austlii:nsw/NSWPIC/2025/192
General information, not legal advice.
NSWPIC
2025-05-07
Original judgment source is linked above.
24 March 2022, 11 July 2024 and 29 October 2024. 3. On 2 December 2025, the applicant lodged an Application to Resolve a Dispute in respect of a claim for the costs of medicinal cannabis. 4. On 7 January 2025, the respondent lodged a Reply. 5. On 3 March 2025, the applicant lodged an Application to Lodge Additional Documents. 6. On 4 March 2025, the respondent lodged an Application to Lodge Additional Documents.
(a) whether prescription and trial of medicinal cannabis, recommended and overseen by Dr Lahz and Dr Woods is reasonably necessary as a result of the accepted injury on 4 February 2002 (s 60 of the 1987 Act).
PROCEDURE BEFORE THE PERSONAL INJURY COMMISSION
Mr John Gaitanis, of counsel, appeared for the respondent instructed by Hicksons Lawyers. 3. During the proceedings:
(a) the applicant discontinued the claim for past medical expenses;
(b) the applicant sought to particularise the claim for future medical expenses. The applicant confirmed that the claim was for a prescription and trial of medicinal cannabis recommended and overseen by Dr Lahz and Dr Woods. The respondent raised no objection;
(c) the applicant's Application to Admit Late Documents, dated 3 March 2025, was admitted into the proceedings, and
(d) the respondent's Application to Admit Late Documents, dated 4 March 2025, was admitted into the proceedings.
(a) Application to Resolve a Dispute, dated 2 December 2024, and attached documents;
(b) Reply to Application to Resolve a Dispute, dated 7 January 2025, and attached documents;
(c) Direction issued on 30 January 2025;
(d) Application to Lodge Additional Documents and attachments, lodged by the applicant on 3 March 2025;
(e) Application to Lodge Additional Documents and attachments, lodged by the respondent on 4 March 2025;
(f) Direction issued on 2 April 2025;
(g) Applicant's supplementary written submissions, dated 9 April 2025, and
(h) Respondent's submissions in response, dated 16, 22 April and 2 May 2025 (there was a delay in registration of these submissions which are largely identical in substance due to the method of lodgment).
27 February 2025. The applicant states that in 1985 he was involved farming accident, which resulted in a below the right knee amputation. He adjusted to life using prosthetics, and did not experience any phantom leg pain. 2. On 4 February 2002, while working for the respondent the applicant was required to work in wet weather conditions. His skin became irritated on the stump of his right leg. This resulted in ulcerations and recurring infections, requiring minor stump revision surgery called "shaving". 3. The applicant states that he experienced the occasional infective flare up until 2021, when his stump broke down due to chronic infections. As a result, he states he was required to undergo further surgery and a further amputation of his right leg called a "knee disarticulation procedure". He described this as an amputation through the knee, as the knee to the stump was not salvageable. Since this surgery, the applicant states he has "been experiencing severe, intolerable stump and phantom leg pain". He states he has become "very depressed" and no longer able to work and has intrusive memories from the original injury. 4. The applicant states that he had "trailed many different treatments" and on "many different medications in attempt to manage" his pain. He described the pain as:
"unrelenting with many variations of the type of pain. At time it feels like there is a driving hot sensation through the stump, painful cramping, electric shocks, pins and needles and ... phantom leg pains."
27 February 2025. She records a history of events, consistent with the applicant's statement evidence. She records that the difference she noticed in the applicant following the medicinal cannabis trial was phenomenal. She states that following the trial the applicant was eating, sleeping, his mood was improved, and no longer spiralling into a depressive and suicidal state. 2. Ms Ferry states that following the Basgers pharmacy incident, Dr Woods referred the applicant to CDA clinics to manage his treatment.
(a) chronic neuropathic right stump and phantom pain secondary to post amputation pain syndrome and central sensitization;
(b) cortical augmentation with catrophisation, reduced self-efficacy and adjustment disorder, and
(c) daily dependent heavy use of illicit cannabis and reported medication sensitivity.
"A trial of medicinal cannabis as an adjunct to a pain management program in this case is appropriate given [the applicant] has failed more conservative treatment, based on personalised medicine (NOT evidence medicine) on compassionate grounds. I note his significant persisting oncoplastic/neuropathic pain has been refractory to multiple medication treatments (see above), as well as, psychology and physiotherapy treatments. This should be used as an adjunct to a pain management program.
I note that a trial of cannabis may be appropriate in some cases based on patient value and clinical judgement (individualised medicine based on compassionate ground, or harm reduction principle) but, at this stage, it does not satisfy all the reasonably necessary criteria for the following reasons: -
An accepted alternative is a pain self-management program with a functional focus."
(a) there is limited clinical relevance and appropriateness, referring briefly to the TGA and FPM guidance which does not support use as a first-line treatment;
(b) multimodal pain management programs and functional rehabilitation are recommended over cannabis by the TGA and FPM. He latter adds a pain self-management program with a functional focus remains the preferred treatment at a cost of $15,000;
(c) the TGA notes a lack of cost-effectiveness compared to standard pain management interventions;
(d) the TGA review found no improvement in physical function or quality of life, and
(e) the FPM and major pain medicine authorities do not recognise medicinal cannabis as an established treatment.
11 April 2024. She reports that she had a 70-minute video link with the applicant to discuss his suitability for medicinal cannabis. She also notes that she read a very helpful letter from the applicant's treating psychiatrist, Dr Jungfer, prior to the review. 2. Dr Lahz takes a history of the 1985 farm accident, the stump infection in 2001/2002, infective flare ups, chronic infection leading to further amputation in 2021. She records that the applicant has had high levels of stump and phantom pain, which he had not previously experienced. She also records a history of the applicant's alcohol use, psychological treatment, including admissions for depression in early 2000's and intrusive recollections of the original injury from 2021. She refers to Dr Jungfer's report which records the applicant's main psychiatric issues are depressed mood, irritability and social withdrawal, for which she commenced him on Duloxetine five weeks ago, with current dose 120 mg daily. Dr Lahz records that the applicant says he is unsure if that medication is helpful for either pain or sleep. 3. Dr Lahz also takes a history of the applicant's "short fuse" and notes that he is "very short with certain providers, causing them sometimes to have withdrawn services". She notes that the applicant had been referred to a psychologist and Ms Sharp has been working with the applicant. Dr Lahz also notes that the applicant has too much time on his hands and this along with pain leads to "angry, aggressive, off putting outbursts". 4. In respect of the pain, Dr Lahz records that the applicant "complains of unrelenting pain in the stump, various kinds of pain including a 'driving hot sensation through the stump', painful cramping in the stump, electric shocks, pins and needles and phantom pains." She adds that the applicant said his stump also sometimes visibly twitches and he sometimes has to grab it to stop painful movements. She states that prior to 2021, the applicant wore a prosthesis for up to 12 hours per day, but now only 5-6 hours. 5. Dr Lahz records the numerous analgesics the applicant has trialled. She also notes that Dr Jungfer has referred the applicant to a clinic for consideration of pain management interventional procedures such as nerve blocks. She adds that the applicant is not "enthused" about nerve blocks as he considered they "are very painful (based on a previous experience of hearing other patients whilst in hospital)". 6. Dr Lahz, records that the applicant had considerable pain and sleep disturbance. She records that the applicant's only pain medications are Lyrica 300 mg bd and medical cannabis products (three THC Indica (relaxing) flowers, using a good quality vaporizer). She adds that the applicant reports that he is "very tolerant to THC and never stoned". 7. Dr Lahz notes that, prior to CDA clinic involvement, Dr Woods had been prescribing medical cannabis (with Workcover funding) but that there was a misunderstanding with the pharmacist leading to contact with the TGA. The applicant has been self-funding cannabis products that he can afford since CDA started prescribing in late 2022. Dr Lahz also records that the applicant had used "recreational Cannabis from about 1986 to help with some physical discomfort and sleep disturbance after the original accident". She adds that cannabis was very effective, but he does not use black market products if he has access to medical ones. 8. Dr Lahz records the dosages and types of medicinal cannabis oils taken by the applicant, which she records were taken "with good effect in conjunction with the various cannabis flowers". She records that the applicant said when using "both sublingual oils and vaped flowers, he was more involved in the care of his birds, could get out of the house and mow his lawn". She notes that the applicant has not been on any CBD dominant oils. 9. Dr Lahz records that the applicant has "some smoking-related chronic airways disease for which he uses Breo and Ventolin inhalers". 10. Dr Lahz notes that if the applicant's pain was better controlled, he would sleep better and could engage in more enjoyable activities and even possibly consider a return to part-time work. 11. Dr Lahz summarises that, the applicant has no physical or psychological contraindications to medicinal cannabis. She notes his "experience with cannabis (which is extensive) has been very positive with respect to chronic pain, sleep promotion and calming". She adds that there have not been any adverse effects from his use of cannabis. She further adds that it has advantages over conventional painkillers in that it does not depress breathing. She notes that while THC has addictive properties, in comparison with alcohol and other painkillers it is considerably less. She adds that Dr Jungfer is supportive of the medicinal cannabis treatment. 12. Dr Lahz states that the cannabis oils and flower can complement one another, "the oil evening out the symptomatic peaks and troughs whilst the flower is very useful for acute painful exacerbations". She adds that it is important that a CBD containing oil be prescribed along with THC flower because CBD negates ill effects of THC, which she notes have not been problematic for the applicant who has used cannabis for many years. The addition of THC to the CBD is more likely successful with neuropathic pain of the intensity the applicant is experiencing (as well as having benefits on sleep and irritability). 13. The current usage of medicinal cannabis has been beneficial for the applicant with respect to pain, anxiety and sleep. Although, Dr Lahz states some adjustments should be made. She proposes an initial prescription of 80 mg of THC oil daily, 100-300 mg daily of CBD oil and a maximum vaporized Indica flower dosage of not more than 2 g daily. She states that the most effective dosage will be "determined by titration, starting low dose and slowly moving upwards until ideal dose is found". She further states that the applicant will need to be regularly medically reviewed.
"Reasonably necessary does not mean 'absolutely necessary' (Moorebank at [154]). If something is 'necessary', in the sense of indispensable, it will be 'reasonably necessary'. That is because reasonably necessary is a lesser requirement than 'necessary'. Depending on the circumstances, a range of different treatments may qualify as 'reasonably necessary' and a worker only has to establish that the treatment claimed is one of those treatments. A worker certainly does not have to establish that the treatment is 'reasonable and necessary, which is a significantly more demanding test that many insurers and doctors apply. Dr Bodel and Dr Meakin were both wrong to apply that test."[14] (footnotes omitted)
"[88] In the context of s 60, the relevant matters, according to the criteria of reasonableness, include, but are not necessarily limited to, the matters noted by Burke CCJ at point (5) in Rose (see [76] above), namely:
(a) the appropriateness of the particular treatment;
(b) the availability of alternative treatment, and its potential effectiveness;
(d) the actual or potential effectiveness of the treatment, and
(e) the acceptance by medical experts of the treatment as being appropriate and likely to be effective.
[89] With respect to point (d), it should be noted that while the effectiveness of the treatment is relevant to whether the treatment was reasonably necessary, it is certainly not determinative. The evidence may show that the same outcome could be achieved by a different treatment, but at a much lower cost. Similarly, bearing in mind that all treatment, especially surgery, carries a risk of a less than ideal result, a poor outcome does not necessarily mean that the treatment was not reasonably necessary. As always, each case will depend on its facts.
[90] While the above matters are 'useful heads for consideration', the 'essential question remains whether the treatment was reasonably necessary' (Margaroff v Cordon Bleu Cookware Pty Ltd [1997] NSWCC 13; (1997) 15 NSWCCR 204 at 208C). Thus, it is not simply a matter of asking, as was suggested in Bartolo, is it better that the worker have the treatment or not. As noted by French CJ and Gummow J at [58] in Spencer v Commonwealth of Australia [2010] HCA 28, when dealing with how the expression 'no reasonable prospect' should be understood, '[n]o paraphrase of the expression can be adopted as a sufficient explanation of its operation, let alone definition of its content'."[15] (footnotes and citations omitted)
"... treatment must be reasonable if it is to fall within the purview of the subsection. But that is not solely because of the words 'reasonably necessary' but is rather inherent in the concept of 'treatment' itself. Treatment is necessarily purposive. Treatment, in the medical or therapeutic context, relates to the management of disease, illness or injury by the provision of medication, surgery or other medical service designed to arrest or abate the progress of the condition or to alleviate, cure or remedy the condition. It is the provision of such services for the purpose of limiting the deleterious effects of a condition and restoring health. If the particular 'treatment' cannot, in reason, be found to have that purpose or be competent to achieve that purpose, then it is certainly not reasonable treatment of the condition and is really not treatment at all."
(a) the evidence does not support use of medicinal cannabis, particularly, in view of the events at Basgers Pharmacy, historical usage and high tolerance of cannabis;
(b) the evidence does not address the applicant's comorbidities, namely, psychological issues and respiratory condition and related risks associated with medicinal cannabis use;
(c) the availability of alternative treatments, and
(d) there is a significant gap between injury and the link to the use of medicinal cannabis.
(a) Firstly, the applicant disclosed past recreational use of cannabis to alleviate his symptoms following the 1985 farming accident. The applicant was forthcoming and consistent in this disclosure in his statement evidence and histories reported to the medical practitioners.
(b) Secondly, following the accepted injury and surgeries the respondent approved for the applicant to undergo a medicinal cannabis trial for a period of six months from late 2021.
(c) Thirdly, the applicant travelled in December 2021 for 1.5 hours to attend on a pharmacy to collect the insurer approved medicinal cannabis. However, the pharmacy refused to dispense the medication because the applicant was three days too early. The applicant was ignorant to the procedure for prescription renewal and continued dispensing. This caused the applicant to become frustrated and angry and he was asked to leave the pharmacy.
(d) Fourthly, at some point following this event the applicant was no longer able to obtain medicinal cannabis from the pharmacy and arrangements had to be made elsewhere. The insurer was unable to contact the applicant's treating general practitioner Dr Woods, as he was on leave for three months through to March 2022. Following these events, the insurer ceased ongoing approval for the cost of the trial of medicinal cannabis from March 2022.
(e) Fifthly, following the denial of liability for medicinal cannabis in March 2022 the applicant has been prescribed medicinal cannabis which he self-funds. He has also sourced cannabis from the black market, which he does not consider to be the best course.
(f) Lastly, the applicant is unable to maintain ongoing self-funded medicinal cannabis use due to financial reasons.
[4] [2022] NSWPIC 381, [46] (per Principal Member Bamber).
[6] (1994) 35 NSWLR; (1994) NSWCCR 796.
[7] (1994) 35 NSWLR; (1994) NSWCCR 796.
[10] Mahony v J Kruschich (Demolitions) Pty Ltd [1985] HCA 37; (1985) 156 CLR 522; State Government Insurance Commission (Western Australia) v Oakley (1990) 10 MVR 570; Ozcan v Macarthur Disability Services Ltd [2021] NSWCA 56.
[11] Nguyen v Cosmopolitan Homes [2008] NSWCA 246, [44] (per McDougall J (McColl and Bell JJA agreeing)); Department of Education and Training v Ireland [2008] NSWWCCPD 134.
[12] Kooragang Cement Pty Ltd v Bates (1994) 35 NSWLR 452; 10 NSWCCR 796; Diab v NRMA Ltd [2014] NSWWCCPD 72.
[14] Diab v NRMA Limited [2014] NSWWCPD 72, [86] (per Roche DP).
[15] Diab v NRMA Limited [2014] NSWWCPD 72, [88]-[90] (per Roche DP).
[16] Diab v NRMA Limited [2014] NSWWCCPD 72, [86] (per Roche DP).
[17] Rose v Health Commission (NSW) [1986] NSWCC2; [1986] NSWCC 2; 2 NSWCCR 32, [52] (per Burke CCJ).
[18] [2014] NSWWCCPD 72, [76]-[90] (per Roche DP).
[19] Murphy v Allity Management Services Pty Ltd [2015] NSWWCCPD 49, [57]-[58] (per Roche DP).
White
Gilda Fabrics Pty Ltd [2025] NSWPIC 192
(1997) 15 NSWCCR 204
(1986) 2 NSWCCR 32
(1990) 10 MVR 570
(1994) 35 NSWLR 452
(1985) 156 CLR 522