Wong on Civil Liability

Evaluation of Permanent Impairment, Thresholds and Caps

Work-in-progress, 20 October 2024

[A] Personal Injuries - Table of Quantum of Damages: 


[B] Assessment of Permanent Impairment: 

> Victoria: 'Significant Injury' requirement: Wrongs Act 1958 (Vic) pt VBA. 

     -- see eg, 'Update on "significant injury" requirement for claims concerning or relating to intentional torts' (Nov 2019) <https://www.landers.com.au/legal-insights-news/update-on-significant-injury-requirement-for-claims-concerning-or-relating-to-intentional-torts>, archived at <https://archive.md/5UObU>. 

     -- see, 'Understanding thresholds and caps in personal injury litigation' (Victorian Government Solicitor's Office) <https://www.vgso.vic.gov.au/understanding-thresholds-and-caps-personal-injury-litigation>, archived at <https://archive.md/2jQOK>. 

     -- see also, 'Victoria – Public Liability – Damages Thresholds and Caps' (14 April 2024) <https://littleslawyers.com.au/news/victoria-public-liability-damages-thresholds-and-caps/>, archived at <https://archive.md/bF2rT>. 

> Western Australia: <https://www.icwa.wa.gov.au/__data/assets/pdf_file/0025/106765/Threshold-Schedule-2023-2024.pdf>. 

> **Useful summary of all of the state/territory caps and thresholds

> 2016: 'Damages Claimable: State-by-state Summary' (2016) AULA Precedent <https://classic.austlii.edu.au/au/journals/PrecedentAULA/2016/19.pdf>, archived at <https://perma.cc/73MU-LPGS>. 

> 2019: "Statutory compensation schemes: State-by-state summary" [2019] PrecedentAULA 32: <https://classic.austlii.edu.au/au/journals/PrecedentAULA/2019/32.html>, archived at <https://archive.is/IL0G2>.  

> 2022: Charles Simon, State of the Nation - A Practical Guide to Personal Injury in Australia (Wotton Kearney, 2022) <https://www.wottonkearney.com.au/download/13826>, archived at <https://perma.cc/7JNR-DR5K>.  

> Qld's Guidelines for evaluation of permanent impairment, 2nd ed (WorkCover, 2016): <https://www.worksafe.qld.gov.au/__data/assets/pdf_file/0011/24122/guidelines-for-evaluation-of-permanent-impairment.pdf>.  -- AMA 5.

> NSW's workers compensation guidelines for the evaluation of permanent impairment, 4th ed, 2021: <https://www.sira.nsw.gov.au/resources-library/workers-compensation-resources/publications/health-professionals-for-workers-compensation/NSW-workers-compensation-guidelines-for-the-evalution-of-permanent-impairment.pdf>. 

> NT WorkSafe guidelines for the evaluation of permanent impairment: <https://worksafe.nt.gov.au/forms-and-resources/guides/nt-worksafe-guidelines-for-the-evaluation-of-permanent-impairment>. 

>Tasmania Guidelines for evaluation of permanent impairment: <https://worksafe.tas.gov.au/__data/assets/pdf_file/0005/542687/Guidelines-for-the-Assessment-of-Permanent-Impairment-Version-3.pdf>.

> Comcare: <https://www.comcare.gov.au/about/forms-pubs/docs/pubs/claims/assessment-of-degree-of-permanent-impairment.pdf>. 

> South Australia Return to Work Scheme, Impairment Assessment Guidelines: <https://www.rtwsa.com/media/documents/Impairment-assessment-guidelines.pdf>. 

> Western Australia: <https://www.workcover.wa.gov.au/workers/understanding-your-rights-obligations-entitlements/permanent-impairment/>. 


[C] Wrongs Act 1958 (Vic) - ss 28LT, 28LW, 28LWB, 28LWD - "Significant Injury": 

> "1. ... Part VBA imposes a limitation on the ability of a person to bring a common law claim for damages for non-economic loss in relation to an injury to the person ‘caused by the fault of another person’.[1] In short, the injury or injuries must amount to ‘significant injury’ as defined in the Wrongs Act.[2]  In relation to most kinds of physical injury, the Wrongs Act requires that, in contested cases, there be an assessment of the degree of permanent impairment of the ‘whole person’ resulting from the injury.[3]  Generally speaking, assessments of permanent impairment in respect of physical injuries must be carried out in accordance with a certain American publication commonly referred to as ‘the A.M.A. Guides’;[4] and the assessed degree of impairment must satisfy the relevant ‘threshold level’ specified in the Wrongs Act.[5]  More details about the relevant provisions of Part VBA of the Wrongs Act are set out in several previous decisions of this Court. 2. Mr Ingle had total knee replacements for both his left leg and his right leg in early 2013. The knee replacements were very successful. Both knees had good function and were pain free. About four years and nine months later, on 27 November 2017, Mr Ingle slipped and fell on a patch of water at the first defendant’s airport at Tullamarine. His (replaced) left knee was damaged permanently. It was rendered painful, with substantially diminished function. Mr Ingle wished to sue the first defendant for negligence as an occupier. For that purpose, he came to need a determination by the Medical Panel to the effect that the injuries he suffered in the slip and fall amounted to ‘significant injury’. 3. However, the formal determination issued by the Panel was to the effect that the degree of impairment from the injuries to Mr Ingle alleged in his claim did not satisfy the threshold level. Indeed, in a statement of reasons accompanying the determination, the Panel said that there was ‘no additional impairment’ resulting from those injuries when assessed in accordance with the A.M.A. Guides. ... 23. On 17 October 2019, the Medical Panel returned its determination.  The question and answer were as follows: Question: does the degree of impairment resulting from the physical injury to the claimant alleged in the claim satisfy the threshold level? Answer: the Panel determined that the degree of whole person impairment resulting from the physical injury to the claimant alleged in the claim does not satisfy the threshold level. ... 51. Before the Medical Panel, it was common ground that, some four and three quarter years prior to the incident of November 2017, Mr Ingle had had a total left knee replacement.  Needless to say, Mr Ingle did not suggest that the first defendant was responsible for his pre-existing total left knee replacement.  Hence any impairment resulting from it was required to be ‘disregarded’, i.e. not counted positively in the Panel’s assessment.  On the other hand, a Medical Panel is not bound to evaluate pre-existing impairment in accordance with the A.M.A. Guides.  That was established for the purposes of the corresponding impairment assessment scheme under the Accident Compensation Act 1985 (Vic) by the judgment of the Court of Appeal in Lingenberg v Gallichio.[41]  There is no relevant distinction between the two schemes in this respect.  Indeed, the language of the directly corresponding provision of the Accident Compensation Act scheme, namely s 91(7)(c), is relevantly identical to that of s 28LL(3) of the Wrongs Act. 52. In an appropriate case, it may be open to a Medical Panel to assess impairment from a pre-existing total knee replacement by reference to Tables 64 and 66 of the Guides.  An example may be a case involving a second total replacement of the same knee, where a comparison between the results of the two knee replacements may be in order.  However, like should be compared with like.  A distinct, traumatic aggravation of a pre-existing knee replacement is not relevantly like the knee replacement itself.  As indicated above, in my view the aggravation simply does not fall to be assessed by reference to Tables 64 and 66, which are expressly designed to rate the ‘results’ of a total knee replacement. 53. Even if, contrary to my view, it were otherwise open to an assessor to apply Tables 64 and 66 in a ‘before and after’ fashion in relation to a person who suffers a traumatic injury to a totally replaced knee, such a course ought not be adopted if it would produce an ‘arbitrary, capricious or irrational’ result.[42]  In circumstances of that kind, ‘slavish adherence’ to the methodology in the A.M.A. Guides is not required.[43] On the Panel’s own findings of fact in the present case, it might well be thought that a conclusion of ‘no additional impairment’, or even a conclusion of non-satisfaction of the threshold level, was ‘arbitrary, capricious or irrational’, even if such a result could be squeezed out of the points system provided for in those Tables;[44] and all the more so because, at least according to Mr Gardiner and Mr Slattery, other methodologies were available under the relevant section of the A.M.A. Guides.  However, it is not necessary for me to decide finally whether, even if Tables 64 and 66 were otherwise available, the Panel’s determination was arbitrary, capricious or irrational. 54. As a further matter, Lingenberg v Gallichio establishes, at least by analogy, that s 28LL(3) carries with it an implied requirement that any impairment from injuries or causes that are not ‘unrelated’, i.e. any impairment from (actual) injuries that are claimed to have been caused by the fault of the relevant respondent, must not be disregarded.[45]  Any such impairment must be considered and assessed, not excluded.[46]  The Court of Appeal said:[47] Section 91(7)(c) requires a Medical Panel to disregard only so much of a worker’s assessed Whole of Person Impairment as is constituted of unrelated injuries or causes. Correlatively, the section does not authorise the Medical Panel to disregard any greater degree of the [worker’s] assessed Whole of Person Impairment. In a case of this kind, application of the methodology of s 3.3f(9) of the [A.M.A. Guides] results in the panel’s disregarding not only impairment from unrelated injuries or causes but also so much of the worker’s assessed Whole of Person Impairment as is due to the injury in question. To that extent, s 3.3f(9) is inconsistent with s 91(7)(c) and, perforce of s 91(1)(a)(iii),[48] is excluded. 55. Likewise, to apply Tables 64 and 66 in the present case would appear to conflict with the implied requirement of s 28LL(3) that impairment from injuries or causes that are not unrelated must be included in the assessment. At least, there would appear to be such a conflict if the result of applying Tables 64 and 66 was to reveal (in the Panel’s own language) ‘no additional impairment’ when the matter was ‘assessed in accordance with the Guides’. The implied requirement of s 28LL(3) that impairment due to the injury in question must be included in the assessment will prevail over any provision to the contrary in the A.M.A. Guides. That is made clear by the combined operation of ss 28LH and 28LZG of the Wrongs Act, the effect of which is that the obligation of assessors (including Medical Panels) to make their impairment assessments in accordance with the A.M.A Guides is subject to the provisions of Division 3 of Part VBA of the Wrongs Act. Section 28LL(3) is included within Division 3. ...": Ingle v Australian Pacific Airports (Melbourne) Pty Ltd [2021] VSC 50. 

> see eg, 'Court of Appeal provides clarity on the role of Medical Panel determinations in multi-defendant cases' (Barry Nilsson, 22 November 2023) <https://bnlaw.com.au/knowledge-hub/insights/court-of-appeal-provides-clarity-on-the-role-of-medical-panel-determinations-in-multi-defendant-cases/>, archived at <https://archive.is/gINEW>.  

> see also, 'Rosata decision set aside: Supreme Court allows multiple Medical Panel determinations' (Landers & Rogers, November 2023) <https://www.landers.com.au/legal-insights-news/rosata-decision-set-aside-supreme-court-allows-multiple-medical-panel-determinations>, archived at <https://archive.is/3iGjy>. 


[D] Victoria, Serious Injuries (Workplace)


[E] Specific Injuries and Assessment of Permanent Impairment

© Jing Zhi Wong, 2023-2024