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[2001] VSCA 84
Court of Appeal (Vic)
2001-06-06
WINNEKE, A.C.J., PHILLIPS and CHARLES, JJ.A.
Original judgment source is linked above.
[ 2001] VSCA 84
Accident compensation - Transport accident - Driver's death in accident in 1995 - Payments to dependants by Commission - Whether statutory right in Commission to indemnity from wrongdoers - Whether payments by Commission were in respect of "injury" - Section amended after accident to include payments in respect of "death" - Whether section as amended applied only to death after amendment - Retrospectivity - Transport Accident Act 1986 ss.93, 104; Transport Accident (General Amendment) Act 1994 (No.84) ss.10, 42; 1998 (No. 81) s.15; 1984 (Act No. 10096) s.14(2).
(a) Pursuant to ss. 44 and 45, to pay weekly benefits to injured "earners" who, as a result of the transport accident, had totally lost or partially lost their earnings for a period up to 18 months after the transport accident.
(b) Sections 47 and 48 imposed an obligation to pay "impairment benefits" whether by way of "lump sum" or "annuity" to persons injured in a transport accident and who had suffered a degree of impairment of more than 10%. These "impairment benefits" were to be calculated in accordance with formulae set out in the Act.
(c) Additionally the Act obliged the TAC to pay continuing weekly benefits after the period of 18 months following the accident to injured "earners" who, as a result of the accident, had totally lost or partially lost their earning capacity (ss.49 and 50).
(d) Section 51 also imposed a liability upon the TAC to make weekly payments to certain "non-earners" after the initial period of 18 months where such persons had been injured in a transport accident and had, as a consequence, suffered a loss of earning capacity (s.51).
(e) Section 54 further imposed on the TAC an obligation to make weekly payments in accordance with a specified formula to "minors" (defined as persons under 18 years who were "non-earners") who had suffered a "degree of impairment" of more than 10%. Such benefits were payable after the first 18 months following the accident until the minor attained the age of 18 years or ceased to suffer the impairment.
"Judgment against or settlement by a third party in an action in respect of an injury or death referred to in sub-section (1) does not eliminate or diminish the right of indemnity given by this section, except to the extent provided in this section."
The difficulty with the submission is that the sub-section does not purport to define the extent of the indemnity provided by the section. Sub-section (1) does that, and it provides that the entitlement of the indemnity is confined to "such proportion of the amount of the liability of the [TAC] to make payments under this Act in respect of an injury as is appropriate to the degree to which the injury was attributable to the act, default or negligence of [the third party]" (emphasis added). Sub-section (2) then sets a ceiling on the third party's liability to indemnify by providing that such liability is not to exceed the amount of damages "which, but for this Act, the person would be liable to pay to the injured person in respect of the injury"(again, emphasis added). In an Act which so clearly distinguishes the liability of the TAC to make payments to persons injured and the liability to make payments to persons as the result of death, it is not possible, in my view, to re-write sub-ss (1) and (2) so as to construe them as meaning that the indemnity entitlement extends to the liability of the TAC to make payments to dependent persons as the result of death. No explanation for the insertion of sub-s. (3) can be found in the second reading speech of the Minister introducing the Transport Accident (General Amendment) Bill (Hansard, Legislative Council, 15 November 1994, p.810). It may be that the sub-section was designed to secure the TAC's right to recover payments made to an injured person who subsequently dies, and which might be irrecoverable, but for the sub-section, in a Wrongs Act claim; for example, an "impairment benefit" paid under s.47 (see s.57(2), s.93 (11A)).
"If an injury or death arising out of a transport accident whether occurring before or after these amendments in respect of which the [TAC] has made payments under this Act after the date of the amendments ... ."
It is not easy to see why the proper construction of the section should introduce this lack of symmetry. As I understood them, counsel conceded that the section could not be construed so as to give the TAC a right to recover "past payments" of death benefits because, to do so, would be to introduce a degree of retrospectivity into the section which would be avoided by giving the section the construction for which they contend. This argument focuses attention upon the enlarged scope of benefits in respect of which the TAC is entitled to be indemnified, but ignores the corresponding enlargement of liability in the negligent third party to indemnify. For the first time in its 12 year history, the legislation was enlarging the third party's liability to indemnify beyond the scope of payments made to persons who had been injured by extending it to a liability to indemnify against payments made to dependants of persons who had died in transport accidents. Thus, it can be seen that if the words "death arising out of a transport accident" are to be given the construction for which the appellant contends, it will impact upon an existing liability, fixed by reference to past events, by extending it to a liability to indemnify against payments made to different persons and arising from different events. So understood, it would seem to me that ordinary canons of statutory construction would lead to the conclusion that - insofar as the amendments are calculated to impose a liability upon the third party to indemnify the TAC against payments which it is obliged to make to persons in respect of a death arising out of a transport accident - the amendments are not only to be construed as referring to payments made after the date of the amendments but also to deaths arising out of transport accidents occurring after that date[3]. This was the construction which the trial judge placed upon the section as it was amended in 1998. He said:
"In my opinion, in the absence of a provision which would require one to construe s.104(1) other than prospectively, a plain reading of that section, as amended by the 1998 Amendment Act, produces the result that it would apply only to a death arising out of a transport accident occurring on or after 19 May 1998."
After analysis, his Honour concluded that no contrary intention was expressed or clearly evinced in the legislation, and I agree that the appellant's argument before this Court - namely that we should construe the word "death" as meaning "death whenever occurring" so as to rectify a "manifest injustice" - should not be accepted.
before or after the amendments". Accordingly, I am not persuaded that this appeal raises for our consideration the circumstances in which the Court will, or will not, depart from one of its prior decisions[5]. I do note, however, that the particular issue decided in Corangamite, which is now said to bind us, was decided without the benefit of full argument from counsel[6]. If, and when, that issue is again raised for determination, will be the time to explore the manner in which re-consideration of the issue should occur.
allowing the horse to stray on to the highway and by the time of the hearing the defendants conceded that negligence and hence their responsibility for the accident. What remained in issue, at least in part, was the right of the Commission to an indemnity under s.104. The defendants did not dispute the Commission's right to such indemnity in respect of the payments made by the Commission for medical and like benefits under s.60. The defendants denied only the Commission's right to any further indemnity, being for payments both by way of lump sum under s.57 and by way of periodical benefits under s.58.
Section 104 at the time of the accident
"104. Indemnity by third party (1) If an injury arising out of a transport accident in respect of which the Commission has made payments under section 44, 45 or 60 arose under circumstances which, but for section 93, would have created a legal liability in a person (other than a person who is entitled to be indemnified under section 94) to pay damages in respect of pecuniary loss suffered by reason of the injury before the entitlement of the injured person to compensation under this Act was reviewed under section 46 or by reason of costs or expenses of a kind referred to in section 60, the Commission is entitled to be indemnified by the first-mentioned person for such proportion of the amount of the liability of the Commission to make payments under section 44, 45 or 60 in respect of the injury as is appropriate to the degree to which the injury was attributable to the act, default or negligence of the first-mentioned person. (2) The liability of a person under sub-section (1) shall not exceed the amount of damages referred to in sub-section (1) which, but for this Act, the person would be liable to pay to the injured person in respect of the injury."
"(3) Judgment against or settlement by a third party in an action in respect of an injury or death referred to in sub-section (1) does not eliminate or diminish the right of indemnity given by this section, except to the extent provided in this section."
Section 104 as amended on and from 19 May 1998
"104. Indemnity by third party (1) If an injury or death arising out of a transport accident in respect of which the Commission has made payments under this Act arose under circumstances which, regardless of section 93, would have created a legal liability in a person (other than a person who is entitled to be indemnified under section 94) to pay damages in respect of any loss suffered by reason of the injury or death, the Commission is entitled to be indemnified by the first-mentioned person for such proportion of the amount of the liability of the Commission to make payments under this Act in respect of the injury or death as is appropriate to the degree to which the injury or death was attributable to the act, default or negligence of the first-mentioned person. (2) The liability of a person under sub-section (1) shall not exceed the amount which, but for this Act, the person would be liable to pay- (a) to the injured person in respect of the injury: or (b) in the case of the death of the person, to his or her dependents. (3) Judgment against or settlement by a third party in an action in respect of an injury or death referred to in sub-section (1) does not eliminate or diminish the right of indemnity given by this section, except to the extent provided in this section."
"The Australian cases have stressed that the right of indemnity against the wrongdoer is not an action in negligence, but a cause of action created by statute for an indemnity against the person liable to pay damages. Indeed, the injured workman may have lost his remedy against the third person at the time that the employer's statutory cause of action arises. For the statutory cause of action arises as often as the person liable to pay compensation is called upon to pay compensation and in fact does so: Attorney-General v. Ryan Automobiles Ltd., [1938] 1 All E.R. 361.[23] At that time the workman's entitlement to sue the third party for damages may be gone. He may be dead. A statute of limitations may apply. Nonetheless, the statutory right of indemnity given to the person paying compensation springs up on each payment of compensation, if it can be shown that the injury for which compensation is payable was at the time it happened `caused under circumstances creating a legal liability in' another person `to pay damages in respect thereof'. This means a legal liability arising at the time that the injury was caused to the worker: Tickle Industries v. Hann [1974] HCA 5; (1974), 130 C.L.R. 321; 48 A.L.J.R. 149; Tooth & Co. Ltd. v. Tillyer [1956] HCA 49; (1956), 95 C.L.R. 605; Watson v. Council of the City of Newcastle [1962] HCA 6; (1962), 106 C.L.R. 426, at pp.432-3. These considerations emphasize the fact that the statute gives a new cause of action to the employer, which depends upon the establishment of certain statutory ingredients and which is only derivative in that the injury, when caused, must be caused in circumstances creating a legal liability in some person - to pay damages to the worker in respect thereof."
See also A.C.C. v. Haynes.[24] Much of this no doubt derives from the more general proposition that, at least at common law, the power to enforce an indemnity depends first and foremost upon the payment's being made in respect of which the indemnity is being sought: Halsbury's Laws of England, 4th ed., vol. 20 para 315, Seapeace Ltd. v. Meridian Marine Sales Ltd.[25]; contrast the possibility in equity of anticipatory enforcement, as to which see Abigroup Ltd. v. Abignano[26], and Manufacturers Mutual Ins. Ltd. v. G.I.O[27].
"As Dixon C.J. expressed it in Maxwell v. Murphy [1957] HCA 7; (1957) 96 C.L.R. 261, at p.267 and again in Chang Jeeng v. Nuffield (Aust.) Pty. Ltd. [1959] HCA 40; (1959) 101 C.L.R. 629, at pp.637, 638 the general rule of the common law is that a statute changing the law ought not, unless the intention appears with reasonable certainty, to be understood as applying to facts or events that have already occurred in such a way as to confer or impose or otherwise affect rights or liabilities which the law had defined by reference to the past events."
"There can be no doubt that the general rule is that an amending enactment - or, for that matter, any enactment - is prima facie to be construed as having a prospective operation only. That is to say, it is prima facie to be construed as not attaching new legal consequences to facts or events which occurred before its commencement."
"Perhaps no rule of construction is more firmly established than this - that a retrospective operation is not to be given to a statute so as to impair an existing right or obligation, otherwise than as regards matter of procedure, unless that effect cannot be avoided without doing violence to the language of the enactment. If the enactment is expressed in language which is fairly capable of either interpretation, it ought to be construed as prospective only."
The common law principle is now enshrined in statute. Section 14 of the Interpretation of Legislation Act so far as relevant provides as follows:
"(2) Where an Act or a provision of an Act- (a) is repealed or amended . . . the repeal, amendment, expiry, lapsing or ceasing to have effect of that Act or provision shall not, unless the contrary intention expressly appears - (d) affect the previous operation of that Act or provision or anything duly done or suffered under that Act or provision; (e) affect any right, privilege, obligation or liability acquired, accrued or incurred under that Act or provision . . ."
Here the primary question is whether the amending statute which altered s.104 in 1998 would be given retrospective effect if it were allowed to have effect in respect of a death occurring before 19 May 1998. If yes, the next question would be whether the statute evinces sufficiently clearly an intention that it should be so, or under s.14(2) whether that intention "expressly appears", but I postpone consideration of that.
"Courts lean against imposing an increased obligation upon a person by giving amending legislation retrospective operation unless Parliament makes such an intention clear."
The reference to the 1994 amendments "imposing an increased obligation upon a person" is in line with what I have said about the 1998 amendments.
"Further, in my opinion the shire had no existing right within the meaning of s.14(2)(e) of the Interpretation of Legislation Act before the amending Act [of 1994] to be free from an obligation to indemnify the commission against payments for loss of earning capacity [under s.49]. The fact that there existed a limited liability to indemnify the commission [under sections other than s.49] did not carry with it a right to be free in future from a more extensive liability to indemnify the commission. As the Full Court said in Robertson v. City of Nunawading [1973] VicRp 81; [1973] V.R. 819 at 825: `There cannot, in any relevant sense, or perhaps in any sense, be a "right" to exemption or immunity from legislative action. The taking of legislative action in a field where previously there was none cannot be treated as an impairment of a right for the purpose of the principle.'"
on 17 September 1995, without in my opinion there being anything in the amending Act of 1998, or indeed in the principal Act as amended, to justify concluding that that was Parliament's intention. It is perhaps unfortunate that Parliament did not see fit to make its intention (whatever it was) clear by express enactment: for instance it would have been a very simple matter to provide expressly that s.104 as amended in 1998 should apply irrespective of the date on which either injury or death occurred, and in particular whether before or after the amending Act came into force. But Parliament chose to stay silent; perhaps it was thought too difficult to be clear about the justice of according retrospective operation to s.104 as amended. Be that as it may, we must do the best we can with what we have and in all the circumstances I think that s.104 should be held not to provide indemnity for death benefits paid when death has occurred before 19 May 1998, there being no clear Parliamentary intention to the contrary.
[2] [1982] VicRp 44; [1982] V.R. 437, particularly per Murphy, J. at 441.
[3] Maxwell v. Murphy [1957] HCA 7; (1957) 96 C.L.R. 261 at 267 per Dixon, C.J.; Fisher v. Hebburn Ltd.[1960] HCA 80; (1960) 105 C.L.R. 188 at 202 per Kitto and Menzies, JJ.
[5] cf. Nguyen v. Nguyen [1990] HCA 9; (1990) 169 C.L.R. 245 at 268-70; R. v. Tait [1996] VicRp 48; [1996] 1 V.R. 662 at 666; Farrar v. Western Metropolitan College of TAFE [1998] VSCA 25; [1999] 1 V.R. 224 at 228-9.
[6] see Shire of Corangamite v. Transport Accident Commission, supra, at 310 per Buchanan, J.A.
[9] [1981] HCA 26; (1981) 147 C.L.R. 297 especially at 304-5 per Gibbs, C.J., at 310-2 per Stephen, J., at 319-20 per Mason and Wilson, JJ., and at 336-9 per Aickin, J. (dissenting).
[10] [1985] HCA 48; (1985) 157 C.L.R. 309 especially at 312-3 per Gibbs, C.J., at 315 per Mason, J., at 321 per Deane, J.
[12] Nor was there anything of assistance in the Parliamentary Debates of 1994.
[13] To use the language of Mason and Wilson, JJ. in Cooper Brookes at 320.
[14] Commonly by reference to the speech of Lord Mersey in Thompson v. Goold & Co. [1910] A.C. 409 at 420: see for example Pearce and Geddes, Statutory Interpretation in Australia, 4th ed. 1996, par. 2.16.
[15] [1972] HCA 27; (1972) 124 C.L.R. 640 at 649 per Stephen, J.
[16] [1978] 1 W.L.R. 231 at 234-5, 236, 237, 238, and 238-9.
[23] See also [1938] 2 K.B. 16.
[24] [1992] VicRp 50; [1992] 1 V.R. 691. Not dissimilar questions have arisen about the nature of a claim for contribution: see for example Unsworth v. Commissioner for Railways [1958] HCA 41; (1958) 101 C.L.R. 73, Genders v. G.I.O. of N.S.W. [1959] HCA 30; (1959) 102 C.L.R. 363 (considered in State Government Insurance Office (Qld.) v. Crittenden [1966] HCA 56; (1966) 117 C.L.R. 412 and Australian Safeway Stores Pty. Ltd. v. Inc. Nom. Defendant [1980] VicRp 14; [1980] V.R. 118.
[25] Unreported, Federal Court of Australia, 27 February 1997, Lee, J.
[35] [1992] VicRp 84; [1992] 2 V.R. 522 at 526 (quoting Tadgell, J.).
[42] [1960] HCA 80; (1960) 105 C.L.R. 188 at 202.
[44] [1971] HCA 4; (1971) 124 C.L.R. 1 at 22.
[45] [1898] 2 Q.B. 547 at 551-2.
[46] West v. Gwynne [1911] 2 Ch. 1 at 11-12 per Buckley, L.J.
[47] 96 C.L.R. at 285. See Victrawl Pty. Ltd. v. Telstra Corporation Ltd. [1995] HCA 51; (1995) 183 C.L.R. 595 at 620-1.
[48] [1848] EngR 746; (1848) 12 Q.B. 120 at 127[1848] EngR 746; , 116 E.R. 811 at 814.
[49] [1992] 3 All E.R. 606 at 613.
[53] [1980] VicRp 2; [1980] V.R. 17 at 21-2.
[54] [1990] HCA 19; (1990) 169 C.L.R. 515 at 518-9.
[56] The expression "has paid" probably means "shall have paid": Athlumney [1898] 2 Q.B. at 553 per Wright, J.
[60] As to this word, see J and P Lemming Holdings v. O'Keefe [1984] VicRp 79; [1984] V.R. 1005 at 1011-1013.
[65] [1961] A.C. 901 at 924.
[66] [1964] A.C. 541 at 552.
[67] [1969] VicRp 104; [1969] V.R. 821 at 823.
[68] [1971] HCA 4; (1971) 124 C.L.R. 1 at 23.
[70] [1993] VicRp 95; [1993] 2 V.R. 632 at 649.
[71] [1905] A.C. 369 at 372-3.
[72] (1998) 47 N.S.W.L.R 104 at 116-7.
[73] [1960] HCA 37; (1960) 103 C.L.R. 422 at 426-7.
[74] [1995] 1 N.Z.L.R. 684 at 695.
[77] (1996) 135 A.L.R. 494 at 509-514.
[79] [1998] 4 V.R. 324 at 333-5.
Transport Accident Commission
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