Jurisdiction
31 In Telstra Corporation Limited v Hannaford (2006) 151 FCR 253,after an exhaustive review of earlier authority, Conti J, with the agreement of Heerey and Dowsett JJ, reached (at 273-274, [57] - [59]) the following conclusions:
57 In my opinion, it should be concluded, upon the correct construction of the SRC Act, and in particular of the provisions thereof upon which I have focused attention in these reasons, that the AAT is empowered to make subsequent findings of fact in relation to the circumstances the subject of decision-making under ss 16 and 19 of the SRC Act, and also under ss 21 and 27 of the SRC Act, where the determination of the first instance decision-maker (here of course Telstra) made under the auspices of s 14 of the SRC Act remains in operation in the sense that it has not been the subject of any inconsistent outcome in the context of a subsequent review by the AAT. The statutory scheme allows for progressive and evolving decision-making giving effect to the provisions of ongoing review of relief or entitlements in the nature of course of workers compensation, being review which allows for adjustment or change in the light of events and circumstances which may subsequently happen. The statutory scheme hence reflects a flexible scope for adjustment by way of decisions in the nature of awards to be made subsequently to the determination of s 14 liability, whether that determination be made in isolation, or in the context of decision-making concerning consequential relief that may be required in the light of evolving circumstances. It is therefore a scheme which allows progressively for ongoing relief, and is thus not comparable of course with the process of curial resolution of the traditional common law entitlement of an injured employee for damages as a consequence of the negligent conduct of an employer. The opening words of s 14(1) '[s]ubject to this Part...' are consistent with the flexibility inherent in the ensuing codification of the various facets of compensation envisaged.
58 The first instance decisions of this Court in Power, Hill and Riddle, which I have reviewed, each reflect in my opinion correctly the operation of the statutory scheme, and in particular its provision for ongoing adjustment designed to accommodate changing circumstances inclusive for instance (as here involved) of changing medical diagnosis. The approach to statutory construction and operation evident in those first instance authorities is not at odds with the approach to statutory construction and operation adopted by the Full Court in Lees subsequently to Power and Hill and prior to Riddle.
59 I would therefore conclude, contrary to the decision of the primary judge, that the AAT below was duly empowered, upon the true construction of the SRC Act and in the events which happened:
(i) to make findings of fact that effectively undercut the necessary findings of fact made in the initial or original decision of Telstra under s 14 of the SRC Act to accept liability in respect of Mr Hannaford's claim for compensation; and
(ii) to do so in circumstances where the AAT was undertaking its review of whether any compensation should be payable or further payable, for instance under ss 16 and 19 of the SRC Act, and/or under ss 21 and 27 of the SRC Act; and
(iii) to do so in the circumstances further where Telstra's s 14 decision remained in force to the extent that it had not been actually reversed, and had not been the subject of any adverse review per se by the AAT.
In short, it matters not, upon the true construction of the SRC Act, that there has never been any reconsideration of the determination of Telstra of 8 May 2002 whereby liability under s 14 thereof for Mr Hannaford's claim originally made on 1 May 2002 had been accepted.
(Emphasis added; citations for cases referred to in the passage quoted omitted)
32 These conclusions as to the operation of the AAT Act, in the context of the jurisdiction conferred upon the Tribunal by s 64 of the SRC Act were reached after, materially, consideration of what had been said on the subject by an earlier Full Court in Lees v Comcare (1996) 29 AAR 350. They bind me as much as they bound the Tribunal. Given that, there is no utility in a rehearsal of earlier authority. Rather, the task is to ascertain how those conclusions operate on the facts of the present case.
33 Here, as it was entitled to do in its administration of the SRC Act, the Commission chose to bifurcate the process of making of determinations in response to a claim made by Mr Bryant, via his solicitors, on 15 July 2005 to extend the Commission's existing liability to pay compensation under the SRC Act so as to include a headache condition and to reassess his lump sum impairment compensation entitlement accordingly. Initially, on 25 January 2006, the Commission determined that Mr Bryant had suffered the contraction of a disease to which his military service had contributed to a material degree. The disease concerned was identified as "Muscle-tension type headache". It was determined to be a "stand-alone condition", i.e. one unrelated to Mr Bryant's earlier accepted compensable injury to his neck. The disease identified in this determination was an "injury" for the purposes of the SRC Act.
34 Mr Bryant did not seek reconsideration of the determination of 25 January 2006. The status of this determination is identical to the earlier determination made by Telstra, that of 8 May 2002, analysed by Conti J in Telstra Corporation Limited v Hannaford. Mr Bryant sought reconsideration only of the later, 16 March 2006 determination, described at the outset of these reasons. When, on 24 July 2006, a decision was made on reconsideration it was that decision, and that decision alone, which became the "reviewable decision" for the purposes of s 64 of the SRC Act.
35 In the passage from Telstra Corporation Limited v Hannaford which I have quoted above Conti J does not, in terms, mention s 24 of the SRC Act, instead referring to ss 16, 19, 21 and 27 of the SRC Act. However, his Honour's reference to these particular provisions was clearly by way of example (witness their being preceded by "for instance"). The compensation for which s 16 (compensation for medical expenses and the like), s 19 (compensation types for injuries resulting in incapacity), s 21 (compensation for injuries resulting in incapacity where the employee is in receipt of a lump sum benefit) and s 27 (compensation for non-economic loss) respectively provide are but particular types of compensation eligibility for which is enlivened, subject to the additional satisfaction of their relevant statutory criteria, once it has been concluded that an "injury" for the purposes of the SRC Act has been suffered. Compensation for an injury which has resulted in permanent impairment, for which s 24 of the SRC Act provides, is another. Each of these is a type of compensation for which Part II of the SRC Act provides. In these circumstances, there is no material distinction to be drawn between Telstra Corporation Limited v Hannaford and the present case.
36 It follows, to paraphrase and adapt for present application the conclusions reached in Telstra Corporation Limited v Hannaford, that, providing procedural fairness was observed, the Tribunal was duly empowered, upon the true construction of the SRC Act and in the events which happened:
(i) to make findings of fact that effectively undercut the necessary findings of fact made in the decision of the Commission under s 14 of the SRC Act to accept liability in respect of Mr Bryant's claim for compensation; and
(ii) to do so in circumstances where the Tribunal was undertaking its review of whether any compensation should be payable or further payable under s 24 of the SRC Act; and
(iii) to do so in the circumstances further where the Commission's s 14 decision remained in force to the extent that it had not been actually reversed, and had not been the subject of any adverse review per se by the Tribunal.
37 To the extent that Mr Bryant contends for a contrary conclusion, that contention must be rejected.
38 Paragraphs 37, 39, 40 and 41 of the Tribunal's reasons evidence that the Tribunal did consider whether Mr Bryant indeed suffered from the hitherto accepted "injury" of "muscle tension type headaches". The Tribunal concluded that he did. In so doing, the Tribunal necessarily accepted that Mr Bryant suffered from a "disease" for the purposes of the SRC Act, i.e. materially, an ailment suffered by him that was contributed to in a material degree by his employment by the Commonwealth (see; the then definition of "disease" in s 4 of the SRC Act). At the relevant time, the SRC Act provided that an "injury" included a "disease" (definition of "injury" in s 4, SRC Act).
39 Having reached the conclusion that Mr Bryant suffered from an "injury" for the purposes of the SRC Act, the task for the Tribunal was that laid down by s 24(5) of the SRC Act, to determine the degree of permanent impairment of the employee resulting from that injury under the provisions of the Approved Guide. Regrettably, as is revealed by those portions of para 49 and para 50 of the Tribunal's reasons emphasised in the excerpt quoted above, the Tribunal did not undertake that task according to law, for the following reasons.
40 In Canute v Comcare (2006) 226 CLR 535, in a joint judgement, a Full Court of the High Court emphasised by repetition (226 CLR at 548, [37] and [38]) that the task under s 24(5) involved the assessment of compensation "resulting from an injury". As the High Court put it, the occurrence of an "injury" "both actuates and defines the ambit of Comcare's duty under s 24 of [the SRC Act]" (226 CLR at 548, [37]). The suffering of an "injury" as defined is antecedent to that assessment task which in this case fell on the Commission rather than Comcare to undertake because Mr Bryant was a member of the Defence Force.
41 As is revealed by the portion of para 50 of the Tribunal's reasons emphasised in the excerpt quoted above, the Tribunal seems to have conceived its task to be to decide whether it was satisfied that the Mr Bryant suffered a degree of whole person impairment "which can be attributable to service life". With respect, Mr Bryant's entitlement, if any, to permanent impairment compensation was not just to the extent that his employment with the Commonwealth contributed to that impairment to a material degree. It was to compensation in an amount which reflected the degree of permanent impairment resulting from an injury.
42 Canute v Comcare revealed one type of impermissible conflation of inquiry in the determination of permanent impairment compensation, the treating as relevant to the inquiry as to the degree of permanent impairment resulting from an injury something which independently satisfies the statutory definition of an "injury". This case, in my opinion, reveals another, the treating of employment contribution as relevant to the determination of the degree of permanent impairment "resulting from an injury". The contributors to an ailment may be multi-factorial. If an employee's employment by theCommonwealth contributed in a material degree to the employee's ailment, than that employee has suffered a "disease" and thus an "injury" for the purposes of the SRC Act. That "injury" then provides the "prism" through which permanent impairment compensation "in respect of the injury" is determined: s 24(1) SRC Act. So far as that "injury" is concerned, and subject of course to the Tribunal's ability to revisit that antecedent question, the focus of inquiry then shifts to the degree of permanent impairment resulting from that injury as assessed by reference to the Approved Guide. In that inquiry, it is nothing to the point that there may be other contributors to the "injury" apart from employment with the Commonwealth.
43 This type of conflation of inquiry is also evident in part of the emphasised portion of para 49 of the Tribunal's reasons, "the headaches reported could not then be attributable to service life and therefore be compensable under Table 13.1".The reference to "compensable under Table 13.1" is also, strictly, erroneous as the source of the liability to pay permanent impairment compensation is s 24 of the SRC Act, not the Approved Guide. This reference though was not the subject of any complaint and seems to me to be but infelicity or casualness of expression.
44 If Mr Bryant's headaches were solely the result of an ailment other than the accepted injury, "muscle tension type headaches" condition, then no compensation under s 24 of the Act would be payable in respect of the accepted injury. That would be because, whatever degree of permanent impairment from which Mr Bryant suffered, that impairment would not have "resulted from" that accepted injury. The task for the Tribunal was to decide for itself the degree of permanent impairment which had "resulted from" the accepted injury: Comcare v Amorebieta (1996) 66 FCR 83, at 96.
45 That is not though, as its reasons evidence, how the Tribunal conceived its task. The Tribunal, wrongly, conceived that its task was to assess the impairment that had "resulted from service life". This aspect of the jurisdictional challenge made by the Appellant has merit.
46 Further comment is also necessary in relation to the way in which the Tribunal dealt with this matter.
47 The relevant compensable "injury", from which the Tribunal accepted Mr Bryant suffered was a particular type of headache condition, "muscle tension type headaches", not "headaches" generally. It may be that it is possible definitively to distinguish the symptoms of "muscle tension type headaches" from those occasioned by, for example, psychological factors or sleep apnoea. Equally, it may to some extent not be possible to draw such a distinction. To the extent that it is not, the Tribunal, like the Commission, was obliged to assess impairment by reference to the totality of impairment "resulting from" the accepted injury on the footing that it was not possible to isolate from that impairment anything which did not result either from another "injury" or from a condition which could never constitute an "injury". A like approach is taken where it is not possible to isolate the impairment flowing from an aggravation of an underlying condition from that flowing from the underlying condition itself: Jordan v Australian Postal Corporation (2007) 99 ALD 303 at 310, [30]. It is settled that in those circumstances a body such as the Commission or the Tribunal sitting in its place is obliged to make an assessment beneficially in favour of a claimant.
48 In his most recent report, that of 3 November 2006, Dr Lethlean opined, inter alia:
· "My impression is that psychological factors are the principal ones interfering with the wide range of activities as now described [by Mr Bryant]. I would not modify my assessment without the opportunity of re-assessing Mr Bryant clinically and discussing his condition, symptoms and restrictions."
· "Mr Bryant's Table 13'1 impairment might well be assessed at 10% WPI, or a higher impairment, but this should … be made with clinical reassessment."
· "On 31 October 2005 Mr Bryant reported that sleep apoena had been diagnosed. Sleep apnoea in itself can cause (or increase) headaches, concentration and tiredness difficulties. It's possible that this is relevant to his current and continuing difficulties." (Emphasis added).
49 As to sleep apnoea, the following answer was elicited in cross-examination from Dr Lethlean:
"So it would be fair to say that your considered opinion, even to this day, is that the diagnosed condition that you have diagnosed for Mr Bryant is a muscle tension headache for which the service is responsible, at least to the extent of being a 51% contributing factor?
Yes."
50 Dr Lethlean's consistent, considered opinion was that the level of impairment from which Mr Bryant suffered, assessed by reference to Table 13.1 was 0%. He was also adamant in cross-examination that Mr Bryant needed to be reassessed.