it would result in a disparity between the deduction made for an amount of compensation or damages received by an applicant from another source prior to an award of compensation being made under the Act and the deduction of such an amount of compensation or damages where it was received after the assessor had made his or her award. Section 42(3) deals with the former situation whereas s 68 deals with the situation where an amount of damages or compensation from another source is received after the assessor has made the award.
Section 68(1) provides that where an applicant receives damages or compensation otherwise than under the Act in respect of the injury or loss for which he has already received compensation under the Act and that amount was not deducted under s 42(3), the amount of compensation awarded under the Act or the amount of damages or compensation received from another source, whichever was the lesser, is a debt due to the State by the applicant.
Section 68 has the effect that if an applicant had been awarded the maximum of $75,000 under the Act and subsequently received a larger amount of damages from another source, he or she owed a debt of $75,000 to the State, but would be entitled to keep the larger amount of damages received from another source.
Counsel for the CEO explained that if s 42(3) was interpreted on the basis that the words 'compensation award' in the first line referred to the maximum compensation award that could be made, the effect of this section would be similar to s 68 as the deduction of a larger damages award from another source would mean that the applicant would get no compensation under the Act, but would be entitled to keep the larger amount of damages received from another source. On the other hand, if the words 'compensation award' were interpreted to mean the total amount assessed as being just, this could lead to a situation where an applicant would be entitled to the amount of damages received from another source plus up to $75,000 under the Act.
Counsel for the CEO pointed out that the legislature would not have intended such an anomaly merely because in one case the damages from another source were paid before the compensation award was made under the Act and in another case after. (emphasis added) [20] - 27].