married to the second named respondent, Rita Pisani.
On 17 November 1980 the employee commenced employment with the
Commonwealth of Australia within the Department of Industry and
5.
Commerce at the Munitions filling factory at St Marys, NSW, he
having filled in and signed a medical questionnaire dated 14
November 1980 prior to his engagement.
The Tribunal found asa fact that the employee suffered a
physical injury in the course of his employment with the
Commonwealth on 31 March 1981 when, on unscrewing the cap froma
bomb, the cap slipped striking him on his head. He reported the
incident but did not take any time off work until 29 May 1981
when he saw his local general practitioner, Dr Venkatarama. He
was later referred by that doctor to the Northside Clinic, a
psychiatric hospital in the North Sydney area, where he was an
in-patient for about one week in late July 1981 under the care of
Dr Saboisky. Whilst at that clinic, he was seen on one occasion
by a Dr Glass. In early August 1981, after his discharge from
the Clinic, he was found in a disused building ina deeply
comatosed state and taken to Westmead Hospital and treated by a
psychiatrist, a Dr Robertson. He did not return to work after 29
May 1981 and on 4 August 1981 his employment was terminated by
the Commonwealth.
The Tribunal, in its Reasons for Decision stated, in paragraphs
21 and 22 as follows:
21. On all the evidence we conclude that the respondent
(employee) had a pre-existing condition of a depressive
illness, that the incident in March did occur and that it
precipitated a chain of events. We have no doubt that other
factors were also relevant but we are satisfied and find as a
fact that the incident in March 1981 was a contributing
factor to the development of the respondent's depressive
disease leading to the incapacity which he suffered
(sub-section 5(11) of the Act).
22. It is thus necessary to consider the provisions of
sections 27 and 29 of the Act to decide whether this is
properly an injury or disease case and whether the specific
exemptions applying to those sections apply.
Relevant sections of the Act are:
5.-27(1) If personal injury arising out of or in the course
of the employment of an employee by the Commonwealth
is caused to the employee, the Commonwealth is,
subject to this Act, liable to pay compensation in
respect of that injury in accordance with this Act.
$.29(1) Where -
(a) an employee bas suffers an aggravation,
acceleration or recurrence of a disease; and
(b) any employment of the employee by the
Commonwealth was a contributing factor ... to
the aggravation, acceleration or recurrence, as
the case may be, whether or not... the
aggravation, acceleration or recurrence was
suffered in the course of that employment.
the succeeding provisions of this section have effect.
(2) If -
(a) - (d) ... or
(e) the total or partial incapacity for work of the
employee,
results ... from the aggravation, acceleration or recurrence
of the disease then for the purposes of this Act unless the
contrary intention appears,
(f) ... the aggravation, acceleration or recurrence
as the case may be shall be deemed to be a
personal injury to the employee arising out of
the employment of the employee by the
Commonwealth; and
(g) ... the date of the commencement of the
incapacity ... shall be deemed to be the date of
the injury.
(3) The last preceding sub-section does not apply in
relation to ... an aggravation, acceleration or
recurrence of a disease if the employee has at any
time for the purposes connected with his employment or
proposed employment by the Commonwealth made a wilful
and false representation that he did not suffer or had
not previously suffered from that disease.
$.5(1) In this Act, unless the contrary intention appears -
"injury" means any physical or mental injury and
includes the aggravation, or recurrence of any
physical or mental injury but, subject to section 29,
does not include a_disease or the aggravation,
acceleration or recurrence of a disease; (emphasis
added)
"disease" includes any physical or mental ailment,
disorder, defect or morbid condition, whether of
sudden onset or gradual development;
§.5(11) (a) the ... incapacity or disablement of an employee
-». Shall be taken to have resulted from an
injury to the employee vee or from an
aggravation, acceleration or recurrence of a
disease suffered by the employee if the injury,
oon or the aggravation, acceleration or
recurrence, as the case may be, contributed to
the ... incapacity (or) disablement.
The Tribunal in paragraph 23 of its reasons then made reference
to three cases which the Court as presently constituted
understands set out principles which the Tribunal believed formed
a basis on which the Tribunal founded its determination that s.27
of the Act and only s.27 applied to the matter. Part of
paragraph 23 reads:
23. In Re Ellis and Commonwealth of Australia (3 AAR 146),
this Tribunal had to consider the definition of injury and
disease contained in sub-section 5(1) of the Act. On page
(154) the Tribunal said:
8.
'It seems tous that the effect of those words is to
produce the same result as was found by the High Court
to apply to the Queensland Act in Hockey's case (1985)
59 ALJR 66; (1985) 157 CLR 124. That is to say that if
an injury does amount to a disease or the aggravation
acceleration or recurrence of a disease it is excluded
from the definition of the injury notwithstanding that
it would have been an injury in the enunciation of
Fullagar J in Hornsby's case (103 CLR 588) based on the
decided cases. It seems to us proper to regard the
anuerism, the rupture of which lead to the stroke as
encompassed within the words "disorder, defect or morbid
condition" in the definition of disease. It is
therefore excluded from the meaning of the word injury
by the definition of that word'.
However Hockey v Yelland was concerned with the definition of
injury under the Queensland Act which, as in the New South
Wales Act, is inclusive of a disease. Moreover that matter
concerned the rupture of an aneurism leading to a stroke. It
did not, as this matter does, concern an incident caused or
exacerbated by an external stimulus. In Hockey's case Gibbs
CJ said:
'I see no reason to doubt the correctness of the
construction placed upon the definition in those cases,
but even if, contrary to my view, a disease which is not
autogenous, but is caused or exacerbated by an external
stimulus, can come within the description of injury
simpliciter and so within the opening words of the
definition, it is clear that an autogenous disease which
happens to manifest itself in the course of employment
is only an "injury" if it comes within par. (a) or par.
(b).'
The Tribunal then made reference to the High Court decision in
Favelle Mort Limited v Murray (1976) 133 CLR 580, particularly
the reasons of Mason J (as he then was) at p 597, before
expressing the following view in paragraph 24:
24. We do not think that any injury must be treated as a
disease if the injury acted upon a disease, however
insignificant, to produce a compensable result. It seems to
us that this matter should be treated as an injury and that
in dealing with that injury the employer must take the
employee as he finds him. (Emphasis added).
It is clear from those reasons that the Tribunal found that there
was anexus between the blow to the head, clearly a physical
injury within the meaning of "injury" in the Act, and the
development of the employee's "depressive disease" and that such
disease was a sequela of the physical injury sustained.
It is also clear that the evidence before the Tribunal was such
that it was opened to the Tribunal to find that the employee on
31 March 1981 sustained a head injury as alleged, that asa
result of that head injury the employee suffered an aggravation
or recurrence of a depressive state which had apparently first
manifested itself sometime in 1980 in circumstances referred to
in paragraph 26 of the Tribunal's reasons set out later herein
and that the employment of the employee by the Commonwealth was a
contributing factor to such aggravation or recurrence of that
depressive state.
But the Court is of the view that the Tribunal erred in
determining that the matter should be considered only as an
injury case under s.27 and not as an injury simpliciter under
S.27 in respect of the blow to the head and as a disease case
under 5.29 in respect of the aggravation or recurrence of the
employee's depressive state. In ny view, the Tribunal should
have determined any question of the employee's incapacity for
work flowing from his depressive state under the provisions of
s.29 and not as an injury under s.27 of the Act, the neurotic
condition or depressive illness being, in my view, a mental
10.
ailment or disorder or morbid condition falling within the
definition of "disease" in the Act. Such a "disease" was
excluded from the meaning of ""injury" other than through
s.29(2)(f£) of the Act.
As it is apparent that the Tribunal's determination as set out in
paragraph 24 results from the application by it of the views set
out in the extracts from the three judgments referred to in
paragraph 23 which, in the Court's view, has caused some
confusion in the Tribunal's determination in the present matter,
a warning is given concerning the reasons of decisions made under
the different workers' compensation legislation in Australia.
Care must be taken in applying the reasoning of the High Court
and Privy Council in cases where those Courts were considering
the Commonwealth compensation legislation under the Commonwealth
Employees' Compensation Act 1930 (the 1930 Act); the 1971
Commonwealth legislation, namely Compensation (Commonwealth
Government Employees) Act, where the definition of "injury"
expressly excluded a disease or an aggravation of a disease, and
the New South Wales or the Queensland workers' compensation
legislation. Those State Acts have for some years defined the
word "injury" to include a disease.
This is especially so in judgments considering whether a morbid
condition of the body initiated by an external stimulus would be
an injury in the ordinary sense, whereas the development or
li.
progress of an autogenous disease would not. It must always be
remembered that the Commonwealth 1930 Employees' Compensation Act
had separately defined "injury" and "disease", whilst separate
and distinct sections of the Act made provisions governing
conditions under which each could form a basis for compensation
(see 1930 Act, s.9 and 3.10). The 1971 Act replaced the 1930
Act. The 1971 Act altered the nature of the liability previously
imposed on the Commonwealth by s.10 of the 1930 Act in respect of
disease cases. The separate liability to pay compensation for
death or incapacity resulting from a disease as imposed by s.10
of the 1930 Act was not continued. Under the 1971 Act if the
conditions prescribed by s.29 are satisfied, the contraction of a
disease or the aggravation, acceleration or recurrence of a
disease "shall be deemed to be personal injury to the employee
arising out of the employment of the employee by the
Commonwealth". (See s.29(2)(f)).
Assistance in fully understanding the history of the Commonwealth
legislation and the varying sections of the Commonwealth Acts
referred to in the authorities may be acquired from the reasons
for judgment of Northrop J in Commonwealth v Whillock (1983) 48
ALR 433, particularly at 448 et seq.
Relevant decisions under compensation legislation in England and
Australia, particularly in New South Wales and Queensland are
conveniently set out inthe reasons of Gibbs CJ in Hockey v
Yelland (1985) 157 CLR 124 (Hockey's case) at pp 133-137.
12.
At p 133 His Honour said:
In many cases decided under workers' compensation legislation
in both England and Australia, a wide meaning was given to
the expression "injury", or "injury by accident" as it more
usually appeared in the earlier legislation. The expression
was held to include physiological harm, such as the tearing
of a muscle or the destruction of a biood vessel, and the
contraction of some disease, although under the legislation
in the earlier form it was necessary to show that the
physiological harm or the contraction of the disease arose
out of and in the course of the employment. The cases in
which this broad meaning was first given to "injury" were
decided under legislation which made no specific provision
for diseases, or provided specifically only for a special
class of disease: see Darling Island Stevedoring and
Lighterage Co. Ltd v Hussey (1959) 102 CLR 482 at p 497, per
Fullagar J. In Hume Steel Ltd v Peart (1947) 75 CLR 242 at
pp 252-253, Latham CJ, after saying that an injury may be
either external or internal, continued:
'It appears to me to be agifficult to draw any
satisfactory distinction between the breaking of a limb
and the breaking of an artery or of the lining of an
artery. One is as much an injury to the body, that is,
something which involves a harmful effect on the body,
as the other. Each is a disturbance of the normal
physiological state which may produce physical
incapacity and suffering or death. Accordingly, in my
opinion the detachment of a piece of the lining of the
artery in the present case should be held to be an
injury'.
As a statement of the effect of the word "injury" where it
appears in workers' compensation legislation and is not
specifically defined, those remarks are no doubt correct.
Where, however, the legislation defines the expression, its
meaning must depend on the words of the definition. (Emphasis
added). Because the definitions were different, cases like
dames Patrick & Co Pty Ltd v Sharpe £1955]3 AC 1 and Kavanagh
v__The Commonwealth (1960) 103 CLR 547, which were decided
under the Workers' Compensation Act 1928 (Vict), as amended,
and the Commonwealth Employees' Compensation Act 1930 (Cth),
as amended, respectively are of no relevance to this aspect
of the case.
There the High Court was considering the relevant sections of the
Queensland legislation and the effect of the definition of
13.
"injury" in relation to an autogenous disease which manifested
itself in the course of the worker's employment.
By s.9(1) of the Queensland Act a worker who has' received an
injury arising out of or in the course of his employment is,
subject to the Act, entitled to compensation. Injury is defined,
in s.3(1), as follows:
'Injury' means (without in any wise limiting the operation
and scope of section nine of this Act) personal injury
arising out of or in the course of employment, and includes -
(a) a disease which is contracted in the course of the
employment, whether at or away from the place of
employment, to which the employment was a contributing
factor; and
(b) the aggravation or acceleration of any disease where the
employment was a contributing factor to such aggravation
or acceleration,
but does not include those diseases as specified in section
14B of this Act.
At page 136 of those reasons the Chief Justice states:
The effect of the definition (of "injury" in s.6(1) of the
New South Wales legislation which is in ail material respects
the same as that in s.3(1) of the Queensland Act) was again
considered in Favelle Mort Ltd v Murray (1976) 133 CLR 580.
In that case the whole Court held that a worker who had
contracted meningo-encephalitis in the course of his
employment had contracted a disease to which his employment
was a contributing factor, and so had suffered an "injury"
within par. (a) of the definition. However there was a
difference of opinion as to the interpretation of the
definition. Stephen and Mason JJ followed Silazengers
(Australia) Pty Ltd v Burnett £19511 AC 13 and Darling Island
Stevedoring and Lighterage Co Ltd v_ Hussey (1959) 102 CLR
482, and held that the contraction of an infectious disease
could only be an "injury" if it came within par. (a) of the
definition. Jacobs J £(1976) 133 CLR, at p 600] pointed out
that Slazengers (Australia) Pty Ltd v Burnett and Darling
14.
Island Stevedoring and Lighterage Co Ltd v Hussey dealt only
with a disease of autogenous origin and said that the
reasoning in those cases is capable of being applied only to
a disease which does not arise from an injury. He concluded
that the invasion of the body by a foreign organism, such as
a virus, was itself an injury within the introductory words
of the definition although also a disease within par. (a)
C(1976) 133 CLR at p 6023. Barwick CJ also took the view
that an external excitement initiating a morbid condition of
the body would be an injury in the ordinary sense, although
an autogenous disease would not £(1976) 133 CLR at pp
587-5893 and thought that the judgments in Slazengers
(Australia) Pty Ltd v Burnett and Darling Island Stevedoring
and Lighterage Co Ltd v Hussey were erroneous, since they
treated all diseases, whether autogenous or externally
caused, as excluded from the introductory words of the
definition. However, because of the doubt then existing as
to whether decisions of the Judicial Committee should he
regarded as binding precedents, he did not give effect to
that view. The fifth member of the Court, McTiernan J,
appears to have taken a view similar to that expressed by
Jacobs J.
I respectively agree with the opinion of Stephen and Mason
JJ, that Slazengers (Australia) Pty Ltd v Burnett and Darling
Island Stevedoring and Lighterage Co Ltd v Hussey establish
that the definition of injury in s.6(1) of the NSW Act, which
is indistinguishable for present purposes from that in s.3(1)
of the Queensland Act, includes a disease only if it falls
within par. (a) or par. (b), and so only if employment was a
contributing factor.
Mason J (as he then was) and Brennan J agreed with the reasons of
the Chief Justice in that case.
It should be noted that the passage from Hockey's case cited by
the Tribunal in paragraph 23 of its reasons which is. set out
earlier herein, follows immediately as a sentence to the last
paragraph of the Chief Justice's reasons set out above.
As stated earlier, the Court is of the view that the Tribunal
erred in its decision that the present matter should be
considered under $.27 and not s.29 of the Act. The suggested
15,
distinction between the manifestation of an autogenous disease on
the one hand and the development of an employee's depressive
disease, (whether or not that employee had a pre-disposition to
such a disease) following an external stimulus which was clearly
a work "injury" on the other, in cases brought under the New
South Wales or Queensland legislation has, in my view, no
relevance in such matters brought under the 1971 Commonwealth
Employees' Compensation legislation. The latter type of case,
that is the aggravation or recurrence of a disease following an
external stimulus should, where Commonwealth employees'
compensation legislation is involved, be considered under s.29 of
the Act with the provisions of that section applying. This must
be so because such a disease is expressly excluded from the
definition of "injury" in the Commonwealth legislation.
This being so what, if any, are the consequences of the Tribunal
having considered the present matter under s.27 and not s.29 of
the Act.
First, the Commonwealth had raised s.29(3) of the Act as a
defence. That sub-section 15 set out earlier herein. Here the
employee had filled in a medical questionnaire form prior to his
engagement with the Munitions factory wherein he had answered
"no" to the question whether he had suffered any nervous
condition including anxiety states. In paragraph 26 of their
Reasons for Decision, the Tribunal states:
16.
26. Against the possibility that we are wrong on the
application of sections 27 and 29 of the Act we have
considered whether the respondent (employee) made a wilful
and false representation on making his application for
employment for the purposes of sub-section 29(3) of the Act.
The respondent's solicitor pointed to a number of factors.
The respondent gave evidence that before 1980 he did not have
any psychiatric treatment nor did he attempt suicide; his
wife supported this evidence; and Dr Venkatarama said that
the respondent did not use the word depression on 9th May
1980 and Dr Venkatarama did not tell him that he was
suffering from depression. It was also argued that the
respondent's claim was supported by Dr Robertson who reported
on 7th September 1984:
'I do not know whether Mr Pisani ever had medical or
psychiatric treatment for his depression prior to May
1981. Nor, as stated, do I have any further information
about his alleged drug overdose in about 1975... It is
certainly not uncommon to see patients having their
first severe attack of depression, in whom there isa
history of recurrent mild depressions, sometimes
stretching back many years, and who have never
previously sought medical attention for these
depressions. It is possible that Mr Pisani fits into
this category, and that when he applied for this
position with the Commonwealth, and answered the
question relating to nervous disorder in the negative,
he did so believing this to be the truth. It should be
added that he has a very low level of sophistication
with regard to psychological issues'.
We are of the view, taking all the evidence together, that
the answers cannot be regarded as being both wilful and
false. Accordingly the claim is not barred by sub-section
29(3).
As to this determination of fact by the Tribunal, the question
that this Court must ask in this regard is as set out by a Full
Court of this Court in Collins v Minister for Immigration and
Ethnic Affairs (1981) 36 ALR 598 at 601:
An appellant who attacks a conclusion of the Tribunal because
of deficiency of proof said to amount to error of law must
show, if he is to succeed, that there was no material before
the Tribunal upon which the conclusion could properly be
based.
17.
Here, of course, the Tribunal had the benefit of seeing the
employee in the witness box when he denied any previous alleged
fits of depression. Mrs Pisani also gave evidence before the
Tribunal that her husband had not attempted to commit suicide in
1975 and that he had never been in a psychiatric hospital prior
to 1981. The suggested suicide apparently arose from a history
said to have been taken by Dr Saboisky at the Northside Clinic
where the employee was admitted for a short period in July 1981
and which was referred to in a report by that Doctor to Dr
Venkatarama dated 7 August 1981. That report had been seen by Dr
Glass who was called by the Commonwealth as a witness. That
history was said to have shown that the employee had suffered
depression and anxiety for at least 15 years. When this was put
to Mrs Pisani she answered that that history was guite wrong.
Further it was put to her that a Dr Farrell of the Westmead
Hospital Centre, whose report to the Munitions filling factory
dated 24 September 1981 was before the Tribunal gave a history
that sometime in or about 1975 her husband had taken a previous
drug overdose. Mrs Pisani answered that that was wrong because
her husband had never been admitted to hospital and never sought
any psychiatric treatment prior to his accident in March 1981.
These were matters that no doubt the Tribunal considered before
making the determination as set out in para. 26 of its reasons.
The Commonwealth has challenged this part of the Tribunal's
determination on this appeal. In my view the finding of fact by
the Tribunal in this regard should not be disturbed in accordance
with the principle in Collins' case (supra).
18.
Secondly, a perusal of the appeal book herein (which sets out
(inter alia) the transcript of evidence before the Tribunal and
relevant reports tendered before the Tribunal) clearly
demonstrates that had the Tribunal considered the aggravation or
recurrence of the employee's "depressive disease" as a disease
under s.29 as it should have done, then the Tribunal, in view of
its findings of fact set out earlier herein, must have found that
the employee had suffered personal injury arising out of his
employment by the Commonwealth pursuant to s.29(2)(f) of the Act.
That being so, the Court is of the view that it is unnecessary
for the matter to be remitted to the Tribunal to be heard and
decided again either with or without the hearing of fresh
evidence. In this regard, a Full Court of the Federal Court in
Delahunty v_ Commonwealth (1981) 53 FLR 9 at p 14 expressed the
view that:
In all the circumstances of this appeal and in view of the
fact that no question of credibility arises it is in our view
incumbent upon this Court to determine on the evidence given
before His Honour whether the appellant was entitled to
compensation pursuant to the (Commonwealth Employees
Compensation) Act.
That case was an appeal to the Federal Court on a question of law
arising under s.95 of the Compensation (Commonwealth Government
Employees) Act 1971) from a decision of a Judge of the County
Court of Victoria made under that Act. Under s.95, which was
repealed in 1981, the Federal Court had power to make such order
as in all the circumstances 1t thought fit. (Cf. s.44(4) of the
Administrative Appeals Tribunal Act 1975).
19.
The Court as presently constituted is of the firm view that in
the present case, there being no question of the credibility of
witnesses, the Court should, in the exercise of its powers under
s.44 of the Administrative Appeals Tribunal Act 1975, make the
proposed directions set out at the conclusion of these reasons.
This then leaves for consideration the question whether there was
evidence supporting the decision of the Tribunal to direct the
Delegate as referred to in (iv) of the Tribunal's directions set
out at the commencement of these reasons, viz, that the delegate
treat the employee as being deemed totally incapacitated for work
in accordance with s.26 of the Act and as being entitled to
compensation for total incapacity under s.45 of the Act.
In this regard the Court is satisfied that the Tribunal made
appropriate findings of fact based on acceptable evidence which
could have founded its directions in accordance with the
provisions of s.26 of the Act. That section reads:
26. For the purposes of this Part, an employee shall be
deemed to be totally incapacitated for work if his incapacity
is such that he is fitted only for employment of a kind that
is not commonly available and employment of that kind is not
reasonably available to him.
The Tribunal in its reasons made reference to the evidence of Mrs
Pisani wherein she stated that she had noticed a change in the
employee about a couple of weeks after the accident on 31 March
1981 when he was apparently concerned and worried about doing
20.
indoor work on munition fillings and that that had started to
come on slowly after the accident. Also, that prior to the
accident he had always done inside work. The Tribunal made
reference in its reasons to the evidence of the various
psychiatrists whose reports were before it. Dr Robertson, who
treated the employee in Westmead Hospital in August 1981
following an incident where the employee had apparently taken an
overdose of his medication, indicated that in about September
1982 he thought the employee should at that stage start looking
for work of an outdoor nature because his anxiety in the presence
of machinery indoors rendered him unfit for any work of that
kind, he then being claustrophobic. The Doctor was of the view
that he had a lifelong illness requiring supervision for a very
long time to come whether or not he worked. The Tribunal made
yeference to Dr Robertson's evidence that it would be very
difficult to obtain such suitable work for the employee in the
western suburbs of Sydney. It is clear that the Doctor was then
well aware of employment conditions in the particular area under
consideration.
Part of the evidence of Dr Robertson in this regard reads:
Do you remember in about September 1982 certifying Mr Pisani
fit for work in relation to the Department of Social
Security's requirements?---Yes. I do have some recollection
of that. I started to discuss this with him as early as 29
January 1982. We had some discussion about it then, my notes
indicated and that he suggested at that stage he was still
getting occasional acute anxiety attacks and I suggested to
him that he might start to consider looking for work of an
outdoor nature but his anxiety in the presence of machinery
indoors would render him unfit for any work of that sort.
21.
Is this the case, doctor, that notwithstanding that
conversation in January, which was a suggestion of yours,
that you did not certify him as fit until later in that
year?---Yes. Again my notes indicate - I do not know if that
is at variance with my report - but my notes indicate on 26
March 1982 he had been switched to unemployment benefits from
sickness benefits and that he was having discussions with an
officer from the Department of Social Security who I
understood was something in the nature of specialist or
trouble-shooter if you like, somebody who looked for work for
people with particular difficulties. I may well have
certified him towards the latter part of the year that he was
fit for light duties, but unfortunately I have not madea
record of that.
In September 1982 the doctor in fact certified the employee fit
for light duties. Thereafter, the employee applied
unsuccessfully for three positions as a gardener.
Here again, the Court is of the view that there was evidence to
support the Tribunal's finding in this regard and accordingly its
determination under s.26 should not be disturbed.
In this regard reference is made to the observations of Wilcox J
in Australian Telecom Commission v King (1985) 5 FCR 42,
particularly at p 48.
Accordingly the appeal by the Commonwealth should be dismissed
and the matter should be remitted to the Commissioner for
Employees' Compensation with the following directions.
1) That personal injury arising out of or in the course of his
employment was caused to the employee on 31 March 1981,
namely a blow to the head;
act
e..*
a
2)
3)
4)
5)
6)
7)
8)
22.
That as a result of the said blow to the head, the employee
suffered an aggravation, acceleration or recurrence of an
anxiety depressive illness, a disease within the meaning of
the Act;
That the employment of the employee by the Commonwealth was a
contributing factor to the aggravation, acceleration or
recurrence of the said disease;
That in accordance with the provisions of s.26 of the Act the
employee should be deemed totally incapacitated for work;
That such total incapacity for work of the employee resulted
from the aggravation, acceleration or recurrence of the
disease;
The said aggravation, acceleration or recurrence of the
disease be deemed to be a personal injury to the employee
arising out of the employment of the employee by the
Commonwealth in accordance with s.29(2)(f);
Calculations of compensation shall be made in accordance with
5.45 of the Act for total incapacity.
It is clear that the employee did not suffer any incapacity
from the physical injury immediately following the blow to
the head and that his absense from work after 29 May 1981 was
the result of incapacity flowing from his depressive
23.
condition. The commencement of the period of total
incapacity and the duration thereof are to be determined by
the Commissioner in accordance with these directions and any
further evidence that might be available. It is noted that
the employee died on or about 9 April 1986.
9) The question of any dependency governing the appropriate rate
of compensation is also to be determined by the Commissioner.
Although the Commonwealth has succeeded in showing that the
Tribunal erred in determining the matter pursuant to s.27 and not
s.29 of the Act, the effective result is that the Commonwealth
has not succeeded in having the Court determine that the employee
was not entitled to compensation. Accordingly, the Court is of
the view that the Commonwealth should pay to the respondents
their costs of the appeal. Orders accordingly.
I certify that this and the fwesly- we
preceding pages are a true copy of the
Reasons for Judgment herein of his
Honour Mr Justice Evatt
Associate
Counsel for the Applicant : Mr R.B. Wilson
Solicitors for the Applicant : Australian Government
Solicitor, Sydney
Counsel for the Respondents : Mr M.B. Smith
Solicitors for the Respondents : Australian Legal Aid Office,
Sydney