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[2003] WADC 127
procedural. The defendant’s application for a stay of District Court action CIV 1868 of 2002 was dismissed ([16]).
2 cited instruments linked from this judgment.
The employer asked the District Court to pause the employee’s personal injury claim while related workers’ compensation proceedings were unresolved. The Court accepted that waiting might avoid duplicated work or costs, but the timing of those proceedings was unknown. The employee had already been without compensation payments for about 10 months, and a stay could leave the claim stalled for a long time. The Court considered that delay would cause greater prejudice to the employee and refused the stay. It did not decide the underlying injury claim or the disputed workers’ compensation issue.
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In Priddle v FCL Construction Pty Ltd [2003] WADC 127, Deane DCJ considered an interlocutory application by an employer to stay a personal injury action in the District Court of Western Australia. The proposed stay was to last pending the outcome of an appeal before a Compensation Magistrate and the determination of two Supreme Court certiorari matters ([1], [8]). The application was dismissed ([16]).
The background arose from an alleged workplace accident on 24 October 2000. FCL Construction Pty Ltd was the plaintiff’s employer at that time ([2]). Priddle sought a determination of his disability level under s 93D of the Workers’ Compensation & Rehabilitation Act 1981. The parties could not agree on the level: Priddle sought a determination that his permanent disability was not less than 30 per cent ([2]). On 28 June 2002, a Review Officer determined that the disability level for the statutory purpose was not less than 16 per cent ([3]).
On 9 July 2002, Priddle elected to retain his right to seek damages under s 93E(3)(b) of the Act and regulations 19M(1) and 19M(3) of the Workers’ Compensation & Rehabilitation Regulations 1982. The judgment records that his weekly compensation and statutory entitlements ceased shortly after the election ([3]). He issued the District Court writ the next day. His counsel explained that the action was commenced promptly because the election led to the cessation of compensation payments and the plaintiff wished to advance the common law proceedings ([4]).
FCL appealed the Review Officer’s determination. Its stated argument was that the Review Officer could not determine a lower disability level than the 30 per cent level nominated by Priddle ([5], [10]). The Compensation Magistrate heard the appeal on 10 February 2003 and reserved the decision ([5]). The defendant also had certiorari applications concerning the Director’s acceptance and referral of the disability question, and the issue of an election form. Rules nisi had issued, but the defendant had not proceeded further with those matters while awaiting developments in the McMullen litigation ([8]).
The District Court pleadings had closed and discovery had been given. FCL said that the matter was ready to be entered for trial ([9]). It sought a stay to avoid defence costs and the possibility of prejudice if it succeeded in the Compensation Magistrate appeal and the District Court action had already proceeded ([10]–[12]). The Court did not determine whether the appeal would succeed, whether a successful appeal would prevent the District Court from awarding damages, or whether the plaintiff could ultimately proceed with his claim. Those were not the questions decided on this application.
The Court began with the general approach to stays. It quoted the statement in Midgley v Murray River North Pty Ltd that the court should be cautious about denying a party the right to prosecute a claim, while retaining a wide discretion to ensure effective disposition of the issues and efficient use of court resources and the parties’ time and money ([14]). It also stated that a stay should be ordered only where “special circumstances” exist, citing Federal Commissioner of Taxation v Myer Emporium Ltd (No 1) ([14]).
The Court accepted that the defendant’s application was not without merit ([15]). There were practical arguments for waiting. The defendant said that proceeding to trial before the Compensation Magistrate’s decision could cause irreparable prejudice, and that the parties and the Court could incur costs on a District Court action that might later be affected by the appeal ([10]–[12]). The judgment records those as the defendant’s submissions, not as findings that the predicted consequences would necessarily occur.
The principal difficulty was uncertainty. The Compensation Magistrate had reserved his decision, but the Court had no information about when it would be delivered. It was also unclear whether the Magistrate intended to await the Full Court’s decision in McMullen v Western Power Corporation. The Court had no information about when that appeal would be heard or decided ([6]–[7], [15]). Deane DCJ therefore treated the proposed length of the stay as uncertain, and potentially lengthy.
The Court then assessed the practical position of the plaintiff. Priddle had received no compensation payments for about 10 months after making the election. The Court noted that the election had the statutory effect of ending those payments, but also recognised that Priddle had attempted to address his circumstances by moving promptly with the common law claim. The Court recorded that he appeared to have made the election without knowing that the employer intended to appeal ([15]).
At [16], the Court expressly weighed the parties’ rights and the balance of convenience, citing GFS Management Services Pty Ltd v Ground and Foundation Supports Pty Ltd & Ors. It accepted that the appeal and any later Full Court decision might affect the District Court action. Nevertheless, it considered that the greater prejudice would result to the plaintiff if his claim were stopped for an indefinite period. The need to avoid wasted resources did not, on the available material, outweigh that potential delay. The application was therefore dismissed ([16]).
The decision is accordingly a balancing decision about the timing and consequences of an interlocutory stay. It is not a final ruling on the statutory disability assessment, the plaintiff’s eligibility to pursue damages, or the merits of the personal injury action.
The judgment presents the governing stay principles as established rather than novel. At [14], Deane DCJ said the principles were “not in doubt”, relying on Midgley. The relevant approach was to be cautious about preventing a party from prosecuting a claim, while considering whether the proceedings could result in an effective disposition and whether court and party resources would be used efficiently. The Court also stated that “special circumstances” were required for a stay, citing Myer Emporium ([14]).
This judgment applied those principles to the specific procedural circumstances before it. It did not reformulate the test or announce a new rule for all proceedings involving workers’ compensation appeals. Its practical emphasis was that a stay application must be assessed against the actual uncertainty about related proceedings and the effects of delay on each party ([15]–[16]).
The statutory issue in the background was whether a Review Officer could determine a disability level below the level nominated by the claimant. The defendant argued that such a determination was not competent, referring to Midgley ([10]). The plaintiff relied on Re Monger; Ex parte Ivey, while the Court noted that amendments had been made after that decision and that the legal position appeared unsettled on the information available ([13]). The Court did not resolve that statutory question. It described the suggestion that the law was unsettled as somewhat speculative on the material then before it ([13]).
The judgment therefore does not establish, on its own, the substantive limits of a Review Officer’s authority under the Act. Nor does it determine the effect of an election to retain a right to seek damages if a related appeal succeeds. Those matters were arguments and contingencies relevant to the stay application, not issues finally decided by Deane DCJ ([10]–[13]).
As to the position after the decision, the supplied judgment gives no account of later judicial treatment of Priddle. It identifies cases considered by Deane DCJ, but does not provide later cases applying, distinguishing, or reconsidering this judgment. Any claim about subsequent treatment would require sources beyond the judgment provided.
At [14], the Court said that a stay “is therefore only to be ordered where ‘special circumstances’ exist.” In plain English, a party asking to pause proceedings must establish circumstances that justify withholding the other party’s ordinary opportunity to pursue the case. The quoted threshold was applied as part of the Court’s overall assessment, not as an isolated formula detached from the facts.
Also at [14], the Court set out the competing considerations: the right to prosecute a claim, effective disposition of issues, and efficient use of court and party resources. In plain English, avoiding duplicated work matters, but it is not the only concern. The impact of delay on the party whose claim would be paused also matters.
At [15], Deane DCJ observed that the plaintiff was in the difficult position of being unable to proceed in the District Court if a stay were granted, while the future timing of the related proceedings was unknown. The judgment records that he had received no payments for approximately 10 months. In plain English, the Court considered the concrete effect of a pause against the uncertain prospect of when the other proceedings might finish.
At [16], the Court said that “the greater prejudice would result to the plaintiff.” That is the central comparative finding. The defendant faced a risk of wasted costs and potential consequences if its appeal succeeded, but the plaintiff faced an uncertain interruption to his action. The Court considered that the latter prejudice was greater on the information before it.
Finally, the Court said it was “not persuaded” that a stay was warranted “at this point in time on the material before this Court” ([16]). The wording is significant: the decision turned on the circumstances and information then available. The Court dismissed the application before it; it did not decide every possible future application or the substantive issues in the compensation appeal.
The judgment is most directly relevant to applications seeking a stay where a parallel or antecedent proceeding may affect a civil claim, but the timing and consequences of that other proceeding are uncertain. Its facts involved a personal injury action, a disputed statutory disability determination, a pending appeal before a Compensation Magistrate, and related certiorari proceedings ([1]–[10]).
A fact pattern with similar features would raise the considerations addressed here: whether a related proceeding could affect the claim; what prejudice a party says it will suffer if the civil case continues; how much delay a stay may cause; whether the period of delay is known; and whether the claimant is already suffering practical consequences while the stay is in place. The judgment does not establish that any one factor automatically determines the outcome. It demonstrates a case-specific balancing exercise ([14]–[16]).
The decision may be particularly pertinent where the stay applicant relies on the possibility of wasted costs or inconsistent procedural outcomes, but cannot provide a clear timetable for the other proceedings. Here, the Court had no reliable indication of when the Compensation Magistrate would deliver the reserved decision, or when the Full Court would deal with the proposed appeal in McMullen ([7], [15]). The uncertainty about duration formed a substantial part of the reasoning.
The judgment should not be read as holding that a stay must be refused whenever the claimant has lost income or compensation payments. The Court noted the cessation of Priddle’s payments and the period without payments as part of the balance in this case ([3], [15]). Nor does it hold that avoiding costs is unimportant: it expressly acknowledged the need and desirability of avoiding waste of resources and funds ([16]). Its conclusion was that those concerns did not justify a stay on the material before it.
The supplied judgment contains no information about how later courts treated Priddle. It does not cite later decisions applying or distinguishing its approach, and it does not discuss any subsequent appellate review of its own decision. Accordingly, the later-treatment position cannot be established from this source alone.
The cases mentioned in the judgment are authorities or proceedings considered in 2003, not evidence of later treatment of Priddle. Midgley is quoted for general principles governing stays ([14]); Myer Emporium is cited for the special-circumstances requirement ([14]); and GFS Management Services is cited when the Court addresses balancing convenience and rights ([16]). Those references explain the reasoning used in Priddle, but do not show how later courts interpreted Priddle itself.
The judgment also discusses McMullen v Western Power Corporation and Western Power Corporation v McMullen in connection with the related disability question and appeal ([6], [13]). Those references concern proceedings pending at the time, not later judicial treatment of this stay decision. A separate search of subsequent case law would be needed to assess whether Priddle was later followed, applied, distinguished, or otherwise considered.
Several substantive questions remained undecided after the stay application. First, the Court did not decide whether the Review Officer had authority to determine a disability level below the level nominated by the plaintiff. It recorded the parties’ competing reliance on Midgley and Re Monger, and noted amendments to the legislation after Re Monger ([10], [13]).
Second, the Court did not decide the merits or outcome of the defendant’s appeal to the Compensation Magistrate. The decision in that appeal had been reserved ([5]). Nor did the Court determine when that decision would be delivered or whether it would await the Full Court proceedings in McMullen ([7], [15]).
Third, the judgment did not decide what effect a successful appeal would have on the District Court claim or whether the District Court would ultimately be able to award damages. Those propositions were advanced as possibilities by the defendant, and the Court expressly put aside the question of whether it would be competent for the plaintiff to proceed if the appeal were ultimately determined in the defendant’s favour ([9]–[10]).
Fourth, the judgment did not determine the certiorari applications. They had been heard, and rules nisi had issued, but the defendant had not proceeded further with them pending the related appeal ([8]).
Finally, the judgment does not say whether later developments changed the practical balance or whether another stay application was made. The decision is confined to whether a stay was justified “at this point in time” on the material before the District Court ([16]).
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JURISDICTION : DISTRICT COURT OF WESTERN AUSTRALIA
CITATION : PRIDDLE -v- FCL CONSTRUCTION PTY LTD [2003] WADC 127
Application for stay of proceedings in District Court claim for personal injury pending determination of appeal to Compensation Magistrate
Workers' Compensation & Rehabilitation Regulations 1982
Farmer v AOC Australia Pty Ltd [2002] WASCA 340
Federal Commissioner of Taxation v Myer Emporium Ltd (No 1) [1986] HCA 13; (1986) 160 CLR 220
GFS Management Services Pty Ltd v Ground and Foundation Supports Pty Ltd & Ors [2001] WASC 280
Midgley v Murray River North Pty Ltd [2003] WADC 31
Re Monger; Ex parte Ivey [1999] WASC 250
Hamersley Iron Pty Ltd v Lovell & Ors (1998) 20 WAR 79
1 DEANE DCJ: In this matter the defendant makes an application for an order that the proceedings in this action, CIV 1868 of 2002, to be stayed pending the ultimate determination of an appeal from a decision of a Review Officer of the Workers' Compensation Conciliation and Review Directorate delivered on 28 June 2002, the appeal of which was heard by a Compensation Magistrate on 10 February 2003 and the determination of writs of certiorari in matter CIV 2171 of 2002 and matter CIV 2172 of 2002 issued out of the Supreme Court of Western Australia.
2 It is necessary to turn briefly to a history of the matter to date in order to understand how this application comes about. The defendant was the plaintiff's employer as at the date of the alleged accident on 24 October 2000. Subsequently the plaintiff applied to the Director of the Conciliation and Review Directorate seeking to have his relevant level of disability assessed for the purposes of s 93D of the Workers' Compensation & Rehabilitation Act 1981 (as amended) ("the Act"). The plaintiff sought a determination that he had suffered a permanent degree of disability of not less than 30 per cent as the parties were unable to agree as to the extent of the plaintiff's level of disability.
3 The review hearing occurred on 11 June 2002 and on 28 June 2002 the Review Officer made a determination that the plaintiff's level of disability for the purposes of s 93D of the Act was not less than 16 per cent. Following this, on 9 July 2002 the plaintiff made an election pursuant to s 93E(3)(b) of the Act and regulations 19M(1) and 19M(3) of the Workers' Compensation & Rehabilitation Regulations 1982 ('the Regulations") to retain his right to seek damages. This election to retain the right to seek damages was registered pursuant to the aforementioned regulations on 9 July 2002 and as a consequence the plaintiff's weekly compensation wages and statutory entitlements ceased shortly after the date of election.
4 On 10 July 2002 the plaintiff issued a writ of summons in the District Court in action CIV 1868 of 2002. Counsel for the plaintiff advised the Court that as the plaintiff was required to make an election to proceed with common law proceedings and as a result of the cessation of the plaintiff's workers' compensation entitlements, litigation proceedings were instituted a day after the election in order to accelerate those proceedings and to avoid the ongoing burden to the plaintiff of not having an opportunity to receive workers' compensation payments.
Priddle
Fcl Construction Pty Ltd [2003] WADC 127
(1986) 160 CLR 220
(1998) 20 WAR 79
The defendant’s application for a stay of District Court action CIV 1868 of 2002 was dismissed ([16]).
5 Following the determination of the Review Officer in June 2002 that the plaintiff's level of disability for the purposes of s 93D of the Act was not less than 16 per cent the defendant filed a notice of appeal asserting that it was not competent for the Review Officer to make a determination of a lesser level of disability than that nominated by the plaintiff, in this case being 30 per cent. When that appeal came on for hearing before a Compensation Magistrate the defendant's application to adjourn the matter failed and the appeal was heard on 10 February 2003. The learned Compensation Magistrate reserved his decision in the appeal.
6 This Court was informed that it has now come to the attention of the defendant's solicitors that in the matter of McMullen v Western Power Corporation an employer has obtained leave of the Full Court of the Supreme Court of Western Australia to bring an appeal from a decision of the Compensation Magistrate's Court arising from an issue which it is said is identical to that determined by the Review Officer and heard before the Compensation Magistrate in this matter. Counsel for the defendant submitted that it is considered that the Compensation Magistrate who heard the appeal in this present case will not hand down a decision until the Full Court makes a determination in the appeal of McMullen v Western Power Corporation since they involve substantially the same issues.
7 Whilst there may be considerable merit in this view and whilst it also might be considered a commonsense approach, it is by no means clear that this is necessarily the case. As I understand the submissions of counsel in this case the learned Compensation Magistrate did not indicate in clear terms on what basis he was reserving his decision or whether he intended to delay delivering his decision until after the determination of the appeal in McMullen v Western Power Corporation. The Court in this application was not given any information or indication as to when it is likely that the Full Court will hear the appeal or deliver its decision in relation to it.
8 The defendant, in addition to filing a notice of appeal against the Review Officer's determination, also applied for writs of certiorari in application CIV 2171 of 2002 and CIV 2172 of 2002 to quash the Director's decision to accept the plaintiff's application relevant to a referral of question of degree of disability and the notice of referral of question of degree of disability as well as the referral of the question of the plaintiff's degree of disability to a Review Officer. Application CIV 2172 of 2002 relates to a writ of certiorari to quash the Director's decision to issue an "Election to obtain right to seek damages" form to the plaintiff. Both those applications were heard before a Judge of the Supreme Court on 4 September 2002 and rules nisi were issued in respect of both applications. In order to avoid unnecessary costs being incurred, however, counsel for the defendant advised that it has not proceeded further with respect to those writs of certiorari pending the determination of the appeal in McMullen v Western Power Corporation.
9 Relevant to action CIV 1868 of 2002 in the District Court, counsel for the defendant informed the Court that pleadings have closed and discovery has been given. Putting aside the issue of whether it would be competent for the plaintiff to proceed with the action if the appeal to the Compensation Magistrate were ultimately determined in the defendant's favour, it is said that the action is now at a point where it is ready to be entered for trial.
10 Counsel for the defendant argued that if in fact the action in the District Court is permitted to be entered for trial and does proceed to trial before the learned Compensation Magistrate hands down his decision, then the defendant would suffer irreparable prejudice if that appeal were to be determined in its favour. It is submitted that the prejudice suffered could not be cured by an order for costs or other relief. In addition it is asserted that it is arguable on the part of the defendant that it is not competent for the Director or a Review Officer acting as his delegate, to find that the plaintiff has not satisfied the requirements for the disability nominated, in this case being 30 per cent, and then to make a determination or finding that the plaintiff has suffered a lesser specified degree of disability; Midgley v Murray River North Pty Ltd [2003] WADC 31. Further it is argued that if the defendant is successful in its appeal from the decision of the Review Officer it may be that the District Court would never be in a position to award damages to the plaintiff; Farmer v AOC Australia Pty Ltd [2002] WASCA 340.
11 In the end counsel for the defendant submitted that it is both practical and desirable that a stay of proceedings be granted pending the determination of its appeal in order that both parties avoid unnecessarily incurring costs and further that the defendant not be placed in a position where any prejudice suffered by it could not be cured. On the other hand counsel for the defendant rejected the proposition that if a stay is granted the prejudice to the plaintiff would be considerable, pointing out that currently the plaintiff, as a result of his election, is not in receipt of weekly payments of compensation and that this in fact is the intended effect of the legislation when an election is made.
12 Counsel for the defendant stressed that if it is determined ultimately that the decision of the Review Officer in this matter was wrong, then effectively the plaintiff will be entitled to the remainder of his workers' compensation. The concern of the defendant is that if the matter proceeds to trial in this Court then the defendant will incur significant costs in continuing to defend the common law proceedings when it is possible at the end of the day it may be that the plaintiff is found not to have such an entitlement. In that way it is said that if a stay is not granted at this point in time, considerable time and resources may well be wasted on the part of both parties and this Court.
13 Counsel for the plaintiff argued that Re Monger; Ex parte Ivey [1999] WASC 250 (10 December 1999) is authority for the proposition that a Review Officer has jurisdiction to determine either relevant level of disability. As against that, however, it would appear that there were amendments to the legislation impacting upon that issue, some short time after the decision was handed down. It is correct as counsel for the plaintiff submitted, that the essential issue of the appeal in this matter before the Compensation Magistrate in February this year was previously addressed in Western Power Corporation v McMullen - CM 39/02, but of course it is now clear that the decision is the subject of a proposed appeal before the Full Court of the Supreme Court. In that sense it may be said that the state of the law in this regard is not entirely settled, although on the information currently available this is a somewhat speculative observation.
14 As was observed in Midgley v Murray River North Pty Ltd (supra) relevant to an application for a stay of proceedings, "the principles which govern applications of the kind here being considered are not in doubt. The Court should be cautious to deny a party's right to prosecute a claim but has a wide discretion to ensure that proceedings before it result in an effective disposition of the issues which have been raised and constitute an efficient use of the Court's resources and of the time and money of the parties". A stay of proceedings is therefore only to be ordered where "special circumstances" exist; Federal Commissioner of Taxation v Myer Emporium Ltd (No 1) [1986] HCA 13; (1986) 160 CLR 220 at 222-223.
15 Whilst the application made on behalf of the defendant is not without merit, the real difficulty as I see it is that it is made against a background of considerable uncertainty. There is no indication at all as to when the Compensation Magistrate will deliver his decision with respect to the defendant's appeal and so that determination may be made in the very near future or it may be that it will be delayed until the appeal in McMullen v Western Power Corporation is heard and determined in the Full Court. This Court has been informed that leave to appeal in that matter has been granted but there is no information at all before it as to when that is likely to occur. It is conceivable that it may be some time before that matter is concluded. In the interim the plaintiff finds himself in the very difficult position of not being able to proceed further with his action in this Court. I accept that the effect of the plaintiff's election is that his payments of compensation ceased, but the fact remains that he is currently not in receipt of any payments and has not been so for approximately 10 months. Clearly the plaintiff has attempted to address his situation by proceeding expeditiously with his common law claim in this jurisdiction. It would seem that the plaintiff made an election being unaware that the defendant intended to appeal the decision of the Review Officer.
16 Notwithstanding that there is an arguable case for an appeal it is also necessary that in an application of this nature the Court weigh up the balance of convenience and rights of the parties; GFS Management Services Pty Ltd v Ground and Foundation Supports Pty Ltd & Ors [2001] WASC 280. Notwithstanding the possible effect that the defendant's appeal to the Compensation Magistrate and the result in the appeal which is to be heard in due course by the Full Court may have on the common law proceedings in this Court if they are heard and determined first, in my view the greater prejudice would result to the plaintiff. By virtue of a stay of these proceedings being granted the plaintiff may well be in a situation where he is prohibited for an indefinite period, which may be lengthy, from pursuing his claim in this Court. For that reason, although I am mindful of the need and desirability of avoiding the waste of resources and funds, I am not persuaded that an order for a stay of proceedings of the action CIV 1868 of 2002 is warranted at this point in time on the material before this Court. The defendant's application is therefore dismissed.