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[2002] VSC 428
Supreme Court of Victoria
2002-10-09
Bongiorno J.
Original judgment source is linked above.
[2002] VSC 428
Administrative Law - Judicial review - Error of law - Construction of statutory document - Requirement for consideration of important evidence - ss. 46A, 46B Transport Accident Act 1986; ss. 117(2), 117(5) and 148 Victorian Civil and Administrative Tribunal Act 1998.
"His life is now a fully regimented one. Whilst he is at liberty to leave Crosbie House which is not a 'secure' facility, all feeding and housework is done for him by the staff. The principal event in his day is travel from Crosbie House in Murrumbeena to a chemist in Oakleigh where he receives a daily dose of methadone to control his opiate addiction. Thereafter he visits friends whom he has made at a local florist shop. He watches television and socialises at Crosbie House. He is a weekly church goer."
"The methods to be used in determining a percentage for the purpose of establishing the degree of impairment of a person as a result of a transport accident are those described in the 'Guides to the Evaluation of Permanent Impairment' Second Edition, published by the American Medical Association."
These guides attempt to standardise the medical assessment of the effects of injury on the human body by the application of a complex system of criteria to injuries suffered and their effects; such criteria referring to twelve separate body systems. It is the construction of the terms of certain criteria relating to two of those body systems and their application to the plaintiff's situation which give rise to the questions of law which are said to have been erroneously determined by the Tribunal in this case.
* Whether the Tribunal erred in its construction of one of the criteria found in chapter 2 of the AMA Guides relating to disturbances of complex, integrated cerebral functions; and
* Whether the Tribunal properly determined the plaintiff's percentage impairment caused by a condition suffered by the plaintiff which might meet criteria laid down by chapter 2 or chapter 12 of the Guides, or both such chapters.
"3. Disturbances of Complex, Integrated Cerebral Functions - Disturbances of these functions constitute the well-known organic brain syndrome. The resulting deficits may include defects in orientation; ability to abstract or understand concepts; memory, both immediate and remote; judgment; ability to initiate decisions and perform planned action; and acceptable social behavior. The restrictions placed on patients with established organic brain syndromes provide criteria by which the permanent impairment may be evaluated. These criteria are:
1. There is a degree of impairment of complex integrated cerebral functions, but there is ability to carry out most activities of daily living as well as before onset . . . . .
2. There is a degree of impairment of complex integrated cerebral functions such that daily activities need some supervision and/or direction . . . . . . . . . . . . . . . . . . . . . . .
3. There is a degree of impairment of complex integrated cerebral functions that limits daily activities to directed care under confinement at home or in other domicile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. There is such a severe degree of impairment of complex integrated cerebral functions that the individual is unable to care for self in any situation or manner . . .
"... within the period of six years immediately preceding the date of the petition ... been confined for a period of, or for periods aggregating, not less than five years in an institution where people may be confined for unsoundness of mind in accordance with law ..." (emphasis added.)
"It happens that the construction which I favour is also that which avoids a diminution or reduction of a worker's rights under the statute. As it is beneficial legislation, anomalies and ambiguities should ordinarily be resolved in favour of achieving the social purpose of providing compensation to injured workers in full measure as provided by the Act."
In Dodd v Executive Air Services[5] Newton and Norris, JJ[6] each adopted the comment made by Fullagar, J in Wilson v Wilson's Tile Works Pty Ltd[7] (in dissent but not on this point) to the effect that where two constructions of a Workers' Compensation Act are possible, that which is favourable to a worker should be preferred.[8] The legislation with which I am presently concerned is legislation of the same kind as workers compensation legislation. It exists to provide appropriate "no-fault" compensation to citizens injured in transport accidents. It should be construed similarly to the statutes with which Kirby, P and Fullagar, J were concerned. In particular, in the present context, in construing a legislative document which defines and delimits a right to compensation or the extent of that right, it would be inappropriate to exclude an accepted meaning of a word where to do so would limit or exclude an otherwise appropriate entitlement to benefits.
"Evaluation of CNS impairment is difficult because of the complex relationships between the brain and the mind. It is impossible to avoid consideration of associated mental, emotional and personality processes. When appropriate, chapter 12 should be used in conjunction with this chapter."
No guidance is offered as to how the advice contained in the last sentence of this quote should be acted upon. The Deputy President who constituted the Tribunal in this case interpreted this direction from the Guides as requiring (or at least permitting) an assessment to be made under chapter 2 in a case where a psychiatrist offers an opinion that a psychiatric condition is attributable to organic brain damage. Conversely he held that to the extent that an impairment assessment includes consideration of matters that are purely psychological and are not the direct consequence of injury to the brain or other parts of the nervous system, those matters should be excluded from the assessment under chapter 2 and considered, if at all, under chapter 12. This is what the Deputy President considered the passage in the introduction to chapter 2 of the Guides which I have quoted meant. This approach, which he had first enunciated in an earlier case[12] (when he sat in the Administrative Appeals Tribunal), was not found to be legally erroneous by Mandie, J in Barnett v TAC,[13] at least in the case which he was there considering.
"(1) In determining a degree of impairment of a person, regard must not be had to any psychiatric or psychological injury, impairment or symptoms arising as a consequence of, or secondary to, a physical injury."
It analysed this legislative enactment and concluded that "... it would be wrong to exclude the symptoms of organic brain injury from assessment". It held that the purpose of s 46B was to avoid compounding or double counting with respect to psychiatric injury. It instanced the case of a back injury which produces both pain and restriction of movement and also a psychological injury. It concluded, in effect, that provided an assessment does not involve any double counting, s 46B has no operation.
Brain injury resulting in emotional disturbances in the form of aggravation of an underlying psychiatric disorder occurring under minimal stress requiring shelter."
At paragraph 16 the Tribunal acknowledged that Dr Stark was proffering an opinion referrable to category 3 of the paragraph of chapter 2 of the AMA Guides which provided for the assessment of emotional disturbances resulting from brain injury. However, in paragraph 28, the Tribunal, presumably in accordance with its earlier determination as to the potential overlap between chapter 2 and chapter 12, excluded assessments for emotional disturbance when considering the correct impairment assessment for the plaintiff under chapter 2. That this is so is obvious not only from what the Tribunal said but also from the fact that the impairment assessment made by it under chapter 2 was 45 per cent. Unless it rejected Dr Stark's opinion outright, an acceptance of that opinion for the purpose of assessment under chapter 2 would have resulted in an impairment assessment of 50 per cent. The problem, says Mr Gorton, is that although the Tribunal impliedly puts Dr Stark's opinion aside for the purpose of assessment under chapter 2, it never took it up again when considering an impairment assessment under chapter 12. In fact, as far as I can see, Dr Stark's impairment assessment for emotional disturbances is never referred to again in the Tribunal's reasons despite discussion of the plaintiff's psychiatric impairment at paragraph 33 et seq, which portion of the reasons include a discussion of opinions from Drs Epstein and Klepfisz, both of whom, impliedly at least, offer opinions on the same subject. Indeed, the Tribunal found that Dr Klepfisz concluded that the plaintiff suffered a total psychiatric impairment of 25-30 per cent of which 18 per cent was the consequence of organic brain damage and Dr Epstein considered that the accident caused a 20% direct psychiatric impairment to the plaintiff.
"... a failure by a tribunal adequately to fulfil its statutory obligation to state the reasons for making an administrative decision does not, without more, invalidate the decision or warrant its being set aside by a court of competent jurisdiction. If a failure to give adequate reasons for making an administrative decision warrants an inference that the tribunal has failed in some respect to exercise its powers according to law (as, for example, by taking account of irrelevant considerations or by failing to consider material issues or facts), the court may act upon the inference and set the decision aside. In such a case, the exercise of the statutory power to make a decision is held invalid not because of a failure to state the reasons for making the decision, but because of a failure to make the decision according to law: see Denver Chemical Manufacturing Co. v. Commissioner of Taxation (N.S.W.)[15]; Sullivan v. Department of Transport[16]."
" Of course, if it is shown that a Tribunal such as the present, in making an order within its competence, has failed to take into account relevant matters, its determination can be reviewed, as in this case, upon an order to review. So much is a settled facet of the relevant jurisprudence. But that course cannot be taken unless it clearly appears that there has been a material error of that kind. Whether or not it has occurred is a matter of fact and not of surmise. Failure in expressing reasons for decision is a very unsure guide to the resolution of such a fact, though in some circumstances it may be indicative. But, in any case, such a failure to advert to some material circumstances, if it exists, must be weighed in the light of all the circumstances of the proceedings including the nature and extent of the charter of the Tribunal."
(i) That the appeal of the plaintiff in respect of a determination by the Victorian Civil and Administrative Tribunal of 5 September 2000 in proceeding No 1999/041191 be upheld.
(ii) That the said determination be quashed.
(iii) That the plaintiff's application for a review of the determination of the Transport Accident Commission of the impairment suffered by him as a result of injuries sustained in a transport accident on 6 January 1996 be reheard and determined according to law.
(iv) That for the purposes of rehearing the plaintiff's said application the Victorian Civil and Administrative Tribunal be constituted by Mr M F Macnamara, Deputy President; save that if he is, for any reason considered by him to be adequate, unable to constitute such Tribunal, then such Tribunal to be constituted as directed by the Honourable Justice Kellam, President of the Victorian Civil and Administrative Tribunal.
(v) That the defendant pay the plaintiff's costs, including reserved costs, to be taxed.
(vi) That the defendant be granted an appropriate certificate under the Appeals Costs Act 1998.
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[4] 29 NSWLR 632 at 639.
[8] See also Loizos v Carlton and United Breweries Ltd [1994] NTSC 24; (1994) 94 NTR 31 at 33 and Bird v The Commonwealth [1988] HCA 23; (1988) 78 ALR 469 at 474.
[9] The term "daily activities" is not defined in the AMA Guides' Glossary (p 233) although a number of specific activities are individually defined under a general heading "Activities of Daily Living". J.D. Phillips JA in Lake v TAC [1998] 1 VR 616 at 621 thought the expressions were synonymous.
[10] Barnett v Transport Accident Commission [1999] VSC 484 at para 30; State Trustees v TAC [2000] VSC 494 at para 7; Lake v TAC [1998] 1 VR 616 at 624.
[11] [1998] 1 VR 616 at 624.
[12] Jonasson v TAC, AAT 24 December 1997.
[14] [1985] HCA 10; (1985) 155 CLR 422 at 445.
[15] [1949] HCA 25; (1949) 79 CLR 296 at p 313.
[16] (1978) 20 ALR 323 at pp 348, 349, 352.
[17] [1979] HCA 20; (1979) 140 CLR 675 at 679.
State Trustees
Transport Accident Commission [2002] VSC 428
(2001) 181 ALR 307
(2001) 75 ALJR 1342
(1960) 104 CLR 328
(1988) 78 ALR 469
(1985) 155 CLR 422
(1949) 79 CLR 296
(1978) 20 ALR 323
(1979) 140 CLR 675
(1996) 185 CLR 259
(1993) 43 FCR 280