[2021] WADC 56
General information, not legal advice.
District Court of WA
2021-06-10
Original judgment source is linked above.
The application for arbitration dated 22 June 2018 be remitted to the Workers' Compensation Arbitration Service (WA), differently constituted for hearing
Apache Northwest Pty Ltd v Agostini [No 2] [2009] WASCA 231
Audino v WA Country Health Service - Wheatbelt [2013] WADC 46
Cameron v Cole [1944] HCA 5; (1944) 68 CLR 571, 589
Commissioner for Australian Capital Territory Revenue v Alphaone Pty Ltd [1994] FCA 1074; (1994) 49 FCR 576
FAI General Insurance Co Ltd (De-Registered) v Goulding [2004] WASCA 167
Housing Industry Association Limited v Murten [2004] WASCA 139
Mijatovic v Legal Practitioners Complaints Committee [2008] WASCA 115; (2008) 37 WAR 149
National Companies & Securities Commission v News Corporation Ltd [1984] HCA 29; (1984) 156 CLR 296
Re Minister for Immigration and Multicultural and Indigenous Affairs; Ex parte Lam [2003] HCA 6; (2003) 214 CLR 1
Re Minister for Immigration and Multicultural and Indigenous Affairs; Ex parte Palme [2003] HCA 56; (2003) 216 CLR 212
Stead v State Government Insurance Commission [1986] HCA 54; (1986) 161 CLR 141
SZBEL v Minister for Immigration and Multicultural and Indigenous Affairs [2006] HCA 63; (2006) 228 CLR 152
The applicant alleges he developed the condition as a result of the perception of the flawed manner that his lowe (sic) performance rating was arrived at. Furthermore the applicant was told there would be no avenue for appeal.
The Respondent submits that its decision to give the Applicant 'needs improvement/development' performance rating, amounted to discipline and that being given, said rating was the whole or predominant cause of the injury and therefore is not compensable by virtue of Section 5(4) of the act.
MR LUSTIG: What are the consequences of receiving a rating of 'needs development or improvement'? ... You lose a fairly small percentage of your bonus.
Performance-based pay? ... Yes. I forget what the figure is. I think it's 3 per cent. I'm not sure now.
And that was of concern to you? ... The concern to me was the injustice and how I'd be betrayed and how the process wasn't followed.
There then followed questions in relation to Mr Cullen's proposed Transition to Retirement.
His pre-existing anxiety about working with high-voltage did not cause his current psychiatric difficulties but may have somewhat predisposed him to it. The injustice regarding and the alleged flawed manner that his low performance rating was arrived at was the most significant contributing factor in materially precipitating his current psychiatric difficulties which had then been somewhat exacerbated by his further allegation that he was told that there was no avenue for appeal with respect to his low performance rating ...
ARBITRATOR: The only thing I was thinking, so in terms of section 5(4), I mean you're not abandoning that, are you, or are you still want me to consider whether these are excluded matters.
MR LUSTIG: I think it's difficult for us to urge that as a primary submission. It's in our opening submissions, but ---
ARBITRATOR: --- there are those other matters that I did raise earlier as well, in relation to that subparagraph B where it talks about - and in this case, there was some cross-examination about this transition to retirement, and being knocked back when he went back to work, and that - you know, that he in his own statement, I think he does draw attention to the fact that the ramification of the low rating would mean that it would affect his bonuses, so - which I took to mean that - could be interpreted as a benefit, he's lost a benefit he had.
MR MORRISSEY: If I could just say - and thank you for raising that, because that is something I wanted to address. The point with that being that even if there is some evidence that that occurred, there is no evidence that that is what made him ill, and certainly no evidence that that was the whole or predominant cause of what made him become ill, so I don't think it goes anywhere in the context of this application.
ARBITRATOR: All right.
MR MORRISSEY: It wouldn't be credible for the applicant to say that that wasn't a side effect of this rating, because it's established on the documents that are before you.
ARBITRATOR: And I understand that to be that the core argument is, well, no, it's this sense of injustice at the way he was dealt with, and that I can find on the facts as established that that was the case.
MR MORRISSEY: Yes.
ARBITRATOR: All right. So ---
MR LUSTIG: Sir, could I ---
ARBITRATOR: Yes ---
MR LUSTIG: I just want to - you've touched on that just at the very end, one thing to remember here is that what we do know is that the two core grievances were the sense of injustice and the failure of the appeals process, or the lack of it, and the perception of the applicant, and we say that that's not made out. My friend is, in a way, trying to - he used the word insult and grievance I think in - to try and lower the bar in relation to the contraction of the disease, or the events that gave rise to the contraction of the disease. That's not a legal test.
You have to look at the disease as found by the doctors, and the information that was given by the applicant to the doctors when coming to effectively the same diagnosis, and it is the sense of injustice that he was - there was a lack of equity and fairness in the performance management process. So it's not a question of - and I just urge - I bring the point up, because using the concepts of insult and grievance lowers the bar, which I say is not the right way to look at the legal test.
MR MORRISSEY: If I can just respond to that, reading from paragraph 16 of his Honour Judge McCann's reasons in Asmitia, he says, "A stress claim is compensable if it is caused by a worker's subjective reaction," so it's a very broad and inclusive test ---
ARBITRATOR: But I think Mr Lustig is just making the point that the diagnosis of the doctors is on the basis of what they understood Mr Cullen to be telling him. So his subjective reaction I need to bear in mind, and the diagnosis I need to bear - he's just urging caution from the respondent's point of view. That's my understanding, that I don't lower the bar or - you know, I'm aware of what the diagnosis of the doctors, the information they were given. He's just pointing out that that's an - like, this sense of injustice, which I mean, an insult - I mean, he's an experienced man, he's in his late 60s, I mean, insult, injustice, I mean ---
(a) The Appellant did not give evidence which would support a conclusion that his psychiatric illness was caused by an expectation or a loss of a benefit;
(b) The Appellant was not cross-examined to the effect that his psychiatric illness was caused by an expectation or a loss of a benefit;
(c) The Respondent through its counsel did not make any submission that the Appellant's psychiatric illness was caused by an expectation or a loss of a benefit;
(d) There was no psychiatric evidence adduced at the hearing which would support the conclusion that the Appellant's psychiatric illness was caused by an expectation or a loss of a benefit;
(e) The Learned Arbitrator did not raise with the parties his view that the Appellant's psychiatric illness might have been caused by an expectation or a loss of a benefit such that the parties were unable to provide a response to this conclusion.
General principles on an application for leave to appeal
If a ground of appeal by a party, properly analysed, does not involve a question of law, linguistic gymnastics in the formulation of the ground cannot alter the position. A ground that asserts a decision is against the evidence and the weight of the evidence does not raise an issue involving a question of law. A court, tribunal or statutory decision-maker does not make an error of law merely because the court, tribunal or decision-maker finds facts wrongly or upon a doubtful basis. Generally see Paridis v Settlement Agents Supervisory Board [2007] WASCA 97; (2007) 33 WAR 361 [53] - [55] and the cases there cited.
The statutory framework - payment of compensation
(c) a disease contracted by a worker in the course of his employment at or away from his place of employment and to which the employment was a contributing factor and contributed to a significant degree; or
(d) the recurrence, aggravation, or acceleration of any pre-existing disease where the employment was a contributing factor to that recurrence, aggravation, or acceleration and contributed to a significant degree.
but does not include a disease caused by stress if the stress wholly or predominantly arises from a matter mentioned in subsection (4) unless the matter is mentioned in par (a) or (b) of that subsection and is unreasonable and harsh on the part of the employer.
For the purposes of the definition of injury, the matters are as follows:
(a) the worker's dismissal, retrenchment, demotion, discipline, transfer or redeployment; and
(b) the worker's not being promoted, reclassified, transferred or granted leave of absence or any other benefit in relation to the employment; and
(c) the worker's expectation of -
(ii) a decision by the employer in relation to a matter.
I certify that the preceding paragraph(s) comprise the reasons for decision of the District Court of Western Australia.
Apache Northwest Pty Ltd
Agostini [No 2]
(1994) 49 FCR 576
(2008) 37 WAR 149
(2003) 214 CLR 1
(2003) 216 CLR 212
(1986) 161 CLR 141
(2007) 33 WAR 361
(2010) 241 CLR 320
(2006) 228 CLR 152
(1971) 124 CLR 343
(1944) 68 CLR 571
(1984) 156 CLR 296
(1990) 170 CLR 321
(1985) 8 FCR 213
(2007) 163 FCR 562