austlii:nsw/NSWPIC/2025/302
General information, not legal advice.
NSWPIC
2025-06-27
Original judgment source is linked above.
(a) whether the applicant sustained an injury in the nature of an aggravation, acceleration, exacerbation or deterioration in the course of employment of a disease, to which the employment was the main contributing factor pursuant to s 4(b)(ii) of the Workers Compensation Act 1987 (the 1987 Act);
(b) the correct deemed date of injury pursuant to s 16 of the 1987 Act;
(c) the extent and quantification of incapacity resulting from the injury;
(d) the correct pre-injury average weekly earnings (PIAWE) rate;
(e) the entitlement to medical and related treatment expenses pursuant to s 60 of the 1987 Act, and
(f) whether ss 254 and/or 261 of the 1998 Act prevent the recovery of compensation.
PROCEDURE BEFORE THE PERSONAL INJURY COMMISSION
20 May 2025. The applicant was represented by Mr William Carney of counsel, instructed by Mr James Lemoto. The applicant was also assisted by an interpreter in the Tongan and English languages. The respondent was represented by Mr John Gaitanis of counsel, instructed by Mr Connor Ware. A representative from the insurer was also present. 2. I am satisfied that the parties to the dispute understand the nature of the application and the legal implications of any assertion made in the information supplied. I have used my best endeavours in attempting to bring the parties to the dispute to a settlement acceptable to all of them. I am satisfied that the parties have had sufficient opportunity to explore settlement and that they have been unable to reach an agreed resolution of the dispute.
(a) Application and attached documents;
(b) Reply and attached documents;
(c) documents attached to an Application to Lodge Additional Documents filed by the respondent on 1 May 2025, and
(d) amended wages schedule filed by the applicant on 13 May 2025.
6 March 2024. 2. The applicant's first statement was prepared by an investigator on behalf of the insurer and is unsigned. Its contents are largely to the same as the later, signed statement. 3. In his second statement, the applicant said he was born in Tonga in 1969 and attended school until Year Nine. The applicant came to Australia in March 2004 from New Zealand. The applicant said he could not understand English properly without the assistance of an interpreter. 4. The applicant commenced employment with the respondent as a warehouse storeman on or about 6 April 2004. The applicant's work involved frequent, repetitive and strenuous bending, twisting, lifting carrying and walking around a factory while wearing steel toe capped boots. The applicant said his job required him to stand and walk at all times. 5. The applicant said that he sustained an injury to his right foot and toes as a result of his steel capped boots. For about two months, the applicant was in pain whilst walking around at work. The pain was particularly severe when climbing trucks to load and unload items. The applicant said he reported the injury verbally to his supervisors and manager, Ben, who told him to go to the doctors. 6. One day, the applicant was unable to finish a task unloading a truck due to his pain. The applicant took off his boot and went to speak to Ben explaining that he was in excruciating pain and could not put the boot back on. The applicant called his wife who picked him up and took him to the family doctor. The applicant's toe was infected, and he was hospitalised and placed on a drip. 7. Between 17 December 2021 and 28 January 2022, the applicant was unable to work due to being admitted to Liverpool Hospital for six weeks. The applicant was off work for a total of six months. On 31 March 2022, the applicant signed a letter of resignation. 8. The applicant said that he had subsequently found out that there was a medical process at Southern Steel which was not offered to him when he complained of his injuries.
-Says uses a steel boot; decreased on the boot grazes on the dorsum big toe
-Has felt pain before; tried various different type of shoes but to no avail
I note that, he has not seen a podiatrist as advised last year; says has no time"
R big toe: 2cm deep crator on the callus on dorsum of big toe
L big toe: similar large callus on dorsum; no ulcer here
Imp: callus due to consistent use of steel-capped shoes
Emphasised ABPI immediately; referral given; should have no costs to pay
Emphasised to avoid steel-capped shoes; will speak to his boss"
Exam -deep ulcer on dorsal of index toe, with necrotic base
"In around July of last year, Mateo, who is required to wear steel capped boots in his occupation as a storeman, whilst at work noted that the shoes had rubbed on his feet and caused and abrasion or maceration affecting both feet. This progressed and Mateo developed an ulcer on the right big toe by the end of 2021. An x-ray at this stage did not demonstrate evidence of bony infection or osteomyelitis. The ulcer progressed and by late January 2022 it was noted that the x-ray demonstrated changes in the distal phalanx in the right big toe, consistent with bony infection or osteomyelitis. Mateo was then commenced on antibiotics in the form of Tazosin 13.5 mg daily intravenously for 4 weeks and then had a further 8 weeks of oral Augmentin Duo Forte. Mateo was assessed on a very regular basis by the Liverpool Hospital High Risk Podiatry Service during this time and after their supervision, the ulceration on the right big toe completely resolved and remains resolved. There was also an ulcer on the distal part of the right second toe and over the first MTP joint on the first toe, both of which resolved under the supervision of podiatrist. By March 2022 all wounds had healed and remain so."
"Mateo had a diabetic ulcer predominantly on the right first toe caused by recurrent rubbing on the first big toe by his steel cap boot which may have been ill fitted. This is also a direct consequence of long term, suboptimally controlled type II diabetes mellitus complicated by peripheral neuropathy and likely small vessel peripheral arterial vascular disease."
"...employment has been a substantial contributing factor to the development of maceration, feet infection with the complication of osteomyelitis and ulceration of the right big toe."
Mr Zhu, also known as 'Jimmy Zu', stated that he was employed by the respondent as a state operations manager and had managed the applicant about five years earlier, before Ben Dunn took over the role. 2. Mr Zhu said he was unaware that the applicant had an injury to his foot although the applicant had mentioned indirectly that his work boot was giving him some grief. Mr Zhu recalled making arrangements to get the applicant whatever boot would make him comfortable. Mr Zhu recalled checking in with the applicant to see how the new boots were going and he said "good, much better." Mr Zhu said a lot of the Tongan employees in the warehouse had issues with the boots because of the size of their feet. Mr Zhu said,
"I am not aware of a report of the injury he is claiming. What I know of Mateo is he did mention sometimes that he had gout. I don't recall he related the gout to his boots and the whole story I heard was that he has diabetes however I was not aware of that during his employment and only found out once he was no longer employed with us. I did hear once or twice from his supervisor that he was not at work due to a foot issue so when I would see him back at work I would ask about his foot when walking past and he would say "it's good."
"I am not aware that Mateo was injured at work and there was no report was made to myself. There was no incident report written regarding a foot injury. He never mentioned any issues at work regarding his foot or issues with his work boot. As far as I know, he has diabetes, and this has caused him issues with his foot."
"I was made aware of his gout when he originally said foot his was infected at the start of 2021. I recall he started showing us his toe and tried to put his work boot on but when we saw that he could not walk in the boot, and we called him back in and said what was happening. He showed me his toe and I said he needed to go to Doctor because he could not work in that condition."
"When the Doctor got on phone to me the Doctor said "Mateo is not going good he isn't allowed to go back to work because he is not looking after his foot. He has been trying to use natural remedies rather than taking the medication. He is not listening to the dietary requirements and is still wearing shoes when he shouldn't be. Mateo will not listen and if he keeps going like this we will need to amputate his foot."
"Thank you for giving me the opportunity to work in this position for the past 18 years. I have thoroughly enjoyed working here and appreciate all the opportunities you have given me. However, I have decided it was time for me to stop working due to a severe injury on my right toe which has been damaged from the steel cap boots causing me to stop working. Both my annual and sick leave has finished and | can no longer provide for my family, which is why I'm resigning so I could apply for payment from Centrelink until my right toe is fully healed."
"Mr Alofaki is an insulin dependent diabetic. He has peripheral neuropathy involving both feet. It has been some time since his right forefoot difficulties that he relates to walking and wearing steel-capped boots at work. It is most likely that he had some mechanical abrasion of the forefoot and toes from his rigid work boots, mainly involving the right foot, most likely after his feet had become more tight in his boots from swelling associated with his diabetes and dependency and decreased vitality of the tissues and may also have had some local infection at the time. (These components have now resolved.)"
"Work boots and those shoes with steel-caps are designed for mechanical protection of the feet against injury, usually from objects being dropped on them in workplaces that are considered potentially dangerous. Such boots do not have wide fitting ranges and are rigid to provide the strength and protection.
It is not infrequent for such boots to cause soft tissue and skin abrasion and can be a contributor to the development of callus which allows differential soft tissue movement, irritation and breakdown, which can lead to ulceration, infection and so on. (They are not the only cause as the soft tissue tension can also be generated from within the foot, reacting against ground surfaces in walking and daily activities.)"
"Mr Alofaki indicated that his initial difficulties when he first presented in January 2021 were at the right foot, and he returned to work wearing his work boots fairly soon after discharge. It is probable that his right foot at the time was more swollen with soft tissue changes than the left, and this may have contributed to his symptoms and soft tissue difficulties developing later in the year, initially in the right foot."
"As outlined above, Mr Alofaki's complaints and limitation in work capacity are reasonable, and relate to his diabetic status and having established peripheral neuropathy and bilateral foot disease, but do not arise from any aspect of his previous work (these effects having settled once the acute soft tissue component was addressed)."
"The clinical notes indicate that he had a large callus over the top of the right first toe with a 1 cm ulcer in August 2021, but by September 2021, there was a 2 cm ulcer over the callus of the right great toe. To a lesser degree, there was callus over the tip and top of his right second toe and a small ulcer also developed in that region. The main ulcer on the right first toe recurred and in January 2022, he was diagnosed with osteomyelitis in the right first toe and was admitted to hospital for IV antibiotics. The ulcer continued and his employment was terminated on 7 March 2022 after he had exhausted his sick leave and long service leave."
"I believe the most likely reason for there not being any significant callus formation or any ulcer formation when wearing his steel-capped boots between 2004 and early 2021, was because his feet were not affected by a peripheral neuropathy. The diabetes has caused a significant peripheral neuropathy and one of the complications in this situation is that there is hyperextension of the MTP joints in the feet such that the top of the toes are closer to the capping of his boots, thus leading to increased friction, callus formation, and subsequent breakdown into ulcers. Additionally, the numbness associated with the neuropathy would reduce symptoms/warning signs that otherwise would have been present in the toes from the increased pressure. Thus, I believe that the diabetes has played a very relevant role in the development of his condition."
Dr Naushad-Uddin gave the opinion that repeated frictional abrasion led to chronic ulceration. A vascular complication of diabetes had been ruled out. 7. Endocrinologist, Dr Thornley, echoed that opinion stating that the injury occurred due to constriction of the boot, despite the clearly pre-existing diabetes. 8. The applicant noted that the reports from Liverpool Hospital confirmed that the ulcer on his toe was due to restricted footwear. 9. The applicant submitted that the medical evidence confirmed that despite his pre-existing vulnerability, the use of the constricted boot and the rubbing of this on the top of his toes was the cause of the particular injury relied on. The applicant had subsequently been incapacitated as a result of the injury. In the long-term, the applicant was restricted from work that required the wearing steel capped boots. 10. The applicant noted that the respondent's witnesses, other than Ben Dunn, said there was no record of injury. The letter of resignation stated, however, that the reason for the resignation was a severe injury to the applicant's foot due to the steel cap boot. It was quite clear that the applicant had given notice of the relevant facts giving rise to the injury to his employer prior to the cessation of work. 11. To say that the respondent did not know about the injury was quite disingenuous. The applicant's English was not that good. The employer must have known the facts of what was going on. All of the relevant details were contained in the letter of resignation. 12. The applicant submitted that the respondent's medicolegal evidence supported the occurrence of a short-term injury to the right foot. Dr Powell considered this, saying it was most likely that some mechanical abrasion of the forefoot and toes from the rigid work boots had contributed to the injury, although this had now resolved. Dr Powell agreed that the infection caused incapacity for a period of time. Although Dr Powell was focused on the pre-existing condition of diabetes, the presence of a pre-existing condition was not in dispute. 13. Dr Powell's history was also consistent with the applicant having notified the employer of the injury. Dr Powell reported that the applicant had indicated that he had his boots refitted to accommodate the changed condition of his right foot. The applicant had indicated that his supervisor had arranged for the work boots to be fitted. The applicant had reported that when he first developed pain in May 2021, he had brought this to the attention of his supervisor, asking for different boots. 14. The applicant observed that Prof Carter had given a similar opinion. Prof Carter expressed the opinion that the injury was caused by pressure on the top of his affected toes by the steel-capped boots and that the peripheral neuropathy caused by his diabetes had aggravated the situation. 15. Although Prof Carter had given an opinion that the applicant did not continue to suffer from the effects of the physical injury, the applicant was seeking a closed period of weekly compensation. The ulceration injury was the cause of him being unable to work. 16. The applicant conceded that the respondent's wages schedule and PIAWE calculation appeared to be consistent with the documents relied on by the respondent.
Dr Thornley's opinion suggested there were two factors operating at the same time, the diabetes and the shoes. Dr Thornley's opinion did not satisfy the main contributing factor test. Prof Carter gave a more plausible explanation. Both Dr Powell and Prof Carter opined that the peripheral neuropathy came first and was the main contributing factor to the ulceration. 15. The respondent submitted that the applicant had the ability to earn at least his pre-injury average weekly earnings rate per week. Even Dr Thornley conceded that the applicant had a partial capacity. Although Prof Carter did not think the applicant was fit to work, the incapacity was due to the non-work-related diabetic condition.
Whether the applicant has sustained an 'injury'?
(a) means personal injury arising out of or in the course of employment,
(b) includes a disease injury, which means:
(i) a disease that is contracted by a worker in the course of employment but only if the employment was the main contributing factor to contracting the disease, and
(ii) the aggravation, acceleration, exacerbation or deterioration in the course of employment of any disease, but only if the employment was the main contributing factor to the aggravation, acceleration, exacerbation or deterioration of the disease, and
(c) does not include (except in the case of a worker employed in or about a mine) a dust disease, as defined by the Workers' Compensation (Dust Diseases) Act 1942, or the aggravation, acceleration, exacerbation or deterioration of a dust disease, as so defined."
"It follows that the test of 'main contributing factor' involves consideration of whether there were competing causal factors (both work and non-work related) of the aggravation, and whether on a consideration of relevant causal factors the employment represented the main contributing factor.
(a) The test of 'main contributing factor' in s 4(b)(ii) is more stringent than that in s 4(b)(ii) in its previous form, which applied in conjunction with the test in s 9A. There will be one 'main contributing factor' to an alleged aggravation injury.
(b) The test of 'main contributing factor' is one of causation. It involves consideration of the evidence overall, it is not purely a medical question. It involves an evaluative process, considering the causal factors to the aggravation, both work and non-work related. Medical evidence to address the ultimate question of whether the test of 'main contributing factor' is satisfied is both relevant and desirable. Its absence is not necessarily fatal, as satisfaction of the test is to be considered on the whole of the evidence."
19 October 2021 referred to a "friction ulcer on the right big toe" and advised that the applicant should avoid wearing steel capped boots for at least two weeks to allow healing to occur. 7. It appears that the applicant continued to work, at least periodically, and the wound progressed. On 4 November 2021, Dr Naushad-Uddin referred the applicant to the High Risk Foot Clinic at Liverpool Hospital for urgent management of ulcers on the right big toe and index toe. In the letter of referral, Dr Naushad-Uddin recorded his belief that the ulcer was acquired from the edge of the applicant's steel boot, noting the callus on the dorsum of the left big toe. 8. This causal theory was accepted by the doctors who treated the applicant at Liverpool Hospital. In February 2022, Dr Goorkiz, for example, referred to the applicant having a chronic right hallux ulcer that had begun due to friction from work footwear. Dr Goorkiz noted that the wound had progressed and was able to be probed to the bone. An X-ray showed extensive destruction of the distal phalanx with evidence of rapidly progressing osteomyelitis. The applicant was commenced on a four-week course of intravenous antibiotics. 9. The applicant's medicolegal expert, Dr Thornley, agreed with this causal theory, finding that the applicant had a diabetic ulcer predominantly on the right first toe which was caused by recurrent rubbing on the first toe of a steel capped boot. 10. I find the history recorded by Dr Powell somewhat difficult to reconcile with the other evidence. Dr Powell is the only doctor to have recorded a history of swelling in the right foot in January 2021 requiring a six-week hospitalisation at Fairfield Hospital. This hospitalisation is not recorded in the treating evidence, including the notes of the applicant's general practitioners. As noted above, there is evidence of hospitalisation at Liverpool Hospital in the early part of 2022. Dr Powell did not make any specific reference to the Liverpool Hospital records including the treatment for osteomyelitis in February and March 2022. It may be that Dr Powell has relied on an oral history given by the applicant, several years after the relevant events. The applicant was noted elsewhere in the evidence to be a poor historian, particularly as a result of language barriers. 11. The problematic history taken by Dr Powell has no doubt coloured his views. Nonetheless, Dr Powell agreed that there was a causal contribution from the wearing of steel capped boots and mechanical abrasion on the forefoot and toes. Dr Powell said it was not infrequent for such boots to cause soft tissue and skin abrasion, contributing to the development of callus and differential soft tissue movement, irritation, breakdown, ulceration and infection. 12. The history recorded by Prof Carter aligned more closely with the treating evidence. Prof Carter noted, however, that the applicant had worn steel capped boots between 2004 and early 2021 without any significant difficulty. This was said to be because the applicant's feet were not at that time affected by peripheral neuropathy. The diabetes caused a significant peripheral neuropathy involving hyperextension of the metatarsophalangeal (MTP) joints so that the tops of the toes were closer to the capping of the boots, leading to increased friction, callus formation and subsequently ulceration. The numbness associated with the neuropathy would have reduced symptoms that otherwise would have been present in the toes from the increased pressure. 13. It can be seen therefore that there is a consistency of medical opinion that the ulceration of the applicant's toes was the combined result of the applicant's diabetic condition and peripheral neuropathy, together with the wearing of the steel capped boots. It has not been suggested that the applicant would have developed the ulceration and subsequent osteomyelitis simply from wearing steel capped boots in the absence of a diabetic foot. 14. Similarly, while Prof Carter noted that symptoms of pain and swelling associated with the peripheral neuropathy were exacerbated by the wearing of any shoes, it has not been suggested that the applicant's diabetic foot would have developed the particular calluses, ulcers and osteomyelitis noted in the treating evidence had it not been for the prolonged wearing of steel capped boots in the course of the applicant's employment. Dr Naushad-Uddin noted, for example, that the applicant's ankle brachial pressure index was normal, ruling out a vascular complication of diabetes. 15. The applicant has characterised the 'injury' in this case as an aggravation, acceleration, exacerbation or deterioration in the course of employment of a disease for the purposes of s 4(b)(ii) of the 1987 Act. The applicant says the diabetic disease at his foot was aggravated or exacerbated by the wearing of steel capped boots, which was an inherent requirement of his employment. 16. In Federal Broom Co Pty Ltd v Semlitch (Semlitch)[3], Windeyer J said,
"[t]he question that each [aggravation; acceleration; exacerbation; deterioration] poses is, it seems to me, whether the disease has been made worse in the sense of more grave, more grievous or more serious in its effects upon the patient."
"The thrust of these comments is that irrespective of whether the pathology has been accelerated there is a relevant aggravation or exacerbation of the disease if the symptoms and restrictions emanating from it have increased and become more serious to the injured worker."
Whether the applicant is barred from recovering compensation pursuant to ss 254 and/or 261 of the 1998 Act?
"(1) Neither compensation nor work injury damages are recoverable by an injured worker unless notice of the injury is given to the employer as soon as possible after the injury happened and before the worker has voluntarily left the employment in which the worker was at the time of the injury."
Extent and quantification of incapacity resulting from the injury
10 January 2022 onwards. 6. I have been unable to locate any SIRA certificates of capacity amongst the evidence before the Commission. There are, however, various ordinary medical certificates for various closed periods in the second half of 2021 and early 2022. 7. A Centrelink Medical Certificate certified the applicant as having no capacity for work or study from 23 March 2022 to 30 June 2022 due to a diabetic foot ulcer complicated by osteomyelitis. This certificate is, however, difficult to reconcile with the other medical evidence suggesting that the ulcers had healed by mid-March 2022. 8. The treating evidence from Liverpool Hospital indicates that the applicant continued to be treated for foot ulcer and osteomyelitis up until that time. The ulcers were noted by
Dr Nguyen to have completely healed on 16 March 2022, although the applicant remained on antibiotics. 9. Dr Naushad-Uddin and the medicolegal experts have all expressed the view that the applicant would have regained a capacity to work in suitable employment not requiring the wearing of steel capped boots once his ulcers and osteomyelitis had healed. The weight of evidence suggests the ulcers had healed prior to the commencement of the current claim for weekly compensation. 10. Although on 7 March 2022, Dr Naushad-Uddin noted that he had advised the applicant not to work for a few months, it is unclear whether this was due to the effects of the ulcer and osteomyelitis, or the ongoing difficulties associated with the applicant's diabetes. 11. As can be seen, the evidence with regard to the weekly compensation claim is unsatisfactory. 12. I am not satisfied that the applicant was incapacitated as a result of the injury, as opposed to the pre-existing diabetic condition, during the period of the applicant's amended wages schedule. 13. Nor am I satisfied that either party's PIAWE figure is accurate. Having regard to the ordinary medical certificates and clinical records, it is likely that the first date of incapacity was a date on or around 18 August 2021. I do not have before me evidence of the applicant's earnings for the 52-week period prior to that date. 14. While it is likely that the applicant has some entitlement to weekly compensation, for the reasons given above, I decline to make the award of weekly compensation claimed.
Entitlement to medical and related treatment expenses
[1] Dr Thornley's report is dated 7 February 2022, however, this appears to be a typographical error.
[3] [1964] HCA 34; 110 CLR 626 at 632.
Alofaki
Southern Steel Group Pty Ltd [2025] NSWPIC 302