THE LEGISLATIVE FRAMEWORK
9 Section 13(1) of the VE Act renders the Commonwealth liable to pay a pension to the dependents of a veteran whose death was war-caused. Section 8(1) of the VE Act sets out the circumstances in which a veteran's death is taken to be war-caused. They include if:
"(b) the death of the veteran arose out of, or was attributable to, any eligible war service rendered by the veteran;
…
(d) in the opinion of the Commission, the death of the veteran was due to an accident that would not have occurred, or to a disease that would not have been contracted, but for his or her having rendered eligible war service or but for changes in the veteran's environment consequent upon his or her having rendered eligible war service; …"
(Emphasis added.)
10 The standard of proof to be applied in determining whether a veteran's death was war-caused is prescribed by ss 120(1) and (3) of the VE Act. Section 120 of the VE Act relevantly provides:
"(1) Where a claim under Part II for a pension in respect of the incapacity from injury or disease of a veteran, or of the death of a veteran, relates to the operational service rendered by the veteran, the Commission shall determine … that the death of the veteran was war‑caused … unless it is satisfied, beyond reasonable doubt, that there is no sufficient ground for making that determination.
…
(3) In applying subsection (1) or (2) … in respect of the death of a person, related to service rendered by the person, the Commission shall be satisfied, beyond reasonable doubt, that there is no sufficient ground for determining:
…
(c) that the death was war-caused or defence-caused;
… if the Commission, after consideration of the whole of the material before it, is of the opinion that the material before it does not raise a reasonable hypothesis connecting the …death with the circumstances of the particular service rendered by the person."
11 The threshold question posed by s 120(3) is whether the whole of the material before the decision-maker raises a reasonable hypothesis connecting the veteran's death with the circumstances of his service. If the material does raise such a reasonable hypothesis, the decision-maker proceeds to the question posed by s 120(1) - namely, is the decision-maker satisfied beyond reasonable doubt that the facts required to connect the veteran's death with his service were disproved or were displaced by other facts: Byrnes v Repatriation Commission (1993) 177 CLR 564 at 571.
12 As the language of s 120(3) makes clear, and as the High Court emphasised in Repatriation Commission v Owens (1996) 70 ALJR 904 at 904, the question whether a reasonable hypothesis is raised is to be determined on a consideration of the whole of the material before the decision-maker: see also Repatriation Commission v Bey (1997) 79 FCR 364 at 367. A reasonable hypothesis within s 120(3) of the VE Act is a hypothesis that is pointed to by the material before the decision-maker, and not merely left open (or not excluded) by that material. A hypothesis that is not pointed to, but is a matter of assertion or is merely left open by the material, is not a reasonable hypothesis: see East v Repatriation Commission (1987) 16 FCR 517 at 532-533. See also Repatriation Commission v Bey (1997) 79 FCR 364 at 366-367, 372-373; Bull v Repatriation Commission (2001) 188 ALR 756 at [18] and [41].
13 Section 120(3) "is affected by s 120A" and, according to s 120A(1), applies to a claim under Part II of the VE Act made on or after 1 June 1994 that relates to operational service rendered by a veteran: ss 120A(1)(a), 120A(3) and 120A(4). Mrs Codd's claim was such a claim.
14 Section 120A was introduced by the Veterans' Affairs (1994-95 Budget Measures) Legislation Amendment Act 1994 (Cth). The intent behind the introduction of s 120A (and s 196B) of the VE Act was explained in the Explanatory Memorandum to the Bill, an extract of which was set out by the Full Court in Woodward v Repatriation Commission (2003) 131 FCR 473 at 489, [90].
15 Sections 120A(3) and (4) of the VE Act provide:
"(3) For the purposes of subsection 120(3), a hypothesis connecting … the death of a person with the circumstances of any particular service rendered by the person is reasonable only if there is in force:
(a) a Statement of Principles determined under subsection 196B(2) or (11); or
(b) a determination of the Commission under subsection 180A(2);
that upholds the hypothesis."
(4) Subsection (3) does not apply in relation to a claim in respect of … the incapacity from injury or disease, or the death, of a person if the Authority has neither determined a Statement of Principles under subsection 196B(2), nor declared that it does not propose to make such a Statement of Principles, in respect of:
(a) the kind of injury suffered by the person; or
(b) the kind of disease contracted by the person; or
(c) the kind of death met by the person;
as the case may be."
16 Section 120A(3) of the VE Act relevantly provides that a hypothesis connecting the death of a person with the circumstances of any particular service rendered by the person is reasonable only if there is in force a SoP or a determination by the Commission that upholds the hypothesis. The second basis (a determination by the Commission) is not relevant to the circumstances of this case. That is, the hypothesis raised (that is, pointed to) by the material will only be reasonable if the hypothesis is consistent with, or fits the template of, a SoP: see Repatriation Commission v Deledio (1998) 83 FCR 82 at 96, endorsing the observations of Heerey J at first instance: Deledio v Repatriation Commission (1997) 47 ALD 261 at 275.
17 It is the function of the Repatriation Medical Authority ("the RMA") to determine SoPs for the purposes of the VE Act: s 196B(1) of the VE Act. Section 196B(2) of the VE Act provides that if the RMA is of the view that there is "sound medical-scientific evidence" that indicates a particular kind of injury, disease or death can be related, inter alia, to operational service then it is for the RMA to determine a SoP in respect of that kind of injury, disease or death setting out the factors that must exist as a minimum and which of those factors must be related to service by the veteran before it can be said that a reasonable hypothesis has been raised connecting an injury, disease or death of that kind with the circumstances of that service. The phrase "sound medical-scientific evidence" is defined in s 5AB of the VE Act.
18 Section 120A(4) of the VE Act qualifies s 120A(3). It relevantly provides that s 120A(3) does not apply in respect of an injury, disease or death if the RMA has not determined a SoP under s 196B(2) nor declared that it does not propose to make such a SoP in respect of the kind of injury suffered by the veteran, the kind of disease contracted by the veteran or the kind of death met by the person.
19 The method by which ss 120(1), 120(3) and 120A(3) are applied was explained in Repatriation Commission v Deledio (1998) 83 FCR 82 at 97-98. The Full Court set out the course which the Tribunal is to take in a case such as the present in the following terms:
"1. The Tribunal must consider all the material which is before it and determine whether that material points to a hypothesis connecting the injury, disease or death with the circumstances of the particular service rendered by the person. No question of fact finding arises at this stage. If no such hypothesis arises, the application must fail.
2. If the material does raise such a hypothesis, the Tribunal must then ascertain whether there is in force an SoP determined by the Authority under s 196B(2) or (11). If no such SoP is in force, the hypothesis will be taken not to be reasonable and, in consequence, the application must fail.
3. If an SoP is in force, the Tribunal must then form the opinion whether the hypothesis raised is a reasonable one. It will do so if the hypothesis fits, that is to say, is consistent with the 'template' to be found in the SoP. The hypothesis raised before it must thus contain one or more of the factors which the Authority has determined to be the minimum which must exist, and be related to the person's service (as required by ss 196B(2)(d) and (e)). If the hypothesis does contain these factors, it could neither be said to be contrary to proved or known scientific facts, nor otherwise fanciful. If the hypothesis fails to fit within the template, it will be deemed not to be 'reasonable' and the claim will fail.
4. The Tribunal must then proceed to consider under s 120(1) whether it is satisfied beyond reasonable doubt that the death was not war-caused, or in the case of a claim for incapacity, that the incapacity did not arise from a war-caused injury. If not so satisfied, the claim must succeed. If the Tribunal is so satisfied, the claim must fail. It is only at this stage of the process that the Tribunal will be required to find facts from the material before it. In so doing, no question of onus of proof or the application of any presumption will be involved."
20 However, the Deledio methodology is subject to at least three important qualifications. First, the methodology is not to be applied mechanistically or to operate in substitution for the requirements of the VE Act: Hill v Repatriation Commission (2005) 218 ALR 251 at [35] and [85]; Hardman v Repatriation Commission [2005] FCAFC 83 at [32] and Dunlop v Repatriation Commission [2003] FCAFC 201 at [33].
21 Secondly, as was pointed out by the Full Court in Woodward v Repatriation Commission (2003) 131 FCR 473 at 483 at [55], the observation at step 2 of the Deledio analysis that if no SoP is in force the application must fail, must be qualified by reference to s 120A(4) of the VE Act which provides that s 120A(3) does not apply in certain circumstances.
22 Thirdly, as Selway J said in Repatriation Commission v Hancock (2003) 37 AAR 383 at [11], there are at least two additional steps before step one in the Deledio analysis. The steps were described by Selway J in Hancock as being:
"First, the AAT was required to determine, on balance of probabilities, whether the pre-conditions other than causation, had been made out…
Next, the AAT was required to determine on balance of probabilities what "kind of death" [the veteran] had suffered. This involved the identification, on balance of probabilities, of any and all [SoP] and/or determinations under s 180A(2) of the Act and any other "kinds of death" which were applicable to that death.
If one or more SoP were applicable, then the methodology in Deledio is applicable in relation to those "kinds of death"…"
23 In the present matter then, it was necessary:
(1) to establish the pre-conditions for the claim other than causation on the balance of probabilities. (For example, in the present case, it was necessary for Mrs Codd to show that her husband was a veteran; that Mr Codd had died and that Mrs Codd was a widow. None of these pre-conditions was in dispute here); and
(2) in order to ascertain whether a SoP applies, to determine on the balance of probabilities the "kind of death" suffered by the veteran: s 120A(2) and (4) of the VE Act.
24 It is the second of these additional steps which is the subject of this appeal. It will be necessary to return to consider the phrase "kind of death met by the [veteran]" in s 120A(4) of the VE Act.