REASONS FOR JUDGMENT
MOORE J:
44 I have had the benefit of reading the reasons for judgment of French and Lindgren JJ in a draft form. It is unnecessary to repeat their Honours' account of the facts and the relevant legislation. The applicant has argued it is difficult to reconcile the judgment of the Full Court of this Court in Comcare v Van Grisven (2002) 117 FCR 169 with the subsequent judgment of the High Court in Canute v Comcare (2006) 226 CLR 535. I agree.
45 As French and Lindgren JJ have explained, the facts in Canute were not the same as the facts in the present case. Indeed, they are only similar at a high level of abstraction, in the sense that both cases concerned two injuries. In Canute, the two injuries were markedly different in the sense that the first was an injury to the body (the appellant's back) and the second injury was psychiatric. Both injuries arose from the one event. In the present matter, both the first injury and second injury were to the appellant's lower limbs, with the first occurring after the second. However, these dissimilarities should not, in my opinion, distract attention from the reasoning of the High Court in its analysis of the operation of the Safety, Rehabilitation and Compensation Act 1988 (Cth). As the Court pointed out at [8], the concept of "an injury" is of pivotal importance. The Court went on to note at [10] that Comcare's liability is to pay compensation in respect of "the injury", and not in respect of an mpairment. The High Court also noted that the definition of "injury" is expressed in terms of the resultant effect of an incident or ailment upon the employee's body.
46 The High Court rejected at [11], the contention that the notion of "the degree of permanent impairment" reflected an approach of assessing impairment on a "whole person" basis. Of central importance are the following observations of the High Court at [14]:
However, it is important to remember that recourse to the criteria and methodologies set out in the Guide is only necessary once the key statutory criterion of the occurrence of "an injury" (which resulted in at least one permanent impairment) has been fulfilled. The Guide is to be approached through the prism of each "injury". The terms of s 24(5) are quite clear; Comcare is to assess the degree of permanent impairment of the employee "resulting from an injury". Similarly, in s 24(7), the threshold permanent impairment of the employee of 10 per cent affects the amount of compensation payable "under this section"; that is, "in respect of the injury" (s 24(1)).
[emphasis in original]
47 It seems to me that this passage should be taken to indicate that the Act requires a series of questions to be asked and answered. The first is whether the employee has suffered an "injury". In respect of any (and each) "injury" the employee has suffered, the further question is whether a permanent impairment has resulted from that "injury". An affirmative answer to that question then leads to the enquiry concerning the "degree of permanent impairment" contemplated by s 24(5), which the High Court described in Canute at [6] as the "central provision" of the legislative scheme.
48 The Guide is a construct authorised by s 28. However it can operate, and only operate, to set out criteria to determine the degree of a permanent impairment. That is apparent not only from the terms of s 28 but also the terms of s 24(5). It follows, in my opinion, that the Guide cannot operate to deny the existence of a permanent impairment, given that the stated role of the Guide is to assist in determining the degree of the impairment. This is evident from s 24, which provides that where an employee has suffered an injury (as that term is defined in s 4) that results in permanent impairment (as that composite term is defined in s 4), and provided the level of impairment is no less than 10% (s 24(7)), the employee is entitled to compensation in respect of that injury. The Guide cannot derogate from this statutory entitlement.
49 Before having recourse to the Guide, the decision-maker must ascertain whether any permanent impairment resulted from a given injury. Once that is done, the Guide is the tool the decision-maker can use to determine the degree of permanent impairment. It is erroneous, in my opinion, to approach a given set of facts on the basis that even though two injuries have been suffered at different points of time, and even though each injury may have caused a degree of permanent impairment, the Guide, properly construed, requires any permanent impairment flowing from the second injury to be treated as somehow merging with the permanent impairment flowing from the first.
50 This erroneous approach, in my opinion, infected the judgment of the Full Court in Van Grinsven. It is apparent in the following passage (at [16]):
It is clear that for the purpose of Table 9.5 the respondent does not suffer from more than one impairment. He may suffer from two knee injuries, but for the purpose of Table 9.5 these only give rise to the one impairment ‑ that is, "Can rise to standing position and walk but has difficulty with grades, steps and distances". Thus Dr Pentis's assessment is that the respondent has a 20% "whole person impairment" and Ms Bertoldi's assessment is that he has an "overall level of lower limb impairment" of 20%. By way of contrast, for the purpose of Table 9.2 he can be said to have multiple impairments. In Table 9.2 each single joint injury is an impairment. That is why it is necessary to use Table 14.1 to combine these impairments in order to obtain the whole person impairment percentage.
The Full Court construed the relevant provision in the Guide (table 9.5) to sustain the original conclusion reached by the delegate that the employee had only suffered "one impairment" notwithstanding that he had suffered two knee injuries. However, the Guide does not exist to provide an answer to the question of whether any injury has resulted in permanent impairment. It exists to provide an answer to the question of what the degree of impairment has been.
51 It may be accepted that a person may suffer an injury with consequential impairment and then suffer a second injury which does not lead to further impairment. This might be because what is thought to be the impairment flowing from the second injury is, in truth, precisely the same impairment flowing from the first. However, it is not difficult to conceive of a situation where an injury is suffered to one knee resulting in impairment, and a second injury suffered to the other knee resulting in further impairment, although of the same general character as the first. An example was given by counsel for the appellant in this matter. According to the Guide, a 10% level of impairment to the lower limbs would be manifest by, amongst other things, difficulty climbing steps. A person with an injured right knee might have difficulty with steps, particularly with every second step when the injured right knee is used to support the body and sustain its upward movement. If that person injured the left knee as well he or she would continue to have difficulty climbing steps. However, it would be a difficulty of a slightly different character. Both legs would not provide support and sustain upward movement as had been the case before both injuries.
52 If the Guide can only be used in the way I have discussed, then it should be construed so that its operation is limited to ascertaining the degree of permanent impairment and not whether there has been any permanent impairment. Approached that way, I would probably construe the Guide in the way rejected by the Full Court in Van Grinsven at [15], namely that the reference to "lower limb" in the heading in table 9.5 should be treated as a reference to each knee in the singular. This might avoid (although may not) the issue raised in passing by the appellant in these proceedings, namely that the Guide as presently drafted travels beyond what is authorised by s 28.
53 In the present case, the agreed facts reveal that the appellant suffered two injuries, one to the left knee in 1986 and the other to the right knee in 1987. It is probable that these agreed facts reflect an assumption that each injury was an ailment which falls within the definition of "disease" and which, in turn, falls within the definition of "injury". However, for present purposes, it does not matter what was the definitional route leading to the agreed facts. But for the decision in Van Grinsven, I would conclude that the Tribunal fell into error in the approach it adopted. However, I should note that the agreed facts presented to the Tribunal (as well as the opinion of Dr Vecchio) did not differentiate, with sufficient particularity, between the disabling effects of the first injury to the left knee and, if any, the additional or different disabling effect of the second injury to the right knee. Those facts would need to be explored further if the matter was remitted to the Tribunal.
54 However, the judgment of the Full Court in Van Grinsven is a unanimous, recent and considered decision which cannot be distinguished, in any material way, from the facts of this case. I am bound to follow that judgment unless I think it is plainly wrong. That formulation insists upon a high level of conviction about earlier error as a means of maintaining certainty in the law. To repeat what I said in SZEEU v Minister for Immigration and Multicultural and Indigenous Affairs (2006) 150 FCR 214 at [8]:
The level of conviction required of the Full Court [in considering whether to depart from an earlier Full Court judgment]has been variously described as being satisfied that the earlier judgment is plainly wrong, manifestly wrong or clearly erroneous. Other formulations have been adopted: see generally the discussion in Telstra Corporation Ltd v Treloar (2000) 102 FCR 595. However formulated, the duty of any later Full Court to follow an earlier Full Court is founded on public policy considerations and, in particular, the need for consistency in the application of federal laws in this Court, subject always to correction of any error by the High Court or the amendment of the law by Parliament.
55 In this matter, the task of determining whether Van Grinsven should be followed is, of course, not entirely straightforward, given the subsequent decision of the High Court in Canute. If I was satisfied that the ratio of the judgement in Canute can be taken to have involved an implied overruling of Van Grinsven, then my plain duty as a member of an intermediate court of appeal is to loyally follow the decision of the High Court: Trident General Insurance Co Ltd v McNiece Bros Pty Ltd (1988) 165 CLR 107 at 129; Garcia v National Australia Bank Ltd (1998) 194 CLR 395 at 403 [17];Royal Botanic Gardens and Domain Trust v South Sydney City Council (2002) 186 ALR 289 at [39].
56 It can be difficult to determine what is the ratio of any particular judgment: see Wu Minister for Immigration and Multicultural Affairs (2000) 105 FCR 39 at [24] and following and also the observations of Weinberg J inSZEEU v Minister for Immigration and Multicultural and Indigenous Affairs (2006) 150 FCR 214at [25] and following. I find that so in this matter. Nonetheless, I apprehend that the ratio in Canute is that s 24 operates unconstrained by s 25(4) in relation to an injury sustained from an event which led to another injury resulting in compensable impairment. Van Grinsven, on the other hand, was not determined on an erroneous understanding of the operation of s 24, but rather on what the Full Court viewed as the proper construction of the Guide. Notwithstanding that I consider the approach of the Full Court in Van Grinsven is wrong having regard to the judgment of the High Court in Canute, I do not think it is open to me to refuse to follow the earlier Full Court judgment in Van Grinsven. It is the reasoning of the High Court in Canute at a level of generality and not the ratio of the judgment that casts doubt on the approach of the Full Court in Van Grinsven. Accordingly, I would join in the orders proposed by French and Lindgren JJ.
I certify that the preceding thirteen (13) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Moore.