[2025] VSC 614
General information, not legal advice.
Supreme Court of Victoria
2025-10-01
Goulden AsJ
Original judgment source is linked above.
The role of the first and second defendants in the proceeding
The statutory function of a medical panel convened under the Wrongs Act
(a) meet with the medical panel and answer its questions; and
(b) submit to a medical examination by the medical panel.[8]
... Medical Panel opinions are responsive to the medical question referred and that the process affords the parties natural justice and procedural fairness.[11]
Other directions, which the plaintiff submits are relevant to defining the scope of the Medical Panel's statutory function are:
A Medical Panel will proceed to form its opinion on the medical question for the purposes of giving its Determination or Certificate having regard to all of the information held in the Panel's possession as at the date of the last examination of the claimant.[12]
(b) directions 56 and 57, which stipulate the format and manner in which documents are provided to the medical panel as well as the process by which the medical panel, where it provides reasons, certifies that it had regard to the documents provided in forming its opinion and identifies the documents referred.
For the purposes of this Part, impairments from unrelated injuries or causes are to be disregarded in making an assessment.
In other words, in assessing whether an injury satisfies the relevant threshold, the medical panel must assess any pre-existing impairments and disregard them. Pursuant to s 28LB, the term 'impairment' is said to mean 'permanent impairment'.[13] As was observed by O'Meara J in O'Connell v Munoz Pty Ltd:[14]
...whilst that definition has an element of circularity to it, there is no indication that the term 'impairment' should bear other than its natural and ordinary meaning.
The natural and ordinary meaning of 'impairment' is that a particular body function or part is damaged or weakened. That meaning is not far removed from the definition appearing in the Glossary to the AMA Guides, which refers to 'loss, loss of use, or derangement'.[15]
The assessment of a pre-existing impairment must be evidence based,[16] but does not need to be conducted in accordance with the AMA Guides.[17] Accordingly, the relevant panel must be satisfied on the basis of the evidence before it that a particular body part or function is permanently damaged or weakened before it is required to disregard those impairments in the discharge of its obligation under s 28LL(3). In disregarding the impairment, the panel must 'do the best it can to evaluate the extent to which impairment from the unrelated injury or cause is playing a part in the...current impairment.'[18]
[t]he knee joint spaces are preserved, there is no significant spurring or evidence of recent trauma. An effusion is not evident, the bone texture appears satisfactory.
Conclusion: No significant abnormality has been demonstrated.
Ms Hudgson said that prior to the injury, she had not had any significant pain, dysfunction or other medical condition involving either knee, leg or ankle and said she had not suffered any injury or any other joint disorder or medical condition of the knees at any time in the past. She said that prior to the injury on 4 August 2023, she was fully mobile and very physically active and was competing in long distance running and cycling events and was active with outdoor recreational activities and social outings.
There was no other relevant past history.[28]
Ground one - failure to take into account mandatory relevant considerations
In the case of a medical panel being asked to assess whether a psychological injury has rendered a worker incapable of engaging in any work, the treatment that the worker is receiving is obviously a relevant consideration. That information may be contained in a report of the worker's treating psychiatrist and may also be communicated to the medical panel verbally by the worker. If the medical panel in its reasons refers to the worker's treatment solely by reference to the psychiatrist's report, it cannot be said that it failed to take into account the relevant consideration. The medical panel's failure to refer to the worker's verbal communication constitutes a failure to refer to one source of evidence informing that relevant consideration but does not constitute a failure to take into account the relevant consideration.[36]
The plaintiff here submits, in effect, that the information revealed by the 2010 Records is the mandatory relevant consideration. As such, it asserts, the failure of the Medical Panel to refer to the 2010 Records in the Reasons supports the inference that it failed to consider them. However, that submission overlooks the distinction between the mandatory relevant consideration and the factual matters that support it, in the very way Chang counsels against. Expressed at the appropriate level of generality, in discharging the Medical Panel's statutory function in this case, the existence and extent of a prior impairment to the third defendant's left knee would be a mandatory relevant consideration, especially having regard to the express requirements of s 28LL(3) of the Wrongs Act. Even accepting there is a failure by the Medical Panel to expressly refer to the 2010 Records, that is only a failure to refer to one source of evidence relevant to that mandatory consideration, and not a failure to actively engage with, or genuinely consider, it.
The proposition that a medical panel is bound to take into account all matters in the referral material and, if it fails to do so, it commits jurisdictional error, is untenable. It could not be said, in the present case, that if the Medical Panel had not found the reference to the plaintiff's complaint to his general practitioner on 22 September 2009, which was buried deep within the hundreds of pages of the referral material (and to which the Medical Panel was not otherwise referred), its decision would have been tainted with jurisdictional error.[38]
I accept the third defendant's submission that the authorities which describe the necessity to consider the documents briefed with the referral go no further than requiring this Medical Panel to have regard to those documents to the extent necessary for it to correctly identify the fundamental issues that arose for its consideration, such as whether the third defendant had a prior impairment to her left knee. There is nothing in the Reasons to suggest that the Medical Panel did not consider the referral materials to the extent necessary to discharge its function. In fact, the Reasons confirm that the Medical Panel formed its opinion 'with regard to...the documents and information referred to in the Enclosure/s'.[39] There are numerous other references in the Reasons to the Panel having considered the referral material, and to specific documents within those materials.[40] These statements are to be taken at face value[41] (and, moreover, there is no reason in the circumstances of this case to do otherwise).
The authorities to which we have referred establish that a factual error may constitute jurisdictional error if it amounts to a constructive failure to perform the statutory function conferred on the decision-maker. As the Full Court of the Federal Court emphasised in MZYTS, this is not a failure to take into account a relevant consideration in the Peko-Wallsend sense. Factual errors that may constitute jurisdictional error include a failure by the decision-maker to have regard to relevant factual material and the taking into account of such material in a manner that misconstrues its nature or effect (the latter may be described as a constructive failure to have regard to the material). Whether such a factual error amounts to a constructive failure to perform the statutory function conferred on the decision-maker will depend on the importance of the material to the exercise of the function and the seriousness of the error. Jurisdictional error will be committed if the subject matter, scope and purpose of the statutory function indicate that taking into account the relevant material - properly construed - is an essential feature of a valid exercise of the function.[43]
The Panel noted and accepted [the third defendant's] history that she had not had any previous medical condition, injury or impairment of the left knee prior to the incident and had not suffered further injury to the left knee since then.[53]
In my view, far from ignoring relevant material, the Medical Panel gave specific consideration to the 2010 Records in determining whether to accept the third defendant's history and, having accepted the history, in finding she had no prior impairment. There was, accordingly, no constructive failure to discharge its statutory function.
Ground three - obligation to consider and properly apply s28LL(3) of the Wrongs Act
The Panel therefore considers that there is no evidence to establish impairment from an unrelated injury or cause which is playing a part in [the third defendant's] current right knee and right ankle impairment and which ought to be disregarded in accordance with Section 28LL(3) of the Act.[55]
[1] Affidavit of Nicole Joanne Norris sworn on 14 October 2024, 21 ('NJN Affidavit'). The certificate was accompanied by a report (NJN Affidavit 25).
[2] Wrongs Act 1958 (Vic) s 28LF ('Wrongs Act') defines what is a 'significant injury'.
[7] Wrongs Act s 28LZ(1)-(2).
[9] Wrongs Act s 28LZ(5); Wrongs Act s 28LZ(4) provides that the Convenor must not give directions inconsistent with any guidelines issued by the Minister under [part VBA of the Wrongs Act]. At the time the Medical Panel was convened, there were no relevant guidelines issued by the Minister.
[10] Convenor of Medical Panels, Convenor's Directions as to the Procedures of Medical Panels (Under Part VBA of the Wrongs Act 1958) 2015 ('Convenor's Directions'). At the trial, the plaintiff handed up a copy of the Convenor's Directions. No objection was made to the document being provided to the Court.
[13] Wrongs Act s 28LB (definition of 'impairment').
[15] O'Connell v Munoz Pty Ltd [2022] VSC 129, [41(d)], [42].
[16] Chua v Lowthian [2011] VSC 468, [135] ('Chua').
[17] See, eg Chua [132]-[134]; City of Melbourne v Neppessen [2019] VSC 84, [123].
[18] Chua [130], quoting Alcoa Holdings Ltd v Lowthian [2011] VSC 245, [73].
[20] Colquhoun v Capitol Radiology Pty Ltd [2013] VSCA 58; (2013) 39 VR 296, [6].
[21] Edwards v State of Victoria [2021] VSC 423, [57]; La Rosa v Patrick [2022] VSC 404, [61] ('La Rosa').
[23] The third defendant highlights the obligation which appeared in s 65(6B) of the Accident Compensation Act 1985 (Vic) (before it was repealed by s 627(3) of the Workplace Injury Rehabilitation and Compensation Bill 2013 (Vic) and now appears in like terms in s 304 of the WIRC Act) upon the person referring a medical question to a medical panel to provide copies of all documents relating to the medical question in their possession. The third defendant submits there is no similarly prescriptive obligation in the Wrongs Act. The plaintiff highlighted in oral submissions that, unlike under the Wrongs Act, a medical question referred under the workers' compensation regime is not confined to a question about whether the whole of person impairment satisfies the significant injury threshold level, it can be broader, extending to work capacity and other matters.
[29] Minister for Aboriginal Affairs v Peko-Wallsend Limited (1986) 162 CLR 24.
[30] In the context of the WIRC Act, see Workcover Authority v Putrus [2023] VSCA 28, [37], [41], cited in Ramith v Homes Victoria [2025] VSC 2, [55], a case brought under the Wrongs Act (albeit for denial of procedural fairness).
[31] [2022] VSC 404, [58].
[33] [2019] VSCA 151; (2019) 62 VR 174 ('Chang').
[37] [2016] VSC 383, [105].
[38] Omerasevic v Kotzman [2016] VSC 383, [105].
[41] Maribyrnong City Council v Malios [2014] VSC 452, [48]; Vellios Electrical Contractors Pty Ltd v Barton [2014] VSC 664, [83]. Cf Edwards v State of Victoria [2021] VSC 423 [55]-[56] ('Edwards'). In Edwards, Richards J departs from the ordinary position of taking, at face value, the statement of a medical panel that it had regard to all the documents referred to it for a combination of reasons, including, the issues raised by a party's submissions to the Medical Panel and a factual error made by the Medical Panel. There are no such reasons in the present case to depart from the ordinary position.
[42] Plaintiff's Submissions dated 4 March 2025, [14].
[46] Plaintiff's Submissions dated 4 March 2025, [14].
[47] Plaintiff's Reply Submissions dated 2 May 2025, [6], [9].
[48] Transcript of Proceedings, Coles Supermarkets Australia Pty Ltd v Warfe (Supreme Court of Victoria,
S ECI 2024 05419, Goulden AsJ, 1 August 2025) T27.7 ('Transcript').
[52] It is to be borne in mind that a medical panel's opinions are informed by expertise that this Court does not possess, meaning it is difficult to conclude that an opinion was not open to a medical panel if the opinion was materially informed by that panel's expertise: La Rosa [55] citing Sidiqi v Kotsios [2021] VSCA 187, [34]-[37].
Coles Supermarkets Australia Pty Ltd
Warfe [2025] VSC 614