THE BACKGROUND FACTS
6 In support of his claim the applicant has sworn 7 affidavits produced 2 others and has also given evidence before me.
7 The applicant was born on 22 May 1941 at Murwillumbah the son of share farmers. He later moved to Ipswich in Queensland where he attended school until the age of 15 and then left to commence work. In 1958 at the age of 17 he enlisted in the Navy for an initial period of 9 years service being attracted by the prospects of seeing the world and learning a trade as an engineering mechanic.
8 He served time on the Queenborough and then the Anzac and was posted to the HMAS Melbourne on 28 December 1962 on which he spent the next two and a half years.
9 He passed his examinations for promotion to leading engineering mechanic in December 1961 and performed duties in the boiler, engine and gear rooms as well as in the freshwater plant and the laundry.
10 As at 10 February 1964 he was in charge of the Double Bottom which meant that he was in charge of six other ratings looking after the ship's fuel for the boilers, transfer of fuel to other ships and receiving fuel for other ships at sea and at port.
11 On the night of the collision he had been on top of the bridge intending to watch planes do "touch and go" manoeuvres on the flight deck. There was insufficient wind for the planes to make these manoeuvres and so he returned to his mess and was reading on his bunk when he felt the ship shudder. He ran out on to the port side deck and saw the front part of the Voyager on its side floating past. He could see several men on it yelling out "help us". However there was nothing he could do because the engines of the Melbourne were still going which meant that the propellers would be turning and consequently he could not jump into the water to help the sailors.
12 The men were then called to action stations and the applicant was sent to check for any water leaks or damage to fuel tanks and to check all outside machinery spaces. Fortunately there were no such leaks.
13 While survivors from the Voyager were being brought on board the Melbourne the applicant went to the flight hangar to offer assistance which was not required. He then went to the starboard side from where he could see the rear section of the Voyager still afloat. He was dumbfounded that such a collision could occur. He had a friend Gary Perrett who also came from Ipswich and who had been on the Voyager and he was making inquiries about him. Those inquiries yielded nothing and he suspected that Perrett had perished which was later confirmed. This upset him. He found he could not believe what had happened. Eventually he saw the rear section of the Voyager sink while he watched and this was an extremely distressing period.
14 After the Melbourne had returned to Sydney for repairs he took survivor's leave and was met by the parents of Gary Perrett and had to explain to them as best he could what had happened. He found this very upsetting and was even more distressed afterwards.
15 Prior to the collision he had been a light smoker and a social drinker. After the collision he increased his cigarette intake to help him relax. He also suffered from difficulty in getting to sleep finding that he was preoccupied with thoughts of the collision and would lie awake in bed just thinking about it. He learnt that the best way to get a decent night sleep was to drink alcohol before going to bed. This became a daily habit when he was on shore and he found his consumption of alcohol increasing. Although he could sleep better after having consumed alcohol he still tended to wake up on many nights with dreams reliving aspects of the collision. He would be restless and shaking in bed, sweating and very uncomfortable.
16 Within a short time after the collision he found himself commencing to stutter and stammer which made him feel embarrassed when meeting or talking to people. He had been recommended as an instructor but he found the effects of stammering impeding his ability to give orders and it undermined his confidence when instructing. He also found his handwriting deteriorating in quality and he became even more anxious.
17 His evidence was that he became apprehensive about the possibility of a further collision at sea especially when involved in operations around other ships. He lost confidence in his superiors and became disillusioned with his naval career. When his engagement expired in 1969 he did not renew it and left the Navy. He was then becoming increasingly unhappy and hoped that things would be better away from the constant exposure to reminders of the collision that life in the Navy presented.
18 In paragraph 11 of his affidavit of 4 March 2002 the plaintiff swore:-
"I married in 1969. We had three children who are now all adults. My wife has stuck by me over the years although particularly during the 1970s there were many times when she threatened to leave. I found I was becoming dependent upon alcohol to shut out the dreams and memories. I had become intolerant. I seemed to have a short fuse and have become aggressive and moody without warning. I continue to have restless and unsettled nights in bed, sweating, tossing and turning, unable to fall asleep, with dreams of and flashbacks to the collision. A number of times over the years I have woken up screaming and have been relieved to find that I was not in fact involved in the collision again. I kept having a vision of the front section of the Voyager and blokes on it screaming for help. In my dream I felt helpless, I couldn't jump in to help because the Melbourne's propellers were still going. I found that the alcohol would help me to get to sleep, but I still woke up during the night tense, with muscle cramps, dreams and dry retching. Frequently my wife couldn't tolerate sleeping with me."
19 His affidavit continues that since leaving the Navy he has not been on a ship again. He feels uncomfortable when travelling on an aeroplane because he does not like being shut in and feels uncomfortable and sweaty when he is in an enclosed space. He keeps thinking "how am I going to get out of here if anything happens".
20 In paragraph 14 of his affidavit of 4 March 2002 he says:-
"After leaving the Navy, I attempted to avoid as far as possible all reminders of my experience in the collision. I sought as far as possible to work alone as a courier driver, having as little to do with people as possible. I tried to keep away from other people and keep to myself and to bury myself in my work. Since my discharge I have tended to work 7-day weeks, so that I do not have time to sit around thinking and have memories flooding in. I have also used alcohol very heavily to try and shut out memories, until about 1980. By then my wife was threatening to leave me, and I finally recognised that the alcohol was ruining my life and my family life. Accordingly, I buried myself in work even more and swore to give alcohol. Until then I often found myself going on a drinking spree after something occurred to bring back the memories. I would then go home, abuse and argue with my wife and make the scene at home extremely unpleasant."
21 His affidavit continues:-
"15 It was more difficult to deal with the memories without alcohol, so I tried to keep working as hard as possible to exhaust myself in the hope that then I would be able to shut out the memories and be able to sleep at night. Whilst I can recognise now what was happening, I did not see it at the time. I just knew that I felt deeply uncomfortable and distressed when the memories came back to me, and I tried any means possible to shut them out. I didn't seek any medical treatment or counselling, as I didn't know what my problem was. It was not until last year when I started having difficulties with breathing that I finally consulted a doctor. In response to questions I mentioned the experience with the collision.
16 As a result of examinations organised following my attending of the doctor, I learnt that I was suffering ischaemic heart disease and required a by-pass operation, which was performed in May 2001. I also learnt that I have pleural plaques on my lungs. Further as a result of being referred to a psychiatrist, I was informed that I am suffering from a condition know as Post Traumatic Stress Disorder as a result of a combination of my experiences in the Melbourne-Voyager collision exacerbated by my time on the Perth off Vietnam. Until this diagnosis was made I had no idea that I was suffering from a psychiatric disorder as a result of my experience in the collision."
22 In paragraph 13 of his affidavit the plaintiff says:-
"Although my attitude to the Navy changed after the collision, I had no inkling that I had sustained a psychiatric disorder. We were not encouraged to talk about the collision, so I tended to bottle it up and I have not talked to anyone about the events of that night until recent times when I was referred for counselling."
23 Annexed to his affidavit is a certificate of his service in the Navy which shows that he joined on 2 October 1958 for 9 years and then rejoined for a further 2 years and 69 days on 24 October 1967. In November 1968 he was awarded the Vietnam Medal and in March of 1969 the Vietnamese Campaign Medal. He was discharged on 31 December 1969.
24 On 7 September 2000 the applicant was seen by Dr S. K. Law, a consultant psychiatrist who reported to the plaintiff's general practitioner, Dr Younan, on 27 September 2000. In that report the doctor concludes:-
"Mr Pearce has probably suffered from a mild degree of Post Traumatic Stress Disorder (PTSD) as a result of his having gone through the horrendous experience of the collision between HMAS Melbourne and HMAS Voyager.
He has suffered PTSD symptoms psychologically, but there has been no firm evidence that he has been very significantly affected in his domestic situation, work situation, or socio-recreational aspects of daily functioning.
No medication is required at this stage. He may need some session of supportive counselling in the future, however."
25 In April 2001 the plaintiff was seen by Dr K Reinhardt, a consultant psychiatrist, who reported to Dr Younan on 5 April 2001. In that report this doctor says:-
"While in the Navy he was exposed to a number of traumatic experiences which are prominent in his re-experiencing symptoms.
At age 19 he received an electric shock while trying to fix a washing machine while on the Queenborough. He received a burn to his leg and believes he would have died if he had not been wearing rubber thongs. He reported the incident, but it was dismissed.
At age 20, he was on the Melbourne when it hit the Voyager. This incident was associated with witnessing the death of others with horror and helplessness.
In 1969, he served on the Perth going to Vietnam. They were under fire on two occasions and Mr Pearce feared for his life. He left the Navy in 1969 with the rank of petty officer.
In summary, Mr Pearce suffers from chronic Post Traumatic Stress Disorder. At present I have prescribed temazepan for his insomnia, but believe he would benefit from more intensive treatment when his physical problems have been addressed."
26 On 7 October 2001 the applicant had a lengthy consultation with Helen Stain a psychologist who reported to his solicitors on 28 January 2002. In that report Ms Stain concludes that the plaintiff has Post Traumatic Stress Disorder with a highly significant impairment in social and occupational functioning.