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[2003] VSC 102
Supreme Court of Victoria
2003-04-08
Ashley J
Original judgment source is linked above.
[2003] VSC 102
Contribution - meaning of s. 23B(3), Wrongs Act 1958 - whether expiry of period of time specified by s. 20(1) of Wrongs Act operates to extinguish the right of action created by Part III of that Act, or operates to bar the remedy.
"Upon the facts assumed by SIFC and CSR to be established for the purposes of this application, must the claim for contribution by CSR against SIFC fail upon the proper construction of Parts III and IV of the Wrongs Act 1958?"
* The late Mr Wintle worked on the Melbourne waterfront at least between 1960 and 1969.
* He was exposed to asbestos in his work in breach of duty owed to him by each of SIFC and CSR.
* He developed Mesothelioma in consequence of his exposure to asbestos in breach of duty owed to him by each of SIFC and CSR.
* The Mesothelioma caused his death on 12 May 1989.
* In his lifetime he commenced a proceeding in respect of his Mesothelioma. The proceeding was brought against SIFC and certain other defendants; but not CSR. He claimed that SIFC had owed him a duty of care, and that breach of that duty had resulted in his contracting Mesothelioma, it being productive of pain and suffering, expense, and incapacity for work.
* The present plaintiff, the dependent widow of the late Mr Wintle, commenced a proceeding under Part III of the Wrongs Act ("the Act") by writ filed 6 April 2000. The plaintiff claimed that each of SIFC, James Hardie Coy Ltd and CSR had owed her late husband a duty of care and had breached that duty; and that in each case the breach was relevantly causative of injury, incapacity and death.
* Each defendant raised a defence that the claim against it was statute-barred.
* The plaintiff thereafter compromised her claims against SIFC and Hardie.
* The plaintiff made application for extension of time under s. 20(2) of the Act by summons filed 1 September 2000. Eventually it was pursued with respect to CSR. On 25 July 2002 I ordered that the period within which the plaintiff might bring an action on the cause of action against CSR be extended to 1 August 2002.
* CSR commenced its contribution proceeding against SIFC in the period which began with my order of 25 July and which ended on 1 August 2002. That was within the period specified by s. 24(4)(a)(i) of the Act.
* At the time when CSR commenced its claim for contribution against SIFC any action which the plaintiff might have commenced against SIFC under Part III of the Act would have been statute barred. Mr Wintle having brought an action in his lifetime against SIFC for injury resulting from its alleged breach of duty, s. 20(1) of the Wrongs Act would have applied, and the plaintiff could have gained no assistance from either of s. 20(1A) or (2).
"Subject to the following provisions of this section, a person liable in respect of any damage suffered by another person may recover contribution from any other person liable in respect of the same damage (whether jointly with the first-mentioned person or otherwise)."
"For the purposes of this Part a person is liable in respect of any damage if the person who suffered that damage, or anyone representing the estate or dependents of that person, is entitled to recover compensation from the first-mentioned person in respect of that damage whatever the legal basis of liability, whether tort, breach of contract, breach of trust or otherwise."
"A person shall be liable to make contribution by virtue of sub-section (1) notwithstanding that the person has ceased to be liable in respect of the damage in question since the time when the damage occurred unless that person ceased to be liable by virtue of the expiry of a period of limitation or prescription which extinguished the right on which the claim against that person in respect of the damage was based."
"Not more than one action shall lie for and in respect of the same subject - matter of complaint, and (subject to sub-section (1A)) every such action shall be commenced within six years after the death of such deceased person or where an application is made to a court under sub-section (2), within the period referred to in the order of the court."
"When the Compensation to Relatives Act gives rights to those of the deceased man's family to whom injury results from his death it does so in terms of remedy. The wrongdoer is to `be liable in an action of damages': s. 3(1). `Every such action shall be for the benefit of the wife, parent and child' - s. 4. The effect of these provisions, combined with s. 5 as it stood, was, in the conditions defined, to confer a right of action which is to endure for twelve months from the death. The statement that every such action shall be commenced within twelve months meant, of course, `and not otherwise'. When the time expired the right of action was terminated or defeated. That being so, it appears to me that the situation is one falling within the application of the presumptive rule of construction. The appellant had lost her right of action before Act No. 33 of 1953 was passed and was without remedy. In terms a remedy had been conferred and in terms a bar had been imposed upon the remedy as such."[15]
"To say that notionally the right to damages continued to exist and only the manner of enforcing the right had been destroyed appears to me to ignore the fact that the right to damages could not be separated from the right to recover them."[16]
"Section 5 contains two important requirements relating to its enforcement by or on behalf of the person for whose benefit the new right of action is created. The first is that not more than one action shall lie for and in respect of the same subject matter of complaint and the other is that every such action shall be commenced with twelve months (now six years) after the death of such deceased person. These two provisions are in a sense procedural but they are not part of any procedure by which rights of action generally may be enforced. They impose limitations upon such general procedure. If compliance with these requisites is essential to the enforcement of the cause of action then the requirement that the action must be commenced within twelve months from the death places a time limit upon its life. After the expiry of that time the cause of action is not merely statute barred, it is extinguished. This is, it would appear, the true effect of the section. The cause of action is only enforceable to use the words of the original Act `provided always' that the action is commenced within the twelve months."[17]
"... the requirement that the action should be commenced within twelve months, that being the time for which it was prolonged, would appear to be clearly of the essence."[18]
"A proviso added two more limitations: `that no more than one action shall lie for and in respect of the same subject matter of complaint; and that every such action shall be commenced within twelve calendar months after the death of such deceased person'. That the first limb of this proviso went to the substance of the new right to damages is clear, for its effect was to exclude from the right any persons for whose benefit the liability to an action was imposed who might not be parties for whom and for whose benefit the action was in fact brought. It meant that `the persons who stand out stand out for ever': Avery v London and North Eastern Railway Co. The second limb carried the process of limiting the right a step further, for it meant that the liability was confined to being sued, not only in a single action, but in an action commenced within twelve months after the death. This second limb could hardly have worn less resemblance to a mere limitation of the time for enforcing a cause of action to which it was extraneous. It appeared in the Acts as one of the provisions by which the area of the new liability was being plotted - as an essential qualification indeed, of the new action that was being provided for. The proviso has always remained as a proviso in England. In New South Wales the Act was re-enacted in 1897, and the words `Provided always' and `calendar' were then omitted. But the nature of the provision remains indubitably the same."[19]
"(1A) Where the death of a deceased person was caused by an injury consisting of a disease or disorder contracted by a person and the person did not know before he died - (a) that he had suffered the injury; or (b) that the injury was caused by the act or omission of some person- an action in respect of the injury shall be commenced within six years after the date when the person claiming to have a cause of action under this Part first knows- (c) that the death was caused by the injury; and (d) that the injury was caused by the act or omission of some person- or, where an application is made to a court under sub-section (2), within the period referred to in the order of the court.
"(2) Where on an application to a court by a person claiming to have a cause of action under this Part, it appears to the court that- (a) the death of the deceased person was caused by a wrongful act, neglect or default; and (b) the deceased did not before his death bring an action in respect of the wrongful act neglect or default- the court subject to sub-section (3) and after hearing such of the persons likely to be affected by that application as it sees fit, may, if it decides that it is just and reasonable so to do, order that the period within which an action on the cause of action may be brought be extended for such period as it determines. (3) In exercising the powers conferred on it by sub-section (2) a court shall have regard to all the circumstances of the case including (without derogating from the generality of the foregoing) the following- (a) the length of the reasons for the delay on the part of the deceased or the claimant or each of them (as the case may be); (b) the extent to which, having regard to the delay, there is or is likely to be prejudice to the defendant; (c) the extent, if any, to which the defendant had taken steps to make available to the deceased or the claimant or each of them (as the case may be) means of ascertaining facts which were or might be relevant to the cause of action of the deceased or the claimant or each of them (as the case may be) against the defendant; (d) the duration of any disability of the deceased arising on or after the date of the accrual of the cause of action; (e) the extent to which the deceased or the claimant or each of them (as the case may be) acted promptly and reasonably once he knew in relation to the injury that caused the death that the act or omission to which that injury was attributable might be capable at that time of giving rise to an action for damages; (f) the steps, if any, taken by the deceased or the claimant or each of them (as the case may be) to obtain medical legal or other expert advice and the nature of any such advice he may have received. (3A) The powers conferred on a court by sub-section (2) may be exercised at any time notwithstanding- (a) that more than six years has expired since the cause of action accrued; or (b) that an action in respect of such personal injuries has been commenced by the claimant."
"The statement that every such action shall be commenced within twelve months meant, of course `and not otherwise';"[20]
and the other judges in the majority also referred to the definite period established by s. 5 of the New South Wales Act. That certainty is now absent. The actual length of time between death and the expiry of the period within which a proceeding may be commenced cannot be specified in any particular case at the time of death. It will depend upon the possible application of sub-ss. (1A) and upon the potential at some later time for a successful application under sub-s. (2).
* First, expressed in terms of a defendant's liability, s.16, particularly, sets up the right of action. Mr Kaye submitted, I think with some force, that the succeeding sections may be loosely described as procedural. He referred in that connection to ss. 17-22. It is certainly the case that most of the sections subsequent to s. 16 build upon the "action for damages" in respect of which a liability is created by s. 16. So, ss. 17 and 21 refer to "every such action", s. 18 to an action "as in this Part mentioned", s. 19 to "any action under this Part," and s. 22 to "any action as in this Part mentioned". In the context thus created, s. 16 does not make the existence of the right of action conditional upon action being commenced within the six year period now conditionally set up by s. 20(1). Section 20(1) does not commence by saying, as it did long ago, "Provided always".
* Third, for reasons explained s. 20(1A) and (2)-(4) are apt to operate in conjunction with a limitation period which bars the remedy.
* Fourth, the fact that the limitation period is created by the statute which creates the right of action does not require a conclusion that such right is extinguished once the period has expired. The point, made by Windeyer J in Australian Iron and Steel Limited v Hoogland[35], has been very recently reiterated by the Court of Appeal in PSL Industries Ltd and Anor v Simplot Australia Ltd[36] in the context of the operation of s. 82(2) of the Trade Practices Act with respect to an action authorised by sub-s. (1) of that section. I refer particularly to the judgment of Chernov JA at [18]-[19]. His Honour evidently accepted the correctness, for present purposes, of Carey-Hazell v Getz Brothers and White v Eurocycle Pty Ltd[37]. Each of those cases (I have already referred to Carey Hazell) concerned s. 74J of the Trade Practices Act, and add an example of a limitation provision not extinguishing a right of action created by the same statute.
Mr Gorton submitted that Carey-Hazell and White did not assist the plaintiff. He argued that each of the them concerned a provision having application to any number of causes of action, and thus a provision more characteristic of a limitation provision barring the remedy than one creating an element or condition of a right of action.
It is certainly the case that s. 74J applies to the different causes of action created by Division 2A of Part V of the Trade Practices Act. It remains the case, however, that s. 74J is an instance of a limitation provision contained in the statute which creates the cause of action; and it is also the fact that s. 74J has a specific application to each of the various causes of action created by the Division.
* Fifth, Part IV of the Act is general in its application. It is not confined to proceedings commenced under Part III. The reference in s. 23B(3) to "the expiry of a period of limitation... which extinguished the right on which the claim... was based "could not be taken to be an intended discrete reference to the right of action created by Part III.
* First, s. 20(1) does not in terms say that the right of action created by Part III will be extinguished at the end of the six year period. As Chernov JA observed in PSL Industries, "If Parliament had intended to achieve the result it could have used direct language to that effect."[38]
* Second, there is a similarity of language between the pertinent limb of s.20(1), viz: "Every such action shall be commenced within six years....", and the language of s.5(1) of the Limitation Act, viz: "The following actions shall not be brought after the expiration of six years." Section 5(1) limitation periods bar the remedy rather than extinguishing the right.
1. The following question in the proceeding be tried before the trial of the proceeding: "Upon the facts assumed by SIFC and CSR to be established for the purposes of this application, must the claim for contribution by CSR against SIFC fail upon the proper construction of Parts III and IV of the Wrongs Act 1958?"
2. The question having been tried, and the answer thereto being "no", the first defendant's summons filed 5 February 2003 be dismissed.
[5] The totality of the claims for contribution are identified in Wintle (No.3) at para.4.
[11] An example of which is s. 34 of the Civil Aviation (Carriers' Liability) Act 1959 (Cth), considered recently by the Court of Appeal: Agtrack (NT) Pty Ltd v Hatfield [2003] VSCA 6.
[13] [1998] VSCA 104; [1999] 1 VR 299 particularly at 305 and 309.
[14] [1991] HCA 56; (1991) 174 CLR 1 per Mason CJ at 27, 28.
[21] See at 44, citing the judgment of Windeyer J in Hoogland at 489. For a case in which a limitation provision which on its face was apt to bar the remedy was later declared by the same statute to have the effect, on its expiry, of extinguishing the right of action, the statute also providing for the prospect of extension of time, see The Commonwealth v Mewett (1997) 191 CLR 471 particularly per Dawson J at 508-509, Toohey J at 516-517, and McHugh J at 530 and 532-533. Little is to be gleaned from that case. Its resolution depended upon the interaction of unique provisions.
[23] See at [35]. The decision needs to be treated with particular caution. For there the limitation period expressly assumed the existence of a cause of action; and it could definitely be said that the matters addressed by the limitation provision were not logically congruent with the matters constituting the elements of the cause of action. Further, s.74J(2)(a)(i) of the Trade Practices Act set no prima facie limitation period.
[27] The same Act to which I referred in connection with ss. 5(1A) of the Limitation Act and 20(1A) of the Act.
[31] "Unlike a time bar, which upon the effluxion of the prescribed period of time terminates an existing ability to recover damages, s.93 requires events to occur before damages can be recovered for injuries sustained in a transport accident, and until these events occur, prevents causes of action coming into existence." At [28].
[33] See per Williams J at 274 and per Kitto and Taylor JJ at 292-293.
[35] [1962] HCA 13; (1962) 108 CLR 471 at 488-489.
[37] [1995] SASC 5109; (1995) 64 SASR 461; see particularly at 467.
Wintle
Stevedoring Industry Finance Committee
(1956) 96 CLR 261
(1991) 174 CLR 1
(1997) 191 CLR 471
(2001) 112 FCR 336
(1995) 21 MVR 41
(1962) 108 CLR 471
(1995) 64 SASR 461