Consideration
32 At [35] of his reasons for judgment Mansfield J concluded that the Tribunal had failed to regard the state of affairs to which the applicant claimed to have been exposed in his employment as capable in law of contributing materially to his condition. The question is whether the Tribunal has now remedied that omission.
33 The applicant claimed, and the Tribunal appears to have accepted, that Ms X became more angry and jealous over time, resulting in the applicant's need to consult his general practitioner who referred him to Dr Tym.
34 As the Full Court said in Treloar, "material" emphasises the need for evidence that "features of the employment did in fact and in truth contribute to the condition complained of" (at 323). Treloar involved a claim brought under the Compensation (Commonwealth Government Employees) Act 1971 (Cth), which was repealed and replaced by the SRC Act in December 1988.
35 It was easier for an applicant under the former Act than for an applicant under the SRC Act to obtain an award of compensation: see Kowalski v The Military Rehabilitation and Compensation Commission (2011) 191 FCR 345 at [47]. In Comcare v Sahu-Khan (2007) 156 FCR 536 at [16], Finn J observed that the definition of "disease" in s 4 of the SRC Act required a much stronger causal relationship between the employment and the ailment than that prescribed by the 1971 Act. His Honour said that the words "in a material degree" required "an evaluation of all relevant contributing factors", making each case a matter of fact and degree.
36 Similarly, it should be observed that the legislation considered in Federal Broom did not contain any requirement of a "material" contribution. Rather, an injured employee was entitled to compensation where it could be shown that the employment was a "contributing factor to" the disease. The terminology was similar to the provisions of the 1971 Act considered in Treloar.
37 The suggestion of the Full Court in Treloar at 323 that the word "material" in the definition of "disease" in the SRC Act was not intended to add any significance to the words already used appears difficult to reconcile with the Second Reading Speech to the Bill which became the SRC Act. The relevant text of the speech is reproduced in Comcare v Canute (2005) 148 FCR 232 at [66] per French and Stone JJ:
It is intended that the test will require an employee to demonstrate that his or her employment was more than a mere contributing factor in the contraction of the disease. Accordingly, it will be necessary for an employee to show that there is a close connection between the disease and the employment in which he or she was engaged.
In determining whether employment contributed in a material degree to the contraction of a disease in a particular case, regard would be had to whether the employment in which the employee was engaged carried an inherent risk of the employee contracting the disease in question and whether some characteristic or feature of the employment tended to cause, aggravate or accelerate the disease. [Emphasis added]
38 At [67], their Honours said:
On this basis, the observations of the Full Court in Treloar at 323 that the relevant causal connection must be established on the balance of probabilities and not left in the area of possibility of conjecture are not controversial. Equally, it is plain that the present legislation was not intended to require that an employee demonstrate that their employment caused the disease or that it was the most important factor. It would also appear that the imposition of a "but for" test remains inappropriate. Having said this, the changes brought about by the enactment of the SRC Act were intended to require that the contribution be "more than a mere contributing factor" and, as such, the comments of the Court in Treloar must be assessed in this light. Content must be given to the word "material" contained in the definition of "disease" in the legislation as it presently stands. The inclusion of this term imposes an evaluative threshold below which a causal connection may be disregarded. However, it is not necessary for present purposes to consider the proper meaning of "material" and nothing more need to [sic] said about this issue.
39 Canute must be regarded as authority for the proposition that the intention of Parliament was to impose a more stringent test of the causal relationship between employment and disease than the Full Court in Treloar had thought. In addition, as the Full Court had done in Treloar, French and Stone JJ in Canute rejected the notion that the "but for" test is an appropriate test of the causal relationship.
40 It follows that the Tribunal was required to consider whether the applicant's employment was "more than a mere contributing factor" to his incapacity. It is unnecessary, however, for a person claiming compensation to demonstrate that it was his or her daily duties, or specific aspects of the workplace environment, that resulted in his or her disease. Such an approach would constitute too narrow a focus. The requirement of a material contribution of the employment to the disease is a requirement that the claimant be able to point to his or her employment as a factor that operated actively to bring about the condition.
41 In the present circumstances, the Tribunal found that the employment was no more than part of "the setting" in which the relationship between the applicant and Ms X led to the applicant's depression. In reaching that conclusion, however, the Tribunal adopted too narrow an approach, since it was required to consider whether the proximity of the applicant to Ms X in the workplace facilitated the development of their relationship. According to the applicant's evidence, Ms X began to harass the applicant in February 1987, whilst the applicant was working with the DHC and such conduct continued when the applicant transferred to the ATO. The relationship appears to have strengthened when Ms X transferred to the ABS in March 1989. It continued to intensify when Ms X transferred in April 1990 to the Data Products Unit of the ATO and, within a month, was assigned to work in the DBA subsection, supervised by the applicant. The Tribunal needed to consider whether this evidence should be accepted, and therefore whether it made the employment itself an operative factor in the onset of the applicant's depression.
42 There was evidence that the relationship between the applicant and Ms X led to jokes circulating amongst fellow employees by mid-1990. At least as a result of those jokes, the employer appears to have become aware of the relationship. The applicant's supervisor, Mr Don Bartley, delegated Ms Betty Hand to speak to Ms X concerning the jokes. When Ms Hand did so, Ms X became upset. At [70] of its reasons for decision, the Tribunal referred to evidence that, after he learned of her meeting with Ms X, the applicant became angry and aggressive towards Ms Hand. The Tribunal was required to consider whether the actions of the employer in attempting to deal with the relationship in this way played any part in bringing about the applicant's depression.
43 In his report dated 15 February 1995 Dr Tym expressed the following opinion:
In summary, when I first saw him on 17.07.91, and on every occasion since then, I have treated him for a depressive illness that was, in my clinical judgement, engendered solely by the psychological stress experienced by him initially at work from sexual harassment by a colleague at work, initially restricted to the work environment in which he was trapped.
44 The Tribunal needed to consider whether this evidence bore on the question of causation, whether there was contrary expert evidence provided by Comcare and whether it accepted this evidence of Dr Tym.
45 The evidence referred to in [41]-[43] above was enough to make it open to the Tribunal to find that the applicant's employment was an operative factor in bringing about the applicant's depression, and therefore contributed in a material degree to his disease. It was not necessary for the applicant to establish that it was sole cause of his incapacity. The fact that the relationship with Ms X was a cause of the depression did not require the Tribunal to disregard the contribution of the applicant's employment to the relationship, and the opportunities that the employment gave to Ms X to harass him. Nor was it necessary for the applicant to establish fault on the part of his employer. The Tribunal misdirected itself by focussing on a false distinction between a cause and the setting for the relationship. The evidence was capable of disclosing a stronger connection between the employment and the relationship that led to applicant's disease than simply regarding the employment as background to the relationship. The Tribunal needed to explore that evidence. As Mansfield J said, the Tribunal needed to assess whether his employment exposed the applicant to a state of affairs that materially contributed to his condition. The Tribunal did not do that.
46 If the Tribunal had accepted that the applicant's employment did contribute in a material degree to the onset of his condition, and therefore to his incapacity during the period 11 to 16 July 1991, the Tribunal would then have had to consider the second period of the first claim, 3 to 10 April 1992. This would have involved the Tribunal dealing with different issues of causation. It would have to have considered whether it was the same disease that led to incapacity during that period, in which case the same causes would have continued to be operative. It would have had to consider whether the onset of another, unrelated disease, due to different factors not associated with the applicant's employment, caused the incapacity in that period. It would have had to consider whether the original disease had been aggravated and, if so, whether the requisite causal relationship between the employment and the aggravation existed. Because of its approach to the first claim, the Tribunal did not consider any of these issues.
47 For these reasons we consider that the Tribunal's decision on the first claim must be set aside. The part of the Tribunal's decision relating to the first claim must be remitted to the Tribunal to be heard and decided again.