15 September 2010
Daniel GOODWIN v COMMISSIONER OF POLICE
Judgment
1 McCOLL JA: Like Sackville AJA, I express no opinion as to whether or not a failure by the District Court to give adequate reasons can ground an appeal pursuant to s 142N(1) of the District Court Act 1973. I otherwise agree with the orders proposed by Basten JA and with his Honour's reasons.
2 BASTEN JA: On 26 June 1987 the appellant, Mr Goodwin, was attested as a Constable of Police. He remained in the Police Service until 5 July 2001, when he was discharged on medical grounds, on the basis that he was suffering from major depression. The issue in dispute concerned the appellant's entitlements under the Police Regulation (Superannuation) Act 1906 (NSW) ("the Superannuation Act").
3 The Superannuation Act provides that an annual superannuation allowance may be granted to a "disabled member of the police force": s 10(1B). The phrase "disabled member of the police force" is defined as a member who is discharged, having been certified to be incapable of performing the duties of his office due to a specified infirmity, the infirmity having been determined, pursuant to s 10B(3), to have been caused by the member being "hurt on duty": s 10(1). The decision under s 10B(3) is made by the Commissioner of Police. On 4 July 2001 a delegate of the Commissioner decided that the appellant's infirmity of "Major depression" was not caused by the member being hurt on duty.
4 The appellant applied to the Compensation Court for a determination in relation to that decision, pursuant to s 21 of the Superannuation Act, as it then stood. (The Compensation Court was later abolished and its jurisdiction transferred to the District Court.) The District Court had power, after considering such an application, to make a determination either confirming the decision of the Commissioner, or setting it aside and replacing it by a different decision: s 21(4). On 18 December 2009 O'Toole DCJ handed down a "judgment" confirming the decision of the Commissioner.
5 On 17 March 2010 the appellant filed a notice of appeal challenging that decision, pursuant to s 142N of the District Court Act 1973 (NSW).
6 The right of appeal granted by s 142N is limited in ways to which it will be necessary to make specific reference below; relevantly for present purposes, it is limited to an appeal "in point of law": s 142N(1). It follows that this Court cannot resolve factual matters, should it be satisfied of error in point of law, but must remit the matter to the District Court for determination by that Court in accordance with its decision: s 142N(2).
7 The appeal should be allowed and the matter remitted to the District Court. The fact that the appellant's application will therefore remain undetermined, more than nine years after the appeal was lodged from the determination of the Commissioner, is far from satisfactory. The fact that the litigation remains unresolved after such a lengthy period is even more disturbing in the case of a man who, it is common ground, suffers from a serious mental illness. Part of the lengthy period appears to have been due to the proceedings in the District Court (and previously the Compensation Court) being deflected by an application in the Industrial Relations Commission and part (though only six months) to an interlocutory appeal to this Court. This Court is otherwise entirely ignorant of the circumstances causing the lapse of a significant period of time. It may be hoped that the final resolution of the litigation will be addressed expeditiously.
Jurisdiction of Court
8 For reasons which will be explained below, the approach adopted in the District Court was unsatisfactory. However, a legal obstacle to the relief sought arises from the terms in which jurisdiction is conferred on this Court. Section 142N of the District Court Act relevantly provides:
" 142N Appeal to Court of Appeal on question of law
(1) If a party to any proceedings before the Court in its residual jurisdiction is aggrieved by an award of the Court in point of law or on a question as to the admission or rejection of evidence, that party may appeal to the Court of Appeal.
(2) The Court of Appeal may, on the hearing of any appeal under this section, remit the matter to the District Court in its residual jurisdiction for determination by that Court in accordance with any decision of the Court of Appeal and may make such other order in relation to the appeal as the Court of Appeal sees fit."
9 The sole ground of appeal (set out below) is in terms a complaint of absence or inadequacy of reasons; there is some doubt as to whether such a ground is available in this case.
10 The website of this Court identifies, under the heading "NSW Statutory Appeals and referrals on questions of law" recent decisions of the Court in respect of various provisions in legislation which restrict rights of appeal to questions of law. As the Court noted in B&L Linings Pty Ltd v Chief Commissioner of State Revenue[2008] NSWCA 187; 74 NSWLR 481, such provisions vary in their terminology and, it has been held, in their effect. In particular, authority requires a differential approach in relation to provisions which permit an appeal on a question of law and those which permit an appeal from a decision of the tribunal below on a question of law. The latter provisions have, generally speaking, been construed as requiring the identification of a decision, whether express or implicit, in relation to a question of law which has been raised and determined by the court or tribunal from which the appeal is brought. The subject-matter of the appeal is that specific decision, rather than the final order, which will usually involve issues of law, fact and evaluation. There is no discernable pattern or purpose behind the differences in language in different statutes. Further, some limitations may be avoided by the general availability under s 69 of the Supreme Court Act 1970 (NSW) of a supervisory jurisdiction vested in this Court to provide relief in circumstances of jurisdictional error and (usually) error of law on the face of the record. That jurisdiction is subject to a level of constitutional protection: Kirk v Industrial Relations Commission [2010] HCA 1; 239 CLR 531 at [98]-[99].
11 Recent cases in this Court in relation to the scope of s 142N include Day v SAS Trustee Corporation [2009] NSWCA 222; SAS Trustee Corporation v Pearce [2009] NSWCA 302 and Workers Compensation (Dust Diseases) Board of NSW v Smith [2010] NSWCA 19. In the most recent decision of Smith, I made the following remarks with respect to a ground asserting inadequacy of reasons:
"135 In Day v SAS Trustee Corporation [2009] NSWCA 222 Giles JA (with whom Ipp JA agreed) considered that a failure to accord procedural fairness gave rise to a grievance in point of law, which was sufficient for an appeal under s 142N to succeed: at [72]. The alternative, minority, view, was that the appellant was required to identify an award or decision of the District Court in point of law, as being the subject-matter of the appeal: at [86] and [94]. In SAS Trustee Corporation v Pearce [2009] NSWCA 302 I expressed a doubt (with the agreement of Beazley JA) as to whether a failure on the part of the District Court judge to give 'adequate reasons' for his decision could constitute a decision of the District Court in point of law for the purposes of s 142N: at [43].
136 There is an abundance of authority in support of the proposition that a failure of a court to give adequate reasons for its findings constitutes an error of law: see, eg, Soulemezis v Dudley (Holdings) Pty Ltd (1987) 10 NSWLR 247. However, whether such a failure involves a decision of the court below in point of law is less clear. There may be circumstances in which it does, but those may be restricted to the case where the court or tribunal has expressly or implicitly decided that certain matters should not be dealt with in the reasons: see Pettitt v Dunkley [1971] 1 NSWLR 376 at 383-4, referred to in Pearce at [119].
137 Further, there is something incongruous in the proposition that to reason illogically, even perversely, does not constitute error of law, but to fail to provide adequate reasons does. Decisions in point of law refer to the substance of the decision-making process and not merely its presentation.
138 The legal obligation on the part of a judge to give reasons for his or her decision derives from the nature of judicial power and the proper means of its exercise: Soulemezis at 278-279 (McHugh JA). Its role in modern jurisprudence has been to provide a mechanism of control where appeals are limited to questions or points of law or on grounds available for supervision by way of judicial review in the nature of prerogative relief. In relation to statutory appeals, limited attention has been given to the statutory context in which the matter has come before the Court. In relation to the supervisory jurisdiction, it is necessary to identify where the failure to comply with a legal obligation to give reasons fits within a scheme which does not permit review for illogicality in the reasoning process. Thus, a missed step in an argument, or the illogical drawing of an inference would not, on the latter approach, demonstrate reviewable error.
139 In circumstances where, as in the present case, the primary obligation of the trial court was to determine the matter on 'the real merits and justice of the case', it may be thought that on review, inadequacy of reasons should take a secondary role to considering whether the real merits and justice of the case have been addressed and a decision made on that basis. That statutory context renders it inappropriate for this Court to conduct a critique of the written reasons, not to search for error otherwise revealed, but to address an amorphous standard of 'adequacy'."
12 It should be noted that the comments in Smith at [137] were based on statements as to what constitutes error of law in Azzopardi v Tasman UEB Industries Ltd (1985) 4 NSWLR 139 at 156-157 (Glass JA, Samuels JA agreeing) and Australian Broadcasting Tribunal v Bond [1990] HCA 33; 170 CLR 321 at 355-356 (Mason CJ). However, some doubt has been cast on the scope and operation of that principle by reference in later judgments to the need for findings or inferences of fact to be supported by "logical grounds": see Re Minister for Immigration and Multicultural Affairs; Ex parte Applicant S20/2002 [2003] HCA 30; 77 ALJR 1165 at [52] (McHugh and Gummow JJ, Callinan J agreeing); Minister for Immigration and Multicultural and Indigenous Affairs v SGLB [2004] HCA 32; 78 ALJR 992 at [38] (Gummow and Hayne JJ); Minister for Immigration and Citizenship v SZMDS [2010] HCA 16 at [40] (Gummow and Kiefel JJ, dissenting); cf [113], [119] and [129]-[130] (Crennan and Bell JJ).
13 In Smith, Allsop P reserved his position with respect to the consequence for legal review under s 142N of inadequate reasons (at [2]), implying that the reasoning set out above was not necessary for the disposition of the case. Handley AJA agreed that the appellant "failed to establish that it is aggrieved by an award of the District Court 'in point of law …' …, not because it was not aggrieved but because it failed to establish any relevant error within the section": at [162]. His Honour, whilst agreeing generally with my reasons, expressed no view on statements which were "not necessary for the decisions in these appeals": at [163].
14 In Pearce, I noted that Asprey JA in Pettitt v Dunkley [1971] 1 NSWLR 376 at 383-384 had referred to the issue of whether a failure to give reasons could constitute an error for the purposes of the predecessor of s 142N, holding that the ground was available in circumstances where the primary judge had made a conscious decision not to deliver reasons or to state findings of fact: see Pearce at [119]. The present case, like Pearce, was one in which the primary judge not only decided to give reasons, but did so. Identification of error must therefore be addressed on a different basis in order to engage s 142N.
15 In order to consider how the present matter should be addressed, it is necessary to set out the grounds of appeal relied upon by the appellant which were contained within one paragraph, reading as follows:
"1. The trial Judge failed to give any or adequate reasons for her finding that the Plaintiff's infirmity of 'Major Depression' was not caused by him having been hurt on duty, in that:
(a) the trial Judge failed to make any findings in relation to the competing expert medical opinions of consultant psychiatrists Dr Peter Klug (called by the Plaintiff) and Dr Kathryn Lovric (called by the Defendant) regarding the cause of the Plaintiff's infirmity of 'Major Depression'.
…
(c) the trial Judge failed to give any or adequate reasons for why the traumatic incidents, to which the Plaintiff was exposed during the course of his work as a police officer, were not a substantial contributing factor to the Plaintiff's infirmity of 'Major Depression' when:
(i) the traumatic incidents were not in dispute;
(ii) it was common ground that the Plaintiff suffered from Post Traumatic Stress Disorder (PTSD);
(iii) it was common ground that the Plaintiff's PTSD was a consequence of his exposure to the traumatic incidents;
(iv) Dr Lovric conceded that 'depression almost inevitably develops in patients with post-traumatic stress disorder that is untreated' and that the treatment of the Plaintiff's PTSD had been sub-optimal."
16 In order to understand the ground of appeal, it is necessary to note that the primary judge identified the appellant's "central argument" in the following terms, at [36]:
"… the traumatic events, listed in paragraph 3.a to 3.l of his Amended Statement of Claim, caused a post-traumatic stress disorder. The disorder resulted in his infirmity, specified by the Police Superannuation Advisory Committee in its certificate of 27 June 2001."
17 The "central argument" so identified involved two causal links, namely between the traumatic events and the PTSD, and between the PTSD and the major depression. If her Honour did not in fact address either the evidence or the submissions relating to the causal links, it may be inferred that her Honour thought it unnecessary for some reason to address these matters. That, the appellant submitted, constituted an erroneous decision of the District Court in point of law.
18 So long as the analysis underlying that approach can be made good, it constitutes a ground of appeal falling within the terms of the section.
19 It was put to senior counsel for the appellant, in the course of argument, that this analysis involved a failure to make findings on essential elements of the case before her, rather than inadequacy of reasons. Counsel responded that it could be put in either way and further that it was put in both ways in the notice of appeal.
20 Although senior counsel for the respondent submitted that the sole ground of appeal involved a failure to give any or adequate reasons, a proposition which was strictly correct on a literal reading of the grounds set out above, it is also clear that the ground, especially at paragraph (a) expressly complains of a failure to make findings regarding the cause of the infirmity.
21 The phrase "failure to give any or adequate reasons" is used in many senses. Commonly is it used to do no more than express disagreement with the process of reasoning or the outcome. In other circumstances, it is used to describe a failure to make findings on essential issues. Finally, and with a degree of accuracy, it may be used to describe a failure to explain how a finding actually made was arrived at. Frequently these distinctions are not borne in mind by those preparing grounds of appeal. They should be. In Waterways Authority v Fitzgibbon [2005] HCA 57; 79 ALJR 1816, Hayne J (with whom McHugh and Gummow JJ agreed) stated:
"129 Reference was made in argument to the 'sufficiency' of the primary judge's reasons. When it is said that a judge did not give 'sufficient' reasons for a decision there may be some doubt about what principles are engaged. Reference may be being made to the duty of a judicial officer 'to make, or cause to be made, a note of everything necessary to enable the case to be laid properly and sufficiently before the appellate Court if there should be an appeal [including] not only the evidence, and the decision arrived at, but also the reasons for arriving at the decision'. To fail to make or cause to be made such a note may invoke principles of procedural fairness and constitute a failure to exercise the relevant jurisdiction.
130 In the present case, however, reference to the 'sufficiency' of the primary judge's reasons is not to be understood as seeking to invoke only those principles. Rather, because the primary judge was bound to state the reasons for arriving at the decision reached, the reasons actually stated are to be understood as recording the steps that were in fact taken in arriving at that result. Understanding the reasons given at first instance in that way, the error identified in this case is revealed as an error in the process of fact finding. In particular, it is revealed as a failure to examine all of the material relevant to the particular issue."
22 The error in the present case may properly be understood as a failure on the part of the primary judge to make findings in respect of the issues of causation, which she had identified as central to the appellant's case. In other words, the failure was a failure to determine issues which she had herself identified as requiring determination. The issues having been identified, there must have been a decision taken in the course of determining the application that these matters did not, after all, need to be addressed. Because the issues were correctly identified, that approach involved a failure to exercise the jurisdiction conferred on her by statute and, in so doing, her Honour decided a question in point of law, arguably erroneously.
Failure to decide central issues
23 The critical elements in the case put by the appellant required findings as to: