DOUSI v COLGATE PALMOLIVE PTY LTD (NO 2) [1989] NSWCA 68
NSW Caselaw
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DOUSI v COLGATE PALMOLIVE PTY LTD (NO 2)
SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL
KirBy P, Hope and MEAGHER JJA
1 February 1989, 12 May 1989
[1989] NSWCA 68
LIMITATION OF ACTIONS — personal injury case — extension period —
statutory requirements for — material fact of a decisive character — applicant's
knowledge of relevant facts — whether ought to have brought action within period
plaintiff exposed over ten years to repetitive assembly line work — consults solicitors
about workers' compensation unaware of alternative systems of work to avoid or
reduce risk of repetitive strain injury — appointed union representative —
representations made to employer insubstantial changes to work practices — upon
threat of dismissal for prolonged compensation absences worker consults solicitors
again — advised of viable cause of action in negligence — seeks extension of time
under Limitation Act 1969 ss58,59 — extension granted by Master — disallowed on
appeal by Allen J — further appeal (by leave) to the Court of Appeal — held: (1)
(Hope and Meagher JJA; Kirby P dissenting) Because on the evidence the plaintiff
had not taken all reasonable steps to ascertain, within time, the material fact of a
decisive character, namely the existence of an alternative system of work which gave
rise to an action in negligence; (2) (per Meagher JA; Kirby P contra, Hope JA
dubitante) Because ignorance of the existence of an alternative system of work was
not a material fact of a decisive character. Do Carmo v Ford Excavations Pty Limited
(1983-84) 154 CLR 234 discussed; Brunton v D O'Bryan and Co Pty Limited, Court
of Appeal, unreported, 4 August 1988; (1988) NSWJB referred to. PRECEDENT —
binding rule — dissenting judgment in the High Court — status of — Federation
Insurance Ltd v Wasson (1987) 163 CLR 303, 314 referred to. Limitation Act 1969
ss57,58.
Kirby P Once again the Court must grapple with the provisions of ss57 and
58 of the Limitation Act 1969 (the Act). The laments of Lord Denning and
Salmon LJ upon its English progenitor (as well as its manifest opaqueness) did
not deflect the New South Wales Law Reform Commission from copying it. If
there are provisions in the State statute book calling out for "plain English"
treatment, these must be at the top of the list.
An old injury to an assembly worker
A working woman of modest education and means was engaged by the
respondent for many years in process work on an assembly line. When, after a
year, she started to suffer pain from repetitive strain injury, and started to lose
time from work, she saw solicitors about her entitlement to benefits under the
Workers' Compensation Act 1926. But she was paid compensation without an
award of the then Workers' Compensation Commission being necessary. It may
be reasonably inferred that her consultations with her lawyers were not intensive
at that stage. Certainly, nobody seems to have paid attention at that time to the
possibility of a damages action against the employer for negligence in a
compensation claim then of very modest dimensions, paid without contest, this
would have been reasonable.
2 UNREPORTED JUDGMENTS
The possibility such an action only came to a head in October 1983. The
appellant was then propelled into again seeing her solicitors by the prospect of
dismissal, because of her employer's policy to terminate workers with an
accumulated absence on compensation of 52 weeks.
When she saw her solicitors in October 1983, the appellant had been working
for the respondent for more than ten years. It was more than nine years since she
had first noticed symptoms. She was aware that desultory efforts had been made
to introduce a system of rotating workers to provide relief against repetitive
work. She was an unpaid union representative of her fellow-workers. But, she
says (and there is no cause to disbelieve her), that she was unaware of a system
which could have been introduced by her employer to remove, or reduce, the risk
of repetitive strain injury inherent in the employment upon which she was
engaged. Expert evidence now available to her case provides a basis upon which
a jury could conclude that, by 1973, practical ways of preventing repetitive strain
injuries were publicly known and available to employers such as the respondent.
It is trite to say that it is the employer's duty to devise and institute a safe system
of work. It is not the duty of an employee to do so. The locus of the duty and the
superior resources and means of information available to the employer impose
upon it, not the worker, the institution and maintenance of a safe system of work.
See HH Glass, MH McHugh, The Liability of Employers in Damages for
Personal Injury, Law Book Co, 1966, 37 and cases there cited.
Within a year of going to her solicitors, and learning that in 1973 and thereafter
there were alternative methods of work which could have been adopted by her
employer and which would have obviated or reduced the risk of her injury, the
appellant had commenced her damages action by a statement of claim. To extend
the period of exposure to employment injuries, in respect of which she could seek
to recover damages, she sought an extension of the limitation period pursuant to
the provisions of s57 and s58 of the Act. Master Greenwood provided the
extension. He extended to 16 January 1985 the limitation period in respect of
causes of action sued upon by the appellant in the proceedings commenced by
her statement of claim of 15 October 1984. The respondent appealed. Allen J
allowed the appeal. He set aside the orders of the Master and dismissed the
summons for the extension of the limitation period. It was in this way that the
further appeal by the appellant came to this Court by leave. See Dousi v Colgate
Palmolive Limited (1987) 9 NSWLR 374.
I will not obscure this judgment with a repetition of the statutory provisions
which are set out in the judgment of Meagher JA. As my opinion is a minority
one, it will be sufficient for me to outline the way in which I arrive at a conclusion
different from the majority. The starting point is a consideration of the purpose
which Parliament sought to achieve by the enactment of s57 and s58 of the Act.
Clearly this was to provide relief from a general limitation period which would
otherwise apply in injury cases of this kind. The onus for securing that relief is
upon the applicant who seeks to invoke the exceptional provisions of the
sections. However infelicitous, the complicated language of the section was
adopted in the attempt to resolve the tension between the policies of finality of
litigation (which the limitation periods secure) and of justice to an injured person
ignorant of material facts (which the facility for extension protects).
Considering the "circumstances" of the claimant
It is important next to draw attention to the qualification contained in s57(1)(c)
of the Act. In judging whether or not it was reasonable for a person not to have
sued within the ordinary limitation period, the decision-maker must take into
URJ DOUSI v COLGATE PALMOLIVE PTY LTD (NO 2) (Kirby P) 3
account the "circumstances" of that person. Picking up what Hope JA
emphasised in Royal North Shore Hospital v Henderson (1986) 7 NSWLR 288,
287 (and what Mahoney JA said in the same case, ibid 300) I added a few
observations of my own in Brunton v D O'Bryan and Co Pty Limited and Anor,
Court of Appeal, unreported, 4 August 1988; (1988) NSWJB 126:
"Tt may seem surprising to lawyers who, by their training and experience are
sensitive to legal rights and conscious of the need for speed in asserting them,
that a reasonable person knowledgeable about physiological pathology, would
not promptly seek legal as well as medical advice. It was not so surprising to
Parliament which may be taken to be aware of the multitude of reasons which can
lead to delay in self-protection on the part of ordinary people unversed in the law
and its requirements. Such reasons can include ignorance of rights, fear of the
law, distraction by other problems, lack of access to advisers, want of funds to
pay for advice or a limited capacity to venture upon litigation which is costly and
is considered risky. That is why the Act requires a court, considering a case such
as the present, to take into account the "circumstances" of the injured person.
Different degrees of self-insight, different reactions to self-protection, varying
initiatives to secure advice, different availability of advice and differing degrees
of resolution in pursuing it are thus contemplated by this important qualification."
The principle in Henderson is binding on this Court. It has been applied in
several cases. Nothing said in the High Court of Australia in Do Carmo v Ford
Excavations Pty Limited (1983-84) 154 CLR 234 is inconsistent with it. It is true,
as Hope JA observes in this case, that the reference in s57(1)(e)(ii) to the taking
of "all reasonable steps" to ascertain material facts imports an element of
objectivity (so that "however one construes the provision or plays with the
language the need for reasonableness cannot be removed"). However, that
element is immediately referred back to the circumstances of the individual
claimant. This occurs because of the reference to the "circumstances" of that
claimant in s57(1)(c). It is not what is "reasonable" for the ordinary person to do
which is in issue. Nor is it the knowledge, conduct and response of such a person.
What is in issue is, relevantly, whether a person whose means of knowledge was
that of the claimant, taking into account his or her circumstances, ought in his or
her own interests to have brought an action on the cause of action.
Now, in the present case, there was no challenge to the conclusion that the
appellant was a truthful witness. Nor was it challenged that she was telling the
truth when she said that she did not have actual knowledge of the relevant
material fact of a decisive character upon which she relied. This was that there
were safeguards and alternative work systems which were available to her
employer as long ago as 1973. The issue in the appeal therefore became, first,
whether that relevant fact was within her "means of knowledge" under s57(1)(e)
of the Act.
In Do Carmo, the High Court of Australia has divided upon whether that
paragraph requires a subjective or an objective test to be applied. Because of the
purpose of the Act which is to look at the question whether an extension to the
claimant is in the circumstances of the claimant justifiable, it seems to me that the
test may be categorized as a subjective one. This was the view taken by Dawson
J (ibid 258-9). The view taken by Deane J appears to have been that an
"objective" test was to be applied. The majority was this Court favours that
approach. But in Do Carmo in the High Court Wilson and Deane JJ were for
dismissal of the appeal. However, by their orders, Murphy ACJ, Brennan and
Dawson JJ allowed the appeal. Accordingly, in formal terms, the judgment of
4 UNREPORTED JUDGMENTS
Deane J is a dissenting judgment. In establishing the ratio decidendi of the High
Court's decision, binding on this Court, the judgment of Deane J is therefore
disregarded, although respectful attention must be paid to it in considering the
development of the law upon matters which were not in issue in Do Carmo.
Dickinson's Arcade Pty Ltd v Tasmania (1974) 130 CLR 177, 188. The judgment
of Dawson J (with which Brennan J agreed) is part of the majority which resulted
in the order of the High Court. It is therefore from that judgment, not the
judgment of Deane J, that the binding rule of the case is to be ascertained by us.
See Federation Insurance Limited v Wasson (1987) 163 CLR 303, 314.
It was not within her means of knowledge
The majority is of the opinion that the relevant fact was within the appellant's
means of knowledge. They point to her knowledge of her physical condition, her
knowledge of imperfect and inadequate changes in work practices despite
representations, the long period of her employment with the respondent, her
engagement as a union officer and the fact that she had previously consulted her
solicitors about workers' compensation entitlements.
Against these considerations must be weighed the following facts:
(1) The appellant, when she consulted her solicitors in 1974, was concerned
only about her workers' compensation entitlements. She was not then advised of
her entitlement to sue at common law or of the fact that such an entitlement arose
because of the failure of the employer to adopt available alternative systems of
work. These omissions are scarcely surprising. The incapacity at the time was
relatively short. Compensation was paid without an award. The case was
precisely the kind of case for which workers' compensation is provided. At that
time it had none of the hallmarks of a common law damages action;
(2) The claimant did not again consult with her solicitors until 1983. She did
so then because she faced dismissal under the employer's policy previously
referred to. It is suggested that she had sufficient information to propel her to go
to the solicitors earlier. But this makes an assumption that the appellant was
aware of the very fact of which she states she was ignorant, namely that there
were alternative systems of work which thereby rendered her employer's conduct
of its operations negligent and actionable. Absent that knowledge, her failure
earlier to consult the solicitors is entirely explicable. When she did so, she
received advice and commenced proceedings within the time allowed by law;
(3) Although it is true that the claimant raises the alternative work procedures
with her supervisors in her capacity as an officer of the union, as found by Allen
J those superiors "could not suggest methods by which these problems could be
overcome or alleviated". Their response would therefore simply have reinforced
the opinion of the appellant that there was nothing that could be done in the
nature of the employer's operations. And if this were so, had she turned her mind
to it, she would have concluded that there was no claim in negligence to suggest
that she should require her to seek legal advice and commence an action;
(at page 9) (4) It is erroneous to require a person in the position of the appellant
to perceive that the respondent's inaction was due "not to its inability to do
something but its unwillingness to stir itself', as Allen J suggested. That
approach, in my opinion, erroneously elevates matters which are within the
claimant's "means of knowledge" into a positive duty of enquiry and research
into the employer's system and scrutiny of the employer's explanations given
concerning the system;
URJ DOUSI v COLGATE PALMOLIVE PTY LTD (NO 2) (Kirby P) 5
(5) Far from supporting a charge of "inactivity" on the part of the appellant, the
fact that the respondent's foreman "could not come up with answers" and that the
"problem called for intervention at management level" helped to explain, in the
practical environment of an assembly line factory in which the appellant worked,
her resigned acceptance that nothing would be done because nothing could be
done; and
(6) During the years that she continued to work for the respondent, the
appellant suffered difficulties and intermittent time off work. These would have
been a further reason why her failure to secure earlier advice was reasonable. She
was concentrating on holding down her job. It was only with the grim prospect
of losing it loomed on the horizon, that she went to see lawyers. Doing so was
then a matter of survival because of the prospect of losing her income.
What workers and employers may "know"
I realise that it is difficult for some people to understand the psychology of
inactivity on the part of a person such as the appellant. With knowledge, access
to advice and funds (and armed with a little retrospective wisdom) it is easy to
say that acting reasonably she ought earlier to have sought legal advice.
However, in my view, a woman of her background, education, experience and
employment who had no special knowledge of alternative systems of work
available to her employer is not to be judged to have failed to have taken "all
reasonable steps to ascertain" the existence of an alternative system for work and
hence of a viable cause of action. If one is ignorant of the object for which one
should be searching - or even of the fact that one should be searching at all - the
default in seeing that object is adequately explained. In the circumstances of this
appellant, I believe that the steps she had taken relevant to the discovery of
applicable facts necessary to constitute a cause of action were, in her
circumstances, "reasonable".
The error which is perpetuated by upholding the decision of Allen J is, in my
respectful view, that it translates the requirement of s57(1)(e) of the Act into an
affirmative duty on the part of an employee, if it be necessary for the
ascertainment of a material fact, to undertake investigative enquiry into his or her
employer's work systems for the purpose of identifying the nature of any defects
or shortcomings and ascertaining the availability of improvements or
alternatives. But this has never been the duty of the employee at common law.
The duty to institute a safe system of work is a personal duty of the employer.
Furthermore, this construction of the Act perpetuates expectations of an ordinary
working person - even one with some voluntary links with her union - which are,
in my opinion, unrealistic. It defeats the achievement of the objects of which the
extension provisions of the Act were enacted.
It was a material fact of a decisive character
It remains only to say that the respondent by notice of contention argued that
the existence of an alternative system of work was not a "primary fact" and that
it was therefore not a "material fact relating to a cause of action" which was "of
a decisive character" within the meaning of s57(1)(c) of the Act. The respondent
urged the Court to follow in this regard the approach of Deane J in Do Carmo
(above) at 251. That approach with which Wilson J appears to have agreed in a
separate judgment, posits the still further distinction between "primary" and
"secondary" facts so that the "material facts" to which s57(1)(b) of the Act refers
are only "primary" facts.
6 UNREPORTED JUDGMENTS
Dawson J (with whom Brennan J agreed) disputed the utility of this further
distinction. Murphy ACJ did not agree with Deane J. His approach was different.
However, he finished his judgment with these words (at 239):
"A case such as the present, where legal advice was apparently sought but
correct guidance was not provided by his former legal advisers, highlights the
need to interpret the Act in this way, if its remedial intention is to be fully
implemented.
The approach taken by Murphy ACJ to the remedial purposes of the section is
clearly correct. A purposive construction is the modern way in which to approach
the interpretation of all legislation. It is particularly appropriate in legislation
such as this which has a beneficial objective and which provides relief against the
descent of a limitation bar.
I do not consider that this Court is bound by the approach of Deane J. It was
not accepted by the majority of the High Court in Do Carmo. It was disapproved
by two of their Honours in specific terms. It adds a still further refinement to
legislation which is already too complex. In this regard I agree with the opinion
expressed by Hope JA that the distinction between so-called "primary" and
*secondary" facts is not an appropriate one." I repeat what I have said above
concerning the ascertainment of the binding rule of the High Court in Do Carmo.
See also Field v Field, Court of Appeal, unreported, 21 October, 1981.
Accordingly, I do not believe that the respondent's point in its notice of
contention should succeed. In my opinion, knowledge of the existence of an
alternative system of work was a "material fact relating to a cause of action"
which was "of a decisive character" within s57(1)(c). The appeal is not resolved
by reference to that paragraph but to s 57(1)(e). Upon the true construction of that
paragraph, I would reverse Allen J and restore the order of the Master.
Orders
The following orders should be made:
1. Appeal allowed;
2. Order of Allen J, set aside;
3. In lieu thereof, order that the appeal from the order of Master Greenwood
dated 10 December 1985 be dismissed with costs.
4. The respondent to pay the costs of the appeal (including of the summons for
leave to appeal) and to have, if so qualified, in respect thereof a certificate under
the Suitors' Fund Act 1951.
Hope JA Although not dealt with by the Master or by Allen J, the satisfaction
by the plaintiff of the test provided in s57(1)(c) was raised in this Court. It was
submitted that the facts which were claimed not to be within the plaintiff's means
of knowledge were not material facts relating to a cause of action of a decisive
character within the meaning of that paragraph. As Meagher JA has shown, there
is a difference of opinion in the High Court appearing in the judgments in Do
Carmo v Ford Excavations Pty Limited (1983-84) 154 CLR 234, as to the
construction of the paragraph. On one view a distinction is to be made between
primary facts and secondary facts and the facts referred to in the paragraph are
primary facts. On the other view the Act does not refer to such a distinction and
there is no basis for using it in the application of the provision.
I propose to deal with the appeal in the same way as it was dealt with by the
Master and Allen J, that is, to deal with it by reference to the provisions of
s57(1)(e) on the assumption that the plaintiff would otherwise satisfy the test in
s57(1)(c). Having regard to my conclusion in that regard, it becomes unnecessary
URJ DOUSI v COLGATE PALMOLIVE PTY LTD (NO 2) (Hope JA) 7
to consider the construction of s 57(1)(c). However I should say that I am not
presently satisfied that the distinction which has been made between primary and
secondary facts is an appropriate one. Moreover there would seem to be another
problem in the present case in relation to par (c). It is true that the provision
contemplates a person with knowledge of facts getting expert advice upon them.
However, as I understand the provision, the contemplated advice would be advice
"on those facts", that is, on the known facts, and not, it would seem, the imparting
to the plaintiff of knowledge of another fact. If, on seeking advice on facts A, B
and C, the plaintiff, with or without other advice, is told about fact D, previously
unknown to him, and proving fact D is essential to proving the cause of action,
that fact would not previously have been within the plaintiff's means of
knowledge unless he had not taken before that time, as provided in par (e)(ii), all
reasonable steps to ascertain that fact.
A fact of which the plaintiff was unaware in the present case until, having
sought legal advice, she learnt about it, was that at all material times there were
work practices which, if adopted by the defendant, would have protected its
workers, including the plaintiff, from repetitive strain injury. Whether the
employer (assuming it did not know of the fact) should have been aware of this
fact, and if so whether it had been negligent, were no doubt matters for expert
advice, but the definition contemplates a knowledge of the relevant facts before
advice upon them is taken, and not a taking of advice in order to be told of facts,
or, on any view, of facts of this kind. However, since it is not necessary to do so,
I express no concluded view on these matters.
$57(1)(e) provides:
"57.(1) For the purposes of this Division -
(e) a fact is not within the means of knowledge of a person at a particular time
if, but only if
(i) he does not, at that time, know the fact; and
(ii) in so far as the fact is capable of being ascertained by him, he has, before
that time, taken all reasonable steps to ascertain the fact;"
There has been a difference of opinion as to whether this paragraph imposes
in sub-par (ii) an objective or subjective test. Meagher JA has referred to
decisions dealing with the matter. Once the word "reasonable" is used to describe
the nature of the steps which are to be taken, it is difficult to contemplate a wholly
subjective approach to the question. The sub-paragraph assumes that the plaintiff
does not know the fact. It further assumes that the fact is capable of being
ascertained by him. Both these requirements are in my opinion satisfied in the
present case. The remaining question is whether the plaintiff has taken all
reasonable steps to ascertain the fact. The word "reasonable" cannot mean simply
"steps which the plaintiff considers reasonable" or "other than steps which the
plaintiff had a reason not to take". As it seems to me the expression "all
reasonable steps" must mean either all steps which a hypothetical person in the
position of the plaintiff ought reasonably to have taken, or all steps which the
plaintiff, in the circumstances in which he or she was placed at the relevant time,
ought reasonably to have taken. Perhaps another way of stating the first of these
alternatives is that the expression means all steps that a reasonable person would
have taken. However one construes the provision or plays with the language, the
need for reasonableness cannot be removed.
8 UNREPORTED JUDGMENTS
Whether one takes a hypothetical person in the position of the plaintiff or the
plaintiff herself in the circumstances in which she found herself - and I consider
the latter to be the correct approach - I agree with the conclusion of Allen J that
she had not taken all reasonable steps to ascertain the fact before the time to
which the Act refers. Her failure to take any steps did not become reasonable
because there was no economic or other pressure upon her to take steps until she
was told that she might shortly be dismissed. Indeed, the fact that she took legal
advice then justifies, in the circumstances of the case, an inference that she
appreciated that she might have some right to sue her employer apart from her
right to recover workers' compensation. She cannot say that the fact was not
within her means of knowledge long before the commencement of the time
relevant to the making of her application. Hence her application was properly
dismissed.
Meagher JA The order under appeal was an order made by Allen J refusing
leave for an extension of time under s58 of the Limitation Act 1969. That order
reversed an order made by the Master extending time under that Section. The
appellant is Janice Jean Dousi.
The facts of the matter are not in dispute, and were not in dispute either before
the Master or Allen J. The plaintiff commenced employment with the defendant
on or about February 1973 and remained in such employment until after the
decision now appealed from. From the commencement of her employment until
June 1984 she so commenced on assembly lines in work which involved the
repetitive use of the upper limbs. In June 1984 she was transferred to light duties.
Within a few months of commencing her employment she developed pain in her
shoulders whereupon cortisone injections were required. Her condition did not
wholly abate and commencing from the beginning of February 1974 she had
substantial absences from work because of the condition of her shoulders. In
about 1979 she developed disability in her wrist and elbow and both limbs. She
was aware, as was obvious, that the repetitive strain involved in the nature of her
employment was the material cause of her disability. As early as 1974 she made
an application to the Workers Compensation Commission for an award in respect
of her disability and ensuing incapacity and she was paid benefits by the
defendant without any formal award being made. In order to make her
application she attended upon her solicitors. She did not thereafter seek any legal
advice until she saw the same firm of solicitors in October 1983. The reason why
she saw them in October 1983 was because on that day she had been advised that
it was her employer's policy to terminate the employment of any employee when
the total of the period of absences exceeded 52 weeks. She was approaching that
total. The result of her interview was the filing of the Statement of Claim on 15
October 1984 and the bringing on her behalf of this application for extension of
the limitation period.
It is clear enough that during the eleven years in which she had been employed
she was suffering from her complaints continually and the work records of her
employer illustrate the frequency with which she complained about the matter.
It should be added that whilst she had left school at an early age she, as her
evidence given before the Master indicates, is a woman of some spirit and
intelligence. She knew that the foreman of her employers endeavoured to change
the system under which she was working in about 1978 by introducing a measure
of rotation of work. She appreciated that this was done by the foreman and not
by the upper management of her employers. She appreciated that the foreman's
URJ DOUSI v COLGATE PALMOLIVE PTY LTD (NO 2) (Meagher JA) 9
efforts were half hearted and ineffectual. She also knew that in 1983 a further
attempt was made to alleviate the problem.
At some stage she became the union representative of her union, the Australian
Workers Union, at the factory where she was employed. The purpose of her
appointment to this position was to alleviate for herself and her co-workers the
disability which arises from repetitive strain injury.
To summarize, she knew at all stages that she was suffering very severely from
some form of repetitive strain injury; she knew that her injuries were
work-related and she knew that her employer had made some ineffective attempts
to re-organise the system of work at the factory to eliminate this problem. She
says, however, that she did not know until she saw her solicitors in 1983 that any
alternative safer work system was available to her and the other employees. The
undisputed evidence of Ian Coyle, who swore an affidavit on her behalf was as
follows:
"Repetitive work of the kind referred to by the plaintiff as undertaken by her
may be ordered and structured in the following ways with a resultant reduction
of the constancy and level of stress to the upper limbs of persons engaged in such
work:
(i) By regular rotation of duties.
(ii) By providing workers with a variety of tasks in the one working day.
(iii) By providing rest periods between 5-10 minutes for each worker every
hour.
(iv) By ensuring that plant and equipment is ergonomically designed to
minimise or eradicate working positions which will give rise to the risk of
repetitive arm syndrome.
In my opinion there was knowledge available and practical ways of preventing
repetitive strain injuries in 1973 and such knowledge should have been given to
the company by its physician. It is also my opinion that even in the absence of
the provision of such advice to the company, there was publicly available
information as to practical ways of preventing repetitive strain injuries in and
before 1973 and the company should have been aware of those documents."
When Mr Coyle said that information was "publicly" available he clearly
meant "was generally known to the Public".
The Limitation Act 1969 s58(2) provides as follows:
Where, on application to a court by a person claiming to have a cause of action
to which this section applies, it appears to the court that
(a) any of the material facts of a decisive character relating to the cause of
action was not within the means of knowledge of the applicant until a date after
the commencement of the year preceding the expiration of the limitation period
for the cause of action; and
(b) there is evidence to establish the cause of action, apart from any defence
founded on the expiration of a limitation period, the court may order that the
limitation period for the cause of action be extended so that it expires at the end
of one year after that date and thereupon, for the purposes of an action on that
cause of action brought by the applicant in that court, and for the purposes of
paragraph (b) of subs(1) of s26, the limitation period is extended accordingly.
The various terms used in that sub section are defined in s57 thus, the "material
facts relating to a cause of action", is defined as follows:
"(i) the fact of the occurrence of negligence nuisance or breach of duty on
which the cause of action is founded;
(ii) the identity of the person against whom the cause of action lies;
10 UNREPORTED JUDGMENTS
(iii) the fact that the negligence nuisance or breach of duty causes personal
injury;
(iv) the nature and extent of the personal injury so caused; and
(v) the extent to which the personal injury is caused by the negligence nuisance
or breach of duty;"
The material facts relating to a cause of action of a decisive character are
defined in s57(1)(c) which is as follows:
"material facts relating to a cause of action are of a decisive character if, but
only if, a reasonable man, knowing those facts and having taken the appropriate
advice on those facts, would regard those facts as showing:
(i) that an action on the cause of action would (apart from the effect of the
expiration of a limitation period) have a reasonable prospect of success and of
resulting in an award of damages sufficient to justify the bringing of an action on
the cause of action; and
(ii) that the person whose means of knowledge is in question ought, in his own
interests, and taking his circumstances into account, to bring an action on the
cause of action;"
"Appropriate advice" is defined in s57(1)(d) as follows:
"appropriate advice", in relation to facts, means the advice of competent
persons, qualified in their respective fields to advise on the medical legal and
other aspects of the facts, as the case may require;"
S57(1)(e) defines when a fact is not within the means of knowledge at a
particular time, it is in the following form:
"a fact is not within the means of knowledge of a person at a particular time
if, but only if:
(i) he does not, at that time, know the fact; and
(ii) in so far as the fact is capable of being ascertained by him, he has, before
that time, taken all reasonable steps to ascertain the fact;"
It follows that for a plaintiff in the position of Miss Dousi to establish an
entitlement to an extension of time under s58 a plaintiff must establish:
1. The existence of a fact relating to her cause of action;
(a) which is a material fact,
(b) of a decisive character and
(c) which was outside her means of knowledge.
2. That a reasonable person properly advised would not have brought an action
without knowledge of the fact.
The Master dealt with the problem solely on the basis of s57(1)(e) and he
found that the applicant/plaintiff did not know until the end of 1983 or beginning
of 1984 of a material fact of a decisive character, namely, that at all material times
there were work practices which the defendant could have adopted and of which
it should have been aware, which would have protected its workers, including the
plaintiff, from injuries of the type which she complained. He also found that until
she obtained that advice from her solicitors it was reasonable for her not to be
aware of such a material fact.
On appeal Allen J found that it was not reasonable for her to have remained
ignorant until 1983/early 1984 of the existence of available alternatives. His
Honour's conclusion is hardly surprising. The undisputed facts are that although
she was suffering considerably from 1973 until 1984 she took no steps
whatsoever to ascertain a fact which would have been a material fact of a decisive
character. That fact could easily have been ascertained because it was publicly
known. At any stage in this period she could have sought her solicitor's advice
URJ DOUSI v COLGATE PALMOLIVE PTY LTD (NO 2) (Meagher JA) 11
but chose not to do so. At any stage in this period she could have sought the
advice of her trade union but made no attempt to do so.
The application of the Act to the circumstances of the present cause is
extremely difficult. It is a piece of legislation the obscurity of which has long
been deplored by judges both in England and Australia. It was, of course,
introduced as a result of a recommendation of a Law Reform Commission. This
Court was the beneficiary of extremely able and persuasive arguments by counsel
on behalf of both the applicant/plaintiff and the defendant/employer. Nonetheless
the obscurities of legislation have not been fully elucidated.
Counsel for the employer/defendant submitted that the case had really been
decided on a false issue, viz the application of s57(1)(e). He submitted that the
application of that paragraph did not arise as the plaintiff had not survived the
anterior test required by s57(1)(c). This was a submission which was not dealt
with either by the Master or by the Judge on appeal from the Master. Nonetheless
it was a submission which had been put to His Honour.
The basis of this submission is that the existence of alternative work system
was not a material fact of a decisive character within the meaning of s57(1)(c).
In Do Carmo v Ford Excavations Pty Limited (1983-1984) 154 CLR 234 the
High Court of Australia was confronted with a similar situation. In that case the
application for extension of time was also relying on a recent discovery of the
existence of an alternative system of work. The approach of Deane J was as
follows:
"... The legislative policy underlining the sections is plain enough. It is that the
limitation period should be extended only in favour of a person who was, without
fault on his part, unaware that he had a worthwhile cause of action until not more
than twelve months before the commencement of proceedings. In that context,
the reference in s58 to "any" of the material facts of a decisive character not
being within the means of knowledge of the applicant should be construed as
being to a fact or facts which would need to be within the means of knowledge
of an applicant before it could be said that the facts within his means of
knowledge constituted material facts of a decisive character". Thus, if any one
of the facts A, B or C would, with other facts within the means of knowledge of
the applicant, satisfy the requirements of "the material facts of a decisive
character" it will not suffice, for the purpose of s58, the applicant was unaware
of fact A while being aware that he had a worthwhile cause of action in that he
was aware of both facts B and C. In such a case, the applicant will only be, for
the purposes of s58, unaware of any" of the material facts of a decisive character
if he was unaware of facts A, B and C, that is to say, if the facts which were
within his means of knowledge were not, of themselves, such as to constitute
material facts of a decisive character."
"... Subject to an important qualification, one or more of the material facts of
a decisive character will be shown not to have been within the means of
knowledge of an applicant if it appears that an applicant if it appears that an
applicant did not have within his or her means of knowledge some fact or facts
which, in the context of the facts within his or her means of knowledge, made the
difference between his or her having and not having a worthwhile cause of
action.... a distinction must be drawn, for the purpose of determining whether an
applicant had the material facts of a decisive character within his means of
knowledge, between the primary or particular facts relating to a particular cause
of action in the sense that they provide the context in which or by reference to
12 UNREPORTED JUDGMENTS
which the significance of the particular primary facts should be assessed and any
expert legal or other advice should be formulated. It would not suffice for an
applicant to show that some general or secondary fact was not within his means
of knowledge if that fact was a matter of common knowledge among appropriate
advisers whose advice is, for the purposes of determining whether material facts
are of a decisive character, postulated as having already been taken " (250-251)
"On the other hand, the appellant had within his means of knowledge the critical
particular facts of his case against the respondent. Those facts included the nature
of his ailment, his exposure to dust in his employment with the respondent, that
his ailment was "a dust disease" which 'could or must be attributed to his period
of employment" with the respondent and, most important for present purposes,
that the respondent had taken no steps at all to minimize the level of silica dust
to which the appellant had been exposed in the course of his employment. Those
facts constitute the particular or primary factual basis of the appellant's case in
negligence against the respondent. The facts of which the appellant was unaware
were general facts of which any appropriate adviser on standards or safety in the
building industry would be aware and which would constitute part of the context
in which appropriate advice on whether the respondent had been guilty of
negligence had been formulated... it appears to me to be plain that the facts within
the appellant's knowledge were such as to lead a reasonable man, knowing those
facts and having taken the appropriate advice on them, to conclude that the
appellant had a worthwhile cause of action against the respondent. In other
words, the facts within the appellant's means of knowledge were, of themselves,
adequate to satisfy the requirement of 'material facts of a decisive character"."
(252-253).
Wilson J agreed with Deane J. However, Dawson J and Brennan J adopted a
different approach. That approach is illustrated by the following quotation:
"Tt has been suggested that a distinction can be drawn between primary and
secondary facts and that the material facts to which s57(1)(b) refers must be
primary facts. With all due respect this distinction is one which I do not think is
relevant in the present context; certainly it is not a distinction drawn by the
legislation itself. What is relevant is what the applicant had to prove in order to
establish negligent conduct. Without evidence of what was a safe system of work
his case in negligence was bound to fail because of the failure to prove the fact
of the occurrence of negligence. Proof of a safe system of work would, therefore,
seem to me to have been proof of a primary fact, but, in any event, I think it was
proof of a material fact relating to a cause of action within the meaning of the
section." (per Dawson J at 258).
The fifth judge Murphy J adopted an entirely different approach which was
rejected by all four of his brethren. It follows that the High Court of Australia has
not given a definitive interpretation to the section. However, the approach of
Deane and Wilson JJ seems to have been applied by Yeldham J in Wills v
Minerals Pty Limited (1985) 3 NSWLR 543 and perhaps by the majority of the
Court of Appeal in Royal North Shore Hospital v Henderson (1986) 7 NSWLR
283 and in Brunton v D O'Bryan and Co Pty Limited (unreported 4 August
1988). In the present case I am of the view that the approach of Deane J and
Wilson J should be applied so that the existence of an alternative system of work
is not a primary fact; that it is therefore not "a material fact relating to a cause
of action" which is "of a decisive character" within the meaning of section
57(1)(c) and, that the present matter is not resolved by the consideration of the
meaning and extent of s57(1)(e).
URJ DOUSI v COLGATE PALMOLIVE PTY LTD (NO 2) (Meagher JA) 13
If I am wrong in this regard, and the problem is to be considered in the light
of s57(1)(e), a further difficulty arises. That difficulty is whether that paragraph
requires one to take either an objective or a subjective approach. Unassisted by
authority, I should have come to the conclusion that s57(1)(e)(ii) required one to
take an objective approach. So much has already been held by the Full Court of
Victoria in McManamny v Hadley [1975] VR 705 and by the Full Court of
Queensland in Castlemaine Perkins Limited v McPhee [1975] QR 469. The
contrary view had been expressed in some judgments at first instances, typified
by Wright v Borzi [1979] QR 179 and Dean v Inglewood Shire Council
(unreported, Queensland decision No 3342 of 1975). Of course, to say that
s57(1)(e)(ii) proposes an objective test does not mean that no regard may be had
to the background and situation of the applicant. This was also held in
McManamny v Hadley (supra).
The question then becomes whether a reasonable woman in the position of the
applicant/plaintiff between 1973 and 1983 would have reasonably taken steps to
discover, and in fact had discovered, that an alternative system of work was
available to her employer. I appreciate that in some circumstances it would be
reasonable for such a person to take no steps at all (see Hendersons case per
Mahoney JA at 299.
I also appreciate that the Court could not approach cases such as the present
on the supposition that the ordinary reasonable employee will contemplate taking
legal action at the first available opportunity. Nonetheless it seems to me that a
reasonable person in the position of the applicant/plaintiff who had for a
protracted period of time suffered repeated injuries at work which she well knew
were work related could be expected after a few years to have appreciated that
she was entitled to have her employer compensate her at Common Law for the
general damages she had suffered and armed with that suspicion would have
taken some steps to ascertain what her legal rights were.
Counsel for the appellant submitted that she had no reason to make any effort
at all to enquire whether she had a cause of action against her employer until
September 1983, when she was threatened with dismissal. Until that time, so the
argument ran, she was content with her lot, and to make enquiries would not have
been reasonable. But to my mind the fallacy of this argument is that, on the
admitted facts, a reasonable woman must have realised the strong possibility that
she had a potentially strong case against her employers for general damages,
whether she remained in employment or not.
In my view the appeal should be dismissed with costs.
Counsel for the Appellant: PM Hall
Solicitors for the Appellant: Carroll and O'Dea
Counsel for the Respondent: SJ Moteby
Solicitors for the Respondent: Rashworth Dodd and Menczel