[2023] VCC 1574
General information, not legal advice.
County Court of Victoria
2023-10-06
Mr P
Original judgment source is linked above.
Ruling: Evidence of the acceptance of the plaintiff's claim pursuant to the Workplace Injury Rehabilitation and Compensation Act 2013, the payment of weekly payments of compensation to and beyond 130 weeks, and the payment of reasonable medical and like expenses, including the C6-7 anterior cervical discectomy and fusion, can be adduced.
(a) denied they were negligent;
(b) denied they breached any statutory duty owed to Mr Munro;
(c) did not admit Mr Munro had suffered injury;
(d) alleged Mr Munro had been contributorily negligent.
(a) they were negligent;
(b) they had breached their statutory duties owed to Mr Munro;
(c) that Mr Munro had suffered, by reason of these breaches, a C6-7 disc prolapse.
(a) Mr Munro lodged a WorkCover claim in respect of the C6-7 disc prolapse, which was accepted, pursuant to the provisions of the Workplace Injury Rehabilitation and Compensation Act 2013 ("the Act");
(b) in furtherance of the accepted WorkCover claim, Peninsula Health, or its authorised insurer, had paid and continued to pay, Mr Munro compensation, including but not limited to:
(i) reasonable medical and like expenses, including surgery in the form of an anterior cervical discectomy and C6-7 fusion (right-sided approach), partial corpectomy and rhizolysis C7 ("ACDF"), which was performed by Mr Ales Aliashkevich, neurosurgeon, and which was approved and paid for as a compensable medical expense pursuant to the provisions of the Act;
(ii) weekly payments of compensation which Mr Munro continues to be in receipt of post-130 weeks for no current work capacity.
(a) such evidence was not relevant; or
(b) the Court should refuse to allow such evidence pursuant to s135 of the Evidence Act 2008 ("the Evidence Act"). Peninsula Health said such evidence would:
(i) be unfairly prejudicial to Peninsula Health; or
(ii) be misleading or confusing; or
(iii) cause, or result, in undue waste of time.
(a) so as not to delay the trial, I would provide a ruling at 2.15 pm;
(b) I would publish my reasons at a later date.
(a) has a capacity to return to work either in his pre-injury employment or in suitable employment;
(b) Mr Munro's incapacity is not likely to continue indefinitely.[3]
(a) They had already admitted in their amended defence that Mr Munro had sustained injury on 3 September 2016 during the course of his employment for which they were liable. As such, causation is not in issue. The only issue is the assessment of damages.
(b) That such admission was not relevant evidence. In particular, Peninsula Health said:
(i) The acceptance of the claim of payment of medical and like expenses is not relevant to any fact in issue between the parties, as liability for the injury has been admitted. As such, it is inadmissible.
(ii) That the test for the entitlement to weekly payments of compensation pursuant to the Act involves different issues to any common law entitlement for economic loss.
(iii) The payment of weekly payments under the "no fault" system set up under the Act is not relevant to whether Mr Munro has a past or future earning capacity in a common law damages trial.
(c) Any probative value of the evidence in respect to the admission is substantially outweighed by the danger that the evidence might:
(i) be unfairly prejudicial to Peninsula Health; or
(ii) be misleading or confusing; or
(iii) cause or result in a waste of time.
(d) That the current preponderance of case law supports excluding the admission. Peninsula Health, in their written submissions, made specific reference to:
(i) Aubrecht v Monash Health;[5]
(ii) Mert v Lawrence Vic (Pty Ltd);[6]
(iii) Vincent v Victorian WorkCover Authority.[7]
(1) The evidence that is relevant in a proceeding is evidence that, if it were accepted, could rationally affect (directly or indirectly) the assessment of the probability of the existence of a fact in issue in the proceeding.
(2) In particular, evidence is not taken to be irrelevant only because it relates only to -
(a) the credibility of a witness; or
(b) the admissibility of other evidence; or
(c) a failure to adduce evidence."
(1) Except as otherwise provided by this Act, evidence that is relevant in a proceeding is admissible in the proceeding.
(2) Evidence that is not relevant in the proceeding is not admissible."
The court may refuse to admit evidence if its probative value is substantially outweighed by the danger that the evidence might -
(a) be unfairly prejudicial to a party; or
(b) be misleading or confusing; or
(c) cause or result in undue waste of time."
"However, I think it is clear from the judgments of the Court of Appeal in Ansett, as subsequently explained, and Fokas, Florrimell and Bedeux that the relevance in a separate common law proceeding of an employer's 'acceptance', by statutory agency, of a claim for statutory benefits by an employee must depend upon careful assessment of the particular facts and circumstances rather than upon any general rule of law or fact. ... ."[8]
"The above authorities establish that acceptance of a claim by a statutory authority under a no fault compensation scheme is capable of being an admission, subject to who made the admission, the nature and extent of the admission, and whether it is relevant to a fact in issue. Such an admission is rebuttable, and its significance is to be determined by the finder of facts in the trial.
In considering whether such conduct is admissible evidence in a trial, on the authorities as they stand, there is no logical basis to distinguish between a serious injury application, and a common law damages trial. The threshold question, in either type of trial, is whether the admission is relevant to a fact in issue.
The decisions in Raeburn, Cairns and Mert do not offer any definitive guidance as to whether continued payments under the scheme constitute an admission. In Raeburn, the admission was not considered relevant to a fact in issue - whether or not the plaintiff was injured in negligent circumstances as he alleged. In Cairns, the admission was considered relevant to a fact in issue - whether or not the plaintiff had been injured at work - and it was considered that a simple direction could be given to the jury regarding its use of the admission. In Mert, although capable of being relevant to fact in issue, the circumstances surrounding the acceptance of the lump sum claim were such that the dangers identified pursuant to s135(a)-(c) of the Evidence Act substantially outweighed the limited probative value of the evidence."[10]
(a) it was a proceeding where the plaintiff sought damages for loss of earnings and loss of earning capacity;
(b) the plaintiff had been in receipt of weekly payments on an ongoing basis and in particular, beyond 130 weeks.
(a) that Ms Sepe's receipt of ongoing weekly payments of compensation was an admission by conduct, on the part of Club Italia, that it was capable of being admissible evidence, as it was relevant to Ms Sepe's claim for past loss of earnings; and
(b) a jury could be (and was) suitably directed as to its use of this admission in respect of its assessment of Ms Sepe's claim for past loss of earnings, so that it was not unfairly prejudicial to Club Italia, nor misleading or confusing.[11]
(a) Mert - the admission in this matter related to an impairment benefit pursuant to s98C of the Act. That entitlement was dependent upon an assessment pursuant to the American Medical Association Guides to Permanent Impairment (4th Edition). There were also issues of credit and primary injury. It is not difficult to see how these factors introduce a layer of complexity inappropriate to go before a jury. There are different facts and circumstances to this case.
(b) Aubrecht - this matter involved the use to be made of the acceptance by the VWA of the costs associated with cervical spine surgery. There was uncertainty at the time of the opening of the case to the jury, and the application whether the acceptance of costs associated with this medical procedure would ever be in issue and relevant. Myers J concluded such evidence was of limited probative value in the context of the case and determined that the probative value was far outweighed by the dangers outlined in s135 of the Evidence Act. Again, the facts and circumstances differed to this case.
(c) Vincent - while this matter was raised by Peninsula Health in their written submissions, in the course of their oral submissions, it was ultimately accepted to be of no relevance and not relied upon. Given how the matter of Vincent unfolded, this was an appropriate concession.
(a) a history of problems with his neck;
(b) various other injuries and health issues.
(a) being diagnosed with a C5-6 disc prolapse in 2004;
(b) in October 2015, hurting his neck in the gym - while Mr Munro said he had no time off work he:
(i) attended his general practitioner on a number of occasions; and
(ii) underwent an MRI scan which again confirmed the presence of a C5-6 disc prolapse.
(a) On 17 October 2002, Mr Munro injured his lower back at work with the Frankston City Council. This resulted in a lengthy period of time off work. Mr Munro received WorkCover benefits.
(b) Psychiatric illness for which Mr Munro received a range of treatment over the years.
(c) An injury to his shoulder while working for Peninsula Health in or around 2015 which resulted in time off work.
(a) the costs associated with the ACDF;
(b) ongoing medical and like expenses.
(a) was a persisting condition;
(b) continued to require treatment.
(a) had no current work capacity as defined in the Act;
(b) that was likely to continue indefinitely.
"For instance, one of the things that I anticipate you'll hear by way of evidence, and contrary to anything you've heard till now, is that the plaintiff, Mr Munro, did return to work after his injury and did return to work after his surgery, and worked with Peninsula Health for a period of almost another two years until he ceased for reasons which, we'll see what the evidence discloses, but seem to be unrelated to his neck injury."[12]
(a) depending on the evidence, this was a vicissitude that may or may not be relevant to the assessment of damages;
(b) as the case progressed there would be issues regarding the evidentiary burden in respect to the relevance of this condition;[13]
(c) Peninsula Health's reliance on this injury reinforced the relevance of the admission in respect to the C6-7 injury.
Isn't there a problem with that proposition, and maybe it would be remedied by a concession, but the defendant is surely not going to be going to this jury and saying, 'we agree that Mr Munro, by reason of his C6/7 injury has been incapacitated for work to date and would, by reason of his C6/7 injury be incapacitated for work until his 67th birthday, but our case is solely and exclusively a case to defeat his economic loss claim, is solely and exclusively based on the C5/6 injury', for example.
Correct me if I'm wrong, but that's not a position that this defendant would be prepared to make, is it?
But the proposition we will be putting to the jury is, whilst they might accept that the C6/7 injury significantly impairs, or indeed, for want of a better word, destroys, or perhaps significantly inhibits is a better term, the plaintiff's earning capacity, there are other factors operating both currently, in terms of say the C5/6 condition, which would in any event stop him from working, and we'd also, in the broad say, and there are these risk factors that sit as to the future.
I understand that, but isn't still the key matter that I'm going to have to grapple with here, is you've used the words 'may accept' in respect to the consequences of the C6/7.
What flows from that is it is clearly going to be in dispute. Even if we were to park the C5/6 issue for the moment - - -
But if I can stop you there, Mr Smith, you don't resile from the position though that the defendant will be, and this will be consistent with what you've said, challenging, exploring of the plaintiff, whichever way you want to put it, and may be bluntly putting propositions to him that he could have continued work, that his incapacity ongoing is not due to this, that he has capacity and so on and so forth. In blunt terms there will be an attack on his claim for loss of earnings in the past and certainly an attack on his loss of earning capacity claim for the future.
Yes, but the attack will be more along these lines, Your Honour, that there are factors outside of your C6/7 injury which are inhibiting your ability to work."[21]
(a) distracting the jury from the real issues;
(b) prejudicing the jury;
(c) attracting unwanted significance to the acceptance of the WorkCover claim and the payments made pursuant to the statutory scheme;
(d) unnecessary time would be wasted calling additional witnesses and making the necessary explanations and directions.
Is the relevant admission capable of being admissible evidence in this case?
(a) the relationship between Mr Munro's C6-7 injury and the ongoing medical treatment received by him;
(b) whether Mr Munro's alleged loss of earnings and loss of earning capacity could be attributed to the C6-7 injury;
(c) whether Mr Munro's alleged loss of earnings and loss of earning capacity was due to a C5-6 disc lesion and/or other comorbidities.
(a) The initial admission of liability for weekly payments and medical expenses was not correctly made. Indeed, there was no dispute the admission was made after Peninsula Health had undertaken their own internal incident causation review.
(b) Subsequent to 29 June 2018, Mr Munro has continued to receive weekly payments of compensation and is still in receipt of such payments at the time of the hearing.
(c) Mr Munro continued to receive weekly payments of compensation beyond 130 weeks.
(d) There had been payment for Mr Munro's:
(i) ACDF;
(ii) ongoing medical and like expenses to the time of the hearing.
Is the mischief associated with the admission such that the evidence should be ruled inadmissible?
(a) be likely to mislead and confuse the jury;
(b) result in an undue waste of time.
(a) cross-examine Mr Munro in respect to the admission;
(b) call evidence to rebut the admission;
(c) contend that the admission should be given limited or no weight.
[1] See the documents Plaintiff's Court Book ("PCB") 312-316.
[2] Section 163(1) of the Act
[3] Section 186(5) and s161 of the Act
[4] Amended Defence, dated 25 August 2023, paragraph [7] at page 2
[6] [2016] VSC 348("Mert")
[7] [2023] VCC 1667 ("Vincent")
[8] (Supra) at paragraph [9], pages 3 and 4
[9] (2023) VSC 191 ("Sepe")
[11] (Ibid), paragraph [11], sub-paragraphs (1) and (2)
[13] In particular, counsel for Mr Munro made reference to Watts v Rake [1960] HCA 58 and Purkess v Crittenden [1965] HCA 34
[14] See Ansett Australia Ltd v Taylor [2006] VSCA 171 and Sednaoui v Amac Corrosion Protection Pty Ltd [2017] VSCA 66 ("Sednaoui")
[15] Transcript ("T") 163, Line ("L") 25 ꟷ T164, L5
[24] Express Newspapers PLC v News (UK) Ltd (1990) W.L.R 1320 (per Brown J); Commonwealth v Verwayen (1990) 170 CLR 394; Macob Civil Engineering Ltd v Morrison Construction Ltd [1999] EWHC Technology 254; [1999] 3 EGLR 7 (per Dyson J)
Munro
Peninsula Health
(1990) 170 CLR 394