[2024] VSCA 107
General information, not legal advice.
Court of Appeal (Vic)
2024-05-28
Beach JA, Walker JA
Original judgment source is linked above.
1. The primary judge erred in making the following factual findings:
(a) the Respondent's condition was stable and permanent (at [110] of the reasons for judgment);
(b) the Respondent's work capacity as at the date of the hearing was limited to either light work for four hours per day, three days per week (at [114] of the reasons for judgment) or light work for four hours per day, four days per week (at [115] of the reasons for judgment);
(c) the Respondent will continue to permanently be restricted to 16 hours of light manual work per week (four hours per day, four days per week) in 'suitable employment', after a functional program or with some work conditioning (at [115] and [131] of the reasons for judgment):
(i) which constituted an increase of one four-hour day per week, if the primary judge had found that the Respondent's work capacity as at the date of the hearing was limited to light work for four hours per day, three days per week (at [114] of the reasons for judgment); or
(ii) which constituted a zero increase in hours of work per week, if the primary judge had found that the Respondent's work capacity as at the date of the hearing was limited to light work for four hours per day, four days per week (at [115] of the reasons for judgment).
(a) the factual finding that the Respondent's condition was stable and permanent;
(b) the manner in which the medical opinions of Dr Mary Wyatt, Occupational Physician, in her report dated 13 April 2023 and of Mr Damian Ireland, Hand Surgeon, in his report dated 2 August 2023, considered and, at least in part, summarised by the primary judge in the reasons for judgment prior to the factual conclusion 'that the Plaintiff at present could undertake light work for four hours per day, three days per week' (at [114] of the reasons for judgment), were in any way supportive of this factual conclusion, noting that both of these independent medical examiners have in effect opined that the Respondent was fit for full-time 'suitable employment';
(c) if the primary judge rejected the medical opinions of Dr Wyatt and Mr Ireland in respect of the Respondent's full-time 'present' or 'current' capacity for 'suitable employment', as his Honour had seemingly done, the reason/s for doing so;
(d) if the primary judge made a factual finding that that the Respondent's work capacity as at the date of the hearing was limited to light work for four hours per day, four days per week (at [115] of the reasons for judgment), the reason/s for so finding;
(e) the factual finding in 1(c).
(a) proposed ground 2 is essentially defensive and arises only if the Court accepts that proposed ground 1 succeeds and thereafter proceeds to determine the issue for itself; and
(b) proposed ground 3 is not pressed.
At that time, it would have been easier for me to do that work. It's easy processing work. But not now.
... If I do anything continuously I get pain. I can't do anything continuously.
If I don't do anything and rest arm little pain, if I do any task the pain will become more.
... even when I drive a motorcar now after one-and-a-half hours I get pain. So I have to get constant break so if the job allows me to get the constant break then it's okay.
... I can do, but I can't do it continuously. I can only do four or five hours a day, and I need to get constant breaks because I get pain.
... I need a constant break. As long as I get the constant break, I will try. I'm not telling [you] I can't - I will try.
No, what I have told the doctor is I can try to do four to five hours a day but I have to have break every other day so I may be able to do three days.
It's nearly half an hour. So I mopped and I was trying to squeeze, and it became very pain.
Eventough [sic] his medical condition is getting better than (can work 4-5 hrs 3 days per week) before surgery (could not perform work), it is too early to come to a concrete decision on this.
The worker does have the capacity to return to appropriate and suitable employment, with the restrictions that he is unable to engage in work that requires rapid or repetitious [movement] with the right upper limb or requires him to lift weights in excess of 5 kg or work that requires constant forearm rotation.
In my opinion the worker is able to re-engage in [the] workforce at suitable employment with work that does not require him to lift weights in excess of 15 kg and does not require repetitious gripping movements with his right dominant hand. ...
• Avoidance of repetitive over reaching;
• Avoidance of repetitive pushing and pulling;
• Avoidance of forceful activities, especially activities such as turning taps and jars;
• Avoidance of lifting items greater than 8 kg to 10 kg except on an occasional basis;
• Avoidance of lifting items up to 8 kg on a repetitive basis;
• Avoidance of repetitive pronation and supination;
• Avoidance of using tools with a vibratory component.
• Medical Report Dr Wyatt dated the 13th April 2023;
• Medical Report Mr Ash Chehata dated the 15th May 2023;
• Suitable Employment Report [of 'Recovre'] dated the 5th May 2022;
• Supplementary Suitable Employment Report [of 'Recovre'] dated the 9th June 2023.
I note ... [Mr Chehata's] view that 'Mr Perumal sustained a severe crush facture of the radius that required internal fixation. He presents with ongoing weakness in the right forearm.' 'Mr Chehata noted that the fracture had reunited. He noted that Mr Perumal's reason for not returning back to work for the last five years was a combination of his previous back pain, epilepsy, limited English and an altercation with another employee at work, contributing to his employment status rather than a purely organic forearm fracture. Mr Chehata recommended a current lifting capacity of 5kgs, but could transition to 10-15kgs. There is no restriction in terms of his capacity with regard to repetition or duration and he himself is keen to return to some form of employment.'
I agree with Mr Chehata. Our opinions are similar and outlined in my last report on the 30th March 2023. Since removal of the plate and on the 3rd January 2023, Mr Perumal's symptoms have resolved considerably. He is ready to look at return to work.
Because he has been out of the workforce for four years, it will need to be a graduated return. He requires the involvement of perhaps a rehabilitation physician, in a pain management setting to oversight a functional restoration program, to educate him and allow him to gain confidence in the strength of his right arm. Hands on physiotherapy has no place.
I believe that the work restrictions outlined above are likely to improve considerably, with a functional restoration program, focused on education of his condition and a gradual increase in strengthening under the watchful eye of a rehabilitation or pain management specialist.
... he can certainly perform all activities above shoulder height. He has no restrictions. It is unclear to me why his lifting capacity has been restricted to 5 kg and I would think that this could be transitioned at least up to 10 to 15 kg. There appears to be no restriction in terms of his capacity with regard to repetition or duration and he himself is keen to return back to some form of employment.
(a) the relevant legal principles were not in dispute, and that neither party sought to raise any legal principle;[6]
(b) the dispute was whether the respondent had ongoing consequences from the right upper limb injury which were serious, either in respect to pain and suffering or loss of earning capacity;[7] and
(c) in that connection, there was a dispute concerning the respondent's 'after injury' earning capacity and particularly whether he satisfied the 'statutory formula' and had proven 'a loss of earning capacity that will permanently be productive of financial loss of 40 per cent or more'.[8]
... if the plaintiff now has a capacity for suitable employment that will be productive [of] 'after injury' earnings of $28,173 per annum, then he will fail to satisfy the statutory formula.[10]
... regardless of which of the Recovre jobs is considered for the purposes of "after injury" employment, at sixteen hours per week, the plaintiff is currently below the 60 per cent threshold in any of those employments, whether they are "suitable" or not. Accordingly, the plaintiff satisfies the statutory formula in s 325(2)(e)(i) and (f) [of the WIRC Act].[15]
... on a consideration of the medical evidence and the plaintiff's evidence, I consider that "after injury" he can perform sixteen hours of light manual work and that will permanently be the limit of his residual capacity for "suitable employment". ...[17]
(a) whether, on the evidence, the respondent's symptoms of right forearm and wrist pain were correctly found to have been 'stable and permanent';[18]
(b) what finding was made by the judge concerning the respondent's 'after injury' capacity to work in suitable employment;[19] and
(c) whether, on the evidence, the respondent was correctly found to have been limited permanently, 'after injury', to 16 hours per week of work in 'suitable employment'.[20]
(a) the substance of the challenge was to the judge's conclusion that the respondent was permanently limited to 16 hours per week in light work;
(b) in that regard, the judge had 'misunderstood' Mr Chehata's opinion;
(c) in substance, Dr Horsley's opinion had been the same as that of Mr Chehata, and that of Mr Ireland;
(d) Dr Horsley had only identified presently applicable work restrictions in respect of the respondent, and she had been 'very positive' about his 'likely improvement' in the future;
(e) indeed, Dr Horsley 'wasn't ruling out full-time employment' which was 'certainly not out of the picture'; and
(f) the correct findings that the Court should make, upon a 'real review of the evidence', were that the respondent had a current capacity for full time hours in suitable employment and that the Court otherwise could not reach any conclusion as to the extent of any permanent restriction.
(a) assessments of present and future capacity for 'suitable employment' should be undertaken by reference to the whole of the relevant evidence;
(b) it may be possible to reach such conclusions even when the medical evidence does not specifically state what the extent of likely future improvement in the respondent's work capacity might be; and
(c) assessing whether any such limited capacity is permanent is a matter of judgment involving an element of prediction into the future.[24]
(a) Dr Horsley noted that there had been 'bony union' of the fracture, although the respondent 'remains symptomatic'; by contrast, Mr Chehata suspected that 'there are other elements at play rather than the organic nature of the forearm fracture, which has completely united'; and
(b) Dr Horsley said that the respondent was unable to return to the full range of labouring duties, and proposed a list of work restrictions, many of which were directed to avoiding repetitive activity; by contrast, Mr Chehata said that the respondent had no occupational restrictions, including 'in terms of his capacity with regard to repetition or duration'.
(a) Dr Horsley's use of the words 'agree' and 'similar' are more indicative of professional courtesy between colleagues than any kind of true alignment between the respective opinions; and
(b) the submission to the effect that Dr Horsley agreed with the whole of the opinions of Mr Chehata cannot be accepted.
(a) there can be little doubt that what the judge was saying was that the present limit of the capacity of the respondent for 'suitable employment' was four hours per day, three days per week, but that his permanent limit for such employment could be, and therefore was, four hours per day, four days per week; and
(b) consequently, the suggestion that the judge's language is indicative of any kind of error must be rejected.
(a) For example, in his first report, in November 2020, Mr Ireland considered that the respondent's condition had 'not stabilised'.
(b) Similarly, at the same time, Dr Wyatt reported that the fracture had not yet healed and that the condition of the respondent would require further evaluations.
(c) Likewise, but much more recently, Mr Stapleton said that the respondent had 'not reached maximum medical improvement' and that 'an assessment of whole person impairment is not appropriate at this time'.
(d) Perhaps a little less definitively, Dr Murallidaran said that 'it is too early to come to a concrete decision'.
(a) For example, in his report provided shortly prior to trial, Mr Ireland said that there was 'unlikely to be any further improvement' and that the restrictions identified in his report were 'permanent'.
(b) By contrast, it was implicit in Dr Wyatt's assessment, and her statement that the respondent's clinical condition had largely been 'much the same', that she considered it to be stable and reliably capable of assessment into the future.
... He now experiences discomfort that comes and goes with activity, such as repetitive pushing, pulling, repetitive lifting, repetitive supination, pronation, and forceful activities involving the right hand. ...
Given the length of time since the injury and the ongoing nature of the symptoms, I believe that the symptoms are likely to persist. ...
(a) Dr Horsley's report reads as an assessment of the respondent's long term capacity for work;
(b) unlike her first report, Dr Horsley did not say that the respondent had not reached 'medical stability'; and
(c) albeit that Dr Horsley might be said to have contemplated a potential for some further improvement, particularly in the respondent's confidence in the strength of his right arm, she was plainly of the view that his symptoms would persist and that repetitive use of the right arm should be minimised or avoided.
On average, across the lines, the workers can be expected to pack around 14 bags (one box) per 30 seconds.
Forward reaching is required constantly across the work day. Reaching to pick items could be completed with either arm or alternated between the two if desired.
Both upper limbs are used throughout the work day at a constant rate.
Provided Mr Perumal is working within the restrictions as outlined above, I believe that working as a road traffic controller is potentially within his physical capacity, after the recommendations are put in place as outlined above. He would require training as a road traffic controller.
I believe that he would have difficulty with the repetitive nature of a picker/packer role, and the picks would need to be within the restrictions as outlined above. This is unlikely to be suitable beyond part time hours.
An order picker role is unlikely to be suitable because of the manual component, generally involved.
I believe that the work restrictions outlined above are likely to improve considerably, with a functional restoration program, focused on education of his condition and a gradual increase in strengthening under the watchful eye of a rehabilitation or pain management specialist.
(a) the supplementary report was just that - supplementary to an extensive earlier report prepared following an examination of the respondent;
(b) in the earlier report, Dr Horsley had already contemplated the potential for a degree of further improvement in the respondent's condition in the event that, for example, he was able to participate in a functional rehabilitation program; however, she was plainly of the overall view that the respondent's symptoms would persist and that repetitive use of the right arm should be minimised or avoided;
(c) in the supplementary report, Dr Horsley did not say that the prognosis for the respondent's condition was other than as she had earlier described it;
(d) in particular, she did not say or suggest that the respondent was likely to return to full time work in any form of 'suitable employment';
(e) Dr Horsley expressed her views in respect of the respondent's capacity for work in respect of the 'suitable employment' options proposed, and she did not consider it to be likely that he could work as a packer 'beyond part time hours';
(f) the passages to which the applicant directed particular attention essentially said nothing different from that which had earlier been said; and it would be surprising if they did, as the respondent had not been further examined;
(g) in that regard, Dr Horsley did not suggest in those passages, or more broadly, that her assessments concerning the respondent's capacity for work in the nominated 'suitable employments' were in any way provisional or contingent upon any later step, including participation in a functional restoration program;
(h) in particular, she did not say or suggest, for example, that upon participation in a functional restoration program the role of 'order picker' would become other than unsuitable or that the respondent would be able to work as a 'packer' other than 'part time'; and
(i) Dr Horsley plainly considered that the respondent's participation in a functional restoration program could lead to considerable improvement in the work restrictions which she recommended; in proper context, however, that cannot reasonably be read to suggest that his capacity to work in any of the 'suitable employment' options considered would be greatly beyond that directly assessed and stated.
(a) the respondent gave evidence of persisting forearm and wrist ache and pain in his dominant right arm provoked by use, particularly repetition;
(b) most of the evidence was that sedentary or other non-manual work was clearly unsuitable, as was work in unrestricted manual labour, including the respondent's pre-injury duties;
(c) 'light manual work' as a packer plainly involved a significant degree of constancy and repetition in the use of the arms;
(d) the respondent did not think that he could work in such duties much more than four or five hours a day, three days per week;
(e) Dr Murallidaran evidently endorsed the substance of the respondent's assessment, although she assessed his capacity at four to five hours per day for three days per week and contemplated a need for reassessment after four weeks of such work;
(f) Mr Ireland had a different view in various respects, although he considered that 'repetitious gripping movements with [the respondent's] right dominant hand' should be avoided;
(g) Dr Wyatt also had a different view, although she considered that 'repeated forceful grasping or pushing/pulling with force with the right arm should be avoided';
(h) Dr Horsley considered that there might be some degree of improvement, if a functional rehabilitation program and other such steps were taken, although it was unlikely to be great improvement, and certainly nothing like a capacity for full time work, in circumstances in which she also considered that the respondent's symptoms were likely to persist and that he was unlikely to be able to work as a packer 'beyond part time hours'; and
(i) it was express or implicit in the views of Mr Ireland, Dr Wyatt and Dr Horsley that the condition of the respondent was permanent, or unlikely to change very significantly.
[1] Perumal v VWA [2023] VCC 1786 ('Reasons').
[2] Workplace Injury Rehabilitation and Compensation Act 2013 ('WIRC Act') ss 325(2)(c), (e), (f) & (g).
[4] See WIRC Act, s 3 (definition of 'suitable employment').
[5] The text of the second report suggests that it was provided subsequent to a letter dated 13 June 2023.
[8] Ibid [81]-[82]. See WIRC Act, ss 325(2)(e)-(g).
[21] Connelly v Transport Accident Commission [2024] VSCA 20, [38] (Beach, Niall JJA and J Forrest AJA) ('Connelly'), quoting GLJ v Trustees of the Roman Catholic Church for the Diocese of Lismore [2023] HCA 32; (2023) 97 ALJR 857, 866 [16] (Kiefel CJ, Gageler and Jagot JJ); [2023] HCA 32.
[22] Coal & Allied Operations Pty Ltd v Australian Industrial Relations Commission (2000) 203 CLR 194, 203 [14] (Gleeson CJ, Gaudron and Hayne JJ); [2000] HCA 47; Connelly [2024] VSCA 20, [39] (Beach, Niall JJA and J Forrest AJA).
[23] Fox v Percy (2003) 214 CLR 118, 127-8 [27] (Gleeson CJ, Gummow and Kirby JJ); [2003] HCA 22; Lee v Lee [2019] HCA 28; (2019) 266 CLR 129, 148-9 [55] (Bell, Gageler, Nettle and Edelman JJ); [2019] HCA 28.
[24] Yirga-Denbu v Victorian WorkCover Authority (2018) 57 VR 545, 573 [88]-[89] (Priest, Beach and Niall JJA); [2018] VSCA 35; Cardoso v Staff Australia Payroll Services Pty Ltd [2019] VSCA 139, [47] (Kaye, McLeish and Niall JJA).
[25] Reasons [31]-[33], [36]-[37] and [113].
[31] Ibid [108], [110] and [131].
[38] Mr Chehata records receiving 'documentation', but does not refer to any Recovre report. His report pre‑dates the second Recovre report.
[39] Reasons [101]-[103] and [106]. See also Palmer Tube Mills (Aust) Pty Ltd v Semi [1998] 4 VR 439, 448 (Brooking, Tadgell and Buchanan JJA).
Victorian WorkCover Authority
Perumal [2024] VSCA 107
[2023] VCC 1786 (Judge Purcell)
Coal & Allied Operations Pty Ltd v Australian Industrial Relations Commission (2000) 203 CLR 194; Palmer Tube Mills v Semi [1998] 4 VR 439; Advanced Wire & Cable Pty Ltd v Abdulle [2009] VSCA 170; Yirga-Denbu v Victorian WorkCover Authority (2018) 57 VR 545; Cardoso v Staff Australia Payroll Services Pty Ltd [2019] VSCA 139; Connelly v Transport Accident Commission [2024] VSCA 20, applied.
(2003) 214 CLR 118
(2019) 266 CLR 129
(2000) 203 CLR 194
(2018) 57 VR 545
(2023) 97 ALJR 857