The Worker's Appeal
24 The appeal was in the claim against the solicitors. There was no appeal in relation to the deduction of the whole of the weekly payments to 30 June 1990 in calculating interest.
25 The question in the appeal was related to the principal question in the employer's appeal. In assessing the damages in the claim against the solicitors the judge deducted from the value of the worker's right to sue at common law the value of her workers' compensation rights as at 30 June 1990, in order to arrive at her loss: Scott v Echegaray (1991) Aust Torts Reports 81-120 at 69,134-5; Tipper v Williams (No 2) (NSWCA, 6 May 1994, unreported); Williams v Bodewes (1997) Aust Torts Reports 81-449 at 64,574-6. He included in the workers' compensation rights what he described as "past weekly payment to 30 June 1990" and "future weekly payments to the date of trial". The amounts were slightly different from the amounts of the deductions to which I have referred in the employer's appeal, for reasons which were not explained, but the effect was to deduct half the weekly payments from the damages notionally assessed against the employer. No point was taken that the deduction was only in relation to weekly payments, or that actual weekly payments may have been taken rather than the capital value of the future payments.
26 The question was whether the deduction of half the weekly payments was erroneous. The worker submitted that it was, saying that the weekly payments were made in respect of the 1983 injury, or that they should have been considered compensation paid for the 1983 injury and so should have been put aside in assessing the damages against the solicitors. It became plain, however, that the worker's appeal was protective against success by the employer in its appeal, and that the worker was content with the status quo if the employer's appeal failed. It follows from what I have said in relation to the employer's appeal that the weekly payments were properly regarded as compensation for permanent incapacity attributable to the 1980 injury equally with the 1983 injury, and that there was no error in this respect in what the judge did.
27 In my opinion, on the questions raised in the appeals each of the appeals should be dismissed. As the parties were agreed that adjustments were necessary in a respect or respects not the subject of these reasons, however, they should file short minutes which give effect to their agreement but are otherwise consistent with these reasons. As to costs, I agree with what is said, and the course proposed, by Beazley JA.
28 BROWNIE AJA: Most of the facts in these cases are no longer in dispute, and they can be summarised quite briefly, by reference to the findings of the trial Judge, Charteris ADCJ.
29 The plaintiff, Ms Medcalf, was injured on two occasions, in 1980 and in 1983, in the course of her employment with The Macksville & District Hospital ("the employer"). She retained Messrs Perry & Smith ("the solicitors") to act for her in relation to those injuries. They negligently allowed her claim in respect of the 1980 injury to become statute barred, so that she lost the opportunity to obtain damages from the employer in respect of the 1980 injury. But for that negligence, she had a seventy five per cent chance of success in respect of her claim for damages against the employer in respect of that injury, and her action against the employer for negligence in respect of that injury would have come on for trial on or about 30 June 1990.
30 In due course there were heard, together, the plaintiff's action for damages against the solicitors, and her action for damages against the employer in respect of the 1983 injury. His Honour found in favour of the plaintiff on both cases, found that the plaintiff's ongoing problems and the whole of her economic loss should be apportioned equally between the two injuries, and assessed damages in the two cases accordingly, discounting the damages awarded against the solicitors by twenty five per cent by reason of his earlier finding that the plaintiff had a seventy five per cent chance of success, as against the employer in relation to the 1980 injury.
31 The two appeals relate to the way in which his Honour dealt with the workers' compensation payments that had been made to or on behalf of the plaintiff by the employer, or on its behalf.
32 Section 63(5) of the Workers' Compensation Act 1926 ("the Act") provides:-
"Where any payment by way of compensation under this Act has been made, the payment shall, to the extent of its amount, be a defence to proceedings against the employer independently of this Act in respect of the injury."
33 In the case between the plaintiff and the employer, his Honour assessed damages for non-economic loss, and interest on that sum, and then considered the various components of the claim for economic loss, both past and future. He then allowed the plaintiff one half of the total sum, so assessed for economic loss, and arrived at a gross figure for damages; and he then deducted one half of the total payments made under the Act. In the case between the plaintiff and the solicitors, the methodology was generally similar, but of necessity a little more complicated in that, first, his Honour had to assess the damages as at 30 June 1990, and then add interest from that date to the date of judgment; and, secondly, he had to deduct twenty five per cent from the total damages assessed, in consequence of his earlier finding that what the plaintiff had lost in consequence of the negligence of the solicitors was a seventy five per cent chance of succeeding as against the employer in respect of the 1980 injury. Putting these complications aside, what his Honour did, once again, was to assess the non-economic damages, add one half of the economic loss, and subtract one half of the total of the workers' compensation payments made.
34 The employer now appeals, contending against the plaintiff that, pursuant to s.63(5) of the Act, it had the benefit of a defence in respect of the whole of the workers' compensation payments made after the date of the 1983 injury; and the plaintiff appeals as against the solicitors, saying that if the employer's appeal succeeds, the amount of the damages awarded to her as against the solicitors should be increased. All parties accept that the two appeals are to be resolved by reference to the single question: how does s.63(5) of the Act operate, given the findings of fact of the trial Judge, not contested on appeal, that the whole of the plaintiff's ongoing problems (that is, her symptoms and difficulties suffered after the happening of the 1983 injury) and the whole of her economic loss, should be apportioned equally between the two injuries? (Once that question is decided, there is no debate about the proper computation of interest, as part of the damages.)
35 Contrary to a view held earlier, it is now established that a single incapacity for work may result from separate injuries. If the injuries were sustained by a worker in separate employments, this may mean that the injured worker is entitled to awards under the Act against both employers although, of course, the worker is only entitled to be actually paid once. Until the insertion of s.7A into the Act in 1980, there was no provision in the Act either for the apportionment of liability between those two employers, or for one employer to recover contribution from the other: Morris v George [1977] 2 NSWLR 552, on appeal Bushby v George [1980] 1 NSWLR 81.
36 The proposition that a single incapacity may, for the purposes of workers' compensation legislation, be attributable to more than one injury was apparently accepted by the High Court in National & General Insurance Company Limited v South British Insurance Company Limited (1982) 149 CLR 327, 332, but at 336 the Court left open for future consideration the question whether, as the Privy Council had apparently accepted in Bushby, "common law principles of causation are applicable to determine whether it can properly be said for the purposes of the Act, that a particular incapacity 'results' from a specified injury".
37 Section 7A provided that where the incapacity of a worker results from more than one injury the liability to pay compensation might be apportioned. Subsequent cases explain that this meant liability between employers, but that the section had no application where the worker was injured more than once, whilst within the one employment: National Employers' Mutual General Insurance Association Limited v Calver [1983] 3 NSWLR 107, 114. Nor did s.7A inhibit the right of an injured worker to proceed against one or both employers: Pickersgill v Freightbases Pty Limited [1983] 3 NSWLR 117.
38 Cases as Calver, Pickersgill and Vanramer Pty Limited v Higgins (1991) 24 NSWLR 661 also discuss the position where a worker is injured twice, so as to be entitled to benefits under the Act, but is entitled to damages in respect of one only of those injuries; and National & General and other cases deal with the position, both as between different employers and between different insurers of the one employer, as to which employer or which insurer is at risk when a worker, injured on more than one occasion, becomes entitled to the benefits of s.11(2) of the Act, that is, when the partial incapacity of a worker is deemed to be a total incapacity.
39 However, the present case throws up a problem not the subject of any prior reported decision. The plaintiff has a single incapacity for work, resulting from two injuries, sustained in the employment of the one employer, whilst the one insurer has been on risk; but her rights to recover damages in respect of the two injuries differ. In the events that have happened, she has now a right to damages against her solicitors, to recover seventy five per cent of the damages she might have recovered against her employer in respect of a 1980 injury; and she is entitled to damages from her employer in respect of a 1983 injury.
40 The employer contended for a rule of law that the whole of the moneys paid under the Act are available to it by way of defence under s.63(5). It submitted that, whilst the findings of the trial Judge, apportioning all of the plaintiff's ongoing problems and all of her economic loss to the two injuries equally, was unexceptionable at common law, for the purpose of assessing damages, there was no justification for dividing up the benefits of s.63(5) as between the two injuries. It contended that the employer, and the employer alone, was entitled to the benefit of that defence.
41 In Baker v Willoughby [1970] AC 467, 492, Lord Reid said:-
"But it is a commonplace that the law regards many events as having two causes: that happens whenever there is contributory negligence for then the law says that the injury was caused both by the negligence of the defendant and by the negligence of the plaintiff. And generally it does not matter which negligence occurred first in point of time.
I see no reason why the appellant's present disability cannot be regarded as having two causes, and if authority be needed for this I find it in Harwood v Wyken Colliery Co [1913] 2 KB 158. That was a Workmen's Compensation Act case. But causation cannot be different in tort. There an accident made the man only fit for light work. And then a heart disease supervened and it also caused him only to be fit for light work. The argument for the employer was the same as in the present case. Before the disease supervened the workman's incapacity was caused by the accident. Thereafter it was caused by the disease and the previous accident became irrelevant: he would have been equally incapacitated if the accident had never happened. But Hamilton LJ said, at p.169:
'… he is not disentitled to be paid compensation by reason of the supervention of a disease of the heart. It cannot be said of him that partial incapacity for work has not resulted and is not still resulting from the injury. All that can be said is that such partial incapacity is not still resulting "solely" from the injury.'"
42 In Bushby at 87-88 Lord Keith of Kirkel said:-
"(19) It is well established in common law contexts that an injury or incapacity may be attributable to more than one cause, in the legal sense, operating concurrently. If any authority be required for that proposition, it is sufficient to refer to Baker v Willoughby , particularly the speech of Lord Reid, where it is to be observed also that he equiparated the legal view of causation in tort to that in the field of workmen's compensation. Their Lordships are of the clear opinion that there is indeed no difference between the two, subject to the qualification that in a claim for workers' compensation it is unnecessary to prove that the incapacity was the natural and probable consequence of the injury. The question of foreseeability does not arise. It is sufficient that the incapacity results from the injury by a chain of legal causation unbroken by any novus actus interveniens.
(20) In truth, the finding by the Commission in this case that the worker's incapacity resulted both from the accident of 1964 and from that of 1966, which is not now attacked as being unsupported by sufficient evidence, really concludes the matter. There is no room for an artificial rule of law that, in such a situation, one or other accident must necessarily be selected as the cause of the incapacity, apparently, on an entirely arbitrary or capricious basis. Their Lordships conclude that the existence of such a rule of law is unsupported by principle or authority. None of the numerous decisions in the Workers' Compensation Commission and Court of Appeal of New South Wales relied on by the appellants as affording such support, which their Lordships have carefully examined and which it is unnecessary to cite at length, are properly to be understood in that sense.
(21) Counsel for the appellants sought to derive support for his contention from the absence in the Act of 1926 of any provision regulating contribution among two or more employees against each of whom a worker has obtained an award of compensation in respect of a single incapacity; the absence of such a provision might be taken to favour the view that the ambiguity should be resolved to the effect of holding that only one award was permissible. But their Lordships can perceive no ambiguity in s.9(1). There is no doubt about the ordinary and natural meaning of the words 'results from'. The issue in the appeal does not turn upon any problem in the construction of s.9(1), but upon the application of ordinary legal concepts of causation. The absence of any provision for contribution may amount to a lacuna in the Act, but a similar lacuna existed at common law as regards contribution among joint tortfeasors. It is clear enough that a worker who obtains awards against two or more employers in respect of a single incapacity cannot legally enforce both or all of them to the effect of obtaining multiple payment of compensation. Satisfaction of one award will pro tanto release the employers against whom the other awards have been obtained: D'Angola v Rio Pioneer Gravel Co Pty Ltd . Thus, in the present case, the Commission was quite correct in noting (it did no more than 'note') on each award that compensation paid thereunder would pro tanto discharge the liability of the respondents against whom the other awards had been made."