Grounds 1 and 2 - person under a disability
- Grounds 1 and 2 challenged the finding that the plaintiff was not a person under a disability for the purposes of s 52(1) of the Limitation Act. Section 52 reads as follows:
52 Disability
(1) Subject to subsections (2) and (3) and subject to section 53, where -
(a) a person has a cause of action,
(b) the limitation period fixed by this Act for the cause of action has commenced to run, and
(c) the person is under a disability,
in that case -
(d) the running of the limitation period is suspended for the duration of the disability, and
(e) if, but for this paragraph, the limitation period would expire before the lapse of three years after -
(i) the date on which the person last (before the expiration of the limitation period) ceases to be under a disability, or
(ii) the date of the person's death,
(whichever date is the earlier), the limitation period is extended so as to expire three years after the earlier of those dates.
(2) This section applies whenever a person is under a disability, whether or not the person is under the same or another disability at any time during the limitation period.
(3) This section does not apply to a cause of action to recover a penalty or forfeiture or sum by way of penalty or forfeiture, except where the person having the cause of action is an aggrieved party.
- Critical to the operation of this provision is the definition of a person under a disability in s 11(3) of the Limitation Act:
11 Definitions
…
(3) For the purposes of this Act a person is under a disability -
(a) while the person is under the age of eighteen years, or
(b) while the person is, for a continuous period of twenty-eight days or upwards, incapable of, or substantially impeded in, the management of his or her affairs in relation to the cause of action in respect of the limitation period for which the question arises, by reason of -
(i) any disease or any impairment of his or her physical or mental condition,
(ii) restraint of his or her person, lawful or unlawful, including detention or custody under the Mental Health Act 1958,
(iii) war or warlike operations, or
(iv) circumstances arising out of war or warlike operations.
- The whole of the magistrate's reasoning with respect to the operation of s 52 is found in the following passage: [2]
"HER HONOUR: Turning to s 52 - he relies on that as well, of the Limitation Act - and that refers to a person with a disability. Now, the Court can't just go to a particular section of legislation; the Court has to read the legislation in its entirety. Now, what s 52 is is under a division of the Act called "disability, confirmation, fraud and mistake", and really what s 52 does is say that if a person's under a disability the limitation period is suspended. But the action - this section needs to be read in its entirety; the entirety of the Act. When one turns to s 53 - because s 52, if I am not mistaken, is subject to s 53 - s 53 is talking about a person who is, for example, under the Mental Health Act or has a curator or is under the Protective Division of the Supreme Court. I am not convinced s 52 is relevant here either, and there's been no case law provided to me to suggest it is."
- It is apparent that the magistrate dismissed the plaintiff's attempt to rely upon s 52, by treating the phrase "subject to s 53" as meaning that s 52 only applied if s 53 was engaged. However, that is not what the phrase means here.
- The words "subject to" may be understood as a relational term, as described by French CJ in The Queen v Khazaal. [3] The phrase "subject to" creates a hierarchy, by indicating which of two provisions prevails in a case of conflict or inconsistency. As Leeming JA noted in Adrenaline Pty Ltd v Bathurst Regional Council, [4] the words are a standard way of making clear that the unqualified provision (in this case s 53) prevails. [5] However, as McHugh J noted in a constitutional context, the use of that expression "does not itself mean that there is always a conflict between" the two provisions. [6] McHugh J continued, quoting Megarry J in C & J Clark Ltd v Inland Revenue Commission, [7] "[w]here there is no clash, the phrase does nothing: if there is collision, the phrase shows what is to prevail".
- In some circumstances, "subject to" may render all aspects of a provision subject to compliance with another provision. That means that the first provision will apply if, and only if, the second provision is complied with. Alternatively, the phrase may subordinate one provision to the operation of another, if the latter is engaged, but not otherwise. The latter operation is the relevant one with respect to s 52(1). The phrase "subject to" appears twice in the chapeau, first by reference to subs (2) and (3). Subsection (2) deals with a person who is under more than one disability; subs (3) deals with an action to recover a penalty or forfeiture. Those two provisions were not engaged in the present case and did not preclude the application of subs (1). The magistrate did not suggest otherwise. However, there is no reason to suppose that the phrase "subject to" had some different operation when used for a second time, namely in relation to s 53. Section 53 provides for an exception to the operation of the suspension under 52(1) in the case of a person having a "curator" as defined in that section. It provides that where a person under a disability may have a cause of action against another person, the latter may serve a "notice to proceed" on the curator, which notice has the effect of the prospective claimant ceasing to be under a disability: s 53(3). Self-evidently, it cannot apply to a person under a disability who does not have a "curator". The only persons who can be affected by s 53, are those referred to in the limb of par (b)(ii) of the definition of a person under a disability, dealing with persons in detention or custody under the Mental Health Act. That was not the plaintiff.
- The plaintiff did not have a curator, but if he had had, the defendant would have been required to give notice to proceed to the curator in order for the person to cease being under a disability. Section 53 has no operation in relation to a person who relies upon parts of the definition of "person under a disability" not engaging any provision of the Mental Health Act 2007 (NSW). [8]
- It follows that the magistrate was in error, on a point of law, in placing reliance upon the operation of s 53 and concluding that s 52 could not be relied on by the plaintiff. As a consequence of that error the magistrate did not address the questions of whether in fact s 52 was engaged in relation to the plaintiff and, if so, for what period.