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nsw_caselaw:549fd5843004262463bf1e27:14 | nsw_caselaw:549fd5843004262463bf1e27 | whether she continued to have pain following the motor vehicle accident and whether, in the months following the motor vehicle accident, she experienced episodes of subluxation developing into dislocation within six months of the motor vehicle accident.
He submitted that the primary judge’s findings with respect to causation were based on his conclusions favourable to the respondent on each of those matters as well as his preference for the evidence of Professor Sonnabend where it differed from that of Dr Hitchen.
Mr Toomey argued that the primary judge was entitled to conclude from an analysis of the reports of Mr Eisman of 19 February and 22 February 1999 respectively that the respondent had complained to him of an increase in problems with her right shoulder on the days following the accident.
He argued that the primary judge properly analysed (at [32] – [44]) the documents showing the respondent continued to have pain in her right shoulder in the period following the accident and made findings accordingly.
Next, Mr Toomey submitted that the primary judge was entitled to accept the respondent’s mother’s evidence that the respondent had first complained to her of a right shoulder dislocation at a time close to June 1999.
He also argued that the primary judge was entitled to conclude from the chiropractor’s note of 17 June 1999 which referred to a left shoulder dislocation that although the letter “L” appeared as the descriptor, the complaint had, in fact, been in respect to the respondent’s right shoulder.
This was consistent, Mr Toomey contended, with the respondent’s evidence (not contradicted in cross-examination) that she had never had any dislocations of her left shoulder, evidence with which her mother agreed, and with the fact that there was no history provided to any doctor or opinion expressed that the respondent had MDI in her left shoulder.
Finally, Mr Toomey argued that the primary judge was entitled to prefer Professor Sonnabend’s evidence.”
26 I turn now to deal in more detail with that “large body” of evidence, said to be inconsistent with the respondent’s case and otherwise said not to have been dealt with adequately by the trial judge. That review necessarily starts with credibility issues.
Credibility
27 While the trial judge regarded the respondent’s memory as defective, concluding that, understandably, with the passage of time she had forgotten incidents and sequences, his Honour rejected the appellant’s submission that she was dishonest (at [101]). McColl JA summarises how the trial judge dealt with her evidence:
“He appears to have reached that position despite acknowledging inconsistencies in her evidence both between her evidence in chief and cross-examination (see primary judgment at [96] – [98]) and the medical evidence because he found:
(a) the respondent was mistaken about when the pain first became significant and when its increase first became significant to her (at [99]);
(b) even though the respondent first attributed her shoulder problem to the accident in March 2000, much was happening in her life in the first half of 1999 and her wrist problem was overwhelmingly the main problem that year in preventing her return to work (at [100]);
(c) she was entitled to have assumed that the right shoulder pain she had after the accident was the same problem as before rather than having been caused by the accident (at [102(w)]).
Accordingly his Honour said he did not reject the respondent totally in areas unsupported by contemporaneous records, but treated what she told him, especially about the period just before and in the one year post accident “with very considerable caution” (at [101]).”
28 I consider it not implausible that, as the trial judge accepted, the respondent herself would not have attributed her shoulder problems to the accident until Dr Sonnabend’s diagnosis in March 2000, for the reasons stated in summary in (b) and (c) above. | [
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|
nsw_caselaw:549fd5843004262463bf1e27:73 | nsw_caselaw:549fd5843004262463bf1e27 | “17-6-99
S Pt c/o shoulder (P) (L) deep in joint previous dislocation
O By palp to (L) shoulder ROM in extension
abduction (P) bigger pts (L) rhomboid
Pt tender to light palp. C, T sublux
A sublux
P u/s myofascial release adjust”
[The “L” in the first line is either written over by “R” or vice versa]
198 As I have said, the primary judge interpreted this entry to be a reference to the respondent complaining of her right shoulder dislocating on the basis of his conclusion that the letter “R” had been written over the letter “L” in the first line.
199 I cannot, with respect, accept that this conclusion was open to his Honour. I accept that it is not part of the appellant’s case that the respondent’s left shoulder had dislocated.
However that does not mean that the only inference from the 17 June 1999 note is that it referred to the respondent’s right shoulder. Read in its entirety the note refers to an examination of the respondent’s left shoulder.
The letter “L” appears on the second and third lines in connection with the examination. It seems inconceivable that Mr Eisman could have been so confused in preparing his notes as to have recorded an examination of the respondent’s right shoulder in terms clearly referable to her left.
The fact that the only correction to the notes appears to be to write “L” over “R” is, in my view, consistent with the other parts of the note that this was an examination of the respondent’s left shoulder.
200 Further it should be noted that in an entry dated 19 July 1999 (but which curiously appears before an entry dated 17 July 1999) Mr Eisman recorded:
“19-7-99
S Pt has had cortisone injection to (R) thumb
1-7-99, cold will ↑ (P) in hand. Unable to do full ROM [with] (R) thumb
(P) in both shoulders esp in (L)
O ↓ sensation (R) thumb
↓ wrist ROM …”
201 This entry makes it plain that in mid 1999 the respondent was experiencing pain on both shoulders and more in her left than her right.
202 In my view the 17 June 1999 note does not support the respondent’s case. Not only does the note, in terms, refer to her left shoulder, but a conclusion that the respondent’s right shoulder dislocated in June 1999 is, again, inconsistent with the bulk of contemporaneous material.
203 Significantly, the respondent’s case was that she reported the terrifying incident in which her shoulder subluxed to Dr Bloom the day it occurred. There is no record of any such report to Dr Bloom in the period she identified as being when her first subluxation occurred. The absence of such a record, in my view, tells strongly against the respondent’s case as to when her shoulder first subluxed.
204 One of the appellant’s submissions to the primary judge was that his Honour should draw an inference adverse to the respondent’s case because of her failure to call either of her general practitioners.
The primary judge disposed of that submission by noting that the general practitioners’ notes were tendered by the appellant and, accordingly, he did not see that there was “weight in the criticism”.
205 It is convenient at this stage to deal with the appellant’s complaint (ground 5) about the respondent’s failure to call her general practitioners.
206 In Schellenberg v Tunnel Holdings Pty Ltd [2000] HCA 18; (2000) 200 CLR 121 (at [51]) Gleeson J and McHugh J approved the statement by Mr Dyson Heydon QC (as his Honour then was) in Cross on Evidence that:
“[T]he rule [in Jones v Dunkel ] only applies where a party is ‘required to explain or contradict’ something. What a party is required to explain or contradict depends on the issues in the case as thrown up in the pleadings and by the course of evidence in the case. No inference can be drawn unless evidence is given of facts ‘requiring an answer’.”
207 Most recently, in Ibrahim v Pham [2007] NSWCA 215, Campbell JA (Hodgson and Santow JJA agreeing) said: | [
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|
nsw_caselaw:549fd5843004262463bf1e27:59 | nsw_caselaw:549fd5843004262463bf1e27 | 124 The primary judge was not obliged to spell out every detail of his process of reasoning (Yates Property Corporation Pty Limited (in liq) v Darling Harbour Authority (1991) 24 NSWLR 156 at 171, 182), however he was obliged to expose his reasons for resolving a point critical to the contest between the parties: North Sydney Council v Ligon (1995) 87 LGERA 435 (at 442) per Kirby ACJ;
Soulemezis v Dudley (Holdings) Pty Ltd (1987) 10 NSWLR 247 (at 270) per Mahoney JA, at 280 per McHugh JA.
This obligation lay upon him to enable the parties to identify the basis of his decision and the extent to which their arguments had been understood and accepted: Soulemezis at 279 per McHugh JA.
It was necessary that he “ ‘enter into’ the issues canvassed and explain why one case was preferred over another”: Jones v Bradley [2003] NSWCA 81 at [129] per Santow JA (with whom Meagher and Beazley JJA agreed).
125 It was, accordingly, essential that his Honour’s reasons did justice to the issues posed by the appellant’s case: Moylan v Nutrasweet Co [2000] NSWCA 337 at [61] per Sheller JA (Beazley and Giles JJA agreeing).
In Flannery v Halifax Estate Agencies Ltd t/as Colleys Professional Services [2000] 1 All ER 373 at 377-378 the Court (Henry, Laws LJJ and Hidden J) explained the extent of this aspect of the duty to give reasons in the following terms:
“It is not a useful task to attempt to make absolute rules as to the requirement for the judge to give reasons. This is because issues are so infinitely various.
For instance, when the court, in a case without documents depending on eye witness accounts is faced with two irreconcilable accounts, there may be little to say other than that the witnesses for one side were more credible … But with expert evidence, it should usually be possible to be more explicit in giving reasons: See Bingham LJ in Eckersley v Binnie (1988) 18 Con LR 1, 77-78:
‘In resolving conflicts of expert evidence, the judge remains the judge; he is not obliged to accept evidence simply because it comes from an illustrious source; he can take account of demonstrated partisanship and lack of objectivity.
But, save where an expert is guilty of a deliberate attempt to mislead (as happens only very rarely), a coherent reasoned opinion expressed by a suitably qualified expert should be the subject of a coherent reasoned rebuttal, unless it can be discounted for other good reasons …’
…
(3) The extent of the duty, or rather the reach of what is required to fulfil it, depends on the subject matter.
Where there is a straightforward factual dispute whose resolution depends simply on which witness is telling the truth about events which he claims to recall, it is likely to be enough for the judge (having, no doubt, summarised the evidence) to indicate simply that he believes X rather than Y; indeed there may be nothing else to say.
But where the dispute involves something in the nature of an intellectual exchange, with reasons and analysis advanced on either side, the judge must enter into the issues canvassed before him and explain why he prefers one case over the other. This is likely to apply particularly in litigation where as here there is disputed expert evidence; but it is not necessarily limited to such cases.
(4) This is not to suggest that there is one rule for cases concerning the witnesses' truthfulness or recall of events, and another for cases where the issue depends on reasoning or analysis (with experts or otherwise).
The rule is the same: the judge must explain why he has reached his decision. The question is always, what is required of the judge to do so; and that will differ from case to case. Transparency should be the watchword.” (emphasis added).
126 Finally I would observe that where, as in the present case, there is a mass of documentary material arguably supporting the appellant’s claims, that material must be considered in the judge's reasons in a satisfactory way: State Rail Authority of New South Wales v Earthline Constructions Pty Ltd (in liq) [1999] HCA 3; (1999) 73 ALJR 306 (at [94]) per Kirby J. | [
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] | null |
|
nsw_caselaw:549fd5843004262463bf1e27:18 | nsw_caselaw:549fd5843004262463bf1e27 | “In my view, contrary to the primary judge’s conclusion, by and large the records support the proposition that the respondent’s right shoulder first subluxed towards the end of 1999, whereupon she was referred to Dr Sonnabend. A version of subluxation followed by immediate referral accords with the respondent and her mother’s account of the sequence of events, albeit not with their timing.
Returning to Dr Zicat, I find it difficult to understand why he would have recorded an incorrect history as the primary judge inferred. The primary judge felt comforted in reaching his conclusion that Dr Zicat had erred because the doctor recorded that the respondent’s bursitis began in March 1999.
However, in my view the history Dr Zicat recorded was more probably than not that given by the respondent. It is consistent with her relating events to March 1999, as she did when she saw Dr Sonnabend.
However, the history Dr Zicat was given of the timing of the onset of her subluxation accorded with other contemporaneous material, including the report to Mr Eisman in December 1999.
I note parenthetically, as the appellant submitted, that if the respondent’s shoulder had been subluxing since March or June 1999, merely on simple movements, as she described, it is inconceivable she would have been swimming at the end of the year. The timing of Dr Naim’s referral also, in my view, accords with a late 1999 subluxation.
In my view, the weight of the evidence supports the view that the respondent did not suffer increased right shoulder pain after the accident and that her right shoulder first subluxed towards the end of 1999. The primary judge reached the contrary conclusion based largely on the inferences he drew from the chiropractor’s records to which I now turn.”
33 McColl JA then deals with Mr Eisman’s notes (Mr Eisman, referred to by the trial judge as Dr Eisman, was the respondent’s chiropractor). Also dealt with are two referral letters to a Dr Ridhalgh an orthopaedic surgeon dated 19 and 22 February 1999. The latter deals with the respondent’s condition after the accident and the former describes the respondent’s condition pre-accident.
Those notes and the two letters were relied upon by the trial judge to support the finding that the respondent complained to Mr Eisman just after the accident about an “increase in right shoulder pain”. The respondent had come to see her chiropractor, relevantly not only the day before the accident namely on 16 February 1999, but also immediately after, namely on 17 and 19 February 1999.
34 Mr Eisman (without criticism from either side) did not give any oral evidence. However, his notes and the referral letters were in evidence. Those notes also included entries on 17 June 1999 and further entries on 19, 20, 29 July and 6 August 1999. The trial judge dealt with the evidence emanating from Mr Eisman as follows:
“13. This case is unusual, given the significant issue on causation and that Dr Eisman happened to see her the day before the accident and the day after. Dr Eisman did not give evidence and I was told that his clinic had closed. His notes, which were in evidence, were the subject of minute attention by counsel. Dr Eisman's absence was not the subject of adverse comment by counsel for either party.
14. Given the defendant's primary contention that the plaintiff did not at any relevant time complain of any accident caused right shoulder injury, it is helpful to see what contemporaneous records show after the accident, compared with what they recorded before.
15. As I have noted, the accident occurred on 16 February 1999. The plaintiff said she took the impact in the right arm and thereafter had completely restricted wrist movement. Immediately following the accident an ambulance came and took her to St George Hospital. | [
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] | null |
|
nsw_caselaw:549fd5843004262463bf1e27:38 | nsw_caselaw:549fd5843004262463bf1e27 | She was having physiotherapy, analgesia, such as Pethidine, and said she had been given Zoloft, an antidepressant. I infer that she complained to him on that visit of pain in her right shoulder.
I take this from this statement in his report: ‘She also has bursitis in the right shoulder’. I note the present tense. That, of course, as Mr Bartley submitted, was the label attached by doctors to her pre-accident shoulder complaint.
She did not specifically complain to him, I infer, of increased right shoulder pain, but the present tense suggests that she was still suffering from right shoulder pain when she saw him.
33. She was contacted by a worker's compensation loss assessor on 1 April 1999, and in cross-examination she conceded she had said this to him:
‘I immediately felt extreme pain in my right wrist at the base of the thumb. I suffered no other injuries’.
34. She mentioned, however, to the worker's compensation assessor that she had a right shoulder condition too. She said:
‘I also have bursitis in the right shoulder due to the way I use my arm at work and commenced physio at the City Clinic...I am not currently receiving treatment on the right shoulder as I am resting the arm by not being at work’.
35. She had minor symptoms for an unconnected matter on her upper right arm on 3 May 1999. A document from CRS Australia tendered by the defendant has this entry for 4 May 1999:
‘Phone call to Steven Matthews, physiotherapist. He stated that Vashti (the plaintiff) was initially seeing him because of shoulder problems because of how awkwardly she takes blood.
Considering previous history and damage caused in accident, it would be difficult to go back to blood taking. He stated that she has returned CIL movements but her strength is reduced. He felt a change in some of the duties would need to be inevitable’.
36. At about this time the plaintiff went to a pain clinic and came under the care of Dr Gronow. He noted the right arm pain and that she was highly motivated to return to work; see his report of 13 April 1999.
37 On 4 May 1999 the pain clinic wrote to Dr Hargreaves, speaking mainly of the right forearm, but noting also:
‘Restricted range of motion of her right shoulder to 120 degrees abduction.’
38. That suggests to me that she continued to complain of some right shoulder problems, although the right forearm was her main concern. Additionally, according to that report, she was suffering a significant degree of emotional distress and was seen as highly dependent on analgesic drugs.
39. A Motor Accident Authority certificate of 14 May 1999 by her GP described the injury as: ‘Right wrist injury - full extension injury’.
40. The surgery on her right arm, which she had in April or May 1999, left her with a thrombosis on her left arm, but the relevant area had returned to normal by 11 June according to her physician, Dr McGrath.
41. Her GP, in a questionnaire dated 14 June 1999, diagnosed inter alia: ‘Right upper limb - regional pain syndrome’. He continued:
‘Complex pain management problem - already has a severely compromised right forearm before the motor vehicle accident. Considering the long convoluted history, prognosis is poor’ .”
82 In May 1999 the respondent was diagnosed with the genetic disorder to which I earlier referred. That diagnosis had a profound effect on her as the primary judge detailed:
“42. In May 1999 the plaintiff learned for the first time that she had a rare genetic condition called Methylene Tetrahydrofolate Reductase Deficiency. This condition can lead to ligamentous laxity.
Learning for the first time that she had this condition was a shock for her, because the consequences can be very severe. She was warned, among other things, that she may lose a limb through gangrene. She became very depressed about this. She was already suffering depression from her right wrist problem. | [
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|
nsw_caselaw:549fd5843004262463bf1e27:70 | nsw_caselaw:549fd5843004262463bf1e27 | 177 The primary judge drew his conclusion that the respondent had suffered increased pain to her right shoulder after the motor vehicle accident from his analysis of Mr Eisman’s letter 22 February 1999 to Dr Ridhalgh recording that the respondent’s “entire right shoulder is in pain and discomfort” and that her “upper extremity was re-injured” in the accident.
He also noted “increased inflammation” in a section dealing with an examination of both shoulders. The primary judge inferred, contextually, that this was a reference to increased inflammation in the right shoulder: primary judgment at [23].
178 The second conclusion, that her right shoulder had first subluxed in June 1999, was drawn from his interpretation of Mr Eisman’s note of 17 June 1999 referring to “L” shoulder as being a reference to the respondent’s right shoulder.
179 I note parenthetically that the only explanation for Mr Eisman not giving evidence which was apparently proffered to the primary judge was that his clinic had closed. There was no suggestion that he was unable to be located. However, as the primary judge recorded, his absence was not the subject of adverse comment by counsel for either party.
180 Mr Eisman first saw the respondent on 15 February 1999. He took a detailed history from her on a document headed “Shoulder examination”.
It is unnecessary to set out the detail of this document, much of which was set out in his first report of 19 February 1999 to Dr Ridhalgh, reproduced by the primary judge at [20]. I note, however, that at the outset, in a passage not referred to by the primary judge, Mr Eisman wrote:
“Thank you for referring Ms Vashti Clancy…for treatment and evaluation of her right shoulder and arm. Ms Clancy is a 25 year old ambidextrous female. She states that she writes with her right upper extremity however she performs most tasks with her left upper extremity due to her condition.” (emphasis added)
181 I infer from this paragraph that when Mr Eisman used the expression “upper extremity”, he was describing her hand.
182 The report then said:
“ Chief Complaint
Ms Clancy states her entire right shoulder is in pain and discomfort. She also states that in a resting state she experiences a constant burning sensation on a pain level of 4/10; 10 being the worst.
Upon movement she experiences a grinding sensation as well as sharp stabbing pains. She denies any temperature changes or sensory deficits. Her range of motion is also limited by the events that led up to the patient's past medical history.
The onset of this acute condition occurred about six months ago. She now states it has become both chronic and debilitating. She recalls no trauma nor incident that has provoked the condition however, states that her occupational duties aggravate the condition.
Ms Clancy also states she is unable to perform normal daily activities inclusive of housekeeping, opening jars or even personal grooming activities as simple as getting dressed ”
183 Mr Eisman’s second report of 22 February 1999 was almost identical to his first, save that it included:
“Update Report :
Evaluation of her right shoulder and arm. On February 16, 1999 she was involved in a rear end motor vehicle accident. Ms Clancy was the driver and recalls no loss of consciousness — [the word conciseness appears here but is clearly incorrect and is intended to be consciousness] - nor emesis.
She however states that her right arm and upper extremity was re-injured. She was taken to the hospital by ambulance. A complete examination was performed inclusive of radiological studies.’
Chief Complaint
Ms Clancy states her entire right shoulder is in pain and discomfort. She also states that in a resting state she experiences a constant burning sensation on a pain level of 10/10, 10 being the worst.
Movement is completely restricted and she feels heat and swelling of a pressure type sensation throughout her arm and hand. She denies sensory deficits. Her range of motion is also limited.” (emphasis added) | [
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] | null |
|
nsw_caselaw:549fd5843004262463bf1e27:49 | nsw_caselaw:549fd5843004262463bf1e27 | (u) Dr Sonnabend says in the normal course the condition would have got better.
(v) Though she had pre-accident right shoulder pain, she had worked full-time since October 1998 and before that, part-time since mid 1998. The defendant did not suggest she had ever lost time from work because of right shoulder problems, although it was clearly severe enough to cause her to get household help and to stop some physical activities.
(w) Given she continued to have right shoulder pain after and had had it before, it is consistent with human affairs, I think, for her to have assumed, for a time at least, that she had the same problem as before and not to see the accident as the cause, especially given, as Dr Sonnabend says; the symptoms do not necessarily come on for up to six months after a traumatic event.
(x) Although the plaintiff is recorded in November 1999 as saying ‘Pain in the right shoulder was the same as before,’ that does not mean its cause was not the accident, given the bursitis in the normal course would have got better on the evidence of Dr Sonnabend, which I accept.
103. Although, as I have noted, I treat her evidence with great caution, given the above matters I do accept her evidence that she did suffer some increase in pain and some subluxation in the six months following the accident.
104. In concluding as I have, I bear in mind the Court of Appeal’s treatment of the law of causation and the onus on plaintiff and defendant in State of New South Wales v Burton [2006] NSWCA 12.
105. Thus I find that by reason of the accident, the plaintiff’s right shoulder problem which pre-existed the accident, was aggravated, such that she had a much greater problem than she would otherwise have had. The pre-accident condition would probably have been cured within a matter of a few months, I find, absent the accident.
I find that the defendant is, therefore, liable for the sequelae, including the multiple surgical procedures, and the injuries to her mouth and teeth she suffered when she fell after having the pain relieving injection for the shoulder related problems in mid 2000.
I find that she has been unable to work since 1999 by reason of the injuries and will in the years to come lose some time off work by reason of the symptoms and related osteoarthritis.
Further, I find that by reason of the shoulder injuries, she has incurred expenses for treatment and will probably do so from time to time through her life, and she has needed at times and will need home care and nursing care, especially, as to the past, after surgical procedures.”
94 His Honour then dealt with the quantum of damages.
Grounds of Appeal
95 The appellant relies upon the following grounds of appeal:
“1. His Honour erred in finding that the evidence established on the balance of probabilities that the accident led to an aggravation and worsening of the plaintiff’s pre-accident right shoulder problem, and that the defendant is liable for such damage as flows from that.
2. His Honour’s finding that the right shoulder first commenced to dislocate in June 1999 is against the weight of evidence.
3. His Honour erred in failing to consider or properly consider all relevant evidence in coming to his finding when the plaintiff’s right shoulder first commenced to dislocate.
3A His Honour misconceived the evidence of the respondent, the respondent’s mother, Ms Royle, and Dr Sonnabend when making relevant findings on the issue of causation.
3B His Honour failed to properly consider the appellant’s case and/or failed to give sufficient or adequate reasons.
4. His Honour failed to give due weight to the numerous contemporaneous records which did not evidence or support the plaintiff’s and her mother’s evidence in respect of the plaintiff’s right shoulder problems.
5.
His Honour failed to draw appropriate inferences in the plaintiff failing to call the plaintiff’s general practitioners, | [
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|
nsw_caselaw:549fd5843004262463bf1e27:71 | nsw_caselaw:549fd5843004262463bf1e27 | 184 If my interpretation of Mr Eisman’s use of the expression “upper extremity” is correct, the respondent’s report to him of what was injured in the motor vehicle accident, namely her right arm and hand, is consistent with the many contemporaneous records to which I have already referred.
The primary judge also noted (at 25]) that the reference to “upper extremity” could “merely mean her arm”, however he did not believe a lot turned on that.
185 However if the reference to “upper extremity” is excluded as descriptive of the respondent’s right shoulder, the primary judge’s conclusion that the respondent had suffered increased pain in her right shoulder rested, it would appear, on the statement in Mr Eisman’s 22 February letter that the respondent was experiencing “a pain level of 10/10”, as opposed to “4/10” in his first letter.
186 The primary judge noted (at par [26]) a submission by counsel for the appellant that when one had regard to Mr Eisman’s notes, the increase in pain as a factor of ten recorded in the letter 22 February 1999 to Dr Ridhalgh related to the respondent’s wrist. His Honour accepted that there was some strength in that submission but ultimately preferred what Mr Eisman wrote in his report.
He considered what Mr Eisman wrote in his report to Dr Ridhalgh was likely to be more accurate as the report was prepared so soon after all the examinations and for the consumption of others, whereas the notes could be taken to have been made from Mr Eisman’s own use.
He also concluded that the notes, particularly of the 19 February 1999 visit, showed that the right shoulder was the subject of Mr Eisman’s attention.
187 Mr Eisman’s notes which (doing my best to decipher his writing) recorded:
“ 17-2-99
S Pt rear ended last night. (R) arm resting on bottom of steering wheel. Jammed (R) wrist. Taken to hospital by ambulance. X-rays of wrist.
O Wrist feels like it has sand (??) gritty problems with tendons
O no pins + needles
No numbness ↑ (P) from pain from previous treatment
? grip strength
Edema (R) thumb
(P) from (L) sublux
A strain to ligs of wrist
P u/s ten min underwater (?) soft tissue stretch
? (cream) Adjust
19-2-99
S (query) bone scan (?) normal – forced wrist (?mvt) of pt upper extremity causing ↑ pain
OE (?) very sore – wrist pain ↑ (?) -
10/10 -
[the next line was indecipherable but does not appear to refer to the shoulder].
0 pins needles
(?)
O = ↓ ROM -
(?distal) radio-ulna =(?)”.
[there are then four further lines of notes which are almost impossible to read, but one of which appears to say “+ Codman’s (R) shoulder”].
188 Mr Eisman’s notes of the 17 February consultation were read to the respondent in cross-examination. She agreed that when she went back to see him after the car accident she had not referred to any aggravation of the shoulder, explaining that that was because she was “very worried about my wrist”. (BLACK 160F).
189 Mr Eisman’s notes make no mention of the respondent complaining of her right shoulder as a consequence of the motor vehicle accident. I do not, with respect to the primary judge, read these notes as showing that the respondent’s right shoulder was the subject of Mr Eisman’s attention.
Rather, as is consistent with his use of the expression “upper extremity” in his first letter, the first line of the entry appears again to refer to the forced movement of the respondent’s right wrist in the accident. Clearly the examination was of the respondent’s wrist and the notation “10/10” is associated with that examination. | [
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] | null |
|
nsw_caselaw:549fd5843004262463bf1e27:69 | nsw_caselaw:549fd5843004262463bf1e27 | “Due to her wrist pain and need to move her shoulder into awkward positions to compensate for wrist stiffness, she began to develop symptoms in her right shoulder in March 1999. This consisted of pain in the shoulder that was diagnosed as bursitis or tendonitis.
Her shoulder has become progressively more severe, and has now been apparently unstable for the past month with symptoms of subluxation, and ‘moving out of joint’ that requires a manipulative procedure on her part to reduce. This has been quite painful as well. Her shoulder continues to get worse.”
168 In cross-examination it was put to the respondent that the history she gave Dr Zicat about when her shoulder had first dislocated was correct. She denied that and said that the first dislocation was in June-July 1999. (BLACK 223).
169 The primary judge concluded (at [64]) that Dr Zicat had either been given, or had recorded, an erroneous history.
Having regard to the respondent’s history to Dr Sonnabend later that month, what he regarded as Mr Eisman’s note of a dislocation in June 1999, the GP's entry on 26 October 1999 and Dr Naim's referral letter and its date, he concluded Dr Zicat had incorrectly recorded the commencement time.
170 The respondent saw Dr Sonnabend for the first time on 24 March 2000. She told him she experienced markedly increased pain in her right shoulder after the accident, and that in about March 1999 she became aware of “clunking and dislocation of the joint”.
171 Dr Ireland examined the respondent again on 9 July 2002. She gave him a history that after she resumed work as a pathology collector in September 1999 she began to notice discomfort about her right shoulder, and that:
“In December 1999 she was making a fairly simple manoeuvre when … her right shoulder joint either dislocated or subluxated …she was referred to Dr Sonnabend and … the situation persisted.”
172 The primary judge noted this report, and, without elaboration, said he took it into account in the finding he made about the first shoulder subluxation: primary judgment (at [87]). It is impossible to understand what weight he placed on this account. For my part it accords with the bulk of the accounts of the first subluxation occurring towards the end of 1999.
173 In my view, contrary to the primary judge’s conclusion, the records support the proposition that the respondent’s right shoulder first subluxed towards the end of 1999, whereupon she was referred to Dr Sonnabend. A version of subluxation followed by immediate referral accords with the respondent and her mother’s account of the sequence of events, albeit not with their timing.
174 Returning to Dr Zicat, I find it difficult to understand why he would have recorded an incorrect history as the primary judge inferred. The primary judge felt comforted in reaching his conclusion that Dr Zicat had erred because the doctor recorded that the respondent’s bursitis began in March 1999.
However, in my view the history Dr Zicat recorded was more probably than not that given by the respondent. It is consistent with her relating events to March 1999, as she did when she saw Dr Sonnabend.
175 However, the history Dr Zicat was given of the timing of the onset of her subluxation accorded with other contemporaneous material, including her report to Mr Eisman in December 1999.
I note parenthetically, as the appellant submitted, that if the respondent’s shoulder had been subluxing since March or June 1999, merely on simple movements, as she described, it is inconceivable she would have been swimming at the end of the year. The timing of Dr Naim’s referral also, in my view, accords with a late 1999 subluxation.
176 In my view, the weight of the evidence supports the view that the respondent did not suffer increased right shoulder pain after the accident and that her right shoulder first subluxed towards the end of 1999. The primary judge reached the contrary conclusion based largely on the inferences he drew from the chiropractor’s records to which I now turn.
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] | null |
|
nsw_caselaw:549fd5843004262463bf1e27:42 | nsw_caselaw:549fd5843004262463bf1e27 | The first dislocation occurred in June 1999 and is not too far removed from the history she gave to Dr Sonnabend, March 1999, versus June 1999, given that he saw her over thirteen months after the accident.
66. Assuming the defendant was correct to be critical of the plaintiff for not calling her general practitioner to give evidence about what must have been a dramatic event, at least to the plaintiff, there is no reference in the notes to the dislocation other than in the way I have described it or the references I have given.
So I am not persuaded the doctors could have done any more than the notes did. It is clear the plaintiff by October 1999 was complaining of a significant right shoulder problem, and given there is no entry for any referral at all, it is not easy to see how much more either doctor, if called, could have added.
67. The plaintiff’s mother, in cross-examination, said that the plaintiff complained to her of other dislocations after she returned to work in August 1999 with Hanley Moir. I accept her mother’s evidence. That period of employment was between August and November 1999.
I think it probable, and I find, that the first right shoulder dislocation occurred in June 1999, and that the reference to ‘L’ or ‘left’ in the chiropractor’s notes is erroneous and probably refers to the right.” (emphasis added)
87 In early 2000 Dr Sonnabend linked the respondent’s right shoulder problems with the motor vehicle accident. He appears to have been the first medical practitioner to make that association.
Later that year Dr Bencsik, a consultant orthopaedic surgeon retained to advise the insurer in relation to the respondent’s workers compensation claim, also drew that link. The primary judge recorded their evidence as follows:
“68. The plaintiff saw Dr Sonnabend for the first time on 24 March 2000, about thirteen months post accident. Counsel for the defendant urged me to reject Dr Sonnabend’s views in so far as they supported the plaintiff on causation.
In substance, the reason was he was not given a correct pre-accident history and he gave weight to incorrect post accident history. It is clear, however, that he had a considerable part of her pre-accident history. On 24 March 2000 he wrote this, inter alia:
‘Her complex medical history includes a genetic disorder, Methylene Tetrahydrofolate Reductase Deficiency, a proximal radioulnar synostosis of the right forearm (following fracture at age of eight), bilateral wrist reconstructions in 1998 (with residual ongoing right wrist pain), and a motor vehicle accident in February 1999 which exacerbated the right wrist problem.
Ms Clancy's right shoulder problem began in late 1998 and was much exacerbated by the car accident, possibly because of a need to increase shoulder use to offset wrist immobility. Ms Clancy now experiences constant severe pain of the right shoulder.
She uses Durogesic patches and has been treated by two pain clinics with little success. She feels that her shoulder subluxes frequently with various precipitating movements including external rotation and cross body adduction. On examination Ms Clancy's active shoulder movements are limited in all directions because of pain, but there is a full range of passive movement.
Mrs Clancy has marked systemic ligamentous laxity and her shoulder is easily subluxed anteriorly, posteriorly and inferiorly. Plain radiographs today were unremarkable. My impression is that Ms Clancy's shoulder problem is due to severe multidirectional instability’ .
69. He explored the right shoulder joint on 5 April 2000. A sinus developed and delayed healing.
70. The worker's compensation insurer had her seen by an orthopaedic surgeon, Dr Bencsik, on 10 May 2001. [sic, this should be 10 May 2000]. The history he recorded included this: | [
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] | null |
|
nsw_caselaw:549fd5843004262463bf1e27:74 | nsw_caselaw:549fd5843004262463bf1e27 | “Before Jones v Dunkel (1959) 101 CLR 298 can be used as the basis for drawing an inference unfavourable to a party in litigation, the missing witness must be one who would be expected to be called by one party rather than the other: Payne v Parker [1976] 1 NSWLR 191 at 201; Manly Council v Byrne [2004] NSWCA 123 at [53].”
208 In Payne v Parker [1976] 1 NSWLR 191 Glass JA considered the question of when a missing witness would be expected to be called by one party rather than the other, which he described as the first condition for the operation of the rule in Jones v Dunkel [1959] HCA 8; (1959) 101 CLR 298. He said (at 201-202, footnotes omitted):
“(7) The first condition is also described as existing where it would be natural for one party to produce the witness: Wigmore, par. 286, or the witness would be expected to be available to one party rather than the other: O'Donnell v. Reichard , or where the circumstances excuse one party from calling the witness, but require the other party to call him: ibid.
, or where he might be regarded as in the camp of one party, so as to make it unrealistic for the other party to call him: ibid. Regina v. Burdett , or where the witness' knowledge may be regarded as the knowledge of one party rather than the other: Earle v.
Castlemaine District Community Hospital , or where his absence should be regarded as adverse to the case of one party rather than the other: ibid. It has been observed that the higher the missing witness stands in the confidence of one party, the more reason there will be for thinking that his knowledge is available to that party rather than to his adversary: ibid.
If the witness is equally available to both parties, for example, a police officer, the condition, generally speaking, stands unsatisfied. There is, however, some judicial opinion that this is not necessarily so: ibid. Evidence capable of satisfying this condition has been held to exist in relation to … his treating doctor: O'Donnell v. Reichard. ”
209 Failure to call a witness a party would be expected to call leads to the inference that the witness’ evidence would not have assisted that party: Jones v Dunkel (at 308, 312 and 320 – 321). As Glass JA said in Payne v Parker (at 201), where the failure to adduce evidence is that of the party bearing the legal onus of proving an issue:
“…[T]he direct evidence of the party carrying the onus may be more readily rejected, and the inferences for which he contends may be treated with greater reserve. The default ‘brings a great slur on his cause’.”
210 One of the central issues in the case was when the respondent’s right shoulder first subluxed or dislocated. She bore the onus of proving that issue as part of the burden she carried of establishing that the motor vehicle accident was a cause of her right shoulder problems. She gave clear evidence that her right shoulder first subluxed or dislocated at least before July 1999.
Her mother gave a similar account. Both said she had consulted Dr Bloom the same day. There was no record of any such attendance in his notes. This was consistent with the appellant’s case that the respondent had not suffered a right shoulder subluxation or dislocation until much later in 1999. It tendered the notes to establish the inconsistency.
211 It was, in my view, incumbent upon the respondent, being on clear notice of the challenge to her account of the development of her right shoulder condition, to have called Dr Bloom to confirm, if he could, her account of the consultation about her first shoulder subluxation.
Her failure to do so meant that her evidence could be more readily rejected, and the inferences for which she contended “treated with greater reserve”.
212 Later in his judgment (at [66]) the primary judge considered the failure to call the general practitioners in the event the appellant’s Jones v Dunkel submission was correct. | [
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] | null |
|
nsw_caselaw:549fd5843004262463bf1e27:50 | nsw_caselaw:549fd5843004262463bf1e27 | Dr Bloom and/or Dr Naim (from the same practice) to give evidence to explain their records of the plaintiff being inconsistent with the plaintiff’s and her mother’s evidence and assertions in respect of her right shoulder, particularly in light of the contents of Dr Bloom’s report of 30 December 1999.
6. His Honour ought not to have accepted the evidence of the plaintiff that she did suffer some increase in pain and some subluxation in the six months following the accident in light of:
(a) His Honour’s finding that her memory was defective and her memory in the period just before and in the year post accident ought to be treated with very considerable caution; and
(b) was unsupported by contemporaneous records over that period; and
(c) the amount of incorrect evidence given by the plaintiff in respect of the period just before and in the one year post accident.
7. His Honour erred in finding that the reference ‘L’ or ‘left’ in the chiropractor’s notes (Dr Eisman, 16 June 1999) refers to her right shoulder and relying on same as being consistent with the plaintiff and her mother’s evidence as to when the plaintiff’s shoulder commenced to dislocate.”
Submissions
96 Mr R R Bartlett of Senior Counsel, who appeared with Mr W Fitzsimmons for the appellant, complained that the primary judge did not address the appellant’s theory of the case in his judgment apart from making two passing, but inadequate, references.
97 The theory of the appellant’s case was that at the time of the accident the respondent had a congenital condition (unknown to her at the time) which results in ligament laxity. Her previous injuries and subsequent operations (two in early 1998) to her right lower arm had resulted in limited movement, thereby causing her to tend to turn her right shoulder more than otherwise.
Her ultimate condition of MDI of the right shoulder, as explained by Dr Sonnabend, is classified as an atraumatic condition, that is not usually brought on by a single trauma but by people performing some superimposed, usually repetitive, activity either at work or a sport such as swimming.
The respondent had engaged in marathon swimming and had trained four days a week. She started work at Hanley Moir in July 1998 on a part-time basis, proceeding to full time in October 1998.
Her job entailed her performing mainly the same tasks of taking blood. This resulted in the respondent having considerable problems in her right shoulder to the extent that the day before the accident she had significant pain there and could hardly move it.
She did not suffer any injury to her right shoulder in the motor vehicle accident, the trauma being slight (resulting in no damage to her vehicle) but did aggravate her previously injured right lower arm by reason of the position of her hand on the steering wheel.
98 Because of her lower arm injury the respondent did not resume work until August 1999 and then only on limited hours. Having been off work the right shoulder problem, which existed prior to the accident, abated to a degree.
However when she resumed her pre-injury work and increased her duties this caused further problems to her right shoulder so that by the start of November 1999 she was back to where she was the day before the accident.
Her shoulder, thereafter, started to sublux and dislocate at the end of November or at the commencement of December 1999 leading to her general practitioner referring her in early January 2000 to Dr Sonnabend. She first saw Dr Sonnabend in early March 2000.
99 The appellant submitted that its theory of the case was consistent with the contemporaneous notes and reports made by those who treated the respondent and with the information the respondent provided in her claim forms and statements and medico legal reports both in her workers compensation and motor accidents claim.
100 The appellant says the primary judge only referred to its case twice. | [
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|
nsw_caselaw:549fd5843004262463bf1e27:77 | nsw_caselaw:549fd5843004262463bf1e27 | Following the motor vehicle accident, Mrs Clancy’s shoulder instability was so severe as to prevent her from undertaking virtually any significant right upper limb activity, and required surgical intervention in the form of a capsular shift procedure.” (BLUE 11–12)
233 After referring to the MRI of the respondent’s shoulder prior to the motor vehicle accident, Dr Sonnabend described the subacromial bursal fluid it revealed as being “the result of some local mechanical pathology”, then continued:
“I believe the most likely explanation for this is that Mrs Clancy did suffer some minor glenohumeral instability, related to her systemic ligamentous laxity, with secondary rotator cuff impingement and subacromial bursitis, prior to the motor vehicle accident. The prognosis for such a condition, in the absence of major trauma, is usually good.
These conditions can generally be successfully treated with appropriate long-term exercises. In Mrs Clancy’s case, the trauma of the motor vehicle accident appears to have severely exacerbated this previously relatively minor condition, and to have brought on severe multi-directional instability requiring surgical intervention.”
234 Dr Hitchen examined the respondent on the appellant’s behalf on 28 April 2005. It is plain from his report that he had available a number of the historical medical records dealing with the respondent. Thus, he referred to the description in Mr Eisman’s report of 19 February 1999 of the dysfunction in the respondent’s right shoulder prior to the accident and opined:
“… [S]he clearly had a significant shoulder problem prior to the accident.” (BLUE 332) .
235 Dr Hitchen expressed the following opinion (BLUE 334):
“The motor vehicle accident in question could not possibly have caused her shoulder pathology, for which she has undergone multiple episodes of surgery. A significant injury to the shoulder will result in immediate complaints of pain, and rapid presentation for investigation and treatment.
There is clearly no history of injury to the right shoulder when an objective review is undertaken. Specifically, there is no evidence of shoulder pain on the ambulance officer’s report, on the presentation to the Accident and Emergency Department at St George Hospital, nor is there any evidence of presentation for medical treatment or review within months of the alleged injury.
Conversely, there is evidence of pre-existent problems with the right shoulder for which she sought treatment from Dr Ridhalgh, an orthopaedic surgeon … I differ from Dr Sonnabend’s opinion that the instability has been worsened by the motor vehicle accident – and it may be that he did not have access to the medical documentation that is currently available.
I conclude that there is no relationship between the accident and her right shoulder condition. She clearly has pre-existent multi-directional instability of the shoulder. The accident did not cause an aggravation or acceleration of her pathology.”
236 Dr Sonnabend responded to Dr Hitchen’s report on 17 June 2005. Significantly he said (BLUE 20):
“In essence, Dr Hitchen and I disagree not in our understanding of the pathology present but in our explanation of the mechanism by which it arose.
Even in multi-directional instability arising from specific ‘episode trauma’, symptoms generally do not arise instantaneously unless the shoulder is actually dislocated at the time of injury. The presumed mechanism is one of ligamentous structures being stretched beyond their ‘elastic limit’, and thereafter failing to function as normal ligaments.
… My interpretation of the sequence of events is that the motor vehicle accident stretched parts of [the respondent’s] shoulder capsule (ligaments) beyond their elastic limit, thus setting in chain the development of symptomatic multi-directional instability. | [
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|
nsw_caselaw:549fd5843004262463bf1e27:23 | nsw_caselaw:549fd5843004262463bf1e27 | (b) he interpreted an entry in the chiropractor’s notes as 17 June 1999,
“Pt c/o shoulder (P) (L) deep in joint. Previous dislocation”
as referring to the plaintiff’s right shoulder having dislocated in June 1999: primary judgment at [67];
(c) entries in the chiropractor’s notes of 19, 20 and 29 July and 6 August all referred to pain in the respondent’s shoulders: primary judgment at [52];
(d) on 26 October 1999 the GP's entry said: “
“Right shoulder rotation cuff syndrome. Physio since February.”
primary judgment at [54];
(e) On 8 March 2000 the GP recorded:
‘Since the motor vehicle accident the right shoulder has been subluxing - worse now, at least once a day...no episodes before. At first just aching around shoulder and clunking. Now feel out’. [sic, as in judgment].
primary judgment at [56].”
47 McColl JA reaches a different interpretation of Mr Eisman’s notes and of the two reports to Dr Ridalgh pre and post the accident. This in particular lay in construing reference in the second report (22 February 1999) to the respondent’s “(right) upper extremity” as referring only to her hand and not to her shoulder, or to her shoulder and hand.
That interpretation focuses first on the pre-accident report of 19 February 1999 and compares it to the post-accident report of 22 February 1999. I quote below from the two reports:
First report of 19 February 1999 (pre-accident):
“Thank you for referring Ms Vashti Clancy…for treatment and evaluation of her right shoulder and arm. Ms Clancy is a 25 year old ambidextrous female. She states that she writes with her right upper extremity however she performs most tasks with her left upper extremity due to her condition.” [emphasis added]
The report then said:
“ Chief Complaint
Ms Clancy states her entire right shoulder is in pain and discomfort. She also states that in a resting state she experiences a constant burning sensation on a pain level of 4/10; 10 being the worst.
Upon movement she experiences a grinding sensation as well as sharp stabbing pains. She denies any temperature changes or sensory deficits. Her range of motion is also limited by the events that led up to the patient's past medical history.
The onset of this acute condition occurred about six months ago. She now states it has become both chronic and debilitating. She recalls no trauma nor incident that has provoked the condition however, states that her occupational duties aggravate the condition.
Ms Clancy also states she is unable to perform normal daily activities inclusive of housekeeping, opening jars or even personal grooming activities as simple as getting dressed ”
Mr Eisman’s second and post-accident report of 22 February 1999 was almost identical to his first, save that it included:
“Update Report:
Evaluation of her right shoulder and arm. On February 16, 1999 she was involved in a rear end motor vehicle accident. Ms Clancy was the driver and recalls no loss of consciousness — [as McColl JA observes, the word conciseness appears here but is clearly incorrect and is intended to be consciousness] - nor emesis.
She however states that her right arm and upper extremity was re-injured. She was taken to the hospital by ambulance. A complete examination was performed inclusive of radiological studies.’ [emphasis added]
Chief Complaint
Ms Clancy states her entire right shoulder is in pain and discomfort. She also states that in a resting state she experiences a constant burning sensation on a pain level of 10/10, 10 being the worst.
Movement is completely restricted and she feels heat and swelling of a pressure type sensation throughout her arm and hand. She denies sensory deficits. Her range of motion is also limited.” [emphasis added] | [
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|
nsw_caselaw:549fd5843004262463bf1e27:8 | nsw_caselaw:549fd5843004262463bf1e27 | “In my opinion, the law does not require that a judge make an express finding in respect of every fact leading to, or relevant to, his final conclusion of fact; nor is it necessary that he reason, and be seen to reason, from one fact to the next along the chain of reasoning to that conclusion….
There is, I think, no formula the application of which in the instant case will indicate what, in that case, the judge must do. Where, in the decision of an ordinary dispute, reasons are necessary, they are necessary because of the expectation that, being a judicial decision, a sufficient explanation will be given of why the order was made ….
To require that a judge detail the way in which he has reasoned step by step to his conclusion is, in my opinion, to mistake the nature of the reasoning process … [the judge's] reasons in the particular case, may partake as much of intuition based on experience as on formal and deductive reasoning.
That leads to, as I have described, the subjective element in the fact finding process. A fact is found in a particular case if the judge is satisfied that it is so. … This does not mean that a judge should not state explicitly the reasoning processes which have led him to his conclusions of fact.
He will do this because of his recognition that the parties may need, and may expect to have, an understanding of the basis on which he has arrived at his decision. But there are limits to what he must do .” [Emphasis added.]
McHugh JA observed in Soulemezis at 279-281 (likewise followed in Yates (supra)):
“… in determining whether justice was done and is seen to be done other interests and values, beside the giving of reasons, have to be considered. The limited nature of judicial resources and the cost of litigants and the general public in requiring reasons must also be weighed.
For example, many questions concerning the admissibility of evidence may require nothing more than a ruling: in New South Wales common law judges have long held that they are not obliged to hear argument on the admissibility of every question of evidence let alone give reasons. It all depends on the importance of the point involved and its likely effect on the outcome of the case ….
If an obligation to give reasons for a decision exists its discharge does not require lengthy or elaborate reasons: Ex parte Powter; Re Powter (1945) 46 SR (NSW) 1 at 5; 63 WN 34 at 36.
But it is necessary that the essential ground or grounds upon which the decision rests should be articulated … [M]ore elaborate reasons are required where legislation gives a right of appeal against a decision than where no appeal lies. …” [emphasis added]
14 I respectfully agree with McColl JA’s statement of principle that the trial judge is nonetheless obliged to expose his reasons for resolving a point critical to the contest between the parties; see for example Soulemezis (at 270) per Mahoney JA, and (at 280) per McHugh JA.
The question here is whether the trial judge, not being obliged to spell out every detail of his process of reasoning (Yates Property Corporation (supra) at 171, 182) did so sufficiently; did the trial judge sufficiently “enter into” the critical issues of this case?
15 This requirement must however take account of the presumption of fact in the plaintiff’s (respondent’s) favour, in disentangling the accident-related injury from pre-existing condition. It is not enough for the defendant (appellant) merely to advance a hypothesis or theory of the case, as to the cause of the post-accident condition (MDI).
The appellant’s evidentiary onus is not discharged unless it demonstrates, at least to a prima facie level, that the accident was not even a contributory cause of the injury or its aggravation. If the defendant fails to do this the judge is not required to enter into the considerations posed by that hypothesis.
16 The appellant’s hypothesis or theory of the case is summarised by McColl JA. I gratefully adopt that summary from her Honour’s judgment (omitting paragraph numbers): | [
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|
nsw_caselaw:549fd5843004262463bf1e27:48 | nsw_caselaw:549fd5843004262463bf1e27 | (h) Such symptoms do not arise immediately necessarily, but develop over weeks or months, up to six months; (see Dr Sonnabend) following the trauma.
(i) Before the pre-accident bursitis had been cured, the accident occurred.
(j) The collision was of such force that she suffered considerable aggravation to her pre-accident wrist condition, such that of itself the wrist condition was sufficient to prevent a return to work for over a year. Even when she saw Dr Zicat on 15 March 2000, the wrist continued to be the greatest source of her pain, according to what he has recorded.
(k) The plaintiff suffered no shoulder instability (described by the doctors as a ‘ball slipping out of socket’) before the accident.
(l) She did suffer from such instability after. Although the evidence as to when this first began is unclear, I consider, as I have found, that it was in June 1999, at the time when there is a record of shoulder instability in the chiropractor's notes.
(m) The plaintiff suffered some pain in her right shoulder before the accident, indeed, pain of severity.
(n) Because her main injury was to her right wrist, and she had been suffering right shoulder problems immediately before the accident, I do not consider that the plaintiff saw the accident as having caused any significant increase in right shoulder symptoms, and found it unsurprising when the right shoulder symptoms continued.
(o) The chiropractic letters and notes for the 17th and 19th February 1999 however suggest, and I infer, as I have noted, that her right shoulder was a matter that she complained of after the accident and was responsible for and caused increased pain, as recorded.
I have noted also the reference to the increase in inflammation in what I have taken to be the right shoulder, in part of the history taken just after the accident.
(p) As the right wrist continued to be the main source of pain, it was that which continued to cause the plaintiff most concern. Further, she became more depressed than she had been.
She needed removal of a device from her right upper arm, and she learned in May 1999 that she had a genetic disease which required her to take blood thinning drugs and which she understood might cause loss of a limb through gangrene.
So her life was something of a mess in early June 1999 when she attempted suicide. I do not consider that she would have been in a good state of mind in the months following the accident.
(q) In any event she continued to complain to her chiropractor from time to time of right shoulder pain. That, on occasion, she complained of left shoulder or bilateral shoulder pain does not argue against the thesis of a causal connection.
(r) Her GP notes complaints of right shoulder pain on several occasions in late 1999, and she complained of bursitis on at least one occasion, in the present tense, in the months immediately following the accident.
(s) Though Dr Sonnabend did not have the complete pre-accident and post accident history when he gave his written reports, I am satisfied that he had most of it, in particular the MRI study done on 5 February 1999.
Although he initially had a history of right shoulder symptoms showing up earlier than the evidence suggests, and a lack of symptoms immediately before the accident, I took his oral evidence to be, following the cross-examination, if there was an increase in shoulder pain, and dislocations occurred in anything up to six months, that would make the accident more likely than not to be the cause.
As I have found, there were within six months both a dislocation and an increase in pain.
(t) There is no other traumatic event to explain the outcome. The sequence of events suggests to me there was a causal connection and that the accident was probably the cause rather than, as the defendant contended, the normal course of the condition, or a fall from a chair, as was put to Dr Sonnabend. (Counsel for the defendant did not, in address, rely on the latter). | [
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] | null |
|
nsw_caselaw:549fd5843004262463bf1e27:4 | nsw_caselaw:549fd5843004262463bf1e27 | The notes were consistent with the respondent’s complaints after the accident about her wrist having been injured. The chiropractor’s June 1999 note referred to the respondent’s left shoulder: [195], [199].
16. The absence of a record in the general practitioner’s records consistent with the respondent’s account of when her shoulder first subluxed, told strongly against the respondent’s case on this point: [203].
17. The respondent’s failure to call her general practitioner to confirm, if he could, her account of the consultation about her first shoulder subluxation meant that her evidence could be more readily rejected, and the inferences for which she contended “treated with greater reserve”. [211]
Schellenberg v Tunnel Holdings Pty Ltd [2000] HCA 18; (2000) 200 CLR 121; Ibrahim v Pham [2007] NSWCA 215; Payne v Parker [1976] 1 NSWLR 191; Jones v Dunkel [1959] HCA 8; (1959) 101 CLR 298 applied
18. The picture presented of the respondent’s pre-existing right shoulder condition at the end of the cross-examination differed markedly from that presented in her evidence in chief, in a manner which would normally be regarded as casting grave doubts upon a witness’ credibility: [150].
The expert evidence issue
19. The trial judge erred in preferring the respondent’s expert to the appellant’s. The experts were not radically at issue about complex technical questions within their own field. Rather, their disagreement was based on their different understanding of the aetiology of the respondent’s condition.
Shorey v PT Ltd [2003] HCA 27; (2003) 77 ALJR 1104; Ahmedi v Ahmedi (1991) 23 NSWLR 288; Wilsher v Essex Area Health Authority [1988] AC 1074 referred to
20. The expert issue in dispute involved differences between the expert witnesses capable of being resolved rationally by examination and analysis.
Wiki v Atlantis Relocations (NSW) Pty Limited [2004] NSWCA 174; (2004) 60 NSWLR 127 applied
De Groot v The Nominal Defendant [2005] NSWCA 61 referred to
21. The evidence did not support the opinion upon which the respondent founded her case. [260]
The reasons issue
22. The trial judge was obliged to expose his reasons for resolving a point critical to the contest between the parties and do justice to the issues posed by the appellant’s case.
North Sydney Council v Ligon (1995) 87 LGERA 435; Soulemezis v Dudley (1987) 10 NSWLR 247; Moylan v Nutrasweet Co [2000] NSWCA 337; Flannery v Halifax Estate Agencies Ltd t/as Colleys Professional Services [2000] 1 All ER 373 applied
23. Where there is a mass of documentary material arguably supporting the appellant’s claims, that material must be considered in the judge's reasons in a satisfactory way.
State Rail Authority of New South Wales v Earthline Constructions Pty Ltd (in liq) [1999] HCA 3; (1999) 73 ALJR 306 applied
24. The primary judge did not adequately consider the appellant’s case:
(a) He did not analyse the respondent’s pre-accident right shoulder condition against the appellant’s contention that it was her return to work in August 1999 which precipitated her right shoulder condition.
Nor did his Honour entertain the possibility that post-accident references to bursitis or right shoulder pain were consistent with the respondent’s pre-accident condition rather than caused or affected by the accident. Rather, his Honour appeared to have treated any post-accident reference to the respondent’s right shoulder as supporting her case that the accident was a cause of her MDI: [152];
(b) He did not consider of the appellant’s case that the respondent’s history was arguably consistent with her MDI being caused by her lengthy swimming history, as well as her work duties: [261].
ORDERS
(1) Appeal disallowed dismissed.
(2) Appellant to pay respondent’s costs.
*********
IN THE SUPREME COURT
OF NEW SOUTH WALES
COURT OF APPEAL
CA 40115/06
DC 13828/01 | [
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|
nsw_caselaw:549fd5843004262463bf1e27:31 | nsw_caselaw:549fd5843004262463bf1e27 | A. You ask would--
Q. Would you agree with that?
A. You'd have to assume that both [accident and fall from chair] were relevant in that context. You'd have to assume that the fall from a chair was a significant part of it, yeah.”
64 However in assessing these questions and answers in the context of the appellant’s challenge, the following must be taken into account:
(i) while accepting that repetitive swimming may cause what Dr Sonnabend preferred to call “shoulder instability”, at no point does Dr Sonnabend concede that a traumatic event like a car accident was incapable of causing MDI or of aggravating MDI.
Indeed his evidence, particularly his reports, was clearly to the effect that a car accident could cause MDI involving shoulder instability, or bring about aggravation of that condition and did so here;
(ii) Dr Sonnabend, particularly in earlier evidence (Black, 321B-P and earlier at 318S to 319E) makes clear there were semantic difficulties in use of the term MDI; that MDI is a manifestation of a very loose shoulder, and of the progressive loosening of the shoulder.
Dr Sonnabend characterised the respondent’s pre-accident condition as ligamentous laxity with some glenohumeral instability, these predisposing her to the condition called MDI, but which he testified was readily curable, but for the accident, with long-term exercises. That indeed is the critical part of his evidence, which the trial judge accepted as he was entitled to;
(iii) when reviewing the respondent’s symptoms reported to Dr Ridhalgh, Dr Sonnabend preferred to characterise her pre-existing condition as there having been a rotator cuff injury or rotator cuff inflammation (“inflamed subacromial space and a tight posterior capsule” i.
e. bursitis) rather than simply instability (Black, 327E-P). Dr Sonnabend’s second report of 17 June 2005 refers to the bursitis and rotator cuff impingement as being in turn secondary to systemic ligamentous laxity.
(iv) the assumption put to Dr Sonnabend, namely that “the respondent’s condition was essentially unchanged over 10 months following the accident” or that “she was no worse 10 months post-accident”, was not in accord with Mr Eisman’s evidence as the respondent’s chiropractor, as accepted by the trial judge.
In my opinion it was open to the trial judge so to find. I say so, given the state of the evidence and notwithstanding the lack of complaint by the respondent, as explained by her attention being concentrated on her injured wrist and being otherwise affected by her other problems in the twelve months or so after the accident.
(v) Dr Sonnabend first examined the respondent on 24 March 2000. He noted that she had a history of having experienced difficulty with her right shoulder since late 1998. After referring to the motor vehicle accident he recorded:
“Following that accident, Mrs Clancy’s right shoulder problem was much exacerbated … [she] experienced markedly increased pain in the right shoulder, and in about March 1999 became aware of clunking and dislocation of the joint.
Mrs Clancy’s diagnosis was that of severe multi-directional instability of the right shoulder. This condition occurs almost only in the presence of significant systemic ligamentous laxity, which Mrs Clancy had, related to her underlying metabolic condition.
The motor vehicle accident of February 1999 appears to have precipitated the multi-directional instability, or at least to have severely exacerbated a pre-existing minor shoulder condition.
Following the motor vehicle accident, Mrs Clancy’s shoulder instability was so severe as to prevent her from undertaking virtually any significant right upper limb activity, and required surgical intervention in the form of a capsular shift procedure.” (Blue, 11–12)
After referring to the MRI of the respondent’s shoulder prior to the motor vehicle accident, Dr Sonnabend described the subacromial bursal fluid it revealed as being “the result of some local mechanical pathology”, and then continued: | [
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|
nsw_caselaw:549fd5843004262463bf1e27:20 | nsw_caselaw:549fd5843004262463bf1e27 | ‘Both shoulders appear to be symmetrical; skin colour is normal with a slight tanning of the skin. The patient states she uses sunscreen and does not expose her skin to direct sunlight often. Her left shoulder is elevated and contour of both shoulders appears to be within normal limits. There appears to be increased inflammation.’
21. In this second report he adds to the list of disabilities under the heading ‘Diagnostic Impression’: ‘Hyper-extension injury to the right hand and wrist and oedema.’
22. The oedema no doubt relates to an injury to her thumb, as to which there is reference in the medical evidence.
23. On the first visit, namely 15 February 1999, as I have observed, Dr Eisman noted moderate inflammation of the right shoulder. In the second however, the first after the accident, he noted increased inflammation.
Although the reference to increased inflammation was in a paragraph where he dealt with both shoulders, it is clear from the context and from the first report compared with the second, (and I do infer) that his reference to increased inflammation was to increased inflammation in the right shoulder.
It is to be noted further under the chief complaint in the second report that her entire right shoulder was in pain and discomfort, it being stated: ‘In a resting state she experiences a constant burning sensation on a pain level of 10/10’.
24 Clearly she saw the chiropractor on the second and third occasions complaining about her right wrist, but taken together, his two reports show that she complained to him of an increase in problems with her right shoulder on the days following the accident.
25. Given the reference to pain level being 10/10 was in a context where Dr Eisman saw her regarding her shoulder, and referred to the shoulder at the beginning of the sentence, I take him to have received a complaint of an increase of right shoulder pain.
I note also his reference to the plaintiff's saying: ‘Right arm and upper extremity was re-injured,’ although, probably not a great deal turns on that, as that could merely mean her arm.
26. Mr Fitzsimmons, who appeared for the defendant, in relation to the notes where ‘10/10’ is referred to, submitted that the increase in pain was wrist related and not shoulder related. There is some strength in that submission, because of a reference to ‘10/10’ near a reference to her wrist, in his handwritten notes.
But the notes also show, particularly for the 19th, that the right shoulder was the subject of Dr Eisman's attention. I consider what he wrote in his report to Dr Ridhalgh is more likely to be accurate, given that the report was prepared so soon after all of the examinations, and the reports were provided for the consumption of others, whereas I take his notes to have been made for his own use.
27 Thus I see the reports as suggesting, and I am satisfied that they do show, that the plaintiff complained to Dr Eisman after the accident about an increase in right shoulder pain.” (Italics and emphasis in original).
35 I need now to deal with this and related evidence in more detail, insofar as it bears on the trial judge’s finding on the timing and extent of any complaint of right shoulder pain. There is first the respondent’s own evidence (Black, 129-133). Then there was Mr Eisman’s letter of referral to Dr Ridhalgh of 19 February 1999.
That follows a pre-accident consultation of 15 February 1999, the accident being next day. The appellant contends that before the accident the respondent was already suffering from disabling right shoulder problems. Their onset was said to be caused by her employment at the pathologist Hanley Moir or coinciding with the commencement of that employment.
36 There was indubitably right-shoulder pain pre-accident. But the trial judge was able to be satisfied on the evidence (at [102] quoted above) that, along with her underlying ligamentous laxity, this was attributable to secondary rotator cuff impingement and subacromial bursitis. | [
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|
nsw_caselaw:549fd5843004262463bf1e27:32 | nsw_caselaw:549fd5843004262463bf1e27 | “I believe the most likely explanation for this is that Mrs Clancy did suffer some minor glenohumeral instability, related to her systemic ligamentous laxity, with secondary rotator cuff impingement and subacromial bursitis, prior to the motor vehicle accident. The prognosis for such a condition, in the absence of major trauma, is usually good.
These conditions can generally be successfully treated with appropriate long-term exercises. In Mrs Clancy’s case, the trauma of the motor vehicle accident appears to have severely exacerbated this previously relatively minor condition, and to have brought on severe multi-directional instability requiring surgical intervention.”
(vi) clearly enough Dr Hitchen took a different view (see Blue, 334). But the trial judge, for reasons he gave, preferred Dr Sonnabend’s evidence. Those reasons included what he called Dr Sonnabend’s more lengthy and extensive experience as an orthopaedic surgeon than Dr Hitchen, while acknowledging the latter’s extensive practice too in the field of shoulder surgery.
The trial judge, as he was entitled to do relied in part on Dr Hitchen’s demeanour (Judgment [93]), such as being slow to concede matters which the trial judge would have expected him to concede. A reading only of the transcript does not to my mind justify a different assessment.
(vii) Importantly, Dr Sonnabend responded to Dr Hitchen’s report on 17 June 2005 (Blue, 20), from which I quote below, in a way which provided a strong basis for the trial judge’s ultimate finding:
“In essence, Dr Hitchen and I disagree not in our understanding of the pathology present but in our explanation of the mechanism by which it arose.
Even in multi-directional instability arising from specific ‘episode trauma’, symptoms generally do not arise instantaneously unless the shoulder is actually dislocated at the time of injury. The presumed mechanism is one of ligamentous structures being stretched beyond their ‘elastic limit’, and thereafter failing to function as normal ligaments.
… My interpretation of the sequence of events is that the motor vehicle accident stretched parts of [the respondent’s] shoulder capsule (ligaments) beyond their elastic limit, thus setting in chain the development of symptomatic multi-directional instability.
It is believed that as more and more fibres are stretched beyond their elastic limit, the strain on adjacent fibres increases, with those fibres sequentially failing, effectively setting off a chain reaction which culminates in symptomatic multi-directional instability.
One would not necessarily expect the symptoms to arise immediately at the time of the motor vehicle accident, but rather that they develop gradually over weeks or months following the accident.
Dr Hitchen and I agree that there was significant systemic ligamentous laxity preceding the motor vehicle accident, and that it undoubtedly contributed considerably to [the respondent’s] subsequent multi-directional shoulder instability. We disagree essentially in a matter of degree. [The respondent’s] shoulder symptoms prior to the motor vehicle accident were those of bursitis.
Dr Hitchen and I agree that this was almost certainly due to rotator cuff impingement which was, in turn, secondary to systemic ligamentous laxity. There were at that stage however no overt symptoms of instability, with [the respondent] not being aware of the humeral head (ball of the shoulder) slipping out of its socket.
She did however become aware of symptomatic instability (the ball slipping out of the socket) in the period following the accident. As indicated in my report of November 2000, one would normally expect the impingement noted pre-accident to settle with conservative measures (essentially exercise). This did not occur. | [
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] | null |
|
nsw_caselaw:549fd5843004262463bf1e27:52 | nsw_caselaw:549fd5843004262463bf1e27 | (d) that the mechanism of the wrist injury the respondent suffered in the motor vehicle accident could be expected to cause trauma to her right shoulder;
(e) there was an immediate increase in symptoms in the respondent’s right shoulder immediately after the accident.
106 Mr Toomey submitted that it was not necessary that the respondent demonstrate that the motor vehicle accident was the cause of her MDI. It was sufficient that it materially contributed to her MDI.
He argued that the primary judge correctly identified the three questions for determination in relation to that issue as being whether the respondent had experienced an increase in pain following the motor vehicle accident,
whether she continued to have pain following the motor vehicle accident and whether, in the months following the motor vehicle accident, she experienced episodes of subluxation developing into dislocation within six months of the motor vehicle accident.
He submitted that the primary judge’s findings with respect to causation were based on his conclusions favourable to the respondent on each of those matters as well as his preference for the evidence of Professor Sonnabend where it differed from that of Dr Hitchen.
107 Mr Toomey argued that the primary judge was entitled to conclude from an analysis of the reports of Mr Eisman of 19 February and 22 February 1999 respectively that the respondent had complained to him of an increase in problems with her right shoulder on the days following the accident.
He argued that the primary judge properly analysed (at [32] – [44]) the documents showing the respondent continued to have pain in her right shoulder in the period following the accident and made findings accordingly.
108 Next, Mr Toomey submitted that the primary judge was entitled to accept the respondent’s mother’s evidence that the respondent had first complained to her of a right shoulder dislocation at a time close to June 1999.
He also argued that the primary judge was entitled to conclude from the chiropractor’s note of 17 June 1999 which referred to a left shoulder dislocation that although the letter “L” appeared as the descriptor, the complaint had, in fact, been in respect to the respondent’s right shoulder.
This was consistent, Mr Toomey contended, with the respondent’s evidence (not contradicted in cross-examination) that she had never had any dislocations of her left shoulder, evidence with which her mother agreed, and with the fact that there was no history provided to any doctor or opinion expressed that the respondent had MDI in her left shoulder.
Finally, Mr Toomey argued that the primary judge was entitled to prefer Professor Sonnabend’s evidence.
Consideration
109 It is convenient to set out at this stage the principles by which this appeal should be decided.
110 The appellant asks the Court to conclude that the primary judge erred in finding that the motor vehicle accident was a cause of the respondent’s MDI, that he drew the wrong inferences from the evidence, and that his conclusion was contrary to the weight of the evidence.
111 An appellate court invited to review the findings of a trial judge on the basis wholly or substantially of the record of the hearing must observe the “natural limitations” that exist in such a case,
including the limitations flowing from the disadvantage the appellate court has when compared with the trial judge in respect of the evaluation of witnesses’ credibility and of the “feeling” of a case which an appellate court, reading the transcript, cannot always fully share:
Fox v Percy [2003] HCA 22;
(2003) 214 CLR 118 (at [23]) per Gleeson CJ, Gummow and Kirby JJ; see also Suvaal v Cessnock City Council [2003] HCA 41; (2003) 77 ALJR 1449 (at [74]–[76]) per McHugh and Kirby JJ.
Nevertheless, as Gleeson CJ, Gummow and Kirby JJ continued in Fox v Percy (footnotes omitted): | [
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] | null |
|
nsw_caselaw:549fd5843004262463bf1e27:63 | nsw_caselaw:549fd5843004262463bf1e27 | Q. You agree, don’t you, that this ongoing problem you were having with your right shoulder up until the time of this car accident, as you understood was because of the difficulties with the work you were performing at Hanly Moir?
A. I agree.
Q. That was a problem - the shoulder problem that had developed since your employment at Hanly Moir, doing this sort of work - as something that was continuing to present itself to you right up until the time of the car accident?
A. Yes.
Q. It was such a problem to you that you even went to the stage of reporting it to your employer?
A. Correct.
Q. That is, you reported this problem to your employer before the car accident – that is, that you were having ongoing problems with your right shoulder because of the work you were doing with Hanly Moir?
A. Correct.
………
Q. You felt, didn’t you, that this was a continuing problem for you that wasn’t going away – that is, this development of right shoulder problems before the car accident?
A. Yes.
Q. It’s for that reason that you went to your employer and told her about this problem?
A. Correct.
Q. Did she do anything about it?
A. I don’t recall. I was still running the rooms on my own, in a room by myself.”
150 These extracts demonstrate, in my view, that there was a substantial body of evidence that the respondent was suffering from disabling right shoulder problems at the time of the accident, a problem apparently caused by her work at Hanly Moir, or, at least, whose onset coincided with the commencement of that employment.
Further, the picture presented of the respondent’s pre-existing right shoulder condition at the end of the cross-examination differed markedly from that presented in her evidence in chief, in a manner which would normally be regarded as casting grave doubts upon a witness’ credibility.
151 The primary judge referred briefly (at [10]–[13]) to the evidence that the respondent had suffered right shoulder problems since mid 1998 which persisted up to the motor vehicle accident.
He observed that her condition had been diagnosed as bursitis, a diagnosis which was consistent with an MRI scan performed on 5 February 1999. He remarked that the pre-accident history was “unusual, given the significant issue of causation”.
152 His Honour did not, however, analyse the pre-accident right shoulder condition against the appellant’s contention that it was the respondent’s return to work at Hanly Moir in August 1999 which precipitated her right shoulder condition.
Nor, as I shall explain, when examining the substantial body of contemporaneous records, did his Honour entertain the possibility that post-accident references to bursitis or right shoulder pain, were consistent with her pre-accident condition, rather than caused or affected by the accident.
Rather, his Honour appears to have treated any post-accident reference to the respondent’s right shoulder as supporting her case that the accident was a cause of her MDI.
Whether the respondent suffered increased right shoulder pain following the motor vehicle accident.
153 As I have said, the primary judge identified the significant issue on causation he had to resolve as being whether the respondent had complained of right shoulder pain, or increased right shoulder pain in the first few months after the accident. Both experts, especially the defendant’s expert Dr Hitchen, regarded this as a significant matter on the causation issue: primary judgment at [46].
The appellant argued that the weight of the evidence supported the proposition that the respondent had not suffered increased right shoulder pain in the first six months following the motor vehicle accident, nor had she suffered a shoulder dislocation/subluxation during that period.
154 The primary judge concluded that the respondent had suffered increased right shoulder pain after the motor vehicle accident because: | [
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|
nsw_caselaw:549fd5843004262463bf1e27:55 | nsw_caselaw:549fd5843004262463bf1e27 | Once the trial judge concluded that the plaintiff's hospitalization, pain and limited knowledge of English explained his failure to mention the specific incident or give 23 January 1985 as the date of the incident, the statements had little, if any, evidentiary value.
In accepting that there was an explanation for the inconsistencies, the trial judge had the advantage, which was denied to the judges of the Full Court, of being able to judge the true character and intelligence of the plaintiff and his ability to understand questions and to express himself in answer to those questions.
These matters were fundamental to determining whether the plaintiff’s evidence should be accepted. …
[Their Honours referred to other evidence which tended to corroborate the plaintiff, then said]
No doubt the inconsistencies between the plaintiff’s out-of-court statements and his evidence at the trial were matters which might make a tribunal of fact hesitate to accept his evidence. But the trial judge had the great advantage of seeing the plaintiff in the witness box over several days. This gave the trial judge an incomparable
advantage over an appellate court in determining what reliability could be placed on the sworn evidence having regard to the out-of-court statements of the plaintiff.
Furthermore, the trial judge accepted the plaintiff’s wife as a witness of truth and her evidence confirmed that the plaintiff was fit for work on the morning of 23 January 1985, as did the evidence of the fellow worker who noticed a drastic change come over the plaintiff about 10.30 am.
More than once in recent years, this Court has pointed out that a finding of fact by a trial judge, based on the credibility of a witness, is not to be set aside because an appellate court thinks that the probabilities of the case are against — even strongly against — that finding of fact.
If the trial judge’s finding depends to any substantial degree on the credibility of the witness, the finding must stand unless it can be shown that the trial judge ‘has failed to use or has palpably misused his advantage’ or has acted on evidence which was ‘inconsistent with facts incontrovertibly established by the evidence’ or which was ‘glaringly improbable’.
The evidence of the plaintiff was not glaringly improbable. Nor was it inconsistent with facts incontrovertibly established by evidence. Indeed, the plaintiff’s account received much support from the evidence of his wife and his fellow worker.
The learned trial judge dealt in detail with the inconsistencies between the plaintiff’s evidence and his out-of-court statements. No ground exists for concluding that the judge failed to use or palpably misused his advantage.”
115 Deane and Dawson JJ said (at 479 – 480):
“An appellate court which is entrusted with jurisdiction to entertain an appeal by way of rehearing from the decision of a trial judge on questions of fact must set aside a challenged finding of fact made by the trial judge which is shown to be wrong.
When such a finding is wholly or partly based on the trial judge’s assessment of the trustworthiness of witnesses who have given oral testimony, allowance must be made for the advantage which the trial judge has enjoyed in seeing and hearing the witnesses give their evidence.
The ‘value and importance’ of that advantage ‘will vary according to the class of case, and, ... (the circumstances of) the individual case’.
If the challenged finding is affected by identified error of principle or demonstrated mistake or misapprehension about relevant facts, the advantage may, depending on the circumstances, be of little significance or even irrelevant.
If the finding is unaffected by such error or mistake, it will be necessary for the appellate court to assess the extent to which it was based on the trial judge's conclusions about the credibility of witnesses and the extent to which those conclusions were themselves based on observation of the witnesses as they gave their evidence as distinct from a consideration of the content of their evidence. | [
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] | null |
|
nsw_caselaw:549fd5843004262463bf1e27:27 | nsw_caselaw:549fd5843004262463bf1e27 | there is moreover reference in the mother’s cross-examination to the respondent complaining to her of other dislocations after she returned to work in August 1999 with Hanley Moir, which the trial judge expressly accepted (Judgment [67]).
That could well have been within the six months.
(ii) second, the reference to “L” (or left) being written over by “R”, or vice versa, and the other references to “L” in the notes of 17 June 1999 and the further references in the entry of 19 July 1999 to pain “(P)” in both shoulders “esp in (L) (left)” fall well short of incontrovertible facts or uncontested testimony.
This does not rise to the level of evidence of the kind which would justify setting aside the credibility finding of the trial judge that subluxation occurred in June 1999 or render that finding glaringly improbable. This is so, even without regard to the evidentiary onus on the appellant;
(iii) third, while the absence of any written record of Dr Bloom (or Dr Naim) to the subluxation in the period identified (June 1999) is of some significance, it was for the appellant, in my view, to call Dr Bloom, given the evidentiary onus on the appellant with respect to the disentanglement.
Clearly enough the accident had some injurious effect on the respondent’s condition so as to invoke the presumption of fact in favour of the respondent under the principle in Watts v Rake; see Falasca v Morrissey [1998] ACTSC 35; appeal dismissed [1999] FCA 27.
The question is whether the accident could be eliminated as a contributory cause of the right shoulder injury, and of consequent subluxation. This could be by the appellant demonstrating not only absence of any complaint of increased pain in the right shoulder, but also too long an interval between accident and first subluxation as to eliminate the accident as even a possible contributory cause.
Instead the appellant needed to establish that the right shoulder pain was not to be attributed entirely to bursitis and its sequelae and that the subluxation and right shoulder pain were an inevitable consequence of her pre-existing condition, independent of the accident. This the appellant needed to do at least to a prima facie level.
Until then, the respondent was not “required to explain or contradict something” so as to invoke the rule in Jones v Dunkel with regard to calling one or both of her GP’s, accepting for this purpose that they were in her “camp”.
The matters advanced by the appellant to cast doubt on whether subluxation first occurred in June 1999 do not, to my mind, constitute facts “requiring an answer”; compare Schellenberg v Tunnel Holdings Pty Ltd [2000] HCA18; (2000) 200 CLR 121 at [51] approving the following statement in Cross on Evidence:
“[T]he rule [in Jones v Dunkel ] only applies where a party is ‘required to explain or contradict’ something. What a party is required to explain or contradict depends on the issues in the case as thrown up in the pleadings and by the course of evidence in the case. No inference can be drawn unless evidence is given of facts ‘requiring an answer’.”
(iv) Finally, I would agree with the trial judge’s observation at [102(q)]:
“(q) In any event she continued to complain to her chiropractor from time to time of right shoulder pain. That, on occasion, she complained of left shoulder or bilateral shoulder pain does not argue against the thesis of a causal connection.”
61 I turn now to the final line of attack against the trial judge’s finding. It is two-pronged. The first is that the appellant’s case should have been accepted that it was not the accident, but the respondent’s return to work which caused her right shoulder to flare up again.
A sufficient answer to my mind is that, accepting the respondent’s return to work “caused” her right shoulder to flare up again, that is still consistent with the respondent’s case. | [
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|
nsw_caselaw:549fd5843004262463bf1e27:51 | nsw_caselaw:549fd5843004262463bf1e27 | His Honour stated (at [46]), (RED 25W) that the appellant disputed that the respondent had increased right shoulder pain after the motor vehicle accident,
contended that the respondent’s shoulder did not start to sublux until a year later and argued that what happened to the respondent’s shoulder was “no more or less than the manifestation of the natural onset or the natural progression of the condition [the respondent] had prior to the accident”.
Later he referred to the appellant’s contention (at [102(t)]), (RED 44W) that the respondent’s shoulder condition was caused by “the normal course of the condition”.
101 The appellant complains that the primary judge did not deal adequately, or at all, with the large body of contemporaneous documents which were inconsistent with the respondent’s case that her right shoulder started to sublux in or about March 1999.
It also complains that the primary judge did not address the more probable cause of the appellant’s right shoulder pain, namely her return to the work activities which, the appellant contends, had been responsible for the onset of her symptoms prior to the motor vehicle accident.
Next, the appellant complains that the primary judge did not address the fact that Dr Sonnabend’s opinion of the respondent’s pre-accident condition was based on an incorrect history of her right shoulder problems at the time of the accident. (ORANGE 25-26).
102 The appellant illustrated its submissions by reference to the primary judge’s resolution of the issue as to when the respondent’s right shoulder first subluxed. The respondent’s evidence at trial was that the first occasion when her shoulder dislocated was when she was travelling with her husband in a car.
The car went over a bump in the road, her shoulder dislocated and she was so terrified she saw her general practitioner the same day. As against this, the appellant submitted that there was no record in the general practitioner’s notes of the respondent suffering any right shoulder dislocation until well into 2000.
103 Secondly, the respondent gave evidence that once her right shoulder had dislocated, dislocations occurred with increasing frequency.
Again, the appellant relied upon the fact that that there was no record during 1999 in any medical practitioner’s notes produced at trial that the respondent’s right arm was dislocating frequently. The appellant complained that the primary judge had not demonstrated how he had resolved these inconsistencies.
104 Next, the appellant argued that the evidence supported the proposition that the respondent’s right shoulder first dislocated in December 1999 because it was at or around this time that the respondent obtained a referral from her general practitioner to Dr Sonnabend. A dislocation first occurring in December 1999 assisted the appellant’s case in two respects.
The first was that both parties’ expert witnesses, Dr Sonnabend for the respondent and Dr Hitchen for the appellant, accepted that in order to link the respondent’s MDI to the accident it was necessary that she had suffered a right shoulder dislocation within six months after the accident.
Secondly, a dislocation first occurring in December 1999 assisted the appellant’s case that her right shoulder dislocation was caused by her work at Hanly Moir.
105 Mr B T Toomey of Queen’s Counsel who appeared with Mr F Tuscano for the respondent on appeal, but not at trial, said there were five steps critical to the respondent’s case which the primary judge had been entitled to accept. They were:
(a) that the respondent’s pre-accident right shoulder condition did not involve any dislocation or subluxation;
(b) that the respondent’s left shoulder never dislocated either before or after the motor vehicle accident – a proposition which was not challenged in cross-examination; (O38)
(c) that the respondent’s pre-accident right shoulder condition could not have been expected, without more, to proceed to dislocation in the manner it did; | [
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|
nsw_caselaw:549fd5843004262463bf1e27:26 | nsw_caselaw:549fd5843004262463bf1e27 | “It is not until 17 June 1999 as I read Mr Eisman’s notes that there is another reference to the respondent’s shoulder. This is the note from which the primary judge concluded that the respondent’s right shoulder subluxed in June 1999. That note (of which it appears only a photocopy has ever been available) reads:
“17-6-99
S Pt c/o shoulder (P) (L) deep in joint previous dislocation
O By palp to (L) shoulder ROM in extension abduction (P) bigger pts (L) rhomboid Pt tender to light palp. C, T sublux
A sublux
P u/s myofascial release adjust”
[The “L” in the first line is either written over by “R” or vice versa]
As I have said, the primary judge interpreted this entry to be a reference to the respondent complaining of her right shoulder dislocating on the basis of his conclusion that the letter “R” had been written over the letter “L” in the first line.
I cannot, with respect, accept that this conclusion was open to his Honour. I accept that it is not part of the appellant’s case that the respondent’s left shoulder had dislocated.
However that does not mean that the only inference from the 17 June 1999 note is that it referred to the respondent’s right shoulder. Read in its entirety the note refers to an examination of the respondent’s left shoulder. The letter “L” appears on the second and third lines in connection with the examination.
It seems inconceivable that Mr Eisman could have been so confused in preparing his notes as to have recorded an examination of the respondent’s right shoulder in terms clearly referable to her left.
The fact that the only correction to the notes appears to be to write “L” over “R” is, in my view, consistent with the other parts of the note that this was an examination of the respondent’s left shoulder.
Further it should be noted that in an entry dated 19 July 1999 (but which curiously appears before an entry dated 17 July 1999) Mr Eisman recorded:
“19-7-99
S Pt has had cortisone injection to (R) thumb
1-7-99, cold will ↑ (P) in hand. Unable to do full ROM [with] (R) thumb
(P) in both shoulders esp in (L)
O ↓ sensation (R) thumb
↓ wrist ROM …”
This entry makes it plain that in mid 1999 the respondent was experiencing pain on both shoulders and more in her left than her right.
In my view the 17 June 1999 note does not support the respondent’s case. Not only does the note, in terms, refer to her left shoulder, but a conclusion that the respondent’s right shoulder dislocated in June 1999 is, again, inconsistent with the bulk of contemporaneous material.
Significantly, the respondent’s case was that she reported the terrifying incident in which her shoulder subluxed to Dr Bloom the day it occurred. There is no record of any such report to Dr Bloom in the period she identified as being when her first subluxation occurred. The absence of such a record, in my view, tells strongly against the respondent’s case as to when her shoulder first subluxed.”
60 To this I would respectfully make these observations:
(i) subluxation or dislocation by no later than six months after the accident was described by Dr Sonnabend as arbitrary, and not a cut-off point which, if not met, precluded attribution of the subluxation to the accident (Black, 315).
Dr Sonnabend’s evidence was rather that the longer the period between accident and subluxation the less likely was its attribution to the accident. But here in any event we are talking about an imprecise alternative date, namely “ towards the end of 1999 ”.
Thus, with the accident mid February 1999, and the later date being of the order of November 1999, we are talking of around nine months on this hypothesis rather than six months, hardly a critical difference on Dr Sonnabend’s evidence; | [
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|
nsw_caselaw:549fd5843004262463bf1e27:10 | nsw_caselaw:549fd5843004262463bf1e27 | 20 Turning to the critical issues, identified above, the trial judge dealt comprehensively with each of these in a carefully reasoned judgment.
That is apparent when the trial judge (at [102]) gives a summation of his reasons, developed elsewhere in the judgment, for concluding that the accident did lead to an aggravation and a worsening of the plaintiff’s pre-accident right shoulder problem. I quote that summation below:
“102. I have found the causation issue a difficult one. Ultimately I am persuaded, on the balance of probabilities, that the accident did lead to an aggravation and a worsening of the plaintiff’s pre-accident right shoulder problem, and that the defendant is liable for such damage as flows from that. I have reached that view for these reasons:
(a) The plaintiff had a genetic disease which pre-disposed her to ligamentous laxity or a laxness in the elasticity of her ligaments.
(b) Patients with that condition have a predisposition to the pathological and symptomatic condition called MDI.
(c) Before the accident she suffered (see the evidence of Dr Sonnabend and Dr Hitchen) some glenohumeral instability because of her ligamentous laxity.
(d) This was accompanied by secondary rotator cuff impingement and subacromial bursitis.
(e) The instability, Dr Sonnabend said, was minor. Dr Hitchen initially disagreed with the term ‘minor’, although may ultimately have conceded it in cross-examination.
(f) In the absence of significant trauma, the prognosis for these conditions is usually good; (see evidence of Dr Sonnabend,) and the condition can usually be treated successfully with long term exercises.
(g) A traumatic event, such as a motor vehicle accident, may stretch parts of a shoulder beyond their elastic limit. This sets in train symptomatic multidirectional instability, as more and more fibres become stretched beyond their elastic limit.
The strain on adjacent fibres increases, and they fail sequentially, setting up a chain reaction, ultimately in symptomatic MDI; (see evidence of Dr Sonnabend).
(h) Such symptoms do not arise immediately necessarily, but develop over weeks or months, up to six months; (see Dr Sonnabend) following the trauma.
(i) Before the pre-accident bursitis had been cured, the accident occurred.
(j) The collision was of such force that she suffered considerable aggravation to her pre-accident wrist condition, such that of itself the wrist condition was sufficient to prevent a return to work for over a year. Even when she saw Dr Zicat on 15 March 2000, the wrist continued to be the greatest source of her pain, according to what he has recorded.
(k) The plaintiff suffered no shoulder instability (described by the doctors as a ‘ball slipping out of socket’) before the accident.
(l) She did suffer from such instability after. Although the evidence as to when this first began is unclear, I consider, as I have found, that it was in June 1999, at the time when there is a record of shoulder instability in the chiropractor's notes.
(m) The plaintiff suffered some pain in her right shoulder before the accident, indeed, pain of severity.
(n) Because her main injury was to her right wrist, and she had been suffering right shoulder problems immediately before the accident, I do not consider that the plaintiff saw the accident as having caused any significant increase in right shoulder symptoms, and found it unsurprising when the right shoulder symptoms continued.
(o) The chiropractic letters and notes for the 17th and 19th February 1999 however suggest, and I infer, as I have noted, that her right shoulder was a matter that she complained of after the accident and was responsible for and caused increased pain, as recorded.
I have noted also the reference to the increase in inflammation in what I have taken to be the right shoulder, in part of the history taken just after the accident. | [
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] | null |
|
nsw_caselaw:549fd5843004262463bf1e27:33 | nsw_caselaw:549fd5843004262463bf1e27 | Consequently, I would suggest that some further injury to the ligamentous structures (capsule) occurred, and presume that this further injury occurred at the time of the motor vehicle accident. In my opinion, on the balance of probabilities, the progression of [the respondent’s] shoulder pathology was either caused by or severely exacerbated by the motor vehicle accident …”
65 Taking those matters into account, and the presumption of fact in favour of the respondent, I do not consider that it was incumbent on the trial judge to give reasons why he rejected as explanations for the respondent’s right shoulder injury the respondent’s marathon swimming, or her return to work in August 1999;
that is to say going beyond the reasons his Honour did give including for preferring Dr Sonnabend’s expert evidence as the basis for his finding on causation.
Those alternative explanations advanced by the appellant were for the appellant to establish at least at a prima facie level in order to satisfy the evidentiary onus upon it. This in my opinion the appellant failed to do.
To paraphrase McHugh J in Fox v Percy (at 146 [90]) these were not matters, nor were those earlier identified in relation to Mr Eisman which, to my mind would point “decisively and not merely persuasively to error on the part of the trial judge in acting on his or her impressions of the witness or witnesses”.
SUMMING UP
66 By concluding on causation as the trial judge did ([102] of the Judgment) it can be taken that the trial judge did not consider these alternative explanations were established as not only plausibly explaining the respondent’s post-accident condition but as rendering glaringly improbable the accident as a contributory cause.
To demonstrate that an alternative explanation is consistent with the evidence is not enough.
Where the respondent’s case and the trial judge’s causation finding accepting that case is not refuted by incontrovertible fact or uncontested testimony, or compelling inference in the case, it must be shown, for the appellant to succeed, that the explanation accepted by the trial judge could not stand with the evidence considered cumulatively, without glaring improbability in result;
or that the evidence provided too fragile a basis for the finding made by the trial judge.
None of this was demonstrated by the appellant, on whom the evidentiary onus resided.
OVERALL CONCLUSION
67 I would disallow the appeal and order as follows:
(1) Appeal dismissed.
(2) Appellant to pay respondent’s costs.
68 McCOLL JA: The Nominal Defendant appeals from a judgment of his Honour Judge Walmsley SC, sitting in the District Court of New South Wales, in which he awarded the respondent, Vashti Clancy, $634,522.64 by way of damages in respect of injuries he found she had suffered as a result of a rear end motor vehicle collision on 16 February 1999.
69 The identity of the vehicle which collided with the respondent’s was never established, hence the action against the Nominal Defendant. Due search and enquiry was not in issue and, although liability was put in issue in the defence, the main issue before the primary judge was whether the respondent had suffered injury to her right shoulder as a result of the accident.
The primary judge found the respondent had proved the collision had occurred. He held that the other driver was negligent, thus finding in the respondent’s favour on the issue of liability. The appellant does not challenge that finding.
70 In March 2000 Dr Sonnabend, an orthopaedic surgeon, diagnosed the respondent as suffering a severe multi-directional glenohumeral instability (“MDI”) in her right shoulder.
He operated upon her shoulder and performed a capsular shift procedure. In Dr Sonnabend’s opinion the motor vehicle accident either precipitated the MDI or, at least, severely exacerbated a pre-existing minor shoulder condition. | [
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] | null |
|
nsw_caselaw:549fd5843004262463bf1e27:43 | nsw_caselaw:549fd5843004262463bf1e27 | ‘Ms Clancy has a number of problems with her right upper limb. As a child she sustained what was probably a Monteggia fracture which led to a proximal radioulnar synostosis. This limited the pronation and supination of her right arm, and together with the pain of her wrist she was using her shoulder excessively for rotatory movements.
This apparently led to subluxation and then episodes of actual dislocation of her right shoulder joint, such that she was referred to Professor David Sonnabend, who is a shoulder specialist’.
71. By mid 2000 the plaintiff’s marriage had broken down. She had moved back to live with her parents. On 30 June 2000 Dr Sonnabend recorded this history:
‘ The wrist and elbow were also sore, but the shoulder was the main problem. This is following the accident. Initially the wrist was the main concern as it had recently been operated on, but the shoulder was sore from the time of accident and started to clunk in about March 1999.
It got slowly worse, from there, initially falling out occasionally and as time progressed falling out more and more, frequently. Vashti had a lot of physiotherapy at the City Clinic on Crown Street. This made little difference. The rest is history. She had had some discomfort (bursitis) in the right shoulder before the accident, but had not experienced any dislocation’.
72. She saw Dr Bencsik again on 21 July 2000. He recorded this, concerning an event on 7 July 2000:
‘Following an injection of Pethidine to relieve her pain on 7 July 2000, she had a fainting attack. In the fall she lacerated her chin which required suturing and sustained injuries to her left upper first, second and third teeth.
The second and third teeth were broken to the point where they were extracted, and she was required to wear a temporary splint. However, at a later date Mrs Clancy will have titanium peg implants and a tooth replacement prosthesis.’
73. It is the plaintiff’s case that that fall was causally related to the accident since the Pethidine was taken to relieve the right shoulder pain.
The defendant concedes that if the right shoulder disability is found to be causally related to the accident, it is liable for the sequelae of that fall. The past treatment expenses are included in an agreed sum for past out of pocket expenses, namely $150,937.
67. The defendant concedes it is liable for all of those expenses if I find both right wrist and right shoulder causally related to the motor vehicle accident. Further, the parties have agreed that there are additional future expenses arising from necessary treatment of the right shoulder and the teeth, and these amount to $27,627.35.
74. I took counsel for the plaintiff to concede that the injuries arising from the fall on 7 July 2000 are not compensable if I do not find the right shoulder injury causally related.
75. When reporting about his examination of the plaintiff on 21 July 2000, Dr Bencsik said this:
‘ Ms Clancy has persisting pain in her right wrist with activity or when driving for two hours, as occurred yesterday. She is unable to do up her bra, wash or brush her hair because of stiffness in her right upper limb.
She has gross restriction of rotation of her shoulder, which accentuates the previous stiffness of her right elbow enostosis and post traumatic stiffness of her right wrist. However, the right shoulder feels stable.
Her wrist is painful. Ms Clancy avoids applying any force, although she has to try to compensate for her increasing right shoulder and her previous right elbow stiffness.
The pain in her wrist appears to be worsening but she agrees that her right shoulder symptoms have been gradually improving. Mrs Clancy continues to attend for physiotherapy to her right wrist and right shoulder and she carries out home exercises.’
76 At page five of his report he said this: | [
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|
nsw_caselaw:549fd5843004262463bf1e27:0 | nsw_caselaw:549fd5843004262463bf1e27 | New South Wales
Court of Appeal
CITATION: Nominal Defendant v Clancy [2007] NSWCA 349
This decision has been amended. Please see the end of the judgment for a list of the amendments.
HEARING DATE(S): 23 February 2007
JUDGMENT DATE: 7 December 2007
JUDGMENT OF: Santow JA at 1; McColl JA at 68; Campbell JA at 282
DECISION: 1. Appeal dismissed. 2. Appellant to pay respondent’s costs.
CATCHWORDS:
APPEAL — facts — interference with findings of fact — whether critical findings of fact inconsistent with incontrovertible fact or uncontested testimony — whether the decision at trial glaringly improbable or contrary to compelling inferences — whether trial judge adequately considered contemporaneous documents
— - NEGLIGENCE — damage — causation — shifting evidentiary burden — whether appellant demonstrated its case to a prima facie level so as to require respondent to explain or contradict that case — - EVIDENCE — witnesses — failure to call witness — whether witness one expected to be called by one party rather than
the other — adverse inferences — - EVIDENCE — expert evidence — function of appellate court — dispute between experts — whether trial judge entitled to reject expert witness whose qualifications not put in issue — where expert issue in dispute involved differences between the expert witnesses capable of being resolved
rationally by examination and analysis — - JUDGMENT — adequacy of reasons — whether trial judge adequately considered appellant’s case —whether trial judge exposed his reasons for resolving a point critical to the contest between the parties — whether trial judge did justice to issues posed by appellant’s case.
LEGISLATION CITED: Workers Compensation Act 1987
Abalos v Australian Postal Commission [1990] HCA 47; (1990) 171 CLR 167
Ahmedi v Ahmedi (1991) 23 NSWLR 288
De Groot v The Nominal Defendant [2005] NSWCA 61
Devries v Australian National Railways Commission [1992] HCA 41; (1993) 177 CLR 472
Flannery v Halifax Estate Agencies Ltd t/as Colleys Professional Services [2000] 1 All ER 373
Fox v Percy [2003] HCA 22; (2004) 214 CLR 118
Ibrahim v Pham [2007] NSWCA 215
Jones v Dunkel [1959] HCA 8; (1959) 101 CLR 298
Moylan v Nutrasweet Co [2000] NSWCA 337
North Sydney Council v Ligon (1995) 87 LGERA 435
Payne v Parker [1976] 1 NSWLR 191
CASES CITED: Purkess v Crittenden [1965] HCA 34; (1965) 114 CLR 164
Schellenberg v Tunnel Holdings Pty Ltd [2000] HCA 18; (2000) 200 CLR 121
Shellharbour City Council v Rhiannon Rigby [2006] NSWCA 308
Shorey v PT Limited [2003] HCA 27; (2003) 77 ALJR 1104
Soulemezis v Dudley (Holdings) Pty Ltd (1987) 10 NSWLR 247
State of New South Wales v Burton [2006] NSWCA 12
State Rail Authority of New South Wales v Earthline Constructions Pty Ltd (in liq) [1999] HCA 3; (1999) 73 ALJR 306
Suvaal v Cessnock City Council [2003] HCA 41; (2003) 77 ALJR 1449
Watts v Rake [1960] HCA 58; (1960) 108 CLR 158
Wiki v Atlantis Relocations (NSW) Pty Limited [2004] NSWCA 174; (2004) 60 NSWLR 127
Wilsher v Essex Area Health Authority [1988] AC 1074
Yates Property Corporation Pty Ltd (in liq) v Darling Harbour Authority (1991) 24 NSWLR 156
PARTIES: Nominal Defendant - Appellant
Vashti Clancy - Respondent
FILE NUMBER(S): CA 40115 of 2006
COUNSEL: Mr R R Bartlett SC with Mr W M Fitzsimmons - Appellant
Mr B M J Toomey QC with Mr F Tuscano - Respondent
SOLICITORS: David McLachlin, Solicitor - Appellant
McLaughlin & Riordan - Respondent
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|
nsw_caselaw:549fd5843004262463bf1e27:54 | nsw_caselaw:549fd5843004262463bf1e27 | [31] Further, in recent years, judges have become more aware of scientific research that has cast doubt on the ability of judges (or anyone else) to tell truth from falsehood accurately on the basis of such appearances.
Considerations such as these have encouraged judges, both at trial and on appeal, to limit their reliance on the appearances of witnesses and to reason to their conclusions, as far as possible, on the basis of contemporary materials, objectively established facts and the apparent logic of events.
This does not eliminate the established principles about witness credibility; but it tends to reduce the occasions where those principles are seen as critical.”
112 Mr Toomey submitted that this case was very much like Devries v Australian National Railways Commission [1992] HCA 41; (1993) 177 CLR 472. In that case, as the headnote records:
“The trial judge (Legoe J) found that on 23 January 1985 the plaintiff sustained injury when a tie tamper he was using on a railway line became stuck and had to be freed by exerting a good deal of pressure. The application of that pressure caused an injury to the plaintiff's back.
In making these findings, and upholding the plaintiff's claim, Legoe J expressly accepted the plaintiff's account of events in the knowledge that there were inconsistencies between his evidence and statements made by the plaintiff in reports filled in shortly after the accident.
In preferring the plaintiff's oral evidence, the judge accepted it as a truthful and reliable account of what had occurred.
The Full Court of the Supreme Court (Mohr and Matheson JJ and Zelling AJ) allowed an appeal by the defendants on the ground that the inconsistencies between the plaintiff's oral evidence and other material threw such grave doubt on his testimony as to require the conclusion that the plaintiff had failed to establish that the incident had happened as he had sworn.”
113 The High Court held that the Full Court had erred in setting aside Legoe J’s finding.
Legoe J had accepted the plaintiff's evidence as a truthful and reliable account of what had occurred and concluded that the inconsistencies between his evidence and statements he made in reports filled in
shortly after the accident were the result of the confusion of the plaintiff caused by pain at the time when he filled in the reports and by his inability "to express himself in written English properly".
On appeal, Mohr J (with whom Zelling AJ and Matheson J agreed) regarded the plaintiff’s contemporaneous reports of the accident, which were inconsistent with his trial testimony, as “established facts” leading to the conclusion that the plaintiff had not proved that his injury was the result of the incident alleged to have occurred on 23 January 1985: see Devries (at 475).
114 Brennan, Gaudron and McHugh JJ said of this approach (at 476 – 477, footnotes omitted):
“However, it is difficult to see how the fact that the plaintiff had given a more coherent account of injury on previous occasions entitled the Full Court to set aside the trial judge's finding of credibility. On this occasion, the plaintiff was in hospital in considerable pain.
Mohr J appears to have taken the plaintiff's answers in the compensation claim form and report form as ‘established facts’, but that is not the sense in which the term ‘established facts is used in authorities such as Brunskill v Sovereign Marine & General Insurance Co Ltd .
The statements in the reports were not ‘established facts’. They constituted admissions which could be used to discredit the plaintiff’s testimony. But the ‘facts’ in the statements did not constitute ‘facts incontrovertibly established by the evidence’.
One of the critical issues in the case was the extent to which the statements could be relied on as an accurate account of how the plaintiff had sustained injury.
The question for the judge was whether he should accept the plaintiff’s oral evidence or whether the accounts in the claim form and report threw such doubt on the plaintiff's evidence that it should not be accepted. | [
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|
nsw_caselaw:549fd5843004262463bf1e27:60 | nsw_caselaw:549fd5843004262463bf1e27 | 127 The evidence must be scrutinised closely in order to determine the appeal. The analysis is undertaken against what the parties accepted were the critical issues: the condition of the respondent’s right shoulder before the accident, whether she complained of increased right shoulder pain in the first few months after the accident and when her right shoulder first subluxed.
128 The primary judge accepted the respondent’s contention that she had continuing and worse shoulder pain after the accident and that shoulder dislocations occurred within the first six months.
The respondent’s credibility
129 It is convenient, before delving into the evidence, to outline the conclusion the primary judge reached concerning the respondent’s credibility. As I have said, his Honour did not regard the respondent’s credit as being of vital importance to his findings.
He did regard her memory as defective, but rejected (at [101]) the appellant’s submission that she was dishonest, concluding that with the passage of time she had forgotten incidents and sequences.
130 He appears to have reached that position despite acknowledging inconsistencies in her evidence both between her evidence in chief and cross-examination (see primary judgment at [96] – [98]) and the medical evidence because he found:
(a) the respondent was mistaken about when the pain first became significant and when its increase first became significant to her (at [99]);
(b) even though the respondent first attributed her shoulder problem to the accident in March 2000, much was happening in her life in the first half of 1999 and her wrist problem was overwhelmingly the main problem that year in preventing her return to work (at [100]);
(c) she was entitled to have assumed that the right shoulder pain she had after the accident was the same problem as before rather than having been caused by the accident (at [102(w)]).
131 Accordingly his Honour said he did not reject the respondent totally in areas unsupported by contemporaneous records, but treated what she told him, especially about the period just before and in the one year post accident “with very considerable caution” (at [101]).
The condition of the respondent’s right shoulder prior to the accident
132 In order to put the appellant’s complaints in context, it is necessary to refer in some detail to the evidence.
133 The appellant commenced part-time work at Hanly Moir Pathology in July 1998. (BLACK 21U). At the end of 1998 and the beginning of 1999 she started to find that her right shoulder ached when she was performing a vena puncture. She was referred to Dr Ridhalgh, an orthopaedic surgeon, who prescribed a cortisone injection.
When she saw Dr Ridhalgh she told him that she had been having right shoulder problems for the six months before 29 January 1999 (BLACK 125) and that the problem coincided generally with when she had commenced work at Hanly Moir. Dr Ridhalgh diagnosed the respondent as suffering from “supraspinatus tendonitis due to the crankshaft effect of the lack of rotation in the forearm”. (BLUE 155)
134 Dr Ridhalgh arranged for an MRI to be performed of her right shoulder. The MRI showed an intact rotator cuff with fluid in the sub-acromial bursa, which Dr Ridehalgh concluded was consistent with sub-acromial bursitis. (BLUE 159)
135 In his report of 29 January 1999 (BLUE 155) Dr Ridhalgh reported:
“She presents with increasing pain in the right shoulder which is deep and she has trouble sleeping at night. She describes a burning and grinding feeling in the shoulder. If she rolls onto the shoulder there is pain.”
136 In her evidence in chief the respondent was asked about the efficacy of the cortisone injection. She gave the following evidence: | [
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] | null |
|
nsw_caselaw:549fd5843004262463bf1e27:15 | nsw_caselaw:549fd5843004262463bf1e27 | The disentanglement of the effect of the accident from the respondent’s pre-existing condition involved a difficult judgment. It was a judgment which was medically complex and one in which experts themselves might well differ.
The respondent moreover was a layperson struggling with severe wrist pain, she knew she had had pre-accident bursitis and was undergoing other severe strains in her life, culminating in her suicide attempt in June 1999. Both Dr Sonnabend, disagreeing with Dr Hitchen, and Dr Bencsik attributed the right shoulder pain to the accident, giving reasons.
That conclusion is not to be discounted by Dr Sonnabend conceding, as he properly did in cross-examination, that shoulder instability may also frequently be the product of repetitive activity, such as long-distance swimming (see later). The trial judge recorded their concurring evidence as follows:
“68. The plaintiff saw Dr Sonnabend for the first time on 24 March 2000, about thirteen months post accident. Counsel for the defendant urged me to reject Dr Sonnabend’s views in so far as they supported the plaintiff on causation.
In substance, the reason was he was not given a correct pre-accident history and he gave weight to incorrect post accident history. It is clear, however, that he had a considerable part of her pre-accident history. On 24 March 2000 he wrote this, inter alia:
‘Her complex medical history includes a genetic disorder, Methylene Tetrahydrofolate Reductase Deficiency, a proximal radioulnar synostosis of the right forearm (following fracture at age of eight), bilateral wrist reconstructions in 1998 (with residual ongoing right wrist pain), and a motor vehicle accident in February 1999 which exacerbated the right wrist problem.
Ms Clancy's right shoulder problem began in late 1998 and was much exacerbated by the car accident, possibly because of a need to increase shoulder use to offset wrist immobility. Ms Clancy now experiences constant severe pain of the right shoulder.
She uses Durogesic patches and has been treated by two pain clinics with little success. She feels that her shoulder subluxes frequently with various precipitating movements including external rotation and cross body adduction. On examination Ms Clancy's active shoulder movements are limited in all directions because of pain, but there is a full range of passive movement.
Mrs Clancy has marked systemic ligamentous laxity and her shoulder is easily subluxed anteriorly, posteriorly and inferiorly. Plain radiographs today were unremarkable. My impression is that Ms Clancy's shoulder problem is due to severe multidirectional instability’.
69. He explored the right shoulder joint on 5 April 2000. A sinus developed and delayed healing.
70. The worker's compensation insurer had her seen by an orthopaedic surgeon, Dr Bencsik, on 10 May 2001. [sic, this should be 10 May 2000]. The history he recorded included this:
‘Ms Clancy has a number of problems with her right upper limb. As a child she sustained what was probably a Monteggia fracture which led to a proximal radioulnar synostosis. This limited the pronation and supination of her right arm, and together with the pain of her wrist she was using her shoulder excessively for rotatory movements.
This apparently led to subluxation and then episodes of actual dislocation of her right shoulder joint, such that she was referred to Professor David Sonnabend, who is a shoulder specialist’.
71. By mid 2000 the plaintiff’s marriage had broken down. She had moved back to live with her parents. On 30 June 2000 Dr Sonnabend recorded this history:
‘The wrist and elbow were also sore, but the shoulder was the main problem. This is following the accident. Initially the wrist was the main concern as it had recently been operated on, but the shoulder was sore from the time of accident and started to clunk in about March 1999. | [
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|
nsw_caselaw:549fd5843004262463bf1e27:24 | nsw_caselaw:549fd5843004262463bf1e27 | 48 An immediate difficulty with such an interpretation whereby “upper extremity” is limited to hand alone is the reference under “Chief Complaint” to the respondent’s “entire right shoulder”. There is also the earlier reference to “her right arm and upper extremity”.
The latter suggests both arm (with hand) and shoulder are being referred to as “right arm”, given that an arm in ordinary parlance can be understood as extending to wrist and hand. These references to my mind clearly indicate that it was to her right shoulder that reference is being made and not just to her hand.
49 Moreover McColl JA does not refer to the paragraph headed ”Physical Examination” in the second report. That paragraph follows the earlier quoted paragraph headed “Chief Complaint”.
It in turn follows the earlier quoted paragraph “Update Report” where the words being interpreted appear, namely that; “she however states that her right arm and upper extremity was re-injured”. The paragraph headed “physical examination” significantly in my opinion, refers to the “upper extremities” as being “inclusive of both shoulders”; see below.
“ Physical Examination
Upon physical examination of the patient's upper extremities, inclusive of both shoulders , the following was observed:
‘Both shoulders appear to be symmetrical; skin colour is normal with a slight tanning of the skin. The patient states she uses sunscreen and does not expose her skin to direct sunlight often. Her left shoulder is elevated and contour of both shoulders appears to be within normal limits. There appears to be increased inflammation.’” [emphasis added]
50 The trial judge does however quote this paragraph when dealing with the two reports as well as the notes, comprehensively in [20] to [27]. I have earlier quoted those paragraphs in full.
Significantly, Mr Eisman under “Physical Examination” observed increased inflammation in the right shoulder in his second report, (as compared to his first report), a matter noted also by McColl JA as referring to the respondent’s right shoulder.
Moreover, in the second report Mr Eisman, in adding to the list of disabilities under the heading “Diagnostic Expression”, refers specifically to “hyper-extension to the right hand and oedema”; he does not use the expression “upper extremities” to refer to the hand. That places yet further doubt on interpretation of the second report as referring under “upper extremity” only to her hand.
51 McColl JA then considers Mr Eisman’s clinical notes. Her Honour finds significant that they make “no mention of the respondent complaining of her right shoulder as a consequence of the motor vehicle accident”. Her Honour does so for two purposes:
(a) to base her Honour’s conclusion that “ when one compares Mr Eisman’s clinical notes with his letter to Dr Ridhalgh of 22 February 1999, it was not open to the primary judge to infer that the letter supported a complaint by the respondent of increased pain in her right shoulder after the accident ”,
but “ rather the notes record her complaint of injury to her right wrist in the accident, a complaint consistent with the other contemporaneous accounts she gave to medical practitioners and others ”;
and
(b) to base her Honour’s conclusion that “the anomalies between Mr Eisman’s notes when compared to his [second] letter to Dr Ridhalgh are such as to cause me to doubt the accuracy of the latter”. Her Honour then observes that:
“The notes are consistent with the respondent’s complaints after the accident about her wrist having been injured. Moreover the fact the respondent had increased range of movement in her right shoulder on 22 February 1999 is inconsistent with her having suffered further injury to her shoulder in the accident.”
52 I respectfully differ in relation to both propositions. The report of 22 February 1999 to Dr Ridhalgh earlier quoted was in my view clear and unequivocal. I refer particularly to what was said under the heading “Chief Complaint” quoted below:
“ Chief Complaint | [
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] | null |
|
nsw_caselaw:549fd5843004262463bf1e27:9 | nsw_caselaw:549fd5843004262463bf1e27 | The theory of the appellant’s case was that at the time of the accident the respondent had a congenital condition (unknown to her at the time) which results in ligament laxity. Her previous injuries and subsequent operations (two in early 1998) to her right lower arm had resulted in limited movement, thereby causing her to tend to turn her right shoulder more than otherwise.
Her ultimate condition of MDI of the right shoulder, as explained by Dr Sonnabend, is classified as an atraumatic condition, that is not usually brought by a single trauma but by people performing some superimposed, usually repetitive, activity either at work or a sport such as swimming.
The respondent had engaged in marathon swimming and had trained four days a week. She started work at Hanley Moir in July 1998 on a part-time basis, proceeding to full time in October 1998.
Her job entailed her performing mainly the same tasks of taking blood. This resulted in the respondent having considerable problems in her right shoulder to the extent that the day before the accident she had significant pain there and could hardly move it.
She did not suffer any injury to her right shoulder in the motor vehicle accident, the trauma being slight (resulting in no damage to her vehicle) but did aggravate her previously injured right lower arm by reason of the position of her hand on the steering wheel.
Because of her lower arm injury the respondent did not resume work until August 1999 and then only on limited hours. Having been off work the right shoulder problem, which existed prior to the accident, abated to a degree.
However when she resumed her pre-injury work and increased her duties this caused further problems to her right shoulder so that by the start of November 1999 she was back to where she was the day before the accident.
Her shoulder, thereafter, started to sublux and dislocate at the end of November or at the commencement of December 1999 leading to her general practitioner referring her in early January 2000 to Dr Sonnabend. She first saw Dr Sonnabend in early March 2000.
The appellant submitted that its theory of the case was consistent with the contemporaneous notes and reports made by those who treated the respondent and with the information the respondent provided in her claim forms and statements and medico legal reports both in her workers compensation and motor accidents claim.”
17 I agree that the critical issues are those identified by McColl JA, quoted below:
“The analysis is undertaken against what the parties accepted were the critical issues: the condition of the respondent’s right shoulder before the accident, whether she complained of increased right shoulder pain in the first few months after the accident and when her right shoulder first subluxed.”
18 I agree that the critical finding of primary fact, was the trial judge’s acceptance of the respondent’s contention that she had continuing and worse shoulder pain after the accident, a finding challenged in this appeal.
19 However, the finding that shoulder dislocations occurred within the first six months, though undoubtedly made (see Judgment [102(s)] and elsewhere), must be read with Dr Sonnabend’s oral evidence, given in cross-examination.
There he was asked about the significance of when precisely the respondent’s right shoulder became markedly symptomatic (subluxing or dislocating) in terms of causal connection with the accident.
Dr Sonnabend, whose evidence the trial judge preferred overall, explained that a cut-off point of six months was an arbitrary figure: “more than six months would make you wonder whether it was related, but that’s an arbitrary thing” (see Black, 315N).
Dr Sonnabend there puts the six months in perspective by emphasising that what was significant was simply whether there was, at some point of time, an alteration in symptoms before, as compared to after, the accident:
“Q. But what was significant to you was at some point of time an alteration in symptoms pre to post accident? Is that correct?
A. Correct.” | [
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|
nsw_caselaw:549fd5843004262463bf1e27:5 | nsw_caselaw:549fd5843004262463bf1e27 | SANTOW JA
McCOLL JA
CAMPBELL JA
Friday 7 December 2007
NOMINAL DEFENDANT v CLANCY
Judgment
1 SANTOW JA:
OVERVIEW
The principal question to be decided in this appeal is whether this Court should overturn the finding on causation in favour of the plaintiff Ms Clancy, respondent in this appeal. The finding of causation was made by the trial judge, Walmsley DCJ, in an action brought by Ms Clancy, for damages for personal injuries.
It was brought against the Nominal Defendant (appellant in these proceedings), for injury to the respondent’s right shoulder as a consequence of a rear-end motor vehicle collision brought about by a negligent unidentified driver.
This occurred on 16 February 1999. The respondent’s pre-accident history covered a motor vehicle accident in 1992, right wrist surgery in 1997 and twice in 1998, and bursitis in the right shoulder (Judgment [10]).
2 McColl JA, whose judgment in this appeal, with its extensive review of the evidence, I have had the advantage of reading, would uphold the appeal. I respectfully differ and would disallow the appeal.
3 In my reasons which follow, I conclude that there are not sufficient grounds for disturbing the trial judge’s conclusions, taking into account the constraints on appellate intervention in disturbing credibility based findings.
Important in my reasons is the evidentiary onus on the defendant to disentangle the accident from the plaintiff’s pre-existing condition, if the accident is to be eliminated as even a contributory cause of her injury or its aggravation.
If in testing the trial judge’s inferences against the evidence, that process produces competing inferences which are equally plausible to those made by the trial judge, that will not be sufficient for the appellant to succeed, unless that evidentiary onus is discharged. I do not consider it was discharged in the present case for reasons I explain.
ELABORATION
4 The ultimate finding on causation, expressed by the trial judge to be on the balance of probabilities, was that the motor vehicle accident did lead to an aggravation and a worsening of the plaintiff’s pre-accident right shoulder problem. The Nominal Defendant was held liable for such damage as flowed from that.
5 On appeal, the Nominal Defendant challenges only the finding of causation; damage is not otherwise in issue.
6 The present was not a case, in my view, where the trial judge had “too fragile a base” to support his Honour’s causation finding; compare State Rail Authority of New South Wales v Earthline Construction Pty Ltd (in liq) [1999] HCA 3; (1999) 73 ALJR 306 at [63] per Gaudron, Gummow and Hayne JJ.
That finding, insofar as credibility based, relied on a strongly favourable credibility finding for the respondent’s mother as well as supporting evidence.
While in the case of the competing experts’ demeanour may be of a lesser order of importance, it did enter into the trial judge’s preference for the evidence of the respondent’s expert Dr Sonnabend over the appellant’s expert Dr Hitchen. The trial judge also relied on other considerations in preferring Dr Sonnabend’s evidence.
7 Some of the findings of primary fact made by the trial judge were contestable, or open to differing interpretation. I refer in particular to the respondent’s reported symptoms in her right shoulder, their timing, character and medical interpretation and the degree to which they were reported by the respondent.
The same applies to episodes of subluxation or dislocation of the respondent’s right shoulder. However, as I explain, none of the critical findings of fact were inconsistent with “incontrovertible fact” or such as to render the decision at trial to be “glaringly improbable” or “contrary to compelling inferences in the case” (Fox v Percy [2003] HCA 22; (2003) 214 CLR 118 at [29]). | [
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|
nsw_caselaw:549fd5843004262463bf1e27:45 | nsw_caselaw:549fd5843004262463bf1e27 | 88 The primary judge then dealt with a miscellany of medical reports. It is necessary to set out his treatment of those reports having regard to the appellant’s complaint that his Honour failed to have regard to the weight of evidence tending against the conclusion that the respondent’s right shoulder condition was caused by the accident:
“79. The plaintiff saw a neurologist, Dr Coffey, on 1 April 1999, 9 April 1999 and 7 June 1999 concerning an epileptic seizure. She did not complain to him of any right shoulder injury, although she did complain about pain in the wrists; see his report of 23 March 2001.
80. She saw a Dr Locke shortly after the accident. In his report of 26 March 2001 he noted similar complaints.
81. I have earlier noted the plaintiff saw orthopaedic surgeon, Dr Ridhalgh, before the accident, concerning her right shoulder pain. In his report of 21 May 2001 he said this, among other things:
‘She presented with increasing pain in the right shoulder which was deep and she had trouble sleeping at night. She described a burning and grinding feeling of the shoulder and if she rolled onto the shoulder there was pain. Three weeks before she had fallen and injured the right ankle and had been hobbling around ever since.
At that time she localised pain to the deep aspect of the right shoulder and was tender over the acromion. She had a positive impingement sign and abduction internal rotation was to T12 compared to T8. External rotation was left to right 35 degrees with weakness of power. There was lack of rotation of the forearm bones. She is married without children and used to enjoy aerobics.
I felt she had supraspinatus tendonitis and I injected her with local anaesthetic and hydrocortisone. I reviewed her on 1/2/99. She had had a bad reaction to the injection and had severe pain in the right shoulder with trouble sleeping over the weekend. There was no increased weakness or redness or heat about the shoulder and she had an almost full range of movement.
On 5/2/99 she had an MRI of the shoulder which showed intact rotator cuff with fluid in the subacromial bursa consistent with subacromial bursitis. She was last reviewed on 8/2/99 with a positive impingement sign and weakness of external rotation. I referred her to physiotherapy. I have not seen this patient since February 1999. Unfortunately I am unable to give a prognosis for this reason.’
82. The plaintiff continued to have problems with her right shoulder through 2001 and experienced chronic subluxation of the glenohumeral joint and she wore a brace, which her engineer father designed and made for her. She continued to take strong analgesics.
83. For medico legal purposes she saw for the defendant Dr Schutz, a general surgeon. Accepting the correctness of her history of severe pain in the right shoulder and right wrist post accident he considered, ‘Pre-existing problems may have been marginally aggravated.’ He was not cross-examined, and neither counsel referred to his report in address.
84. She came under the care of pain specialist, Dr Cohen. He expressed views on causation in a report of 19 April 2002, but clearly had an incorrect history, namely dislocation in a motor vehicle accident. He was not cross-examined and neither counsel referred to him in submissions.
85. On 18 May 2002 Professor Sonnabend carried out a right posterior capsular shift. Following that surgery she wore a brace for a considerable time.
86. Dr Schutz reported again on 14 June 2002, having received more information. The additional information was not specified but it clearly gave a more accurate history. He then said there was no causal relationship between the accident and the right shoulder problems. This report was not addressed by counsel. | [
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|
nsw_caselaw:549fd5843004262463bf1e27:53 | nsw_caselaw:549fd5843004262463bf1e27 | “25 Within the constraints marked out by the nature of the appellate process, the appellate court is obliged to conduct a real review of the trial and, in cases where the trial was conducted before a judge sitting alone, of that judge's reasons.
Appellate courts are not excused from the task of ‘weighing conflicting evidence and drawing [their] own inferences and conclusions, though [they] should always bear in mind that [they have] neither seen nor heard the witnesses, and should make due allowance in this respect’...
[26] After Warren v Coombes , a series of cases was decided in which this court reiterated its earlier statements concerning the need for appellate respect for the advantages of trial judges, and especially where their decisions might be affected by their impression about the credibility of witnesses whom the trial judge sees but the appellate court does not.
Three important decisions in this regard were Jones v Hyde , Abalos v Australian Postal Commission and Devries v Australian National Railways Commission . This trilogy of cases did not constitute a departure from established doctrine. The decisions were simply a reminder of the limits under which appellate judges typically operate when compared with trial judges.
[27] The continuing application of the corrective expressed in the trilogy of cases was not questioned in this appeal. The cases mentioned remain the instruction of this court to appellate decision-making throughout Australia.
However, that instruction did not, and could not, derogate from the obligation of courts of appeal, in accordance with legislation such as the Supreme Court Act applicable in this case, to perform the appellate function as established by parliament.
Such courts must conduct the appeal by way of rehearing. If, making proper allowance for the advantages of the trial judge, they conclude that an error has been shown, they are authorised, and obliged, to discharge their appellate duties in accordance with the statute.
[28] Over more than a century, this court, and courts like it, have given instruction on how to resolve the dichotomy between the foregoing appellate obligations and appellate restraint. From time to time, by reference to considerations particular to each case, different emphasis appears in such reasons.
However, the mere fact that a trial judge necessarily reached a conclusion favouring the witnesses of one party over those of another does not, and cannot, prevent the performance by a court of appeal of the functions imposed on it by statute.
In particular cases incontrovertible facts or uncontested testimony will demonstrate that the trial judge's conclusions are erroneous, even when they appear to be, or are stated to be, based on credibility findings.
[29] That this is so is demonstrated in several recent decisions of this court. In some, quite rare, cases, although the facts fall short of being ‘incontrovertible’, an appellate conclusion may be reached that the decision at trial is ‘glaringly improbable’ or ‘contrary to compelling inferences’ in the case.
In such circumstances, the appellate court is not relieved of its statutory functions by the fact that the trial judge has, expressly or implicitly, reached a conclusion influenced by an opinion concerning the credibility of witnesses.
In such a case, making all due allowances for the advantages available to the trial judge, the appellate court must ‘not shrink from giving effect to’ its own conclusion. Finality in litigation is highly desirable. Litigation beyond a trial is costly and usually upsetting. But in every appeal by way of rehearing, a judgment of the appellate court is required both on the facts and the law.
It is not forbidden (nor in the face of the statutory requirement could it be) by ritual incantation about witness credibility, nor by judicial reference to the desirability of finality in litigation or reminders of the general advantages of the trial over the appellate process.
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] | null |
|
nsw_caselaw:549fd5843004262463bf1e27:58 | nsw_caselaw:549fd5843004262463bf1e27 | ‘Barwick CJ has continued to call for judicial restraint on the part of members of courts of appeal, and to repeat that the decision of a trial judge should not be reversed simply because the appellate court holds a view of the facts different from that which the trial judge has taken, when that view is not unreasonable in the circumstances of the case …’
However, before enunciating the principles set out at [304] above, their Honours quoted a passage from Aickin J in Livingstone v Halvorsen (1979) 53 ALJR 50 at 57, which was described as being nearer to the opinions of Barwick CJ than to those of other members of the Court with whom the majority in Warren v Coombes were agreeing.
Nevertheless, their Honours quoted, without specific comment, the following passage in the judgment of Aickin J:
‘If on the facts as found by the trial judge two inferences were equally open, it would not be right for the Court of Appeal merely to substitute their own view of which inference should be drawn for that of the trial judge,
though if one inference had a substantial preponderance of probability in its favour it may be justifiable to interfere with the trial judge if he took the view that the other inference should be drawn.
’
[306] A difficulty with this language is that two inferences are not ‘equally open’ in any abstract sense, but only in the view of a particular court. If an appellate court says that two inferences are equally open, it may mean that the plaintiff has failed to establish his or her case on the balance of probabilities.
Alternatively, it may mean that the court has been unable to form the view that the trial judge was wrong in preferring one inference to the other.
However, the important underlying principle is that the appellate court must review all the evidence before reaching a conclusion. It must also take into account the conclusion reached by the trial judge and the explanation for that conclusion identified in his or her reasons.
[307] The difficult case may be the one in which two inferences are held to be ‘equally open’ and there is no preponderance of probability, whether substantial or otherwise, favouring one view or the other. At trial, the plaintiff may fail unless he or she establishes a balance in favour of that view required for liability.
However, on appeal, an unsuccessful defendant must satisfy the appellate court — see, eg, Walsh v Law Society (1999) 198 CLR 73 at [56] — that the inference drawn in favour of the plaintiff was the wrong inference, after the Court has given ‘respect and weight’ to the conclusion of the trial judge.
This last injunction could mean that it is necessary to take account of those factors in relation to which the trial judge may fairly enjoy an advantage, as identified by Kirby J in SRA v Earthline at [90].
These factors do not require any general deference, for that would reinstate the views of Barwick CJ, from which the joint judgment in Warren v Coombes expressly departed. But neither do they require the appeal Court to ignore real advantages enjoyed by the trial judge, including those which are not readily reduced to written explication.
[308] Further, it is clear from the discussion of the facts in the joint judgment in Warren v Coombes that the statement of principle with respect to drawing inferences was treated as relevant to the ultimate question, namely whether the trial judge was wrong in holding that the defendant was negligent: at p 553.
To similar effect, in Anikin v Sierra (2004) 79 ALJR 452, having noted at [28] that ‘[d]ifferent minds might respond in different ways to the evidence given at the trial’,
the joint judgment applied the principles established in SRA v Earthline noted above at [304] in order to test the conclusion of the majority in this Court that had overturned ‘the primary judge’s conclusion on the issue of negligence’:
at [39].
…”
123 The appellant also submits that the primary judgement should be set aside because the primary judge failed to give adequate reasons and, in particular, failed to consider its case. | [
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|
nsw_caselaw:549fd5843004262463bf1e27:19 | nsw_caselaw:549fd5843004262463bf1e27 | She waited for a considerable time then was x-rayed, but because more delay was involved in waiting for treatment she eventually left. Although she complained of a right wrist injury to the ambulance officers, to hospital triage staff and to police, she did not complain to them of any right shoulder injury.
16. She saw Dr Hargreaves on 16 and 18 February 1999 and on 18 February he reported as follows:
‘Her right wrist was hyper-extended … with sharp pain over the radial styloid.’
17. On neither occasion is he recorded as having noted a complaint of increased right shoulder pain.
18. However, as I have noted, on the days before and after the accident she saw Dr Eisman. His two reports of 19 and 22 February 1999 are in evidence. They are very similar in form. They both postdate the accident, but it is clear from its contents that the second was written after receipt by Dr Eisman of a history of the accident. It includes results of examinations on 17 and 19 February.
19. It is to be recalled that she was sent to Dr Eisman precisely because of the pre-accident right shoulder problem. Indeed, the notes for 15 February 1999 have a whole page devoted to her right shoulder.
20. In his first report Dr Eisman said this:
‘Ms Clancy states her entire right shoulder is in pain and discomfort. She also states that in a resting state she experiences a constant burning sensation on a pain level of 4/10; 10 being the worst.
Upon movement she experiences a grinding sensation as well as sharp slabbing pains. She denies any temperature changes or sensory deficits. Her range of motion is also limited by the events that led up to the patient's past medical history.
The onset of this acute condition occurred about six months ago. She now states it has become both chronic and debilitating. She recalls no trauma nor incident that has provoked the condition however, states that her occupational duties aggravate the condition.
Ms Clancy also states she is unable to perform normal daily activities inclusive of housekeeping, opening jars or even personal grooming activities as simple as getting dressed ۥ
At page two of his report he said this:
‘Physical Examination: both shoulders appear to be symmetrical. Skin colour is normal with a slight tanning of the skin. The patient states she uses sunscreen and does not expose her skin to direct sunlight very often.
The left shoulder is elevated and contour of both shoulders appears to be within normal limits. There appears to be moderate inflammation of her right shoulder, as indicated by the pitting of her bra strap and upon palpation.’
In his second report he said this:
‘Update Report:
Evaluation of her right shoulder and arm. On February 16, 1999 she was involved in a rear end motor vehicle accident. Ms Clancy was the driver and recalls no loss of consciousness — [the word conciseness appears here but is clearly incorrect and is intended to be consciousness] - nor emesis.
She however states that her right arm and upper extremity was re-injured. She was taken to the hospital by ambulance. A complete examination was performed inclusive of radiological studies.’
Chief Complaint
Ms Clancy states her entire right shoulder is in pain and discomfort. She also states that in a resting state she experiences a constant burning sensation on a pain level of 10/10, 10 being the worst. Movement is completely restricted and she feels heat and swelling of a pressure type sensation throughout her arm and hand. She denies sensory deficits. Her range of motion is also limited.
Physical Examination
Upon physical examination of the patient's upper extremities, inclusive of both shoulders, the following was observed: | [
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|
nsw_caselaw:549fd5843004262463bf1e27:22 | nsw_caselaw:549fd5843004262463bf1e27 | [100] As the defendant’s counsel noted, according to the written medical evidence, the first time she attributed shoulder problems to the accident was in March 2000. But it does not follow that the accident did not cause shoulder problems.
As I have noted, much was happening in her life in the first half of 1999, and the wrist problem was overwhelmingly the main problem that year in preventing her return to work.
I should note in this context, that though on occasions she attributed, as did some doctors, her increased shoulder pain to having to favour her injured right wrist after the accident, that causative link was not relied on by senior counsel for the plaintiff.”
43 As I have said, it is understandable that someone in the respondent’s position, with a pre-existing right shoulder condition, bursitis, itself very painful though readily curable with long-term exercise as Dr Sonnabend concluded,
and suffering the immediate symptoms of a painful right wrist, and other strains in her life, would as a lay person fail to make the connection of her subluxing right shoulder to the accident.
This is so whenever subluxing precisely first occurred. Even when she saw Dr Zicat on 15 March 2000, the wrist continued to be the greatest source of pain, according to what he has recorded (Judgment [102(j)]). The gradation of increased pain, in a right shoulder that had, pre-accident, already experienced significant pain from bursitis, must be difficult for its victim to discern.
44 Though the trial judge had reservations about the respondent as a witness, due to her defective memory, his Honour nonetheless was not persuaded she was dishonest (Judgment [101]). Those reservations should in no way discount the advantage he had in assessing her credibility.
The trial judge’s advantage comes into play, more especially when assessment of that witness’s evidence may be the more difficult; here in separating the credible from the less credible from a witness who is not lying but whose memory is defective or incomplete.
That assessment still requires considerable caution, and evidence from such a witness in particular must be tested against contemporaneous records. That was clearly recognised by the trial judge.
45 Turning to those records, listed by McColl JA in her judgment, these in my opinion do not yield any incontrovertible fact refuting the respondent’s explanation. Nor does the cumulative effect of those records (both in what they include and do not include) make the respondent’s explanation for lack of complaint, accepted by the trial judge, glaringly improbable.
It must be remembered that while the respondent bore the legal onus, the evidentiary onus remained with the appellant in the disentanglement of the respondent’s pre-existing condition from any contribution by the accident.
Given that evidentiary onus it was in my opinion for the appellant to take steps such as calling Mr Eisman or her GP’s, even if it be accepted that as her doctors they were necessarily in her “camp”, though independent professionals.
46 In any event the evidence of absence of complaint of increased pain, or simply of pain from the right shoulder, was not all one way, depending on how the evidence was interpreted.
The trial judge interpreted Mr Eisman’s notes and reports as evidence of just such complaint, in circumstances where his absence as a witness was not, as the trial judge noted, the subject of adverse comment by counsel for either party. The trial judge’s approach is summarised by McColl JA in these terms:
“The primary judge concluded that the respondent had suffered increased right shoulder pain after the motor vehicle accident because:
(a) he interpreted reports Mr Eisman prepared dated 19 and 22 February 1999 respectively as showing the respondent had complained to her chiropractor of an increase in problems with her right shoulder on the day following the accident: primary judgment at [24]; | [
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|
nsw_caselaw:549fd5843004262463bf1e27:3 | nsw_caselaw:549fd5843004262463bf1e27 | 6. The respondent gave a plausible explanation for failing to complain that she had increased pain in the right shoulder after the accident and that her right shoulder had been injured in the accident which the trial judge was entitled to accept: [28], [42], [43].
7. It was open to the trial judge to accept the chiropractor’s report in February 1999 to an orthopaedic surgeon as supporting the respondent’s case that she suffered increased right shoulder pain after the accident.
A detailed contemporaneous report should not be treated as inaccurate because it does not find its counterpart in the practitioner’s clinical notes given their function and the circumstances in which they were made and the fact that there was no reason for the chiropractor to invent reported symptoms of right shoulder pain, it being unethical to do this: [54], [55], [57].
8.
The respondent established that the accident had some injurious effect on the respondent’s condition so as to invoke the presumption of fact in favour of the respondent under the principle in Watts v Rake;
the appellant needed to demonstrate its case to a prima facie level before the respondent was required to explain or contradict something; the matters advanced by the appellant to cast doubt on whether subluxation first occurred in June 1999 did not constitute facts “requiring an answer”.
Schellenberg v Tunnel Holdings Pty Ltd [2000] HCA 18; (2000) 200 CLR 121 referred to
9. The appellant did not establish its alternative explanations of the respondent’s condition to aat least a prima facie level rendering it incumbent on the trial judge to give reasons why he rejected as explanations for the respondent’s right shoulder injury the respondent’s marathon swimming, or her return to work in August 1999: [65].
These were not matters, nor the matters of challenge to the chiropractor’s evidence, which would point decisively and not merely persuasively to error on the part of the trial judge in acting on his or her impressions of the witness or witnesses.
Fox v Percy [2003] HCA 22; (2003) 214 CLR 118 at 146 referred to
Per McColl JA (dissenting)
10. The Court was obliged to conduct a real review of the trial and of the judge's reasons within the constraints marked out by the nature of the appellate process and could draw inferences different to those drawn by the trial judge.
Fox v Percy [2003] HCA 22; (2003) 214 CLR 118; Suvaal v Cessnock City Council [2003] HCA 41; (2003) 77 ALJR 1449; Shellharbour City Council v Rhiannon Rigby [2006] NSWCA 308 applied
Devries v Australian National Railways Commission [1992] HCA 41; (1993) 177 CLR 472 discussed
11. The trial judge did not base his findings upon the respondent’s credibility and the Court was not, therefore, constrained by limitations on appellate review of credibility based findings.
Fox v Percy [2003] HCA 22; (2003) 214 CLR 118 referred to
12. The primary judge erred in concluding that the respondent had established the factual substratum accepted by the experts as fundamental to the conclusion that the motor vehicle accident was a cause of the MDI: [228].
13. There was a substantial body of evidence demonstrating that the respondent was suffering from disabling right shoulder problems at the time of the accident, a problem whose onset coincided with the commencement of that employment: [150].
14. The contemporaneous records supported the view that the respondent did not suffer increased right shoulder pain after the accident and that her right shoulder first subluxed towards the end of 1999. A version of subluxation followed by immediate referral accorded with the respondent and her mother’s account of the sequence of events, albeit not with their timing: [173], [176].
15. The anomalies between the chiropractor’s notes which made no reference to the respondent complaining of her right shoulder as a consequence of the motor vehicle accident and the letter the primary judge relied upon were such as to lead to doubt about the accuracy of the letter. | [
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|
nsw_caselaw:549fd5843004262463bf1e27:34 | nsw_caselaw:549fd5843004262463bf1e27 | 71 This was the substantial area of dispute at trial. The appellant resisted the proposition that the respondent’s MDI was caused by the accident. Rather, it argued that condition was the inevitable sequel of a pre-existing condition from which the respondent suffered, methylene tetrahydrofolate reductase deficiency, associated with marked systemic ligamentous laxity.
It contended at trial that the development of the respondent’s problems in her right shoulder coincided with her return to her work after the accident at Hanly Moir, a pathology service which included taking blood and that it was, more probably than not, her work which precipitated the MDI.
It called evidence from Dr Paul Hitchen, also an orthopaedic surgeon, who opined that there was no causal relationship between the motor vehicle accident and the MDI.
72 The appellant’s substantial complaints on appeal are that the primary judge erred in finding that the respondent had established that the motor vehicle accident caused her to suffer MDI in her right shoulder and, secondly, that the primary judge failed to consider the appellant’s case, alternatively he failed to give adequate reasons for rejecting it.
73 The appellant does not seek to challenge the quantum of damages the primary judge awarded the respondent in the event that its appeal otherwise fails.
74 The appellant did not dispute that as a result of the accident the respondent suffered an aggravation injury to her right thumb and a pre-existing wrist condition which of itself was sufficient to cause her to stop working and seek medical treatment. That condition recovered within 12 to 18 months post-accident and did not represent any significant long-term problem.
The primary judge said that if he had not found for the respondent in respect of the right shoulder issue, he would have entered judgment for her for $59,943.20 in respect of the wrist condition issue.
The appellant does not dispute that that was an appropriate award for the wrist condition. In the event it is successful on appeal, it contends that judgment ought be entered for the respondent in that amount alone, or that the matter should be remitted to the District Court for rehearing.
The judgment below
75 Having regard to the appellant’s complaint that the primary judge failed to give adequate reasons for rejecting its case, it is necessary to scrutinise the primary judgment closely.
76 The primary judge noted (at [6]) that although the appellant conceded the motor vehicle accident caused an injury of severity to the respondent’s right wrist, it strongly contested her claim that the accident also injured her right shoulder, saying she never complained of any worsening of her shoulder condition until a year after the accident.
Although the appellant acknowledged that the respondent had a very serious right shoulder condition by the time of trial, it argued that she would have had it anyway, that she was already suffering early stages of it before the accident and that the accident made no material contribution, nor worsened, that condition.
It also relied upon the fact that the respondent’s recollection of relevant events was “quite flawed”.
77 The primary judge then recited the respondent’s personal history. In short, it is fair to say that the respondent had had bad luck with her right arm. She had broken it in October 1983 when she was ten, and injured it again a few days later. In the mid–1990s her right thumb was fused and the second joint removed. In 1997 and 1998 she underwent surgery to her right wrist.
In mid-1998 she began to suffer right shoulder problems which persisted up until the accident and, the primary judge found, following it. Shortly before the accident her right shoulder condition was diagnosed as bursitis for which she was treated with a cortisone injection to which she reacted poorly.
On 5 February 1999, a few days before the accident, an MRI scan of her right shoulder was consistent with bursitis: primary judgment at [7], [10]. | [
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] | null |
|
nsw_caselaw:549fd5843004262463bf1e27:82 | nsw_caselaw:549fd5843004262463bf1e27 | 257 I have read both Dr Sonnabend’s and Dr Hitchen’s evidence closely. It does not appear to me that either was more or less ready to concede matters. Rather each, when the other party’s case was put to them, accepted that if the assumptions put to them were made supported by the facts, their respective opinions might differ.
258 Importantly as I read their evidence, both experts agreed that in order to find the MDI was linked to the accident, it was necessary to find that the respondent had, in the case of Dr Sonnabend,
had a minor shoulder condition before the accident and a major one after or, as Dr Hitchen explained, that the trauma necessary to set off the chain of events had to be immediate pain and inability to move for many days.
259 Dr Sonnabend accepted that if the assumptions the appellant’s counsel put to him were established, the role of the accident producing her shoulder symptoms was less clear. In my view those assumptions were established, albeit that I would put the symptoms in the right shoulder as having occurred later than assumption (f).
260 In my view, as I have sought to explain, the evidence does not support the opinion upon which the respondent founded her case.
261 Further, Dr Sonnabend accepted that the most typical aetiology of MDI was micro trauma. Dr Hitchen also explained how the respondent’s pre-existing condition could have lead to MDI without a major traumatic event. The respondent’s history was arguably consistent with her MDI being caused by her lengthy swimming history, as well as her work duties.
The primary judge did not consider either of these cases, a matter about which the appellant is justified in complaining. I have concluded that the appeal should be allowed, however if I am not correct in that respect I would be of the view that the failure to give reasons should lead to a new trial.
262 In my view the primary judge erred in rejecting Dr Hitchen’s opinion which, in the final analysis, in my view accorded with Dr Sonnabend’s.
Conclusion
263 Finally, I turn then to the analysis the primary judge undertook (at [102]) from which he concluded that the respondent had established on the balance of probabilities that the accident aggravated and worsened her pre-accident right shoulder in a manner for which the appellant was liable.
264 Paragraphs (a)-(d) were uncontroversial and were common ground.
265 As to par (e):
“(e) The instability, Dr Sonnabend said, was minor. Dr Hitchen initially disagreed with the term ‘minor’, although may ultimately have conceded it in cross-examination.”
I have been unable to find any passage where Dr Hitchen conceded that the respondent’s pre motor vehicle accident right shoulder condition was “minor”.
266 As to (f):
“(f) In the absence of significant trauma, the prognosis for these conditions is usually good; (see evidence of Dr Sonnabend,) and the condition can usually be treated successfully with long term exercises.”
Dr Hitchen disagreed with the proposition that the prognosis for the respondent’s pre-accident right shoulder condition was usually good. In his view the prognosis even for people with minor glenohumeral instability was not “universally good” because (BLACK 347P) :
“‘minor’ eventually, in many patients with severe ligamentous laxity, through the natural course of their life progresses on to moderate and significant multi-directional instability, due to their genetic or soft tissue make-up.”
267 In par (g) the primary judge accepted that a traumatic event such as a motor vehicle accident may stretch parts of a shoulder beyond their elastic limit setting up a process by which fibres failed sequentially ultimately leading to symptomatic MDI and (at (h)) that such symptoms did not necessarily arise immediately but developed over weeks or months up to six months following the trauma. | [
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|
nsw_caselaw:549fd5843004262463bf1e27:47 | nsw_caselaw:549fd5843004262463bf1e27 | 90 The primary judge then dealt with the issue of the respondent’s credit, which he observed (at [94]) was not of vital importance to his findings. His Honour recorded (at [95]) that the respondent did not have a good memory of the period immediately before and following the accident.
He also noted inconsistencies exposed between the respondent’s evidence in chief and her cross-examination. On the critical point as to when she complained of increased shoulder pain after the accident, his Honour said:
“[98] …As to whether she had in fact complained of increased shoulder pain straight after the accident, she said on occasion that she had not complained of shoulder pain because she had thought her bursitis continued and, further, she said that her right wrist problem was for her a long time and major concern.”
91 His Honour concluded (at [99]) that the respondent was mistaken about when her shoulder pain first became significant and when its increase first became significant to her.
92 He noted various inconsistencies which had been exposed between her evidence in chief and her cross examination. On what the appellant submits was a critical point, the fact she did not attribute her shoulder problem to the accident until March 2000, his Honour said:
“100. As the defendant’s counsel noted, . But it does not follow that the accident did not cause shoulder problems. As I have noted, much was happening in her life in the first half of 1999, and the wrist problem was overwhelmingly the main problem that year in preventing her return to work.
I should note in this context, that though on occasions she attributed, as did some doctors, her increased shoulder pain to having to favour her injured right wrist after the accident, that causative link was not relied on by senior counsel for the plaintiff.
101. It is clear her memory was defective. I am not persuaded, however, as the defendant submitted, that she was dishonest. I think with the passage of time she has forgotten incidents and sequences. I formed the impression that she conceded readily when it was pointed out that her earlier evidence was wrong.
I do not reject her totally in areas unsupported by contemporaneous records, but I treat what she told me, especially in the period just before and in the one year post accident, with very considerable caution.”
93 His Honour concluded:
102. I have found the causation issue a difficult one. Ultimately I am persuaded, on the balance of probabilities, that the accident did lead to an aggravation and a worsening of the plaintiff’s pre-accident right shoulder problem, and that the defendant is liable for such damage as flows from that. I have reached that view for these reasons:
(a) The plaintiff had a genetic disease which pre-disposed her to ligamentous laxity or a laxness in the elasticity of her ligaments.
(b) Patients with that condition have a predisposition to the pathological and symptomatic condition called MDI.
(c) Before the accident she suffered (see the evidence of Dr Sonnabend and Dr Hitchen) some glenohumeral instability because of her ligamentous laxity.
(d) This was accompanied by secondary rotator cuff impingement and subacromial bursitis.
(e) The instability, Dr Sonnabend said, was minor. Dr Hitchen initially disagreed with the term ‘minor’, although may ultimately have conceded it in cross-examination.
(f) In the absence of significant trauma, the prognosis for these conditions is usually good; (see evidence of Dr Sonnabend,) and the condition can usually be treated successfully with long term exercises.
(g) A traumatic event, such as a motor vehicle accident, may stretch parts of a shoulder beyond their elastic limit. This sets in train symptomatic multidirectional instability, as more and more fibres become stretched beyond their elastic limit.
The strain on adjacent fibres increases, and they fail sequentially, setting up a chain reaction, ultimately in symptomatic MDI; (see evidence of Dr Sonnabend). | [
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|
nsw_caselaw:549fd5843004262463bf1e27:28 | nsw_caselaw:549fd5843004262463bf1e27 | That is, the accident caused the MDI, or made it no longer amenable to simple cure by exercise. It was this that rendered her vulnerable to a flare up from her returning to work. That the work was under restricted duties further weakens the case for treating work as a cause of any right shoulder injury, as distinct from work precipitating the manifestation of its symptoms.
62 The second line of attack, accepted by McColl JA, is that the trial judge “erred in concluding that the respondent had established the factual substratum accepted by the experts as fundamental to the conclusion that the motor vehicle accident was a cause of the MDI”. That attack, as McColl JA observes, is associated with the complaint that the trial judge failed to give adequate reasons.
The lack of reasons challenge centred on what was said to be the failure of the trial judge to consider the appellant’s case. That case, or hypothesis, was that the respondent’s MDI was caused not by the accident but by her lengthy swimming history, as well as by her work duties.
63 The steps in this challenge start with citing Dr Sonnabend’s agreement in cross-examination (Black, 316) that, as to MDI “more often than not it’s not related to macro trauma … people now would say it’s due to microtrauma rather than no trauma … repetitive activity instead of major injury” (Black, 316).
Swimming was given as the most common example of repetitive activity (Black, 318). Reliance was then placed by the appellant on Dr Sonnabend’s further answers in cross-examination, particularly when presented with a set of assumptions (Black, 321P to 325P quoted below) and also on his final answer in the sequence of questions and answers (Black, 324M-P).
This sequence precedes Dr Sonnabend being asked to assume a fall off a chair in June 1998.
However, as the latter did not feature in the appellant’s argument on appeal nor in final address below, no doubt because of Dr Sonnabend’s scepticism about the chair fall as a causative or precipitating factor independent of the car accident, the chair fall hypothesis may be considered to be now irrelevant. I quote the relevant part of the transcript of the cross-examination:
Q. I want you to assume a number of matters for me so that I can ask your opinion. Do you understand?
A. Mm'hm.
Q. What I want you to assume is that prior to the accident, Ms Royle had had pain in her right shoulder. Do you understand? I think you've been given some information about an initial attendance upon a specialist and a treatment by way of injection.
I want you to assume these further facts as far as Ms Royle's condition before the accident: that - and I'm asking you to assume this as a presentation on the day prior to the accident, just so we can put it in context. There was an initial presentation to the specialist, Dr Ridhalgh.
BARTLEY: The date of that needs to be defined.
FITZSIMMONS: Q. I want to suggest to you that the plaintiff first saw Dr Ridhalgh on 29 January 1999. Now, I want you to put it in context; the accident happens on 16 February, the motor vehicle accident. So she initially presents on 29 January, and she tells Dr Ridhalgh that she's had right shoulder problems over the prior six months. Do you understand?
A Yes.
Q. I want to suggest to you that an injection was administered on that day by Dr Ridhalgh, and that she returned on 1 February. So 29 January we've got the first presentation, injection, returning telling Dr Ridhalgh that she'd had a bad reaction to the injection and had severe pain in the right shoulder with trouble sleeping over the weekend.
She subsequently has the MRI, to which Mr Bartley has taken you. She then goes back and sees Dr Ridhalgh on 8 February, and she has positive impingement sign and weakness of external rotation, and she's referred for physiotherapy.
I want you to assume that then on 15 February - so this is the day before the accident - she presents to a chiropractor on referral from Dr Ridhalgh, the treating orthopaedic specialist. | [
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|
nsw_caselaw:549fd5843004262463bf1e27:11 | nsw_caselaw:549fd5843004262463bf1e27 | (p) As the right wrist continued to be the main source of pain, it was that which continued to cause the plaintiff most concern. Further, she became more depressed than she had been.
She needed removal of a device from her right upper arm, and she learned in May 1999 that she had a genetic disease which required her to take blood thinning drugs and which she understood might cause loss of a limb through gangrene.
So her life was something of a mess in early June 1999 when she attempted suicide. I do not consider that she would have been in a good state of mind in the months following the accident.
(q) In any event she continued to complain to her chiropractor from time to time of right shoulder pain. That, on occasion, she complained of left shoulder or bilateral shoulder pain does not argue against the thesis of a causal connection.
(r) Her GP notes complaints of right shoulder pain on several occasions in late 1999, and she complained of bursitis on at least one occasion, in the present tense, in the months immediately following the accident.
(s) Though Dr Sonnabend did not have the complete pre-accident and post accident history when he gave his written reports, I am satisfied that he had most of it, in particular the MRI study done on 5 February 1999.
Although he initially had a history of right shoulder symptoms showing up earlier than the evidence suggests, and a lack of symptoms immediately before the accident, I took his oral evidence to be, following the cross-examination, if there was an increase in shoulder pain, and dislocations occurred in anything up to six months, that would make the accident more likely than not to be the cause.
As I have found, there were within six months both a dislocation and an increase in pain.
(t) There is no other traumatic event to explain the outcome. The sequence of events suggests to me there was a causal connection and that the accident was probably the cause rather than, as the defendant contended, the normal course of the condition, or a fall from a chair, as was put to Dr Sonnabend. (Counsel for the defendant did not, in address, rely on the latter).
(u) Dr Sonnabend says in the normal course the condition would have got better.
(v) Though she had pre-accident right shoulder pain, she had worked full-time since October 1998 and before that, part-time since mid 1998. The defendant did not suggest she had ever lost time from work because of right shoulder problems, although it was clearly severe enough to cause her to get household help and to stop some physical activities.
(w) Given she continued to have right shoulder pain after and had had it before, it is consistent with human affairs, I think, for her to have assumed, for a time at least, that she had the same problem as before and not to see the accident as the cause, especially given, as Dr Sonnabend says; the symptoms do not necessarily come on for up to six months after a traumatic event.
(x) Although the plaintiff is recorded in November 1999 as saying ‘Pain in the right shoulder was the same as before,’ that does not mean its cause was not the accident, given the bursitis in the normal course would have got better on the evidence of Dr Sonnabend, which I accept.
103. Although, as I have noted, I treat her evidence with great caution, given the above matters I do accept her evidence that she did suffer some increase in pain and some subluxation in the six months following the accident.”
21 There were these three issues identified as critical:
(a) the trial judge’s treatment of the condition of the respondent’s right shoulder before the accident; see summation at [102(c), (d), (e), (f), (k), (m) and (n)];
(b) the trial judge’s treatment of whether the respondent complained of increased right shoulder pain in the first few months after the accident; see summation at [102(j), (o), (p), (q), (r), (s), (w) and (x)]; and
(c) the trial judge’s treatment of when the respondent’s right shoulder first subluxed, held to be in the first six months after the accident; see summation at [102(k), (l) and (s)]. | [
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] | null |
|
nsw_caselaw:549fd5843004262463bf1e27:75 | nsw_caselaw:549fd5843004262463bf1e27 | He said he was not persuaded, however, that they could have done any more than their notes, having regard to his conclusion (at [64]) that they had not recorded the request for, or discussion of, a referral to Dr Sonnabend. As to this I would make the following observations.
213 First, it is not clear what use his Honour made at this stage of the fact that the evidence included the letter from Dr Naim referring the respondent to Dr Sonnabend (BLUE 462). This was some evidence that it was not Dr Bloom who had referred the respondent to Dr Sonnabend as she (and her mother) had said.
More importantly it dated the subluxation towards the end of the year. Secondly, the absence of any notes confirming the respondent’s account of her consultation with her general practitioners even for the purpose of obtaining the referral did not prove her account was correct.
Rather, it was some evidence, as the appellant argued, that her evidence was not to be accepted where it was inconsistent with contemporaneous documents.
The respondent’s attendance at her general practitioners was so frequent that I would not readily infer that they could not have given some evidence which would have assisted in explaining why there was no note earlier than 8 March 2000 of her right shoulder subluxing.
Indeed I would infer from the fact that the first record of her shoulder subluxing appears on 8 March 2000 that that was the first occasion they had been so advised. Significantly, Dr Naim’s letter, which I extracted earlier in this judgment, does not refer to subluxations.
214 In my opinion the primary judge erred in failing to draw an adverse inference from the respondent’s failure to call her general practitioners to give evidence concerning the issue as to when her right shoulder first subluxed.
Her failure to do so cast doubt on her, and her mother’s, account of when her right shoulder first subluxed. The primary judge ought, in my view, to have subjected their evidence to even closer scrutiny, in the light of this evidentiary omission.
215 Thus the appellant has made good its fifth ground of appeal. However, mere error in this respect is not sufficient to dispose of the appeal in the appellant’s favour. To have that effect, the error must be decisive of the appeal. This error was, in my view, but one criticism of the primary judge’s approach.
The effect of the respondent’s return to work
216 The appellant’s case was that it was the respondent’s return to work which caused her right shoulder to flare up again. This accords with the contemporaneous documents.
217 On 29 July 1999 Mr Eisman recorded that the respondent was going to return to work the next week for two days a week with a restriction limiting the use of her right arm.
218 On 6 August 1999 Mr Eisman recorded that the respondent had pain in both shoulders. This appears to have been shortly after she returned work at Hanly Moir on a part time basis.
219 On 18 August 1999 Mr Eisman reported that the respondent complained of increased pain in her right hand, wrist and thumb and that she had had difficulty with it since she returned to work. The pain appeared to arise from her inability to twist her hand in either direction.
220 On 26 October 1999 the GP recorded:
“Right shoulder rotation cuff syndrome. Physio since February.”
221 The primary judge recorded this entry. He thought it supported the respondent’s case. However to my mind it has the opposite effect.
If the respondent had reported her dramatic shoulder subluxation to the GP by this stage, as she and her mother said she had, it appears anomalous that he had not referred to it, even when he was dealing with her right shoulder and noting the treatment she had received for it over the previous 8 months. | [
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|
nsw_caselaw:549fd5843004262463bf1e27:25 | nsw_caselaw:549fd5843004262463bf1e27 | Ms Clancy states her entire right shoulder is in pain and discomfort. She also states that in a resting state she experiences a constant burning sensation on a pain level of 10/10, 10 being the worst.
Movement is completely restricted and she feels heat and swelling of a pressure type sensation throughout her arm and hand. She denies sensory deficits. Her range of motion is also limited.” (emphasis added)
53 This follows the earlier reference in the report which supports the respondent having complained of injury to her right shoulder: “She however states that her right arm and upper extremity were re-injured”. I say this bearing in mind that “upper extremity” does not to my mind mean simply “hand” in that context, for the reasons I have explained.
54 While clinical notes, as McColl JA observes, may in common experience be the raw data on which diagnosis and opinions are based, it does not follow that they will be comprehensive. I do not consider that a detailed contemporaneous report should be treated as inaccurate because it does not find its counterpart in the notes.
Because the report was so detailed and comprehensive it was open to the trial judge to accept, as his Honour did, that it dealt not only with the wrist injury, but the shoulder injury as well.
If the appellant wished to submit otherwise, it could have called Mr Eisman who, as a responsible professional chiropractor, was again not so evidently in the respondent’s “camp” as to make it solely for the respondent to call him. This is so particularly given the evidentiary onus on the appellant.
55 I would add that clinical notes are written in the course of a busy practice where the clinician is primarily there to observe and administer treatment. They should not be construed with the minute attention one might give a formal legal document.
It is fair to say a report to another doctor is likely to have been written with more deliberate consideration than rough notes Here, moreover, McColl JA observes, parts of the notes are “almost impossible to read”.
These observations become relevant in considering the notes of 17 June 1999 bearing on subluxation. This is insofar as they contain the reference “(P) from (L) sublux” with overwriting over the (L) in one place (or vice versa); see below.
56 I consider that the notes of 22 February, insofar as they read “O some ROM shoulder” should not be construed as of themselves being “inconsistent with her suffering further injury to her shoulder in the accident”. That reference is too slender a basis for a finding of inconsistency between notes and the contemporaneous second report.
57 Finally, there is simply no credible reason why Mr Eisman would simply invent reported symptoms of aggravated right shoulder pain following the accident, in his second referral report to Dr Ridhalgh.
It would have been quite unethical and unprofessional for him to do so. It was never put to Mr Eisman that he had done so, as neither side called him. That is further reason for reading his reports in accordance with their evident meaning, as did the trial judge.
Paragraph (e) – subluxation; when did it first occur after the accident?
58 On 17 June 1999 appears Mr Eisman’s clinical note quoted below. This was relied on by the trial judge to support the conclusion that the respondent’s right shoulder subluxed in June 1999.
I emphasise that the trial judge also relied in reaching this conclusion on the respondent’s own testimony supported by her mother. The latter was not cross-examined on her clear evidence as to the timing of the subluxation and was found to be a credible and honest witness.
59 I first quote that clinical note below, followed by McColl JA’s analysis (omitting paragraph numbers), leading to her Honour’s conclusion that subluxation did not occur in June 1999 but towards the end of 1999. | [
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nsw_caselaw:549fd5843004262463bf1e27:12 | nsw_caselaw:549fd5843004262463bf1e27 | 22 While the trial judge’s findings on these were contestable, there was in my view evidence available to provide a basis for each of them.
Those findings rest inter alia on the trial judge’s preference, in part credibility based (and legitimately so (Ahmedi v Ahmedi (1991) 23 NSWLR 288 at 299-300 per Clarke JA with whom Handley JA agree, Kirby P per contra), for Dr Sonnabend’s evidence over that of the appellant’s experts. This is explained by the trial judge at [91] to [93]:
“91. On 28 April 2005 Dr Hitchen, the defendant's main expert on the causation issue, reported to QBE. Dr Hitchen expressed the view there is no causal relationship.
In brief, that is because of the condition of her right shoulder immediately before the accident suggesting that she continued to have shoulder pain and disabilities of the type referred to in the chiropractic reports right up until the time of the accident,
and because he assumed that there was a long interval after the accident before there was any complaint of increased shoulder pain and before there was any dislocation.
92. Dr Sonnabend and Dr Hitchen were the only doctors cross-examined, and apart from what I have said about general practitioners, neither party was critical of the other for not cross-examining other doctors. That, I thought, was a very sensible approach considering that causation was the only issue.
93. Dr Sonnabend is a highly qualified orthopaedic surgeon, who, for over twenty years, has specialised in shoulder surgery. Dr Hitchen is also a highly qualified orthopaedic surgeon, who also has had extensive practice in the field of shoulder surgery. However I think it fair to say his experience is not as lengthy or as extensive as that of Professor Sonnabend.
I observed both of them being subjected to lengthy cross-examinations. I thought at times Dr Hitchen was a little slow to concede matters which I would have expected him to concede, for example, the consequence to his views of his not referring to the pre-accident MRI scan in his report.
I did not form that view about Dr Sonnabend however. I thought that when challenged, he made ready with concessions. However, by reason of his greater experience and because he is the treating surgeon, I prefer in any event and accept the views of Dr Sonnabend where they differ from those of Dr Hitchen.
I consider his arguments logical and well reasoned. I reject the defendant's submission that Dr Sonnabend lost objectivity. I found him entirely objective.”
23 Though the trial judge did not in terms call in aid the principle in Watts v Rake it is so well-known and accepted as not to require express reference. Moreover his Honour does cite State of New South Wales v Burton [2006] NSWCA 12 on causation, where the dissenting judgment of Basten JA draws on the principles in Watts v Rake and Purkess v Crittenden.
Basten JA was in dissent because the majority (Spigelman CJ with Hunt AJA agreeing) concluded that the case did not give rise to the evidentiary issue in Watts v Rake. The principle in Watts v Rake and cases following, provides important support for the trial judge’s conclusion.
Were it the case that two inferences as to causation were equally open, one in favour of the respondent and the other the appellant, then the respondent must win, failing discharge of that evidentiary onus.
24 In the absence of incontrovertible evidence or uncontested testimony refuting the trial judge’s causation finding, the appellant’s principal complaint to succeed must essentially invoke the principles in Earthline Constructions.
That is to say the trial judge must be shown to have failed to deal adequately, or at all, with a large body of contemporaneous documents shown to be inconsistent with the respondent’s case. The appellant’s contention was essentially that there was “too fragile a base” for the trial judge’s causation conclusion and that the cumulative effect of the evidence makes that conclusion glaringly improbable. | [
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|
nsw_caselaw:549fd5843004262463bf1e27:81 | nsw_caselaw:549fd5843004262463bf1e27 | 250 Dr Hitchen explained the likely progression of the respondent’s condition, had the motor vehicle accident been implicated in it, as being pain immediately and discomfort, and inability to move it for many days because of the trauma needed to set off the subsequent chain of events.
(BLACK 351–352). In his view, to be connected with the accident the pain had to continue for at least a few weeks leading to the patient feeling that the shoulder was “popping out” or starting to describe instability episodes as the weeks and months elapsed. (BLACK 352P).
251 He accepted that it was central to his opinion that the respondent’s problems were not connected to the motor vehicle accident that there was no shoulder pain immediately after or within days of the accident. (BLACK 353P).
In his view the “critical window period [was] within days of the accident.” (BLACK 354C). He accepted that if the respondent had been complaining of pain in the right shoulder immediately after the accident that would “significantly modify” his opinion. (BLACK 354M).
252 Dr Hitchen also accepted that if there was pain at the time of the accident, continuing pain in the right shoulder, and some months later the patient became aware of the ball slipping out of the socket, he would be prepared to implicate the trauma as a cause of the condition from which the respondent suffered. (BLACK 344-355).
253 The primary judge preferred Dr Sonnabend’s opinion to Dr Hitchen’s because of his greater experience and because he was the treating surgeon.
He also gave a demeanour-based assessment, opining that he thought Dr Hitchen was “a little slow to concede matters which [he] would have expected him to concede, for example, the consequence to his views of his not referring to the pre-accident MRI scan in his report.”: primary judgment at [93].
254 It is appropriate, therefore, to set out briefly Dr Sonnabend’s and Dr Hitchen’s respective qualifications. Both, as the primary judge accepted, were highly qualified orthopaedic surgeons. Dr Sonnabend had specialised in shoulder surgery since 1985. Dr Hitchen appeared to have specialised in orthopaedic surgery since 1996.
As I understand his evidence during a period of five or six years commencing in about 1996 when he was practising on the mid-north coast, 60 to 70 per cent of his practice involved shoulder surgery.
Further, once he embarked upon private practice (at a date which is unclear) he said that about 80 per cent of his consultations and surgery related to shoulder problems and pathology, the other 20 per cent to knee problems.
255 In my view, with respect, the primary judge did not do justice to Dr Hitchen’s evidence. First, he preferred Dr Sonnabend’s evidence on the basis that he had greater experience than Dr Hitchen.
It is apparent from what I have set out that Dr Hitchen had extensive experience in shoulder surgery. It was not put to him that his experience in any way disqualified him from proffering an opinion about the respondent’s shoulder condition.
256 Next, the primary judge preferred Dr Sonnabend because of his observation of the two experts during cross-examination. He gave one illustration of a matter which he opined Dr Hitchen was slow to concede, the significance of him not referring to the pre-accident MRI scan.
The primary judge said he would have expected Dr Hitchen to concede the consequence to that of his views. He did not explain what that consequence was.
As I read Dr Hitchen’s evidence he accepted that the pre-accident MRI would be helpful, but explained he suspected he had not referred to it because of the clinical examination he undertook and the volume of notes that had been sent to him. In terms of his diagnosis, he did not believe it provided a great deal of light.
The cross-examiner did not, in my view, establish any basis on which Dr Hitchen’s approach in this respect could be criticised, at least not in a manner which effectively entitled the primary judge to pay no regard to Dr Hitchen’s evidence. | [
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|
nsw_caselaw:549fd5843004262463bf1e27:83 | nsw_caselaw:549fd5843004262463bf1e27 | In this respect he relied on Dr Sonnabend. He did not deal with Dr Hitchen’s evidence that if the respondent had suffered a trauma sufficient to initiate the process the primary judge described leading to symptomatic MDI, there would be immediate pain which continued at least for a few weeks leading to instability episodes as the weeks and months passed. (BLACK 352)
268 In pars (n) – (q) the primary judge referred to the complaints he inferred the respondent had made to Mr Eisman as at February 1999 concerning her right shoulder. He noted that the fact that the respondent had occasionally complained of left shoulder or bilateral shoulder pain did not argue against the thesis of a causal connection.
He did not explain why, nor did he explain why the right shoulder pain of which the respondent complained was more probably than not caused by the motor vehicle accident as opposed to having been a continuing manifestation of the severe pain the respondent was feeling prior to the motor vehicle accident.
269 The same observation can be made about the primary judge’s par (r) in which he notes complaints to the respondent’s general practitioner of right shoulder pain in late 1999 and a present tense complaint of bursitis following the accident.
One again, such complaints are equally consistent with the condition from which the respondent was suffering prior to the motor vehicle accident. The primary judge does not explain why it is more probable than not that those complaints arose as a result of the motor vehicle accident.
270 In par (s), the primary judge accepted that Dr Sonnabend did not have the respondent’s complete pre-accident and post-accident history when he wrote his reports but was satisfied that he had “most of it” in particular the MRI study.
It is not clear why the primary judge focused so much on the MRI study. It is not apparent from Dr Sonnabend’s reports that he regarded that study as a significant diagnostic aid and Dr Hitchen gave uncontradicted evidence that it was not.
Secondly, Dr Sonnabend had a history of the respondent having experienced markedly increased pain in her right shoulder after the accident. As I have concluded the inference the primary judge drew about this was not open.
Accordingly the post accident history did not support the history the respondent gave Dr Sonnabend and, as I have already concluded, his opinion based on what the respondent told him cannot stand.
271 The primary judge then stated (par (t)) that there was no other traumatic event to explain the outcome. However the micro trauma theory could explain the respondent’s MDI, a theory Dr Sonnabend accepted was open and one which was consistent with the respondent’s substantial swimming career, including her marathon swimming. As I have said, the primary judge made no reference to that theory.
272 At various points (pars (n), (p) and (w)) the primary judge explained the respondent’s failure to attribute her right shoulder pain to the motor vehicle accident as being based on her assumption she was suffering from the same problem before and after.
However the cross-examination revealed that, at least from 9 days after the accident, the respondent claimed she knew she was suffering different pain in her right shoulder.
In that light the failure to associate that different pain with the accident and report it to he various information seekers at that time is remarkable.
Secondly, again, the primary judge did not, with respect, explain why it should be inferred that the motor vehicle accident was, more probably than not, a cause of the respondent’s post accident right shoulder condition, especially considering the severity of the pain in her right shoulder, and its severely incapacitating effect, immediately prior to the motor vehicle accident.
273 The primary judge said he approached the respondent’s evidence with considerable caution where it was unsupported by contemporaneous documents. It is not easy, with respect, to see how he applied that approach having regard to the bulk of documents inconsistent with her account. | [
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|
nsw_caselaw:549fd5843004262463bf1e27:2 | nsw_caselaw:549fd5843004262463bf1e27 | None of those documents recorded the respondent complaining that she had suffered an injury to her right shoulder as a result of the accident. According to the written medical evidence, the first time she attributed her shoulder problems to the accident was in March 2000
A chiropractor recorded a post-accident complaint by the respondent about her right shoulder in a letter. His clinical notes were arguably inconsistent with the letter.
The primary judge concluded from the letter that the respondent had suffered increased pain in her right shoulder after the accident. In mid-1999 his clinical notes recorded a complaint of pain in the shoulder by the respondent and the words “previous dislocation”.
The notes were equivocal about which shoulder the respondent had complained about; the letter “L” in the note about this complaint had either been written over with the letter “R” or vice versa. The primary judge concluded from this note that the respondent’s right shoulder subluxed in June 1999. The chiropractor was not called.
The respondent argued that after the accident her right shoulder condition was significantly different, in that she suffered subluxation, or dislocation, within three months or thereabouts of the accident, as recorded in the chiropractor’s notes, an event her specialist regarded as significant in determining the aetiology of her condition.
She said the incident in which her right shoulder had first subluxed was terrifying and that she had consulted her general practitioner the same day and been referred to a specialist. The letter referring the respondent to the specialist was dated 6 January 2000.
The respondent tendered the general practitioner’s records which first referred to the respondent reporting a right shoulder subluxation or dislocation in March 2000. Neither party called the general practitioners.
Cross-examination of the respondent exposed inconsistencies in her evidence about when she first complained about her right shoulder after the accident. The primary judge concluded the respondent’s credit was not of vital importance to his findings and that she was mistaken about when her shoulder pain first became significant and when its increase first became significant to her.
Held, dismissing the appeal, per Santow JA (Campbell JA agreeing):
1. The appellant did not demonstrate sufficient grounds for disturbing the trial judge’s conclusions, taking into account the constraints on appellate intervention in disturbing credibility based findings, which these were.
None of the critical findings of fact were inconsistent with “incontrovertible fact” or uncontested testimony or such as to render the decision at trial to be “glaringly improbable” or “contrary to compelling inferences in the case”: [3], [7].
Fox v Percy [2003] HCA 22; (2003) 214 CLR 118 applied
2. The trial judge’s finding on causation was supported by the principle in Watts v Rake (1960) 108 CLR 158. The appellant failed to satisfy its evidentiary onus of disentangling the accident from other potential causes of the respondent’s right shoulder condition, so as to exclude altogether the operation of the accident as a contributory cause: [8].
Watts v Rake [1960] HCA 58; (1960) 108 CLR 158 applied
3. While the trial judge’s findings on the critical issues were contestable, there was evidence available to provide a basis for each of them. The trial judge was entitled to prefer the respondent’s expert witness’s evidence: [22].
Ahmedi v Ahmedi (1991) 23 NSWLR 288 applied
4. The appellant had not demonstrated that the trial judge had “too fragile a base” for his causation conclusion or that the cumulative effect of the evidence makes that conclusion glaringly improbable: [6], [66].
State Rail Authority of New South Wales v Earthline Construction Pty Ltd (in liq) [1999] HCA 3; (1999) 73 ALJR 306 referred to
5. The trial judge dealt comprehensively with the critical issues in a carefully reasoned judgment: [20]. | [
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] | null |
|
nsw_caselaw:549fd5843004262463bf1e27:16 | nsw_caselaw:549fd5843004262463bf1e27 | It got slowly worse, from there, initially falling out occasionally and as time progressed falling out more and more, frequently. Vashti had a lot of physiotherapy at the City Clinic on Crown Street. This made little difference. The rest is history. She had had some discomfort (bursitis) in the right shoulder before the accident, but had not experienced any dislocation’ . [emphasis added]
72. She saw Dr Bencsik again on 21 July 2000. He recorded this, concerning an event on 7 July 2000:
‘Following an injection of Pethidine to relieve her pain on 7 July 2000, she had a fainting attack. In the fall she lacerated her chin which required suturing and sustained injuries to her left upper first, second and third teeth.
The second and third teeth were broken to the point where they were extracted, and she was required to wear a temporary splint. However, at a later date Mrs Clancy will have titanium peg implants and a tooth replacement prosthesis.’
73. It is the plaintiff’s case that that fall was causally related to the accident since the Pethidine was taken to relieve the right shoulder pain. The defendant concedes that if the right shoulder disability is found to be causally related to the accident, it is liable for the sequelae of that fall. …”
29 A favourable credibility finding concerning the respondent’s mother strongly entered into the trial judge’s acceptance of her supporting evidence as to when subluxation first occurred after the accident; Judgment at [61]-[67] quoted below:
“61. When did the first episode of dislocation or subluxation occur? The plaintiff’s mother gave evidence that in mid 1999 the plaintiff came to her at work, complaining for the first time of a shoulder dislocation. She remembered it well, she said, because it was just before her daughter’s suicide attempt.
The defendant's counsel invited me to reject the plaintiff's mother's evidence as insufficiently reliable to use it in support of the plaintiff's case. However, I found the plaintiff’s mother an impressive, careful and considered witness.
I accept her evidence as to the timing of when the plaintiff first complained to her of a right shoulder dislocation. The plaintiff said in chief she had had no left shoulder problems since the accident, and was not cross-examined on that evidence.
Her mother’s recollection was that the plaintiff had not complained of left shoulder problems after the accident. She was not cross-examined on that evidence. I should add that this was elicited from the plaintiff’s mother by me at the conclusion of her evidence. But neither counsel, on invitation, wished to put any questions to her about it.
62. Dr Hitchen said in his evidence that although there were signs in the plaintiff’s left shoulder of ligamentous laxity, there was no multi-directional instability (MDI), and Dr Sonnabend agrees.
63 The suicide attempt was just before the note in the chiropractor's record of a left shoulder dislocation.
64. I think it unlikely that the plaintiff’s mother would have forgotten significant matters occurring at the time of her daughter’s suicide attempt.
Although it was the plaintiff’s and her mother’s evidence that this incident occurred shortly before she was referred to Dr Sonnabend, and Dr Naim’s referral to him was dated 6 January 2000, there was evidence from each of them,
which I accept, that initially an appointment was made for her to see another orthopaedic surgeon but she later learned of the identity of Dr Sonnabend, who a colleague of her mother recommended, so saw him instead.
There is no record in the GP notes to which I was referred asking for or discussion of a referral to Dr Sonnabend, that is, before she saw Dr Sonnabend. There is in fact no entry in the records at all between 23 November 1999 and 3 March 2000.
Yet I was told by counsel that those notes were a collection of notes from both of her general practitioners, Dr Bloom and Dr Nairn, and there is, of course, the 6 January 2000 letter to Dr Sonnabend. | [
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|
nsw_caselaw:549fd5843004262463bf1e27:29 | nsw_caselaw:549fd5843004262463bf1e27 | But the position on 15 February - that's the day before the accident - is that her entire right shoulder is in pain and discomfort, and that in a resting state she experienced a constant burning sensation. Do you understand?
A. Mm.
Q. On a pain level of four out of 10 - 10 being the worst - on movement, she experienced a grinding sensation as well as sharp, stabbing pains. Her range of motion was limited by the events that lead up to the patient's medical history - that's the presentation itself.
She says that the onset of the acute condition occurred about six months prior, but felt that it had now become chronic and debilitating. She was unable to recall any specific trauma or incident that provoked the condition, however stated that her occupational duties she felt had aggravated the condition.
At that time - that's the day before the accident - she was unable to perform normal daily activities, including house cleaning, opening jars or even personal grooming activities as simple as getting dressed.
Her recreational activities in the past had included swimming and horseback riding, and that she had been unable to swim since the onset of her condition, which was some six months prior. That's in effect the presentation, as far as the picture of symptoms and problems she felt she was having at that time. Do you understand?
A. Mm'hm.
Q. I want you also to assume that when we're talking about that six-month time gap, that prior to that six-month period from the onset of this condition, one of the assumptions was that she'd been unable to swim during that six-month period.
I want to assume that prior to that six-month period that she used to engage in marathon swims - what she described as marathon swims - and that in order to undertake that activity, she would be training very regularly. I think the evidence was four times a week, as well as the marathon swims. Do you understand?
(no verbal reply)
Q. That she had ceased that swimming activity six months before this presentation to the chiropractor, and that despite ceasing that activity she was continuing to experience the presentation and the picture of symptoms, and the impact it was having on her day to day activities, including as you recall, such simple things as getting dressed.
I want you to assume that the position is that that set of symptoms were continuing to be present and were persisting unabated up until the time of the car accident; that is, immediately prior to the car accident.
I want you to assume that following the car accident there is no reporting to her treating doctors, who are seeing her for the car accident, of any increase in symptoms in her shoulder, any alteration, any aggravation, any new pain immediately after the accident. Do you understand?
A. Mm'hm.
Q. That continued to be the case in terms of the presentation regularly to doctors, both treating doctors and also medico-legal specialists. That the position was that she continued to fail to allege that in fact there had been any increase in symptoms as a result of the car accident.
I want you to assume that throughout that period of time, that is after the accident, she continues to see the chiropractor, with an emphasis initially on the wrist. Do you understand?
A. Mm.
Q. That by about July 1999 she is presenting with some symptoms in the shoulder. Do you understand? By November 1999 she tells the chiropractor at that time that she feels that her shoulder symptoms, as a result of her return to work, she reports difficulties with work and presentation of shoulder symptoms.
By November 1999 she says to the chiropractor that, in effect, she feels now her shoulder symptoms are back to the stage they were at her first presentation on 15 February; that is, back to the position they were prior to the car accident. | [
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|
nsw_caselaw:549fd5843004262463bf1e27:13 | nsw_caselaw:549fd5843004262463bf1e27 | 25 McColl JA summarises the further complaints of the appellant, which I quote below (omitting paragraph numbers) as well as the response in argument of Counsel for the respondent.
“… It also complains that the primary judge did not address the more probable cause of the appellant’s right shoulder pain, namely her return to the work activities which, the appellant contends, had been responsible for the onset of her symptoms prior to the motor vehicle accident.
Next, the appellant complains that the primary judge did not address the fact that Dr Sonnabend’s opinion of the respondent’s pre-accident condition was based on an incorrect history of her right shoulder problems at the time of the accident. (ORANGE 25-26).
The appellant illustrated its submissions by reference to the primary judge’s resolution of the issue as to when the respondent’s right shoulder first subluxed. The respondent’s evidence at trial was that the first occasion when her shoulder dislocated was when she was travelling with her husband in a car.
The car went over a bump in the road, her shoulder dislocated and she was so terrified she saw her general practitioner the same day. As against this, the appellant submitted that there was no record in the general practitioner’s notes of the respondent suffering any right shoulder dislocation until well into 2000.
Secondly, the respondent gave evidence that once her right shoulder had dislocated, dislocations occurred with increasing frequency.
Again, the appellant relied upon the fact that that there was no record during 1999 in any medical practitioner’s notes produced at trial that the respondent’s right arm was dislocating frequently. The appellant complained that the primary judge had not demonstrated how he had resolved these inconsistencies.
Next, the appellant argued that the evidence supported the proposition that the respondent’s right shoulder first dislocated in December 1999 because it was at or around this time that the respondent obtained a referral from her general practitioner to Dr Sonnabend. A dislocation first occurring in December 1999 assisted the appellant’s case in two respects.
The first was that both parties’ expert witnesses, Dr Sonnabend for the respondent and Dr Hitchen for the appellant, accepted that in order to link the respondent’s MDI to the accident it was necessary that she had suffered a right shoulder dislocation within six months after the accident.
Secondly, a dislocation first occurring in December 1999 assisted the appellant’s case that her right shoulder dislocation was caused by her work at Hanly Moir.
Mr B T Toomey of Queen’s Counsel who appeared with Mr F Tuscano for the respondent on appeal, but not at trial, said there were five steps critical to the respondent’s case which the primary judge had been entitled to accept. They were:
(a) that the respondent’s pre-accident right shoulder condition did not involve any dislocation or subluxation;
(b) that the respondent’s left shoulder never dislocated either before or after the motor vehicle accident – a proposition which was not challenged in cross-examination; (O38)
(c) that the respondent’s pre-accident right shoulder condition could not have been expected, without more, to proceed to dislocation in the manner it did;
(d) that the mechanism of the wrist injury the respondent suffered in the motor vehicle accident could be expected to cause trauma to her right shoulder;
(e) there was an immediate increase in symptoms in the respondent’s right shoulder immediately after the accident.
Mr Toomey submitted that it was not necessary that the respondent demonstrate that the motor vehicle accident was the cause of her MDI. It was sufficient that it materially contributed to her MDI.
He argued that the primary judge correctly identified the three questions for determination in relation to that issue as being whether the respondent had experienced an increase in pain following the motor vehicle accident, | [
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|
nsw_caselaw:549fd5843004262463bf1e27:84 | nsw_caselaw:549fd5843004262463bf1e27 | Nevertheless, significantly, his Honour did not base his findings upon the respondent’s credibility and the Court is not, therefore, constrained by the residual limitations on appellate review of credibility based findings which have survived Fox v Percy (at [31]).
274 Approaching the matter on the basis of the contemporary materials, the facts established by the numerous examinations of the respondent and the apparent logic of the events, I am of the view that the respondent did not discharge her burden of proving that the motor vehicle accident was a cause of her MDI.
275 In my view the primary judge erred in concluding that the accident led to an aggravation and a worsening of the respondent’s right shoulder.
276 Since writing the above, I have read Santow JA’s draft judgment. The only additional observations I wish to make concern his Honour’s analysis (at [47] ff) of Mr Eisman’s records.
As to the paragraph headed “Physical Examination” from Mr Eisman’s second report (22 February 1999) it should be noted that, save in one respect, it is identical to the paragraph bearing the same heading in his pre-accident report. The only difference is that whereas the last sentence in that paragraph in his first report said:
“There appears to be moderate inflammation of her right shoulder as indicated by the pitting of her bra strap.”
The last sentence in the post-accident report reads:
“There appears to be increased inflammation.”
That sentence does not refer to the respondent’s right shoulder expressly, but I would accept, having regard to the last sentence of the same paragraph in his first report, that it was a reference to that shoulder. This, as I observed (at [177]) when referring to Mr Eisman’s observation of “increased inflammation”, was the inference the primary judge drew.
277 Accepting that assumption, it is significant, in my view, that nothing in his observations post-accident caused Mr Eisman to alter significantly his opinion of the respondent’s condition. The only addition to his diagnostic impressions are those to which I refer (at [192]), the first of which clearly refers to the wrist, while the second, more equivocal entry is “edema [sic, oedema]”.
278 On the same day he wrote his report to Dr Ridehalgh, as I note (at [193]), Mr Eisman’s notes record that the respondent had some increased range of movement in her right shoulder. Thereafter there was no record of him treating the respondent’s shoulder again until, as I explain (at [197]) June 1999.
279 Thus, even if it might be accepted the respondent complained of increased right shoulder pain after the accident, although apparently only to Mr Eisman, the contemporaneous records do not support the proposition that that pain was in any way significant so as to call for further investigation and treatment.
280 I accept that there is no apparent reason why Mr Eisman would “invent” a reported symptom, an accusation I did not level at him. However, the apparent discrepancy between his clinical notes and his letters gives pause for thought about either the latter’s accuracy or about attributing the pain level of “10/10” to the respondent’s right shoulder.
This is particularly so when such an assessment is inconsistent with Mr Eisman’s subsequent records, which do not record any continuing complaint by the respondent about her right shoulder,
a silence which is consistent with the volume of contemporaneous evidence showing that the respondent made no complaint about her right shoulder after the accident until some time after her return to work at Hanly Moir.
Orders
281 I propose the following orders:
1. Appeal allowed.
2. Set aside the judgment of Judge Walmsley SC and substitute a judgment of $59,943.20.
3. Respondent to pay the appellant’s costs of the appeal and have a certificate under the Suitor’s Fund Act 1951 if otherwise qualified.
282 CAMPBELL JA: I agree with Santow JA.
**********1
10/12/2007 - Headnote, page 2 last par, "allowing the appeal" should be "dismissing the appeal".Par 65 - second sentence inserted. - Paragraph(s) Headnote, page 2, last par.Judgment par 65
DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision.
The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated. | [
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] | null |
|
nsw_caselaw:549fd5843004262463bf1e27:30 | nsw_caselaw:549fd5843004262463bf1e27 | Do you understand? So I want you to assume that that's the circumstances. With those assumptions made, firstly it's fair to say, isn't it, that that set of assumptions or that picture that is painted is not a picture that was presented to you in the course of reports or in the course of clinical examinations?
OBJECTION. FORM. QUESTION ALLOWED.
A. It's not been my perception of what happened if that's what you are asking.
Q. Indeed, in fairness to you, Dr Sonnabend, I think you gave evidence earlier that in fact one of the fundamental underlying things or assumptions from which an opinion is ultimately drawn, and I think - remember, we identified the three things before.
We had a minor position before the accident, we had a car accident, and then a significant aggravation of the symptoms thereafter. But that obviously was very important to you in terms of your ultimate opinion about questions of causation. Correct?
A. Correct.
Q. So that if that is the case, that picture that I've painted for you, would it be fair to say that in light of that picture as opposed to the picture and presentation and assumptions that you've made before that there would be greater doubt about the causal relationship between the motor vehicle accident and the MDI, multi-directional instability?
A. I think that would be a fair comment.
Q. Indeed, would it be fair to say that if one assumes that position to be correct, that progression to be correct, presented with that position to you as a clinician it would be fair to say, wouldn't it, that you would be of the view that perhaps the MDI was well and truly there prior to the car accident? A.
The scenario you painted to me was that the six months after the accident she was back to where she was prior to the accident.
Q. Sorry, November.
A. Sorry, 10 months. 10 months after the accident she was back to where she started prior to the accident.
Q. Yes.
A. If her condition was essentially unchanged over 10 months following the accident we would wonder how severely the effect of the accident was. Again, I avoid the word MDI, because we obviously mean different things, but I would agree that if she was no worse 10 months post-accident, which is the scenario you paint to me -
Q. Yes.
A. --then the role of the accident producing her shoulder symptoms is far less clear.
Q. Certainly you indicate the trauma is a factor, depending upon the timing of the trauma in relation to the presentation of symptoms. The trauma could be a factor in the advancement or acceleration of multi-directional instability. Is that fair?
A. Yeah.
Q. What I want you to also assume is that in about June of 1998 - do you understand? So we're talking about--.
A. Eight months prior to the accident.
Q. Yes, and we’re talking about, I suggest, certainly on the time frame of the six-month period given to Dr Ridhalgh, which I assume to be correct, is the development of the symptoms and also the statements to the chiropractor.
I want to suggest to you that she had a fall off a chair [in June 1998], the chair collapsed on her, and that when the chair collapsed on her that she in effect went down and took the brunt of the fall through her right wrist. Do you understand?
(no verbal reply)
……
Q.
Certainly, if one puts that fact into the mix - do you understand - as far as the mix I've already given you about the six-months presentation, motor vehicle accident, the lack of complaint of increase in symptoms, the presentational history given in the end of 1999, certainly,
with that thrown into the mix that would suggest that perhaps certainly one could point, if there is any traumatic origin, that in light of all of that, if there was any traumatic origin, it would more likely be the fall and the trauma in June 98 than the car accident, in light of the presentation of symptoms and all the other matters to which I've referred. | [
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|
nsw_caselaw:549fd5843004262463bf1e27:56 | nsw_caselaw:549fd5843004262463bf1e27 | Judges are increasingly aware of their own limitations and of the fact that, in a courtroom, the habitual liar may be confident and plausible, and the conscientious truthful witness may be hesitant and uncertain.
In that context, it is relevant to note that the cases in which findings of fact and assessments of credibility are, to a significant extent, based on observation of demeanour have possibly become, if they have not always been, the exception rather than the rule.
Indeed, as Kirby ACJ pointed out in Galea v Galea , in many cases today, judges at first instance expressly ‘disclaim the resolution of factual disputes by reference to witness demeanour’.
However, this does not deny that in many cases a trial judge's observation of the demeanour of witnesses as they give their evidence legitimately plays a significant and even decisive part in assessing credibility and in making factual findings. Indeed, as will be seen, the present was such a case.”
116 In this case the process of appellate review is not directly influenced by the primary judge’s preference for the respondent’s credibility. Rather his Honour concluded that the respondent’s credit was not of vital importance to his findings.
This, as I shall discuss, appears curious in the light of the evidence, particularly the contrast between the respondent’s evidence in chief and her cross-examination, and the contemporaneous documents. Nevertheless, as Deane and Dawson JJ said, that does not mean this Court can entirely deny the influence of the advantage his Honour had in observing the respondent and her mother’s evidence.
117 Credit does appear to have been an issue in relation his Honour’s preference for Dr Sonnabend over Dr Hitchen.
I will return to this, but at this stage would observe that Kirby J has questioned whether “authority about disturbing evidence on the basis of assessments of credibility applies, or applies with the same strictness,
in the case of expert witnesses where (normally at least) the honesty of the witness is not in doubt and the issue for decision at trial is the acceptability of the witness' opinion, the extent of his or her experience in the specialty and whether one expert's conclusion is more acceptable and logical than that of another expert”:
Shorey v PT Ltd [2003] HCA 27;
(2003) 77 ALJR 1104 (at [32]).
118 His Honour had addressed this issue in Ahmedi v Ahmedi (1991) 23 NSWLR 288 (at 291 – 292) where he said:
“… The issue is not one of credibility but of the logical persuasion and internal consistency of the medical opinion stated. An expert opinion is only as persuasive as the facts upon which it is based. Many are the cases in which expert opinions must be rejected because the factual hypotheses upon which they are based are not made out in the evidence …”
119 In Ahmedi v Ahmedi (at 299-300) Clarke JA (with whom Handley JA agreed) expressed the view that in a case where the trial judge's conclusion depended upon his assessment and evaluation of contradictory expert oral evidence, the principles in Abalos v Australian Postal Commission [1990] HCA 47; (1990) 171 CLR 167 imposing restraint on appellate interference applied.
He referred to Wilsher v Essex Area Health Authority [1988] AC 1074, where Lord Bridge said (at 1091):
"... Where expert witnesses are radically at issue about complex technical questions within their own field and are examined and cross-examined at length about their conflicting theories, I believe that the judge's advantage in seeing them and hearing them is scarcely less important than when he has to resolve some conflict of primary fact between lay witnesses in purely mundane matters."
120 In this case, as shall become apparent, in my view the experts were not radically at issue about complex technical questions within their own field. Rather their disagreement was based on their different understanding of the aetiology of the respondent’s condition. | [
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|
nsw_caselaw:549fd5843004262463bf1e27:1 | nsw_caselaw:549fd5843004262463bf1e27 | LOWER COURT FILE NUMBER(S): DC 13828 of 2001
LOWER COURT JUDICIAL OFFICER: Walmsley DCJ
LOWER COURT DATE OF DECISION: 16 February 2006
IN THE SUPREME COURT
OF NEW SOUTH WALES
COURT OF APPEAL
CA 40115/06
DC 13828/01
SANTOW JA
McCOLL JA
CAMPBELL JA
Friday 7 December 2007
NOMINAL DEFENDANT v CLANCY
The respondent was injured in a rear end motor vehicle collision on 16 February 1999. There was no dispute at trial that as a result of the accident she suffered an aggravation injury to her right thumb and a pre-existing wrist condition.
The substantial area of dispute at trial was whether the motor vehicle accident either precipitated a condition known as severe multi-directional glenohumeral instability (“MDI”) in the respondent’s right shoulder or, at least, severely exacerbated a pre-existing minor shoulder condition.
The primary judge found on the balance of probabilities that the accident did lead to an aggravation and a worsening of the respondent’s pre-accident right shoulder problemin the respondent’s favour and awarded her the respondent $634,522.
64. The appellant did not challenge the quantum of damages.
However, it complained that his Honour erred in finding that the respondent had established that the motor vehicle accident caused her to suffer MDI in her right shoulder or at least severely exacerbated a pre-existing minor shoulder condition and, also asserted he failed to consider its case, alternatively failed to give adequate reasons for rejecting it.
The issue of causation turned substantially on whether the respondent had complained of right shoulder pain, or increased right shoulder pain, in the first few months after the accident and whether her right shoulder had subluxed or dislocated within six months of the accident.
The respondent’s case, disputed by the appellant but accepted by the trial judge, was that she had so complained to her chiropractor that her right wrist continued to be the main source of pain and that she had been suffering right shoulder pain from bursitis immediately before the accident.
The appellant’s case was that at the time of the accident the respondent had a congenital condition (unknown to her at the time) which resulted in ligament laxity and that her ultimate condition of MDI was not usually brought on by a single trauma but by people performing some superimposed, usually repetitive, activity either at work or a sport such as swimming.
The respondent had engaged in marathon swimming and had trained four days a week but had ceased some six months prior to the accident because of her shoulder condition.
Immediately prior to the accident the respondent had been receiving treatment for right shoulder problems, the symptoms of which had become apparent in mid-1998.
The pre-accident onset of her right shoulder symptoms coincided with her commencing work in a pathology practice. After the accident, because of her lower arm injury, the respondent did not resume work until August 1999 and then only on limited hours.
Having been off work the pre-accident her right shoulder problem abated to a degree, but was exacerbated by her return to work so that by late 1999 her right shoulder started to subluxed and dislocated, leading to her general practitioner referring her for specialist treatment.
The respondent’s case, accepted at trial, but disputed by the appellant was that her right shoulder subluxed and dislocated around May 1999, that is within six months of the accident.
The appellant submitted that its theory of the case was consistent with the contemporaneous notes and reports made by those who treated the respondent and with the information the respondent provided in her claim forms, statements and medico legal reports both in her workers compensation and motor accidents claim. | [
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] | null |
|
nsw_caselaw:549fd5913004262463bf2113:34 | nsw_caselaw:549fd5913004262463bf2113 | 1993 wording processed by LPSO 1/7/94 and/or 6/7/94 (TJW2, p299)
GT843L GT118G GT160F
1986-1992* Wording (TJW1 p87-103) LPSO 1994 Wording (to be tendered) LPSO 1994 Wording (TJW1 p224-233) LPSO
1994 1994 Slip (TJW1 p45-51) (wording as expiring) scratched pp 45, 46, 49; LPSO 1994 Slip (TJW1 p147-158) scratched p150-155, 157-158 LPSO p147 1994 Slip (TJW1 p208-223) scratched p211, 213, 214, 220-223; LPSO
1994 wording processed by LPSO 12/8/94 and/or 18/1/05 (TJW2, p302)
GT843M GT118H GT160G
1995 1995 Wording (TJW2 p1-22) LPSO/HIH 1995 Wording (TJW2 p98-118) LPSO/HIH 1995 Wording (TJW2 p188-206) LPSO/HIH
1995 Slip (TJW1 p34-44) scratched 1995 Slip (TJW1 p135-146) scratched/ LPSO 1995 Slip (TJW1 p234-251) scratched /LPSO
GT843N GT118J GT160H
1996 1996 Wording (TJW2 p23-76) LPSO/HIH 1996 Wording (TJW2 p119-157) LPSO/HIH 1996 Wording (TJW2 p207-255) LPSO/HIH
1996 Slip (TJW1 p21-33) scratched 1996 Slip (TJW1 p124-134) scratched/ LPSO 1996 Slip (TJW1 p252-263) scratched
GT843P GT118K GT160J
1997 1997 Wording (TJW2 p77-97) LPSO/HIH 1997 Slip (TJW1 p114-123) scratched p118; LPSO 1997 Slip (TJW1 p264-274) scratched 269; LPSO
1997 Slip (TJW1 p7-20) scratched 1997 Wording (TJW2 p158-187) LPSO/HIH 1997 Wording (TJW2 p256-277) LPSO/HIH
The missing years: 1993 – 1994
140 The parties agree that the factual dispute only arises for the years 1993 – 1994 because signed copies of the treaty wordings for each of the layers for those years could not be found.
141 The Syndicate could only locate unsigned and unstamped reinsurance wordings for the primary and first excess layers for 1993 and 1994 and stamped reinsurance wording for 1994 for the third excess layer. The reinsurance wording for 1993 for the third excess layer could not be located. | [
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] | What years are the subject of a factual dispute in HIH Casualty & General Insurance Limited (in liquidation) v R J Wallace sued on his own behalf and on behalf of all other members of Syndicate No 683 at Lloyd's of London for the 1993 underwriting account & Ors [2006] NSWSC 1150? | [
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nsw_caselaw:549fd5913004262463bf2113:30 | nsw_caselaw:549fd5913004262463bf2113 | In this context it is relevant to note that Article IX expressly provides that losses “ need not be individually reported ” where they are handled in the quarterly accounts, further confirmation that HIH was the only party in the position to confirm the balance due or owing;
iv. the situation thus is that HIH has presented, via its brokers, summary accounts and claims amounts due. By those presentations, HIH confirmed the balances due to be paid (either to or by the Reinsurers depending upon the direction of the balance) and, where amounts are owing to HIH, Reinsurers have failed to pay those balances;
v. in the present proceedings, HIH’s claim in effect is for the payment of those balances – a proceeding which is expressly excluded from the operation or scope of the arbitration clause (see final sentence of Article XIX);
vi. nor is it surprising that such a claim would be so excluded. It is reasonable to assume that the parties did not intend the type of legal defences arising under the Policy to the making of such a claim to be determined by arbitration and without any right of appeal.
Agreement in writing
133 It will be recalled that one of HIH's alternative submissions [strictly falling to be considered only in the event that s19 of the Insurance Act was not engaged and that the arbitration clause was engaged], was that the Court did not have before it an arbitration agreement to which the International Arbitration Act applied as it is not "an agreement in writing".
134 The terms of Article II (2) have already been set out. Syndicate 683 contends that the facts establish that there was an agreement in writing within the meaning of Article II (2) on the basis of satisfying either:
· the requirement that the material arbitration clauses were signed by the parties; or
· the requirement that the material arbitration clauses were contained in an exchange of letters or telegrams.
The requirement that an agreement be "in writing"
135 The submissions put to the Court by HIH in this regard and supported by a plethora of texts, articles and authorities, are accepted as correct and are adopted in what follows.
i.
The policy underlying the definition in Article II(2) and the requirement that an agreement be “in writing” is to ensure that the arbitration agreement was actually consented to and concluded [Van den Berg, New York Convention , p 173;
Toby Landau “The Requirement of a Written Form for an Arbitration Agreement: When ‘Written’ means ‘Oral’” International Arbitration Conference ICCA Congress Series (2001, Series no.
11 )].
The formal requirements also serve the purpose of ensuring that the terms of the arbitration are clear and susceptible of proof [Landau, “The Requirement of a Written Form”, p 23; JD Lew, LA Mistelis and SM Kroll Comparative International Commercial Arbitration London 2003, at 7-7].
Article II(2) was included in the Convention with the intention of overcoming the divergence of national laws in favour of a uniform rule as to formal validity [Van den Berg New York Convention , p 173].
ii. The word “include” has been taken to be exhaustive (see, for example, Chloe Z Fishing Co., Inc. v Odyssey Re (London) Ltd 109 F Supp 2d 1236 (2000)) - an interpretation which is consistent with the French and Spanish texts of the Convention (which are equally authentic by virtue of Article XVI of the Convention ) [Van den Berg, New York Convention , p 179.
The French text provides “ on entend par ‘convention écrite’ … ”. The Spanish text provides “ La expresiün ‘acuerdo por escrido’ denotÜ” (which seems to translate to “the expression ‘agreement in writing’ denotes”)]. So also, in Zambia Steel Building Supplies Ltd v James Clark & Eaton Ltd [1986] 2 Lloyd’s Rep. 225 at 234, Ralph Gibson LJ said: | [
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] | What is the purpose of the formal requirements for an arbitration agreement to be "in writing" under Article II(2)? | [
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nsw_caselaw:549fd5913004262463bf2113:23 | nsw_caselaw:549fd5913004262463bf2113 | will submit to the jurisdiction of any Court of Competent jurisdiction within the United States and will comply with all requirements necessary to give such Court jurisdiction and all matters arising hereunder shall be determined in accordance with the law and practice of such Court.
"
Colman J said of the Service of Suit Clause (at 680 [39]) that:
“Its effect is to confer on the assured an option to select the jurisdiction of the New York courts or, in the case of Section IIIB, any United States court for the resolution of any dispute in respect of which insurers have failed to pay a claim made by the assured.
If that option is exercised by the assured, the insurers are obliged to comply with all procedural requirements necessary to give the New York court or (under section III B) other Court jurisdiction and all matters arising are to be determined in accordance with New York law and practice or in the case of III B the law and practice of the Court selected.
This clearly provides for an express choice of law, but it is contingent on the assured being entitled to exercise the option as to jurisdiction and on the assured having exercised it.
It is thus clear that a dispute might arise in respect of which the assured was not entitled to exercise the option: for example an allegation by insurers that they were entitled to avoid the policies for non-disclosure before any claim for payment had arisen.
Equally the assured might choose to sue the insurers in their place of business not in the United States and so not to exercise its option to undertake New York or United States jurisdiction. In either event, there would be no effective express incorporation of either New York jurisdiction or New York law or under Section III B any other jurisdiction or law.”
[His Lordship repeated the language of an “ option ” for New York jurisdiction in [53] and [54]. Although aspects of this decision were reversed on appeal (see (2005) 1 Lloyd’s Rep. 655), no criticism was made of the analysis of the Service of Suit Clause as providing an option on the part of the assured to litigate.]
iii. To similar effect is the decision of Clarke J. in Commercial Union Assurance Co Plc v NRG Victory Reinsurance Limited [1998] 1 Lloyd’s Rep. 80 at 85 where there was a similar juxtaposition of arbitration and service of suit clause. Clarke J. held at 85.5 (second column) that:
“The important point for present purposes is, however, that clauses 11 and 12 give the insured a choice where to proceed with a claim under section 1.
It could choose arbitration in New York under clause 11 or litigation in New York under clause 12 or it could choose another jurisdiction altogether. There is nothing either in clauses 11 or 12 or any other clause of the policy to prevent the insured from proceeding wherever it wished.”
iv. Further support is supplied by the decision of Colman J. in BP plc v National Union Fire Insurance Co [2004] EWHC 1132 . As his Lordship said (at [42]):
“the presence of a dual option for service of suit strongly suggests that more than mere service of proceedings is involved. The right also to select the jurisdiction is much more likely to be intended where the insured is given an option.
In the field of insurance, the contract is more likely to be catering for the insured’s jurisdictional advantage rather than merely its administrative convenience.”
v. this analysis is supported by E I Du Pont de Nemours & Co v I C Agnew [1987] 2 Lloyd’s Rep. 585 at 592. The service of suit clause in Du Pont was similar to Article XVIII of the policies in the present case. It provided that:
It is agreed that in the event of the failure of Underwriters hereon to pay any amount claimed to be due hereunder, Underwriters hereon, at the request of the insured (or reinsured),
will submit to the jurisdiction of any Court of competent jurisdiction within the United States and will comply with all requirements necessary to give such Court jurisdiction and all matters arising hereunder shall be determined in accordance with the law and practice of such Court. | [
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] | What is the effect of a Service of Suit Clause in an insurance policy, according to Colman J in HIH Casualty & General Insurance Limited (in liquidation) v R J Wallace? | [
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nsw_caselaw:549fd5913004262463bf2113:5 | nsw_caselaw:549fd5913004262463bf2113 | (4) For the purposes of subsections (2) and (3), a reference to a party includes a reference to a person claiming through or under a party.
(5) A court shall not make an order under subsection (2) if the court finds that the arbitration agreement is null and void, inoperative or incapable of being performed.
10 ‘Arbitration agreement’ is defined in s3(1) of the International Arbitration Act to mean:
‘an agreement in writing of the kind referred to in sub-article 1 of Article II of the Convention.’
11 The ‘Convention’ is defined in s3(1) of the International Arbitration Act to mean:
“the Convention on the Recognition and Enforcement of Foreign Arbitral Awards adopted in 1958 by the United Nations Conference on International Commercial Arbitration at its twenty-fourth meeting, a copy of the English text of which is set out in Schedule 1”.
12 Article II of the Convention provides:
ARTICLE II
1. Each Contracting State shall recognize an agreement in writing under which the parties undertake to submit to arbitration all or any differences which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not, concerning a subject matter capable of settlement by arbitration.
2. The term “agreement in writing” shall include an arbitral clause in a contract or an arbitration agreement, signed by the parties or contained in an exchange of letters or telegrams.
3. The court of a Contracting State, when seized of an action in a matter in respect of which the parties have made an agreement within the meaning of this article, shall, at the request of one of the parties, refer the parties to arbitration, unless it finds that the said agreement is null and void, inoperative or incapable of being performed.
Insurance Act 1902
13 Section 19 of the Insurance Act 1902 (NSW) provides that:
“A provision in a contract of insurance or other contract or agreement, being a provision with respect to the submission to arbitration of any matter arising out of the contract of insurance,
does not bind the insured except where the provision is contained in a contract or agreement, entered into after a difference or dispute has arisen between the insurer and the insured, providing for the submission to arbitration of that difference or dispute.
”
Section 53 of the Commercial Arbitration Act 1984
14 Section 53 of the Commercial Arbitration Act 1984 (NSW) provides:
(1) If a party to an arbitration agreement commences proceedings in a court against another party to the arbitration agreement in respect of a matter agreed to be referred to arbitration by the agreement, that other party may, subject to subsection (2), apply to that court to stay the proceedings and that court, if satisfied:
(a) that there is no sufficient reason why the matter should not be referred to arbitration in accordance with the agreement, and
(b) that the applicant was at the time when the proceedings were commenced and still remains ready and willing to do all things necessary for the proper conduct of the arbitration,
may make an order staying the proceedings and may further give such directions with respect to the future conduct of the arbitration as it thinks fit.
(2) An application under subsection (1) shall not, except with the leave of the court in which the proceedings have been commenced, be made after the applicant has delivered pleadings or taken any other step in the proceedings other than the entry of an appearance.
(3) Notwithstanding any rule of law to the contrary, a party to an arbitration agreement shall not be entitled to recover damages in any court from another party to the agreement by reason that that other party takes proceedings in a court in respect of the matter agreed to be referred to arbitration by the arbitration agreement. | [
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] | null |
|
nsw_caselaw:549fd5913004262463bf2113:17 | nsw_caselaw:549fd5913004262463bf2113 | ’ The purpose of s.7(5) is not however to preclude the right to arbitration where an arbitration agreement is declared inoperative under s 19 of the Insurance Act . Instead, s.
7(5) precludes a court from making an order that a matter be referred to arbitration where the arbitration agreement is null and void, inoperative or incapable of being performed on the basis of ordinary common law principles, including, for example, the doctrines of frustration and repudiation.
Dealing with the issue
60 In my view the submissions and advanced by HIH are of substance and they are adopted in what follows.
61 In Clyde Engineering v Cowburn (1926) 37 CLR 466 (at 489-490) the following steps were outlined by Isaacs J as appropriate to be taken in applying the “cover the field” test:
i. identify or characterise the field, or subject matter, that the Commonwealth law deals with and regulates;
ii. ascertain whether the State law attempts to regulate a field which the Commonwealth intends to cover. If there is no overlap of the fields, then no indirect inconsistency will be found;
iii. if the two laws do overlap, ascertain if the Commonwealth intended to cover the field – did the Commonwealth intend its law to be the only law on the subject matter in question?
62 In relation to the first of these steps, Syndicate 683 has identified the ‘field’ that the Commonwealth law regulates, as “the recognition and enforcement of foreign arbitration agreements and foreign arbitral awards”
63 In relation to the second of the steps identified above, Syndicate 683 does not attempt to identify the field which the State law attempts to regulate. In simple terms, it may be said that the NSW Act deals with the regulation of contracts of insurance.
64 This is not a case, like O’Sullivan v Noarlunga Meat (1954) 92 CLR 565, where the Commonwealth and State acts both seek to lay down detailed regimes in relation to the same subject matter.
65 Rather, it is a case where the State and Commonwealth laws address different subject matters.
In that sense, it is closer to Ansett v Wardley, where the subject matter of the State law was sex discrimination, and the subject matter of the Commonwealth law was an award dealing with the dismissal of pilots;
or Commercial Radio Coffs Harbour v Fuller (1986) 161 CLR 47, where the Commonwealth law related to the regulation of broadcasting, and the NSW law related to environmental planning restrictions.
66 The only area of ‘overlap’ which could be identified is in relation to one specific provision of each statute, namely s7 of the International Arbitration Act and s19 of the Insurance Act, and only in the specific circumstances where an arbitration agreement,
which satisfies the requirements of s7(1), is found in a contract of insurance that is covered by the NSW statute, and if the arbitration clause is sought to be enforced by the insurer against the insured.
67 However, there is - even in these limited circumstances - no overlap at all:
a) Section 7 of the Commonwealth statute sets down the steps to be taken by a court when a party to a binding international arbitration agreement applies for a stay of proceedings and referral to arbitration, but does not deal with the circumstances in which an arbitration agreement is not binding; and
b) Section 19 of the NSW statute describes the circumstances in which an arbitration agreement in a contract of insurance is binding, but does not deal with the manner in which the Court should deal with an application by a party to that contract for a stay of proceedings and referral to arbitration.
68 The two statutes are therefore not overlapping, but complementary.
69 Even if there were some overlap between the ‘fields’ covered by the respective statutes, the third step outlined above requires an enquiry into whether the Commonwealth intended its law to be the only law on the subject matter in question.
70 The starting point is the proper measure of the nature of the right conferred by the Commonwealth legislation. | [
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] | null |
|
nsw_caselaw:549fd5913004262463bf2113:24 | nsw_caselaw:549fd5913004262463bf2113 | It is further agreed that service of process in such suit may be made upon Messrs. Mendes & Mount, 27 William Street, New York U.S.A., and that in any suit instituted against any one of them upon this contract, Underwriters will abide by the final decision of such Court or of any Appellate Court in the event of an appeal;
vi. that case differed from the present, however, because, as Bingham LJ pointed out, the “option” had not been exercised in that case. (That case involved an application to stay English proceedings. Relevant to that question was the identification of the proper law of the policies. It was in this context that Bingham LJ made observations about the service of suit clause);
vii. relevantly, his Lordship accepted that it was possible for there to be a retrospective variation of a contract’s choice of law.
That there can be a variation of an express choice of law provision follows not only from the application of general principles of contract law but has been expressly held to be possible in the context of choice of law clauses: see Nygh Autonomy in International Contracts (OUP, 1999) at p.100.);
viii. the above analysis is also supported by Heath Lambert Limited v Sociedad de Corretaje de Seguros [2004] 1 Lloyd’s Rep.
495 at 500 in which Jonathan Hirst QC, sitting as a Deputy High Court judge, accepted the validity of a term in a reinsurance policy - “Subject to Venezuelan Law and or Venezuelan jurisdiction if required” – as giving the Venezuelan principal the option to choose the governing law of the policy;
ix. so also in BP plc v National Union Fire Insurance Co. supra, where the relevant clause under consideration provided that "At the Principal Insured(s) discretion this insurance shall be subject to English law and practice or USA law and practice" Colman J. relevantly held:
31 … there may be contracts where an express agreement identifying the proper law is provided for at some point after the contract has become binding: see Du Pont v. Agnew [1987] 2 Lloyd's Rep 585 per Bingham LJ.
at page 592. Such agreement may operate prospectively or retrospectively. In either event the effect will be a variation of the contract in as much as there will be a variation of the proper law.
…
33 General Condition 16 on its proper construction provides to BP an option exercisable without reference to the insurers to select whether "this insurance" should be subject to English Law and Practice or the Law and Practice of the USA.
The phrase "this insurance" must, in my judgment, be taken to mean the entire operation of the Open Cover on an umbrella basis. If the parties had intended that it was open to BP to select different bodies of proper law for different projects or participating insurers, they would have made express provision to that effect.
34 The position at the time when the Open Cover was entered into was therefore that its current proper law, not having been expressly chosen, was to be inferred from the terms of that transaction,
but if and when BP indicated that it was selecting a body of law under General Condition 16, that implied proper law which had hitherto prevailed would be retrospectively replaced by either English law or that body of law, presumably USA Federal Law, which had been selected.
Accordingly, the validity of declarations made up to that time would be determined by reference to that selected body of law.”
[It is to be noted that the service of suit clause provided for service of suit in the United States or the United Kingdom “at the insured’s discretion”]
102 It is to be noted that Colman J used the phrase "jurisdictional option”:
“44 I conclude that the sense of the service of suit clause is to provide for a jurisdictional option. That General Condition 16 provided for a proper law option is consistent with a mutual intention to dovetail the proper law with the selected jurisdiction." | [
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|
nsw_caselaw:549fd5913004262463bf2113:29 | nsw_caselaw:549fd5913004262463bf2113 | 128 Each of the following propositions put forward by Mr Gleeson SC during his address are accepted as correct:
i. there was an obligation on HIH to furnish to the syndicate a summary account each quarter setting out certain information;
ii. there are three pieces of information required;
iii. the first two pieces of information, A and B, are integers to a financial calculation.;
iv. the third piece of information, the outstanding loss reserves, does not impact upon the financial calculations A and B, but it is information required to be provided to the syndicate for obvious reasons. It gives an indication of the likely development of the account;
v. the clause is more than simply a process clause;
vi. the clause has a contractual consequence. The consequence is that having furnished the summary account setting out the information contained in the integers in A and B, the balance so calculated, whether it be credit or debit, shall be paid by whoever is the debtor party to the creditor party within a specified period of time 105 days after the close of the calendar quarter;
vii. the clause gives rise to a contractual obligation;
viii. the clause does not contain or provide any requirement for the syndicate to signify its assent or agreement to the balance, so calculated, and the clause clearly contemplates a unilateral statement by HIH of the balances.
ix. in furnishing these statements HIH would be subject to an obligation of utmost good faith and permits disagreement by the syndicate. Like any contractual obligation imposing an obligation to pay a sum of money, it might be disputed. If it is disputed, the contract provides for procedures dealing with that dispute.
129 I further accept that there is nothing unusual or exceptional about the unilateral nature of the type of confirmation being here dealt with, particularly in circumstances of these types of quota share treaties where the reinsurer in the position of the syndicates, stands far removed from the underlying relationship between the original insured and HIH, and the settlement of those claims.
130 The scheme provided for was that if HIH wanted to obtain early reimbursement, then it had to provide certain information at the time to satisfy the syndicate, but otherwise the matter would be dealt with in the ordinary course in the quarterly statements.
131 As Mr Gleeson SC further contended the clause is consistent with HIH's construction of article 10, that it involves a unilateral verification by HIH of the balances owed, either way. That is not to say that a dispute cannot arise in relation to those balances. If a dispute does arise the treaty provides certain mechanisms for the resolution of those disputes.
132 In the result and as HIH has contended:
i. the Policy prescribes a process whereby on a quarterly basis, HIH furnished to the Syndicate a summary account made up of various integers, and, if the account showed a balance owing to HIH, the Syndicate was under a mandatory obligation to pay that amount within a prescribed period;
ii. the Policy makes no provision for any confirmation by Reinsurers of the balances so furnished. Rather, it directs the debtor party to pay “ the balance so calculated ”. Thus, the only party who, on the terms of the Policy, has any role in confirming the balances due is HIH;
iii. this also follows from the fact that the Reinsurer will not, in the ordinary course, be in a position to “ confirm ” the balance as it will lack critical information required to do so.
It will not have, for example, information on the number of risks written in order to calculate the premium component of the balance, nor will it have information about underlying losses or salvage, also a necessary integer in the calculation of the balance under Article X. | [
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] | null |
|
nsw_caselaw:549fd5913004262463bf2113:36 | nsw_caselaw:549fd5913004262463bf2113 | 154 A mistake appears to have occurred with respect to the subject four policies. In terms of the placement of the relevant headings for the "Service of suit" and "Arbitration" articles, all the articles had been brought forward by one for those four years, resulting in the mistaken repositioning of the material headings.
155 The mistake was ultimately corrected [cf Exhibit R2] removing the matter from contention as an issue.
Discretionary considerations
156 HIH has accepted that the usual principle [where agreements are binding, operative and where proceedings fall within their scope] is that the Courts begin with a firm disposition in favour of maintaining the bargain unless strong reasons be adduced against a stay: Akai Pty Ltd v People's Insurance Company (1988) 188 CLR 418 at 445.
157 Notwithstanding that circumstance it is true that the Court retains a discretion such that even had HIH not succeeded in its several cascading contentions, the Court would not be obliged to grant a stay of the present proceedings.
158 HIH's submission that:
i. the provisions of the Commercial Arbitration Act provide a right to either party to seek leave to appeal to the Suprême Court;
ii. there is therefore little utility to be gained in adding yet another potential layer to the contest between the parties in relation to the Charter Reinsurance v Fagan issue,
fails to give due recognition to the accepted limitations on an application for leave to appeal to the Court.
159 In my view the parties having solemnly entered into contractual commitments should be held to their bargain. Hence had it become necessary for the Court to determine the discretionary issue, the principled the exercise of the discretion would have been to grant the stay.
Scheme of judgment
160 As will appear from the reasons, HIH has succeeded on most of its submissions. Hence it was strictly unnecessary for the Court to treat with all of those submissions. The section 19 holding in favour of HIH and the rejection of the section 109 challenge were sufficient to resolve the motion.
Short Minutes
161 The parties are to bring in short minutes on which occasion costs may be argued.
************************************
DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision.
The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated. | [
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|
nsw_caselaw:549fd5913004262463bf2113:21 | nsw_caselaw:549fd5913004262463bf2113 | a) explicitly contemplates curial proceedings not only being commenced in a competent Australian court of HIH’s choosing but also contemplates that such proceedings would be determined in that court (the word “ shall ” is emphatic); and being determined in accordance with the law and practice applicable in such court.
b) also explicitly contemplates in sub-clause (iii) appeals being taken from the final decision of such a court.
ii. Article XIX explicitly contemplates arbitration, with no appeal, and in which the arbitrators are directed to reach their decision “ primarily in accordance with the usages and customs of Reinsurance practices ” and “ relieved of all legal formalities ” [a diametrically opposed procedure to that contemplated in Article XVIII].
88 The final sentence of Article XIX makes it clear that an action for a confirmed balance is outside the scope of the arbitration clause so, to that extent at least, there is no overlap between the two clauses.
89 I accept that Article XVIII is not confined in its operation to actions for the payment of confirmed balances and that, in fact, its scope is delimited by the phrase “dispute arising under this agreement”, a concept that goes well beyond disputes as to confirmed balances.
90 HIH has referred the Court to Woolworths Limited v DS McMillan (unreported, Supreme Court of New South Wales, 29 February 1988) on which occasion Rogers J had before him for consideration a service of suit clause from a Lloyd’s policy in the following terms:
“In the event of a dispute arising under this Policy, Underwriters at the request of the insured (or reinsured) will submit to jurisdiction of any competent Court in the Commonwealth of Australia. Such dispute shall be determined in accordance with the law and practice applicable in such Court.”
91 His Honour proceeded to note that the service of suit clause specified a firm of solicitors upon whom service and process may be effected and who undertook to enter an appearance on the underwriters’ behalf. The virtual identity between that clause and Article XVIII of the policies under consideration in the present case will be apparent.
92 Relevantly, in respect of the construction of the service of suit clause, Rogers J observed that:
“It is idle to suggest that the underwriters would not have foreseen the possibility that a dispute triggering the service clause may involve non-disclosure or misrepresentation. There are very few cases indeed in my experience where an underwriter declining liability under a policy fails to allege non-disclosure.
In other words, when, as part of their commercial bargain with the plaintiff, the underwriters submitted to the jurisdiction of the Court, they could not have been unaware of the possible inconvenience or cost that could be occasioned by Sydney being selected as the forum for determination of any such dispute between them.”
93 HIH has submitted and I accept, that although his Honour’s observations were made in the context of an application for a stay in proceedings on forum non conveniens grounds,
what his Honour said in relation to the above passage is directly inconsistent with Syndicate 683's submission that the service of suit clause in the present case should be confined as a matter of construction to disputes for the payment of confirmed balances.
94 It is also true that Syndicate 683's submission lacks any textual support for the extreme limitation of the kind sought to be imposed on the clause by that submission.
As HIH has submitted, if the submission were correct, this aspect of Article XVIII would be redundant because its work would be done entirely by the final sentence of Article XIX which, it will be recalled, provides that ”[a]ctions for the payment of confirmed balances shall come under the jurisdiction of the ordinary Courts.” | [
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|
nsw_caselaw:549fd5913004262463bf2113:16 | nsw_caselaw:549fd5913004262463bf2113 | 55 For the reasons already given the finding is that insofar as section 7(2) confers a ‘right’ to have proceedings stayed and referred to arbitration, it is not an absolute ‘right’, but is expressly subject to section 7(5), which provides that the Court has no power to grant a stay where the arbitration agreement is “null and void, inoperative or incapable of being performed”.
56 The Commonwealth statute does not set down any criteria for determining when section 7(5) shall apply, but instead leaves the issue to be determined against the background of the general law, which includes any applicable State legislation.
57 It is artificial to draw a line between the common law and legislative components of the general law, particularly in circumstances where aspects of the law have been codified,
where statutes (such as the Fair Trading Act) allow the Court to declare a contract void or unenforceable in certain circumstances, and where there exists legislation (such as the Insurance Act) which specifically modifies the common law applicable to certain categories of contract.
58 As HIH has submitted, the International Arbitration Act takes the arbitration agreement as it finds it, including whether it has been waived as a matter of common law or whether it is in some other way “inoperative”, including as a result of the operation of an applicable statute.
The 'cover the field' contentions of Syndicate 683
59 Syndicate 683 has contended inter alia as follows:
i. the International Arbitration Act covers the field for regulating the recognition and enforcement of foreign arbitration agreements and foreign arbitral awards such that there is no scope for s 19 of the Insurance Act to operate.
This intention is imputed from the fact that the International Arbitration Act was enacted in compliance with Australia’s international obligations to enact law to implement an international convention. In this respect, the Second Reading Speech of the Arbitration (Foreign Awards and Agreements) Bill 1974, where the Minister for Manufacturing Industry explained:
The present Bill deals with the matter on a national basis. This is desirable because the implementation of an international Convention is involved and because that Convention concerns trade and commerce with other countries. The Australian Parliament has the necessary power to proceed in this way and should exercise that power.
The former Government had proposed that the matter be dealt with by State and Territory legislation, but that would have been unsatisfactory. The resulting multiplicity of legislative provisions would have been confusing, particularly to parties in other countries.
(The Arbitration (Foreign Awards and Agreements) Bill 1974, Second Reading Speech by Mr Enderby, the Minister for Manufacturing, House of Representatives Hansard, 2 December 1974, 4390)
ii. this statement evidences first, an intention by the Commonwealth Parliament to uphold obligations under the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards and second, an intention to ensure that the national response covered the field and was not left to State legislatures to regulate.
The International Arbitration Act provides a detailed scheme of regulation governing recognition and enforcement of foreign arbitration agreements and foreign arbitral awards and includes inter alia the referral of a matter to arbitration, which is set out in s.7.
iii. it is clear that the Commonwealth Parliament did not intend for the Commonwealth legislative scheme to operate in conjunction with State legislation. Against this, it might be suggested that s.7(5) contemplates that there is no right to arbitration in the event that an arbitration agreement is ‘inoperative’ under State legislation, including, for example, s.
19 of the Insurance Act. Section 7(5) of the International Arbitration Act provides that ‘[a] court shall not make an order under subsection (2) if the court finds that the arbitration agreement is null and void, inoperative or incapable of being performed. | [
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|
nsw_caselaw:549fd5913004262463bf2113:35 | nsw_caselaw:549fd5913004262463bf2113 | 142 The Syndicate sought to overcome this deficiency by referring to the Lloyd’s established procedure set out previously and then taking the Court through the slips for the years in question to contend for the drawing by the Court of the inference that there once existed signed copies of the treaty wordings.
143 In the present case, HIH confines its submission based upon a lack of the requisite “agreements in writing” to the following policies:
Year Layer
1993 Primary layer GT843K
1993 First excess layer GT118F
1993 Third excess layer GT160EA
1994 Primary layer GT843L
1994 First excess layer GT118G
1994 Third excess layer GT160FA
144 As earlier indicated issue raised with respect to each of the above policies is that no policies, which are signed by both parties for these layers in these policy years are in evidence.
145 The burden undoubtedly lies on Syndicate 683, as the party seeking a stay of proceedings pursuant to the International Arbitration Act, to satisfy the Court that “agreement in writing” meeting the description of that term in the Act, as it has been construed, were once in existence.
146 Mr Whittaker’s evidence that it was not the practice of Syndicate 683 to receive signed copies from HIH is equivocal as to whether the policies were signed by both sides for the relevant years. This evidence clearly falls short of establishing the fact on the balance of probabilities.
147 It is critical for Syndicate 683 to establish that HIH had a consistent practice of signing the policies in place for the years in question.
However, Syndicate 683 has not put forward any policy signed by both parties in any policy year prior to 1993 and the only signed policies are dated from 1995 onwards. The available evidence supports no more than the inference that such a practice began after 1995.
148 It is inappropriate to draw an inference that the 1993 and 1994 policies were signed from the mere fact that they were processed by the LPSO. Rather the evidence suggests significant lapses in time between the dates when the policies were processed and when they were signed.
149 HIH concedes that the position may have been different if there were policies signed by both parties prior to 1993. The liquidators of HIH were obliged to bring forward any such policies had they existed. None were identified.
150 The finding is that the established procedure of scratching, stamping and processing the slips did not render the slips “agreements in writing” within the meaning of the Act signed by both parties.
Estoppel
151 There is no substance in the contention by Syndicate 683 that HIH is estopped from denying the existence of an arbitration agreement containing signed policies for the purposes of s7 (1) (d) of the International Arbitration Act. The matter is put in terms of an estoppel by a convention. There is no evidence of any detrimental reliance by Syndicate 683 on any such assumption.
That is of course an essential element for any estoppel case because the necessary consideration for the Court, when considering whether relief sought is proportional to the detriment, is to have regard to the detrimental reliance contended for. There was no evidence from the syndicate, in particular Mr Whittaker, that he acted in reliance upon any such assumption.
The obvious mistake
152 Mr Sackar QC appearing for Syndicate 683 drew attention to the fact that in some policies certain of the articles clearly had slightly different headings to the others.
153 This matter is shortly explained by the fact that the variation appears only in four policies in the third access layer. The scheme of the vast bulk of the policies involved Article V1 being headed "Commission" and Article VII being headed "Contingent Commission".
It so happens that the scheme in the third access layer was that it did not include an article in relation to contingent commissions whereas the policies for the underlying layers did include the contingent commission article. | [
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] | null |
|
nsw_caselaw:549fd5913004262463bf2113:19 | nsw_caselaw:549fd5913004262463bf2113 | Instead, it is intended to operate within the setting of other laws, both Commonwealth and State, both common law and statute, which determine the circumstances in which an agreement is null and void, inoperative or incapable of being performed. In this sense, it is intended not to remove any field of operation for State law, but to be supplementary to or cumulative upon the State law.
78 It follows that there is no inconsistency between section 19 of the Insurance Act and the International Arbitration Act so that in the circumstance of section 19 otherwise applying,
extending as it does to contracts of reinsurance [as a species of the genus ‘contracts of insurance’], it renders the arbitration clause upon which the Syndicate relies non-binding and, in terms of section 7(5) of the International Arbitration Act, “inoperative”.
79 This also removes any basis for the grant of a stay pursuant to the Commercial Arbitration Act or at general law as both of those aspects of the motion are predicated upon the existence of a binding arbitration agreement. Moreover, section 3(7) of the Commercial Arbitration Act expressly preserves the operation of section 19 of the Insurance Act.
Construing the material Articles
80 The Syndicate submits that:
i. the proper construction of the arbitration clauses is that all disputes arising out of the reinsurance treaties or concerning their validity must be referred to a Court of Arbitration in Australia pursuant to article XIX unless they fall within the exception to this general requirement contained in the last paragraph of article XIX namely, “actions for the payment of confirmed balances”.
ii. such actions are to be determined by the “ordinary Courts” (article XIX).
iii. the present proceedings fall within the scope of the arbitration clause.
iv. Article XVIII serves the purposes of providing the procedure to be followed for service of process in respect of those disputes that are to be determined by an ordinary court, those being “actions for the payment of confirmed balances”.
v. Article XVIII has no operation in respect of disputes to be determined by arbitration.
81 The Syndicate relies inter alia upon the following propositions:
i. the starting point for interpretation of clause XIX is to give content to the opening phrase “ Disputes arising out of this Agreement or concerning its validity shall be submitted to the decision of a Court of Arbitration ".
ii.
there is no doubt on the existing authorities that claims in the nature of those made in the current proceedings fall within the scope of this term which has been broadly construed ( Francis Travel Marketing Pty Ltd v Virgin Atlantic Airways Ltd (1996) 39 NSWLR 160 at 165;
IBM Australia Ltd v National Distribution Services Ltd (1991) 22 NSWLR 466 at 475-477, per Kirby P; Ethiopian Oilseeds v Rio del Mar [1990] 1 Lloyd's Rep 86 per Hirst J; Walter Rau Neusser Oel und Fett AG v Cross Pacific Trading Ltd [2005] FCA 1102.
)
iii. therefore, prima facie the matters raised in these proceedings come within the scope of article XIX and are liable to be referred to arbitration unless they are properly characterised as being “actions for the payment of confirmed balances”.
iv. in construing the scope of the exception to the arbitration clause, the starting point is an assumption that the parties did not intend the inconvenience of having possible disputes arising from their transaction being heard in different places.
v. the arbitration clause is broadly drawn and evinces a clear intention of the part of the parties that the primary forum for resolution of disputes between them will be a court of arbitration.
Decision
82 In my view the Syndicate's above submissions require to be rejected. In the reasons which follow HIH's submissions are of substance and are adopted in what follows.
83 Before giving those reasons it is appropriate to step back from the exercise and consider the proper approach to the construction exercise. | [
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|
nsw_caselaw:549fd5913004262463bf2113:32 | nsw_caselaw:549fd5913004262463bf2113 | ix. The issue of the meaning of the “ agreement in writing ” requirement in the context of the International Arbitration Act has recently been the subject of a close and careful analysis by Rares J. in Pan Australia Shipping Pty Ltd v The Ship ‘Comandate’ (No 2) [2006] FCA 1112 at [70]-[87]. What emerges from that decision is that:
a) there will only be an arbitration agreement between the parties within the meaning of the International Arbitration Act if it is:
1. contained in a document signed by both parties; or
2. contained in an exchange of letters or telegrams in the sense that the assent to be bound by both parties is given in writing by such document;
b) confirmation in writing by one of the parties which is kept without contestation by the party will not suffice, and
c) an agreement in writing within the meaning of the Act could not be established by a course of dealing.
x. Importantly for present purposes, his Honour held that, although Article II(2) of the Convention which relevantly contains the definition of “agreement in writing” uses the word “include”, the two instances given in that Article, viz .
a document signed by both parties or an exchange of letters or telegrams, contain the universe of circumstances that will satisfy the writing requirement of the Convention, and therefore, the Act. On this issue, his Honour relevantly said (at [82]) that:
“As a matter of construction under Australian law, I would have no hesitation in concluding that the definition was an inclusive one. However, I think that the drafting of the definition in Art II r 2 invokes a concept of certainty that the arbitration clause or arbitration agreement is itself signed or contained in an exchange of letters or telegrams.”
xi. This conclusion followed a comprehensive survey and analysis of international case law on the meaning of the expression “agreement in writing”. It was a fully reasoned decision. That the case may be distinguishable on the facts does not detract from the force of his Honour’s research, analysis and reasoning.
His Honour's conclusion is fundamentally at odds with the submission put by the Syndicate to the effect that the definition embraces three possibilities, and not the two expressly referred to in the definition of “agreement in writing” in Article II(2) of the Convention.
Turning to the factual issues
136 The following is a brief overview of the approach taken by Syndicate 683 to the factual question of whether the arbitration agreements were signed by the parties:
· identifying the Lloyd’s syndicates’ procedure in relation Reinsurance Treaty negotiations by reference to two cases (Eagle Star Insurance Co v Spratt and American Airlines v Hope) and the affidavits of Mr Whittaker;
· submitting evidence of the slips and treaty wordings to enable the Court to draw an inference that the arbitration agreements existed and were signed by HIH for all relevant years.
The established procedure
137 Syndicate 683’s submissions set out the key aspects of the process by which the slips and treaty wordings for each Reinsurance Treaty are said to be negotiated and put in place.
138 The process may be described thus:
a) a long-standing and well-known procedure is in place pursuant to which Lloyd’s syndicates contractually bind themselves in relation to inwards reinsurance. At all relevant times HIH’s agent, the broker, participated in the process on HIH’s behalf;
b) the procedure involves, as a first step, acceptance of a proportion of the reinsurance risk offered by the ceding insurer. This is done by the underwriter affixing the Syndicate’s stamp and completing other information (known as “scratching”) on a slip presented by the broker as agent for the ceding insurer (in this case, HIH).
The Syndicate enters relevant information about the slip onto its computer system at the time of scratching the slip. The slip is then returned to the broker; | [
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] | null |
|
nsw_caselaw:549fd5913004262463bf2113:20 | nsw_caselaw:549fd5913004262463bf2113 | The principles of construction
84 The policies, like any contracts of insurance, fall to be construed according to orthodox principles of contractual construction, the relevant search being for the mutual intentions of the parties, objectively ascertained: see Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165.
85 Particularly important in this regard is the dictum of Gibbs J. in Australian Broadcasting Commission v Australasian Performing Right Association Limited (1973) 129 CLR 99 at 109:
“It is trite law that the primary duty of a court in construing a written contract is to endeavour to discover the intention of the parties from the words of the instrument in which the contract is embodied.
Of course the whole of the instrument has to be considered , since the meaning of any one part of it may be revealed by other parts, and the words of every clause must if possible be construed so as to render them all harmonious one with another ….
If the language is open to two constructions, that will be preferred which will avoid consequences which appear to be capricious, unreasonable, inconvenient or unjust.” (emphasis added)
86 Generally the following principles are apt to inform the construction of the subject instrument:
i. the construction exercise is to take place in accordance with the principles which apply to the interpretation of contractual documents: Australian Casualty Co Ltd v Federico (1986) 160 CLR 513 at 520, per Gibbs CJ.
ii. the Court is dealing with a commercial contract and requires to give the instrument a business like interpretation, requiring attention to the language used by the parties, the commercial circumstances which the document addresses, and the objects which it is intended to secure: McCann v Switzerland Insurance Australia Ltd (2000) 203 CLR 579 at [22], per Gleeson CJ.
iii. the task is to ascertain the objective intention of the parties from a consideration of the material wording.
The instrument must be read in its commercial setting in such a way as to fulfil and not restrain its commercial purposes: see MGICA Ltd v United City Merchants (Australia) Limited (1986) 4 ANZ Ins Cas 60-729 at 74,349 and 74,350; Darlington Futures Limited v Delco Australia Pty Limited (1986) 161 CLR 500 at 510.
iv. the instrument is to be construed in light of the matrix of the agreement that is, the factual background known to the parties at or before the date of the contract, including the aim and commercial purpose of the transaction: Prenn v Simmonds [1971] 1 WLR 1381; Legal & General Insurance Australia Ltd v Eather (1986) 6 NSWLR 390 at 394.
v. each clause in dispute is to be interpreted according to its natural and ordinary meaning, read in the light of the instrument as a whole, thereby giving direct weight to the context in which the clause appears, including the nature and object of the instrument : see Darlington Futures Limited v Delco Australia Limited.
vi. as Kirby P observed in Hide & Skin Trading Pty Limited v Oceanic Meat Traders Limited (1990) 20 NSWLR 310 at 313-314:
“Whoever may be the parties to the agreement, it is the fundamental rule, that a Court should give the words of a written agreement the natural meaning that they bear.
Subject to that rule, in giving meaning to the words of an agreement between commercial parties, Courts will endeavour to avoid a construction which makes commercial nonsense or is shown to be commercially inconvenient. This is because Courts will infer that commercial parties would not themselves normally agree in such a way”.
vii. in resolving ambiguities, a reasonable construction is to be preferred as representing the presumed intention of the parties: see Alex Kay Pty Limited v General Motors Acceptance Corporation and Hartford Fire Insurance Company [1963] VR 458 at 463.
Returning to the analysis
87 The key to the proper analysis is the necessity to reconcile Articles XVIII and XIX in circumstances where:
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|
nsw_caselaw:549fd5913004262463bf2113:7 | nsw_caselaw:549fd5913004262463bf2113 | ii. the business reinsured by HIH pursuant to the reinsurance treaties was the net liability of HIH arising out of loss occurrences under HIH’s professional indemnity and professional liability policies commencing during the term of each of the reinsurance treaties (article III);
iii. pursuant to each of the reinsurance treaties, HIH ceded to the Syndicate a particular identified percentage of the net retained liability of HIH, not exceeding an identified amount for any one policy and any one risk being that “layer” of insurance (eg. the primary layer which does not exceed the first $1 million) (article V);
iv. the wording for each of the reinsurance treaties contains provisions concerning amounts payable by the Syndicate to HIH. Those provisions appear in articles IX and X and provide, in part, as follows:
LOSSES AND LOSS ADJUSTMENT EXPENSES:
The Company [HIH] will settle all losses incurred under its Policies and such settlements shall be binding on the Reinsurer in proportion to its participation in this Agreement.
In addition, the reinsurer will be liable for its pro-rata share of expenses incurred by the Company [HIH] in connection with such losses. The reinsurer is entitled to, and will be paid or credited with, any amounts the Company recovers as salvage.
The reinsurer agrees to reimburse the Company [HIH] promptly when so requested by the Company for losses paid by the Company [HIH]. Requests for such reimbursement must be accompanied by an executed reinsurance proof of loss. Alternatively, losses shall be handled in the quarterly accounts and need not be individually reported;
v. the procedure set out in the reinsurance treaties is that within 60 days after the close of each calendar quarter, HIH provides the reinsurer with a summary account in respect of the transactions during the quarter (article X). The balance so calculated is due by the debtor to the creditor within 90 or 105 days after the close of the calendar quarter.
An overview of the issues
17 Without being exhaustive a short overview of the primary issues litigated on the motion is as follows:
i. Syndicate 683 contends that:
a) section 7 of the International Arbitration Act applies to the Reinsurance Treaties because the requirements of section 7 (1) (d) are satisfied;
b) hence the Court is obliged upon such conditions as it may think fit, to stay the proceedings and to refer the parties to arbitration.
ii. HIH contends that the arbitration clause/agreement is not binding on it by reason of the provisions of section 19 of the Insurance Act 1902
[Syndicate 683 joins issue on this contention submitting that:
a) section 19 is inconsistent with section 7 of the International Arbitration Act and therefore inoperative by virtue of section 109 of the Constitution (Cth) ;
b) in the alternative, as a matter of construction, section 19 does not apply to the circumstances of the present case because article XIX is not ‘ a provision in a contract of insurance ’ or ‘ a provision with respect to the submission to arbitration of any matter arising out of the contract of insurance ’.]
iii. in the event that section 19 of the Insurance Act is not engaged, HIH contends that the arbitration clause is not engaged because:
a) properly construed, the policy gives an option to HIH to litigate rather than to arbitrate or
b) the action is for payment of ‘a confirmed balance’ which is expressly carved out from the arbitration clause.
[Syndicate 683 joins issue on each of these propositions]
iv. In the event that section 19 of the Insurance Act is not engaged and that the arbitration clause is engaged, HIH contends that this is not an arbitration agreement to which the International Arbitration Act applies as it is not ‘an agreement in writing’ | [
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] | null |
|
nsw_caselaw:549fd5913004262463bf2113:6 | nsw_caselaw:549fd5913004262463bf2113 | [It is appropriate to highlight an important distinction between the International Arbitration Act and the Commercial Arbitration Act namely that, where the former applies and a dispute relevantly falls within the scope of the arbitration clause or arbitration agreement, a stay of proceedings is mandatory whereas under the Commercial Arbitration Act , a stay is discretionary]
The material terms of the Reinsurance Treaties
15 These reasons require to deal with certain issues concerning the treaty wording is insofar as the provisions dealing with arbitration are concerned.
Without intending to presently treat with the cross-contentions in that regard, it is convenient to observe that the relevant provisions are in articles XVIII and XIX of the Primary Treaty Wording [together the ‘arbitration clauses’]. For present purposes the arbitration clauses may be assumed to have provided as follows:
ARTICLE XVIII
SERVICE OF SUIT
The Reinsurer hereon agrees that:-
i. In the event of a dispute arising under this Agreement, the Reinsurers at the request of the Company will submit to the jurisdiction of any competent Court in the Commonwealth of Australia. Such dispute shall be determined in accordance with the law and practice applicable in such Court.
ii. Any summons notices or process to be served upon the Reinsurer may be served upon
MESSRS. FREEHILL, HOLLINGDALE & PAGE
M.L.C. CENTRE,
MARTIN PLACE, SYDNEY,
N.S.W. 2000 AUSTRALIA
who has authority to accept service and to enter an appearance on the Reinsurer’s behalf, and who is directed, at the request of the Company to give a written undertaking to the Company that he will enter an appearance on the Reinsurer’s behalf.
iii. If a suit is instituted against any one of the Reinsurers all Reinsurers hereon will abide by the final decision of such Court or any competent Appellate Court.
ARTICLE XIX
ARBITRATION:
Disputes arising out of this Agreement or concerning its validity shall be submitted to the decision of a Court of Arbitration, consisting of three members, which shall meet in Australia.
The members of the Court of Arbitration shall be active or retired executives of Insurance or Reinsurance Companies.
Each party shall nominate one arbitrator. In the event of one party failing to appoint its arbitrator within four weeks after having been required by the other party to do so, the second arbitrator shall be appointed by the President of the Chamber of Commerce in Australia.
Before entering upon the reference, the arbitrators shall nominate an umpire. If the arbitrators fail to agree upon an umpire within four weeks of their own appointment, the umpire shall be nominated by the President of the Chamber of Commerce in Australia.
The Arbitrators shall reach their decision primarily in accordance with the usages and customs of Reinsurance practice and shall be relieved of all legal formalities. They shall reach their decision within four months of the appointment of the umpire.
The decision of the Court of Arbitration shall not be subject to appeal.
The costs of Arbitration shall be paid as the Court of Arbitration directs.
Actions for the payment of confirmed balances shall come under the jurisdiction of the ordinary Courts.
16 The following matters may be noted:
i. apart from one provision, the wordings applicable to each of the reinsurance treaties are in almost identical terms. An article concerning contingent commission is included in the wording for the primary layer and the first excess layer (article VII), but is not included in the wording for the third excess layer. That article has no relevance to the outcome of any issue arising from the motion; | [
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] | null |
|
nsw_caselaw:549fd5913004262463bf2113:1 | nsw_caselaw:549fd5913004262463bf2113 | - Whether proceedings involve ‘claims for the payment of confirmed balances’ - Whether arbitration agreement an 'agreement in writing' within meaning of International Arbitration Act - Principles of construction of contractual
documents - Estoppel - Whether Court should exercise its discretion to refuse a stay of proceedings - Courts begin with a strong disposition in favour of maintaining a bargain unless strong reasons adduced against grant of a stay
Arbitration Act 1975 (UK)
Commercial Arbitration Act 1984 (NSW)
Commercial Transactions (Miscellaneous Provisions) Act 1974 (NSW)
Companies Act 1961 (NSW)
Companies Act 1961 (Vic)
Contracts Review Act 1980 (NSW)
Conveyancing Act 1919 (NSW)
LEGISLATION CITED : Corporations Act 2001 (Cth)
Fair Trading Act 1987 (NSW)
Industrial Relations Act 1996 (NSW)
Insurance Act 1902 (NSW)
Insurance Contracts Act 1984 (Cth)
Insurance Regulation 2004 (NSW)
International Arbitration Act 1974 (Cth)
Minors (Property and Contracts) Act 1970 (NSW)
Trade Practices Act 1974 (Cth)
325 George Street Pty Ltd (in liquidation) v Norwich Union Fire Insurance Society Ltd (1980) 1 ANZ Ins Cas 60-404
Agnew v Lansforsakringsbolagens [2000] Lloyd’s Rep IR 317
Akai Pty Limited v People’s Insurance Company Ltd (1996) 188 CLR 418
Alex Kay Pty Limited v General Motors Acceptance Corporation and Hartford Fire Insurance Company [1963] VR 458
American Airlines Inc v Hope [1974] 2 Lloyd’s Rep 301
Ansett Transport Industries (Operations) Pty Limited v Wardley (1980) 142 CLR 237
AssetInsure Pty Ltd v New Cap Reinsurance Corporation Limited (in liq) (2006) 226 ALR 1
Attorney-General (NSW) v Brewery Employees Union of New South Wales & Anor (1908) 6 CLR 469
Australian Broadcasting Commission v Australasian Performing Right Association Limited (1973) 129 CLR 99
Australian Casualty Co Ltd v Federico (1986) 160 CLR 513
Barcelo v Electrolytic Zinc Co of Australasia Limited (1932) 48 CLR 391
BP plc v National Union Fire Insurance Co [2004] EWHC 1132
British Dominions General Insurance Company Ltd v Duder [1915] 2 KB 394
Bull v Attorney-General (NSW) (1913) 17 CLR 370
Bulong Nickel Pty Limited, Re (2002) 42 ACSR 52
Charter Reinsurance Co Ltd v Fagan [1997] AC 313
Chloe Z Fishing Co Inc (US) v Odyssey Re (London) Ltd formerly known as Sphere Drake Insurance Plc (UK) 109 Fed Supp 2nd Series (SD) Cal 2000, 1236
Clyde Engineering v Cowburn (1926) 37 CLR 466
Commercial Radio Coffs Harbour v Fuller (1986) 161 CLR 47
Commercial Union Assurance Co Plc v NRG Victory Reinsurance Limited [1998] 1 Lloyd’s Rep. 80
Darlington Futures Limited v Delco Australia Pty Limited (1986) 161 CLR 500
Daval Aciers D’Usinor et de Sacilor v Amare SRI [“The Nerano”] [1996] 1 Lloyd’s Rep 1
Day and Dent Constructions Pty Ltd v North Australian Properties Pty Ltd (1982) 150 CLR 85
Devenish v Jewel Food Stores Pty Ltd(Milk Vendors case) (1991) 172 CLR 32
Dominion Insurance Co of Australia Ltd and the Companies Act, Re [1980] 1 NSWLR 271
Du Pont v. Agnew [1987] 2 Lloyd's Rep 585
Eagle Star Insurance Co v Spratt [1971] 2 Lloyd’s Rep 116
E I Du Pont de Nemours & Co v I C Agnew [1987] 2 Lloyd’s Rep. 585
Ethiopian Oilseeds v Rio del Mar [1990] 1 Lloyd's Rep 86
Forsikringaktieselskapet National of Copenhagen v Attorney General [1925] AC 639
Forsikringaktieselskapet Vesta v J N E Butcher [1989] AC 852 | [
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] | null |
|
nsw_caselaw:549fd5913004262463bf2113:13 | nsw_caselaw:549fd5913004262463bf2113 | in a normal manner, appropriate for the interpretation of an international convention , unconstrained by technical rules of English or domestic law, or by English or domestic legal precedent, but on broad principles of general acceptation :
Shipping Corporation of India Ltd v Gamlen Chemical Co Australasia Pty Ltd (1980) 147 CLR 142 at 159 per Mason and Wilson JJ adopting Lord Wilberforce’s speech in James Buchanan & Co Ltd v Babco Forwarding and Shipping (UK) Ltd [1978] AC 141 at 152 and see too:
Vimar Seguros y Reaseguros SA v M/V Sky Reefer 515 US 528 at 537 (1995) per Kennedy J (Renquist CJ, Scalia, Souter, Thomas and Ginsberg JJ agreeing).
[emphasis added]
viii. the law of contract in New South Wales is far more than simply common law principles; it extends to and includes all applicable State and Federal statutes such as the Contracts Review Act , the Industrial Relations Commission Act , the Fair Trading Act and, in the present context, the Insurance Act .
41 The holding rejects the Syndicate’s submission as to the meaning of the word “inoperative” in section 7(5) of the International Arbitration Act.
Section 109 Constitution (Cth)
42 It is necessary to consider Syndicate 683's two propositions in support of the suggested section 109 inconsistency:
The "right" to a stay argument
i. The contention that the effect of section 7(2) of the International Arbitration Act is to provide a party with a “right” to a stay of proceedings, and that section 19 of the Insurance Act purports to limit the availability of that right.
The "cover the field" argument
ii. The contention that the International Arbitration Act was intended to cover the field for regulating the recognition and enforcement of foreign arbitration agreements and foreign arbitration awards, such that there is no scope for s19 of the Insurance Act to operate.
The "right" to a stay argument
43 Syndicate 683 contends that section 7(2) of the Commonwealth Act confers on a party to an arbitration agreement which comes under section 7(1), the right to a stay of proceedings and the referral of the matter to arbitration. HIH contends and the Court accepts that if this be described as a ‘right’, it is not an absolute right, but is subject to subsection 7(5).
44 In truth the Commonwealth Act does not prescribe the circumstances in which an agreement may be held to be “null and void, inoperative or incapable of being performed”.
Nor does it prescribe the circumstances in which a matter will or will not be “capable of settlement by arbitration” within the meaning of section 7(2)(b) of the Act. Those matters are left to be determined against the background of the applicable general law, including both common law and statute.
45 In Ansett Transport Industries (Operations) Pty Limited v Wardley (1980) 142 CLR 237 it was argued that the Airline Pilots Agreement (which was deemed to be an award of the Conciliation and Arbitration Commission) and gave Ansett the right to terminate the employment of a pilot within the first 12 months, was inconsistent with Victorian legislation which prevented dismissal on grounds of gender.
The Court held that the award did not give Ansett the right to dismiss, irrespective of circumstances, but dealt with the process for dismissal where Ansett had a right to dismiss according to the general law of employment, including any State legislation.
46 Stephen J said (at 246-248):
“In my view there is in this case no inconsistency within the meaning of s. 109 of the Constitution. I regard the right of termination of the contract of employment which clause 6 of the Agreement confers as no absolute right, such as that for which Ansett contends.
The right which it confers is not one which is capable of exercise regardless of the unlawfulness under State law of the ground for its exercise. On the contrary it is a right the nature of which is to be understood against the background to its operation which general laws of the land, whether State or federal in origin, provide. | [
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] | null |
|
nsw_caselaw:549fd5913004262463bf2113:12 | nsw_caselaw:549fd5913004262463bf2113 | v. the treaties in the present case do not require some action by HIH as the ceding company in the form of a declaration of risk, or an entry in a register or bordereau to indicate acceptance of the reinsurer’s offer. The quota share treaties are undoubtedly true contracts of insurance, as it is agreed from the outset that qualifying risks are covered.
35 The finding is that s 19 applies to the present facts for the reason that the policies are governed by the laws of New South Wales (of which this section forms a part). And in any event, the section would operate irrespective of the law which governs the policies, as a mandatory law of the forum.
36 In truth the policies are governed by New South Wales law as a result of a combination of:
i. Article XVIII, sub-clause (i) which provided that “[i]n the event of a dispute arising under this Agreement, the Reinsurer at the request of the Company will submit to the jurisdiction of any competent Court in the Commonwealth of Australia. Such dispute shall be determined in accordance with the law and practice applicable in such Court [emphasis added];
ii. the request on behalf of HIH to the Syndicate to submit to the jurisdiction of the Supreme Court of New South Wales; and
iii. the commencement of those proceedings in the Supreme Court of New South Wales.
The term "inoperative" as used in s 7 (5) of the International Arbitration Act
37 The holding is that the Insurance Arbitration Act has no application where, in terms of s 7 (5), the agreement in question is "inoperative or incapable of being performed".
38 In this regard Syndicate 683 has submitted that the term "inoperative" in section 7 (5) of the International Arbitration Act is confined to circumstances where the agreement has become inoperative on the basis of ordinary common law principles.
39 In support of this contention Syndicate 683 has cited a number of authorities where consideration has been given in the United Kingdom to whether particular agreements have lost their efficacy by reference to the operation of common law doctrine.
However these authorities do not establish that the efficacy or operability of an agreement cannot be lost by other means, such as the operation of a statute.
40 As HIH has contended:
i. an arbitration agreement may become inoperative or incapable of being performed as a result of the operation of common law doctrine (see, for example, election: La Donna Pty Limited v Wolford AG (2005) 194 FLR 26; Pan Australia Shipping Pty Ltd v The Ship ‘Comandate’ (No 2) [2006] FCA 1112;
ii. this being so (and well-established), there is no reason as a matter of logic, policy or the language of the Act why an arbitration agreement could not become inoperative by operation of statute, whether Commonwealth or State;
iii. the trilogy of concepts employed in the sub-section – null and void, inoperative or incapable of being performed – emphasises the breadth of its intended operation.
iv. this trilogy of concepts derives from Article II (3) of the New York Convention which is an international convention; its signatories extend far beyond the family of common law countries;
v. when this is appreciated, it simply cannot have been intended that the meaning of these terms (including “inoperative”) can have been intended to be confined to the consequences of the operation of common law principles;
vii. such a construction would fly in the face of the accepted approach to the construction of terms in or deriving from an international convention. As Rares J recently noted in Pan Australia Shipping Ltd v Comandate Marine Corp [2006] FCA 1112 at [80]:
It has been recognized that a national court, in the interest of uniformity, should construe rules formulated by an international convention , especially rules formulated for the purpose of governing international transactions such as the hire of vessels or the carriage of goods, | [
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|
nsw_caselaw:549fd5913004262463bf2113:31 | nsw_caselaw:549fd5913004262463bf2113 | ‘It is clear to me that the [New York] Convention by Art II par 2 did not impose upon the contracting state an obligation to recognise an agreement in writing to submit to arbitration unless it is signed by the parties or unless the agreement is contained in an exchange of letters or telegrams in the sense that the assent to be bound by both parties is given in writing by such document.’
iii.
The drafters of the Convention considered and rejected a proposal by the Dutch delegate to add to the definition of Article II(2) a third category,
whereby an arbitration agreement “in writing” could be proved by demonstrating that there had been “confirmation in writing by one of the parties [which is kept] without contestation by the other party” [Van den Berg, New York Convention , pp 179 and 196, citing UN DOC E/CONF.
26/L.54 and SR.22]. The rejection of this proposal is referred to by Rares J. in Pan Australia Shipping Pty Ltd v The Ship ‘Comandate’ (No. 2) [2006] FCA 1112 at [78]-[79].
iv. In Kahn Lucas Lancaster Inc v Lark International Ltd (1999) 14 Mealey’s International Reports C1 (29 July 1999); (1999) 186 F 3d 210, the United States Court of Appeals for the Eleventh Circuit held (at [C5-C6]) that the modifying phrase “signed by the parties or contained in an exchange of letters or telegrams” applies to both arbitral clauses in contracts and arbitration agreements.
In so holding, the Court rejected an earlier approach that had been taken in Sphere Drake Insurance, the case relied upon by the Syndicate in its written submissions.
v. Following Kahn Lucas , the definition of “arbitration agreement” in Article II(2) requires that such an agreement, whether it be in the form of an arbitral clause contained in a contract or an arbitration agreement, must be signed by the parties or contained in an exchange of communiqués .
Landau states that this approach has been applied in a number of cases and cites Lo v Aetna 2000 WL 565465 (US District Court, District of Connecticut) and Chloe Z Fishing Co Inc (US) v Odyssey Re (London) Ltd formerly known as Sphere Drake Insurance Plc (UK) 109 Fed Supp 2nd Series (SD) Cal 2000, 1236 [Landau “Requirement of Written Form”, p 36].
vi. The reference to “exchange” in sub-clause 2 of Article II means that there must be a mutual transfer of documents. The mere transmission of a document by one party to the other cannot linguistically satisfy the requirement of “exchange” [Van den Berg, New York Convention , p 192].
vii. Even if one party has orally or tacitly accepted an arbitration agreement contained in a document forwarded by the other party, this will not suffice to satisfy the second limb of Article II(2) [Van den Berg, New York Convention , p 207; Landau, “Requirement of Written Form”, p 28].
For the same reasons, an oral offer accepted in writing will not suffice [Landau, “Requirement of Written Form”, p 29]. Landau states that Article II(2) was intentionally limited to exclude cases involving acceptance by performance, conduct or tacit acceptance [Landau, “Requirement of Written Form”, p 26].
viii.
The fact that the parties have had an ongoing trading relationship and regularly used the same standard conditions including an arbitral clause (which appears to be the tenor of Mr Whittaker’s evidence) will not overcome the lack of compliance with Article II(2) if there has been no exchange of documents in respect of the particular transaction [Van den Berg,
New York Convention , p 221] or if the agreement is otherwise not signed by both of the parties.
In James Allen (Ireland) Ltd v Marea Producten B.V.
(Netherlands) ( Yearbook X (1985) p 485) the Court of Appeal in the Hague held that there was no enforceable arbitration agreement,
despite the regular prior use (in at least 25 successive transactions) of particular general conditions of trade (which included an arbitration clause) because in the particular case the general terms had not been referred to [Referred to in Landau, “Requirement of Written Form”, p 42]. | [
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|
nsw_caselaw:549fd5913004262463bf2113:11 | nsw_caselaw:549fd5913004262463bf2113 | That case was decided in a wholly different setting:
it involved the interpretation of a European Union jurisdiction and judgments convention where the very matter at issue,
whether a reference to insurance in the context of that Convention included a reference to reinsurance was the subject of express consideration in the relevant travaux préparatoires, namely the report of Professor Schlosser on the 1978 Accession Convention referred to by Lord Millett at 338-339.
Of particular significance is the observation by his Lordship that, had he not been deciding the issue in the context of a European instrument and against the background of that Convention’s policy and intendment, he would have had no hesitation as a matter of English law in holding that insurance includes reinsurance: see at 338.
34 Syndicate 683’s proposition that a reinsurance treaty is merely a commercial arrangement between two parties hence not constituting a ‘contract of insurance’ requires to be rejected for each of the following reasons advanced by HIH and adopted as correct:
i. the policies contain an indemnity clause, a classic characteristic of a contract of insurance. The clause relevantly provides:
“ Now Know Ye that We the Underwriters, Members of the Syndicates whose definitive numbers in the after-mentioned List of Underwriting Members of Lloyd’s are set out in the attached Table, hereby bind ourselves each for his own part and not one for another,
our Heirs, Executors and Administrators, and in respect of his due proportion only, to pay or make good to the Assured or to the Assured’s Executors or Administrators or to indemnify him or them against all such loss,
damage or liability as herein provided, such payment to be made after such loss, damage or liability is proved and the due proportion for which each of us, the Underwriters, is liable shall be ascertained by reference to his share, as shown in the said List, of the Amount, Percentage or Proportion of the total sum insured hereunder …” (see p 224 Ex TJW1 to the affidavit of T J Whittaker 12/7/06).
ii. the submission is contrary to a long line of authority that reinsurance contracts, and in particular “quota share treaties”, are contracts of insurance.
See Re Dominion Insurance Co of Australia Ltd and the Companies Act [1980] 1 NSWLR 271 at 273 [9] – 274 [12] where Needham J, citing Dixon J in Tariff Reinsurance Ltd v Commissioner of Taxation (Vic) (1938) 59 CLR 194 at 215,
held that a quota share treaty was a contract of insurance for the purposes of s 292(5) of the Companies Act 1961 (NSW) (a predecessor provision to s 562A of the Corporations Act 2001);
Re Palmdale Insurance Ltd (in liq) (No.
3) [1986] VR 439 at 444 per Crockett J, also in respect of 292(5) of the Companies Act 1961 (Vic); Forsikringaktieselskapet National of Copenhagen v Attorney General [1925] AC 639 at 642.
iii. the Syndicate’s submission that a reinsurance treaty is “ not a ‘contract of insurance’ but merely a commercial arrangement between two parties ”, conflates the nature of the arrangement with the true legal character of such contracts.
In Agnew v Lansforsakringsbolagens [2000] Lloyd’s Rep IR 317, Lord Hope (at 330) acknowledged that reinsurance is a form of insurance, but drew a distinction for the purposes of Section 3 of the Lugano Convention between direct insurance and reinsurance having regard to the social protection policy the section was directed to.
Likewise, Lord Millett (at 338) acknowledged that reinsurance was merely a species of insurance, and if the question in that case had arisen under a domestic statute then absent compelling context to the contrary, there would be no reason to confine insurance to direct insurance.
iv. all insurance is about managing risk (see Agnew at 339 per Millett LJ). Reinsurance does not cease to be insurance because of the financial nature of the transfer of risk between the parties. | [
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|
nsw_caselaw:549fd5913004262463bf2113:3 | nsw_caselaw:549fd5913004262463bf2113 | COUNSEL : Mr F Gleeson SC, Dr A Bell SC, Mr S Nixon (Plaintiff/Respondent)
Mr J Sackar QC, Ms K Barrett, Mr MA Izzo (Defendants/Applicants)
SOLICITORS : Blake Dawson Waldron (Plaintiff/Respondent)
Ebsworth & Ebsworth (Defendants/Applicants)
IN THE SUPREME COURT
OF NEW SOUTH WALES
EQUITY DIVISION
COMMERCIAL LIST
Einstein J
Friday 3 November 2006
50073/06 HIH Casualty & General Insurance Limited (in liquidation) v R J Wallace sued on his own behalf and on behalf of all other members of Syndicate No 683 at Lloyd's of London for the 1993 underwriting account & Ors
JUDGMENT
The proceedings
1 By Commercial List Statement filed on 1 June 2006, HIH Casualty & General Insurance Limited (in liquidation) has instituted proceedings against Lloyds Syndicate 683 in relation to a series of primary, first and third excess layer quota share policies of reinsurance for the policy years 1993-1997. The proceedings involve 15 separate quota share policies of reinsurance.
2 The substantive issue concerns the question whether or not, on the proper construction of the policies, HIH needs to have actually paid out its underlying insureds before it is entitled to be indemnified under the terms of its reinsurances with Syndicate 683 [“the pay as paid out issue"]. This issue is described in the Commercial List Statement in the following terms:
“Whether, contrary to the analysis of the House of Lords in Charter Reinsurance Co Ltd v Fagan [1997] AC 313, the payment by the plaintiff to its insureds is a condition precedent to its right to recover from the defendants the balances confirmed from time to time to be owing by the defendants to the plaintiff under the Contracts as detailed in Schedule 2.”
3 The related issues identified in the Commercial List Statement as likely to arise in the proceedings are stated to be as follows:
i. The proper construction of the Contracts.
ii. Whether the failure of each of the defendants to pay to the plaintiff the balances detailed in Schedule 2 is a breach of the Contracts.
iii. Amount payable.
4 In terms of relief sought, HIH seeks the payment by Syndicate 683 of the balances claimed to be confirmed to be owing to HIH and said to be as furnished in quarterly summary accounts presented to the Syndicate in accordance with Article X of the policies. Those quarterly balances in respect of each of the 15 policies are said to be set out in Schedule 2 to the Commercial List Statement.
The significance of the issue
5 The point raised in the present case is a short but important one of construction. It is however of high significance.
6 Mr McGrath, one of the joint liquidators of HIH, has given evidence that:
i. the resolution of the ‘pay as paid issue’ not only affects the possible recovery of $53.9 million from Syndicate 683 but also the recovery of other uncollected amounts from other reinsurers on the reinsurance contracts the subject of these proceedings and other similar reinsurance contracts.
ii. the Liquidators estimate that at a minimum $212 million of reinsurance recoveries from reinsurers could be affected by resolution of the pay as paid issue in relation to the reinsurance contracts obtained by HIH C&G for its professional indemnity business.
[This estimate comprises $56 million of unpaid balances due from reinsurers less an estimated amount of $5 million in relation to amounts possibly paid by HIH C&G to insureds prior to provisional liquidation and $161 million in outstanding loss reserves. The estimate does not include an amount for incurred but not yet reported claims, which could be substantial].
iii. resolution of the ‘pay as paid issue’ could also affect the recovery of amounts from other reinsurers on other reinsurance contracts. On his evidence liquidators estimate is that as at 30 June 2006: | [
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] | null |
|
nsw_caselaw:549fd5913004262463bf2113:10 | nsw_caselaw:549fd5913004262463bf2113 | see also Samuel v Newbold [1906] AC 461 at 467; Wilson v Moss (1909) 8 CLR 146 at 165; Holmes v Permanent Trustee Co of New South Wales Ltd (1932) 47 CLR 113 at 119; Waugh v Kippen (1986) 160 CLR 156 at 164; Day and Dent Constructions Pty Ltd v North Australian Properties Pty Ltd (1982) 150 CLR 85 at 108; Devenish v Jewel Food Stores Pty Ltd(Milk Vendors case) (1991) 172 CLR 32 at 44 per Mason CJ.
29 Reinsurers are capable of protecting themselves and deciding for themselves the manner in which their disputes will be resolved. As HIH has contended, the protection of section 19 extends to ‘reinsureds’ and not ‘reinsurers’, HIH having been a reinsured and not a reinsurer.
30 The Court rejects the proposition that the proper approach requires the introduction of some extra-statutory concept of "stronger" and weaker" parties into the terms "insurer" and "insured". As HIH has contended:
i. BHP, Westpac and Macquarie Bank, for example, all have the benefit of the general provisions of the Insurance Contracts Act when they enter into policies of insurance with insurance companies even though, as a matter of economic fact, they may be the stronger party;
ii. that Act, as with the Insurance Act , operates by reference to a concept which has a settled meaning which is not qualified by considerations foreign to the language of the legislation;
iii. when the operation of certain provisions in the Insurance Contracts Act or the Trade Practices Act , for example, is limited to "eligible contracts of insurance" or “consumer contracts” those provisions are specified and the 'consumer contracts' in turn are defined within the legislation.
31 Nor do the express terms of section 19 provide any basis for excluding contracts of reinsurance from its operation.
Consistently with the Australian Law Reform Commission's recognition in Report No 20 that there is a public interest in the enforcement of an insurer's rights under its policies of reinsurance [see paragraph 10 of that Report: “adverse effects on the availability …of reinsurance…would not be in the interests of the insuring public.
”], section 19 makes no distinction in its terms between direct insurance and contracts of reinsurance.
32 Further and as HIH has also submitted:
i. sub-section 21(2) provides that certain provisions of Part 6 of the Insurance Act (namely ss 18A and 18B) do not apply to certain contracts of insurance, but does not provide that contracts of reinsurance are excluded from the operation of section 19;
ii. sub-section 21(1) empowers the Governor to make regulations exempting certain classes of contracts of insurance from all or any of the provisions of Part 6 of the Act;
iii. this power has been exercised in respect of contracts of marine insurance, contracts of life insurance and contracts of insurance that are subject to the Insurance Contracts Act 1984 (see Reg 4 of Insurance Regulation 2004);
iv. the latter exemption does not apply to a contract of reinsurance since such a contract is specifically excluded from the operation of the Insurance Contracts Act 1984 under section 9(1)(a) of the Commonwealth Act.
v. the scheme of the Insurance Act is that Part 6 of the Act, including section 19, applies to all types of contracts of insurance (which would include contracts of reinsurance), except those that are specifically exempted from the operation of those provisions under s 21(1) or (2);
vi. specific exemptions have been made for certain types of insurance contracts, but not for contracts of reinsurance. Section 19 should be regarded as applying, on its terms, to contracts of reinsurance;
vii. the submissions by Syndicate 683 that section 19 does not include contracts of insurance would render section 19 effectively redundant, limited to export trade insurance and health insurance (see Sutton Insurance Law in Australia, 3rd Ed at 2.65).
33 It does not appear that the decision of the House of Lords in Agnew v Lansforsakringsbolagens [2000] Lloyd’s Rep IR 317 relied upon by Syndicate 683 is presently of assistance. | [
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] | null |
|
nsw_caselaw:549fd5913004262463bf2113:33 | nsw_caselaw:549fd5913004262463bf2113 | c) the lead underwriter (in this case the Syndicate) was responsible for negotiating the wording for each of the Reinsurance Treaties (Whittaker October Affidavit, para 13).
In many instances, the wording for the relevant reinsurance contract may simply be recorded on the slip as being “wording as expiring”, which means that the wording in place for the previous year continues to apply (Whittaker July Affidavit, para 8; Whittaker October Affidavit, para 14).
Sometimes the slip wording includes the phrase “wording to be advised L/U only” which means that brokers need only show any changes in the wording to the lead underwriter and not to the following reinsurers (Whittaker July Affidavit, para 10);
d) In due course the broker takes the slip and the wording to the Lloyds Policy Signing Office [“LPSO”] for processing. Sometimes there is a significant delay between the time of scratching the slip and the time of the wording being produced to the LPSO for processing;
e) the LPSO checks the terms and conditions in the wording against the slip. Any anomalies are taken up with the broker at once. If the wording is correct, the LPSO seals the wording with the LPSO stamp and assigns a unique number to the policy.
The LPSO enters the relevant information about the slip on the LPSO’s computer system including the date the slip was processed which is called the “signing date” (Whittaker October Affidavit, para 17).
Although it is often the case that execution clauses are provided in the wordings (eg. Whittaker July Affidavit, pp. 87-103 of “TJW1”), for inwards reinsurance the Syndicate does not sign the execution clause itself. All original documents are then returned to the broker;
f) ordinarily the broker does not provide a copy of the wording to the Syndicate. The Syndicate can request a copy of the wording from the brokers’ files (e.g. if the Syndicate wish to have the wording in relation to a particular claim).
The Syndicate generally does not keep copies of any renewed policy wording that is issued. The practice of the reinsurance market at the relevant time was for the brokers to hold the relevant documentation (Whittaker October Affidavit, para 16).
The documentary evidence
139 Syndicate 683 tendered the following list of documents for various years between 1993 to 1997:
Primary Layer First Excess Layer Third Excess Layer
($1 million) ($1 million/$1 million) ($5 million/$5 million)
GT118F
GT843K 1988 Wording (TJW1 p174-183) LPSO; GT160E
1986-1992* Wording (TJW1 p87-103) LPSO 1988-1990 slips (to be tendered) (Wording to be agreed by Leading Underwriter/ Wording to be agreed by Leading Underwriter only/ Wording to be advised L/U only) No wording available
1993 1993 Slip (TJW1 p1-6) (wording as expiring) scratched p6, p4 LPSO p3 1991-1992 Slips (TJW1 p159-164; 165-173) (“wording as expiring”) 1993 Slip (TJW1 p184-207) (wording as expiring) scratched p196; LPSO
1993 wording processed by LPSO 23/9/94 (TJW2, p297) 1993 Slip (TJW1 p104-113) (“wording as expiring”) scratched p.108; LPSO 1993 wording processed by LPSO 23/9/1994 (TJW2, p300) | [
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] | null |
|
nsw_caselaw:549fd5913004262463bf2113:27 | nsw_caselaw:549fd5913004262463bf2113 | That is to say, if the forum’s choice of law rules indicate that the contract is governed by New South Wales law, New South Wales statutes are picked up and apply to the contract in question.
See also Barcelo v Electrolytic Zinc Co of Australasia Limited (1932) 48 CLR 391 at 424; Myer Emporium Limited v Commission of Stamp Duties (1967) 85 WN (Part 2) (NSW) 115; see also K A & C Smith Pty Limited v Ward (1998) 45 NSWLR 702; Re Bulong Nickel Pty Limited (2002) 42 ACSR 52.
114 The granting by the policy to HIH of an option to litigate or arbitrate is consistent with the existence and operation of section 19 of the Insurance Act 1902 which as earlier observed,
formed part of the contractual matrix against which the policies were entered into and against which they fall to be construed (see Royal Botanic Gardens and Domain Trust v South Sydney City Council (2002) 186 ALR 289).
115 As HIH has submitted, in this context Yeldham J’s observations in Parr v Rural Agents Pty Limited [1975] 2 NSWLR 347 at 354 are in point. His Honour said that:
“It should also be observed that section 19 does not purport to render void, or otherwise destroy, the arbitration provision, but merely provides that, in a contract which this section applies, it “does not bind the insured”, with the consequence that the insured is left with the option of proceeding to arbitration, if he desires to do so.” (emphasis added)
116 It is also true that construing the policy as a whole as providing HIH with an option to litigate or arbitrate also satisfies the injunction contained in Australian Broadcasting Corporation v Australasian Performing Right Association, namely to construe a contractual document as a whole with a view to insuring an harmonious reading of all the clauses.
117 Article XVIII would not only be denuded of force and effect if, once a party had triggered its operation, the Court proceedings could be immediately stayed by reference to Article XIX but also such a construction would destroy the effect of the right on the part of HIH in effect to choose the governing law through its choice of jurisdiction.
It would also arguably denude it of the opportunity to bind all Reinsurers on the programme (because there is no equivalent to clause (iii) of Article XVIII in Article XIX).
118 Finally the context permits the Court to infer that the parties would not have intended a potentially difficult legal question of policy construction to be resolved by insurance or reinsurance executives who were not bound to apply any legal standard and from whose decision no appeal would lie.
119 Reasoning of this kind was deployed by the Full Court of the Federal Court in Hi-Fert Pty Limited v Kiukiang Maritime Carriers Inc.
(1998) 90 FCR 1 at 6G (per Beaumont J) and 23G (per Emmett J, with whom Branson J agreed) where the Court refused to attribute to the parties an intention to invest arbitrators (commercial men) in London with responsibility for resolving questions involving the construction of an Australian statute (the Trade Practices Act) and possibly complex private international law questions.
120 In like fashion HIH has submitted and I accept that the Court would not readily attribute such an intention to the parties in the current case in relation to the proper construction of a clause of the policy.
Syndicate 683’s alternative contention
121 Syndicate 683's alternative contention that the natural and ordinary meaning of article XVIII is that it is a submission to jurisdiction clause,
specifying "the jurisdiction of any competent Court in the Commonwealth of Australia" and that the relevant Court may thus be a "Court of Arbitration" as it is referred to throughout article XIX, or a Court of law such as the Supreme Court requires to be rejected. | [
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] | null |
|
nsw_caselaw:549fd5913004262463bf2113:15 | nsw_caselaw:549fd5913004262463bf2113 | These findings must be made by the court as a prerequisite to the granting of a stay of proceedings : see Hi-Fert Pty Ltd v Kiukiang Maritime Carriers Inc (No.5) at 14. As Emmett J observed in that case, at 28:
Section 7(2) is only invoked upon the application of a party. It is open to the parties not to invoke s7(2) or the discretionary inherent jurisdiction of the Court. If a party chooses to make no application, then there will be no occasion for the Court to consider ordering a stay under s7(2).”
[emphasis added]
[ Hi-Fert is referred to later in these reasons]
49 Hence the same analysis as given in Metrocall, [where it was held that State legislation applied without any inconsistencies to answer the question whether the matter the subject of the arbitration agreement was capable of settlement by arbitration],
requires to be given in relation to the issue presently before the Court [where s 19 of the Insurance Act answers the question as to whether or not the arbitration agreement was inoperative].
50 Nor do I accept as correct Syndicate 683's submissions in reply seeking to put the matter rather than on the basis that the alleged right is an absolute right, upon the basis that if s 19 of the Insurance Act was valid, and thereby limited the right created in s 7, then the State Act would alter, impair or detract from the operation of the Commonwealth Act.
51 I reject the submission by Syndicate 683 that although section 7 (2) is subject to section 7 (5), the only part of the general law applicable to determining whether an agreement is null and void, inoperative or incapable of being performed are “ordinary common law principles, including, for example, the doctrines of frustration and repudiation”.
As HIH has contended, on this view, any State legislation that might be relevant to whether an agreement is binding or enforceable would have no role to play.
52 Additionally to the reasons earlier given, apart from the fact that the proposition sought to be put by the Syndicate is wholly incongruous with the international (i.e. not solely common law) character of the New York Convention, it seeks to draw a distinction between common law and statute which cannot be maintained. As HIH has contended, this is because:
i. in NSW, many areas of the law of contract have been codified. For example, the law relating to the capacity of minors is codified in the Minors (Property and Contracts) Act 1970 ;
ii. further, some NSW statutes lay down general provisions regarding the enforceability of contracts. [For example, section 7 of the Contracts Review Act and section 72 of the Fair Trading Act provide that, in certain circumstances, the Court may refuse to enforce the provisions of a contract, or make an order declaring the contract void];
iii. finally, there is legislation in NSW which applies to specific categories of contract, such as consumer credit contracts, retail leases, or contracts relating to the sale of land.
53 I accept as correct the contention put by HIH that the Insurance Act falls into this third category. It lays down provisions which relate to all contracts of insurance, other than those which are specifically exempted from its operation.
It alters the common law of contract in relation to the consequences of breach (s18), the consequences of misrepresentation (s18A), the effect of limitation clauses (s18B), and the enforceability of arbitration clauses (s19).
54 A contention that this Act needs to be ignored, and that the Court should have regard solely to the common law, eschews the fact that the general law background against which the International Arbitration Act operates consists of both common law and statute, and that in some respects (including in relation to contracts of insurance) the common law has been supplanted by statute.
Finding with respect to the "right to a stay" argument put by Syndicate 683 | [
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] | null |
|
nsw_caselaw:549fd5913004262463bf2113:2 | nsw_caselaw:549fd5913004262463bf2113 | Francis Travel Marketing Pty Ltd v Virgin Atlantic Airways Ltd (1996) 39 NSWLR 160
Heath Lambert Limited v Sociedad de Corretaje de Seguros [2004] 1 Lloyd’s Rep. 495
Hide & Skin Trading Pty Limited v Oceanic Meat Traders Limited (1990) 20 NSWLR 310
Hi-Fert Pty Limited v Kiukiang Maritime Carriers Inc. (No 5) (1998) 90 FCR 1
CASES CITED : Holmes v Permanent Trustee Co of New South Wales Ltd (1932) 47 CLR 113
IBM Australia Ltd v National Distribution Services Ltd (1991) 22 NSWLR 466
James Allen (Ireland) Ltd v Marea Producten B.V. (Netherlands) (Yearbook X (1985) p 485)
James Buchanan & Co Ltd v Babco Forwarding and Shipping (UK) Ltd [1978] AC 141
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Lo v Aetna 2000 WL 565465 (US District Court, District of Connecticut)
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PARTIES : HIH Casualty & General Insurance Limited (in liquidation) (Plaintiff)
R J Wallace sued on his own behalf and on behalf of all other members of Syndicate No 683 at Lloyd's of London for the 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000 underwriting account (First - Eighth Defendants)
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|
nsw_caselaw:549fd5913004262463bf2113:25 | nsw_caselaw:549fd5913004262463bf2113 | 103 Syndicate 683 sought to distinguish Commercial Union Assurance Plc v NRG Victory Reinsurance Ltd on the basis that the arbitration clause was in different terms to the present case, because first it did not include reference to a “Court of Arbitration”, and second, the arbitration clause was an agreement to agree and therefore not enforceable.
104 As HIH has contended:
i. the first suggested distinction is not borne out by the terms of the arbitration clause in Commercial Union .
ii. the arbitration clause in Commercial Union expressly referred to the arbitral forum as a “court of arbitration” (see p 84, col 2, 2nd last line).
iii. in Commercial Union nothing turned on the apparent different use of capitalised and lower case terms in the arbitration and service of suit clauses when referring to a “court”.
iv. it appears that the references to “court” in the actual arbitration and service of suit clauses considered in Commercial Union , in fact referred to “court” using the lower case expression (see the terms of the clauses as reported in [1997] C.L.C.
1561 at 1566; cf the report in [1998] 1 Lloyd’s Rep 80 at 84 –See also the terms of the same service of suit clauses as reported in King v Brandywine Reinsurance at 679 [37], “ … insurers hereon, at the request of the insured, will submit to the jurisdiction of any court of competent jurisdiction … ”.
v. it is readily apparent that the reference in the service of suit clauses in Commercial Union to “ any Court (sic court) of competent jurisdiction … ” was understood as a reference to Courts at law, not arbitral forums (see p 85, col 2 at .5 – .6).
105 Nor is the second suggested distinction relevant as pointed out by HIH. In short this distinction:
i. overlooks the fact that there were three policies in issue in Commercial Union . In respect of the first two policies, referred to as sections I and IIIA, it is the case that the form of the arbitration clause provided that arbitration, if requested by either party, was not compulsory (it had to be agreed by both parties) and therefore was not enforceable.
By contrast, as recognised by Clarke J, the arbitration clause in section IIIB provided that either party could require the other to submit the dispute to arbitration in New York (see p 85, col 1 at .6, col 2 at .3). [emphasis added]
ii.
does not comprehend the fact that although Colman J recognised this difference when considering the same arbitration clauses in King v Brandywine Reinsurance Co (UK) Ltd [2004] 2 Lloyd’s Rep 670 at 681 – 682 [49] – [50], this did not affect his conclusion at 680 [39],
that the service of suit clauses conferred on the assured an “ option ” to select the jurisdiction of the New York courts, or in the case of section IIIB, any United States court for the resolution of the specified disputes.
[emphasis added]
The other United Kingdom authorities
106 Syndicate 683 further sought to rely upon three English authorities which recognise a bias towards upholding arbitration clauses.
107 That matter is however explicable when one focuses upon the different language and context of the clauses under consideration in each of those authorities where notably, there was no question of any "option" to litigate being dealt with.
108 As HIH has contended, Paul Smith Ltd v H&S International Holding Inc [1991] 2 Lloyd’s Rep 127 concerned the construction of a settlement of disputes provision (cl 13) and a choice of language and law provision (cl 14).
The plaintiff had commenced Court proceedings in relation to a dispute. In response to the defendant’s stay application based on the existence of the dispute resolution clause, the plaintiff argued that clauses 13 and 14 were hopelessly inconsistent and therefore devoid of effect. | [
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] | null |
|
nsw_caselaw:549fd5913004262463bf2113:8 | nsw_caselaw:549fd5913004262463bf2113 | [Syndicate 683 joins on this proposition]
v. Syndicate 683 contends that HIH is estopped from denying the existence of an arbitration agreement for the purposes of section 7 (1) (d) of the International Arbitration Act.
vi. In the event that the arbitration agreements are binding and operative and that the proceedings fall within their scope, vide:
a) section 19 of the Insurance Act does not apply;
b) the juxtaposition of Articles XVIII and XIX did not provide HIH with an option to litigate (which it has exercised);
c) the proceedings do not involve claims for the payment of confirmed balances; and
d) the “arbitration agreements” (or some of them) were not “agreements in writing” within the meaning of the International Arbitration Act .
HIH contends that a number of reasons favour the discretionary refusal of a stay of proceedings
[Syndicate 683 joins issue on this proposition]
Approach taken in these reasons to the submissions put in the alternative
18 Where HIH in particular has approached its analysis in the form of a series of cascading submissions, the Court has proceeded to deal with those submissions seriatim for the reason that there must be a reasonable possibility that this judgment will be appealed from.
In that circumstance it is appropriate at first instance to treat with as many of the alternative sets of submissions [falling from both sets of parties] as is practicable.
The section 19 issue
19 In my view as a matter of correct ordering, this presents as the initial issue for determination. Prior to considering whether the International Arbitration Act is engaged, the Court requires to be satisfied that there is a binding arbitration agreement in existence between the parties. This involves determining what was the contract and what were its terms.
[I accept that this is a separate and anterior issue to the question as to whether or not there is an agreement in writing]
20 Section 19 was introduced into the Insurance Act by the Commercial Transactions (Miscellaneous Provisions) Act 1974 (NSW), the long title to which included the words “to excuse the insured under a policy of insurance from any requirement of compulsory arbitration”:
as quoted by Samuels JA in 325 George Street Pty Ltd (in liquidation) v Norwich Union Fire Insurance Society Ltd (1980) 1 ANZ Ins Cas 60-404.
21 Syndicate 683 has submitted inter alia that s 19 (1) does not encompass contracts of reinsurance and that the contracts in issue do not constitute contracts of reinsurance.
22 The submission is that it is appropriate to interpret the phrase “contract of insurance” [as it appears in section 19] narrowly. The propositions advanced are as follows:
i. it is self evident from the wording of the relevant provision that it was designed to protect persons considered to be in need of protection from the effect of arbitration clauses inserted into contracts of insurance;
ii. whilst consumers entering into contracts of insurance with insurance companies might reasonably be perceived to require such protection on the basis that they are simply not in a position to negotiate in respect of the standard terms of a policy of insurance, reinsurers are in a completely different position;
iii. there is no apparent policy reason for seeking to protect a reinsurer from an arbitration clause contained in reinsurance contract;
iv. reinsurers are perfectly capable of protecting themselves and deciding for themselves the manner in which their disputes will be resolved.
23 Syndicate 683 has further submitted that an reinsurance treaty is not a contract of insurance but is merely ‘a commercial arrangement’ between two parties. The contention is that when a quota share reinsurance treaty is put in place there is no individual risk scrutiny by the reinsurer and the reinsurer is obliged to accept the risks bound by the reinsured. | [
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|
nsw_caselaw:549fd5913004262463bf2113:28 | nsw_caselaw:549fd5913004262463bf2113 | 122 The problems with this analysis are as follows:
i. on its plain language article XVIII does not mention or refer to the word "arbitration" at all and does not refer to article XIX, which governs arbitration;
ii. a "Court of Arbitration" as referred to in article XIX cannot be a competent court in the Commonwealth of Australia.
iii. Article XVIII(iii) which refers to the circumstance that a suit is instituted against one of the reinsurers [in which event all reinsurers are bound by the decision of the court or any competent appellate court] expressly provides for a right of appeal in respect of disputes within the scope of this article;
iv. by contrast article XIX provides that the decision of the Court of Arbitration shall not be subject to appeal [hence one cannot read "Court of Arbitration" consistently with article XVIII (iii)];
v.
the procedures to be adopted by a Court in article XIII and by the Court of Arbitration in article XIX are diametrically opposed, the latter requiring the arbitrators to reach the decision primarily in accordance with usage and customs of reinsurance practice and relieving them from all legal formalities,
and the former requiring that a dispute be determined in accordance with the law and practice applicable in the Court in which HIH has elected to litigate;
vi. the reference in article XVIII (ii) to service of any summons, notices or process on Freehills, and the references to that firm having authority to accept service and to enter into an appearance, are all consonant with curial proceedings. On the other hand as made plain by article XIX one commences an arbitration by nominating an arbitrator involving an entirely different procedure.
123 For all those reasons HIH has succeeded in its alternative contention that the policies afforded HIH an option to litigate or arbitrate, which HIH has exercised in favour of litigation: hence for this reason also the International Arbitration Act is not engaged.
The arbitration agreement contained in Article XIX of the policies would not be operative because of the exercise by HIH of the option contractually reserved to it.
Is the action one for "the payment of a confirmed balance"?
124 Article X was in the following terms:
“ Reports and Remittances
Within sixty (60) days after the close of each calendar quarter, the Company shall furnish to the Reinsurer a summary account in respect of transactions during the quarter showing:-
A. (1) Gross Written Premiums less Return Premiums
less
B. (1) Ceding Commission
(2) Taxes as applicable
(3) Losses and loss adjustment expenses paid after deduction of salvage and subrogation.
The balance so calculated shall be paid by the debtor party to the credit or [sic] party within one hundred and five (105) days after the close of the calendar quarter.
C. Outstanding loss reserves at the end of the quarter.”
125 The words "confirmed balance" are nowhere defined in the policy wording. In the search for the proper construction to be given to those words it is naturally necessary for the Court to consider the language of the entire policy.
126 It should also be noted that Article IX deals with loss adjustment and expenses and losses and provides for HIH to settle all losses incurred under its policies, such settlements to be binding on the reinsurer in proportion to its participation.
This article also includes an obligation on the reinsurer to reimburse HIH promptly when so requested by it, for losses paid by HIH. Hence the article contemplates a reimbursement which might precede the submission or the furnishing of the quarterly accounts.
127 The last sentence in the first paragraph of Article IX is in the following terms:
"Alternatively losses shall be handled in the quarterly accounts and need not be individually reported." | [
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nsw_caselaw:549fd5913004262463bf2113:18 | nsw_caselaw:549fd5913004262463bf2113 | 71 Syndicate 683 does not suggest that there is an express intention to this effect. Instead, it is argued that such an intention may be “imputed from the fact that the International Arbitration Act was enacted in compliance with Australia’s international obligations to enact law to implement an international convention.”
72 There are two bases on which an intention to cover the field may be implied: first, the detail of the legislative regime (for example, O’Sullivan v Noarlunga Meat Ltd); and second, the subject matter of the Commonwealth legislation.
That is, the determination of the intent of the Commonwealth legislation depends upon a consideration of the legislation itself, and not by reference to extrinsic material such as a second reading speech.
73 Even if such material could be called in aid, it is of limited assistance to the Syndicate. The quotation given by the Syndicate from the second reading speech is directed to the issue of whether it was appropriate to implement the convention by way of Commonwealth legislation, or by way of a series of uniform State statutes (as is the case with the Commercial Arbitration Act).
It says nothing about any relationship between the Commonwealth law and individual statutes of the States regarding the circumstances in which agreements may not be binding.
74 Rather than relying on the detail of the Commonwealth legislative regime as the basis of an implied intention, Syndicate 683's contention appears to rely on the fact that the Commonwealth law is intended to fulfil an obligation cast upon it by the Convention.
75 However, the Commonwealth statute evinces no intention to ‘cover the field’ in relation to the circumstances in which an arbitration agreement is binding. Section 7(5) specifically makes the duty of the Court in section 7(2) subject to the general law regarding the circumstances in which an agreement may be “null and void, inoperative or incapable of being performed”.
Syndicate 683 recognises that this preserves a field of operation for the common law of NSW, but seek to draw a distinction between the common law and statute, which ignores the extent to which NSW legislation supplants and supplements common law principles relating to contract.
Both legislation and common law form part of the general law background against which section 7(2) of the International Arbitration Act operates, by virtue of section 7(5).
76 In Commercial Radio Coffs Harbour v Fuller (1986) 161 CLR 47, Wilson, Deane and Dawson JJ stated (at 57-58):
The intention of the Commonwealth Act is to maintain the provision of high quality and technically efficient broadcasting services which are commercially viable and receptive to the needs of the community.
It does so by the prohibition of broadcasting except under licence granted subject to certain conditions. But the relaxation of the prohibition by the granting of a licence does not confer an immunity from other laws, Commonwealth or State.
The Act does not purport to lay down the whole legislative framework within which the activity of broadcasting is to be carried on. It is intended to operate within the setting of other laws with which the grantee of a licence will be required to comply. … In the words of Dixon J in Ex parte McLean … the Act was intended to be ‘supplementary to or cumulative upon the State law’ . [emphasis added]
77 Similarly here, the intention of the International Arbitration Act (as shown by sub-section 7(5)) is not to confer an immunity from the general law requirements for there to be a binding arbitration agreement. It does not purport to lay down the entire legislative framework within which the enforceability of arbitration agreements is to be determined. | [
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] | null |
|
nsw_caselaw:549fd5913004262463bf2113:14 | nsw_caselaw:549fd5913004262463bf2113 | The Agreement is not, I think, to be read as if creating a partial vacuum, within which the relationship between Ansett and its pilots lies wholly withdrawn from the operation of those general laws of the land which are applicable to other members of the community. …
The view that the Agreement is not to be read in isolation from, but, rather, against the background of, the general law of the land finds support in certain features of the Agreement.
… the provisions of the Agreement regarding grievance procedures are elaborate, yet they provide no particular criteria or considerations which are to be applied in the determination of any review or appeal from a dismissal.
It will no doubt be by reference to any relevant provisions of the general law, together with general notions of fairness and fair dealing, that such proceedings are determined. Included in that general law will be any applicable statute law, whether State or Commonwealth. [emphasis added]
47 Section 7(2) of the International Arbitration Act does not confer the type of absolute right for which [at least in its initial approach] Syndicate 683 had contended. As HIH has submitted:
i. section 7(2) is not to be read as requiring arbitration agreements to be enforced in a vacuum, separate from the general law background (including State legislation) of the circumstances in which such an agreement is binding and enforceable;
ii. indeed, section 7(5) of the Act expressly denies the application of s7(2) in circumstances where the arbitration agreement is null and void, inoperative or incapable of being performed;
iii. in Stephen J’s words, section 7(5) does not provide any particular criteria or considerations which are to be applied in determining whether an agreement is null and void, inoperative or incapable of being performed, but instead leaves that issue to be determined by reference to the general law, which includes “any applicable statute law, whether State or Commonwealth”;
iv. the same reasoning may be applied by analogy in the context of the reference to a “matter capable of settlement by arbitration” in s7(2)(b) of the Act;
v. whether or not a matter is capable of settlement by arbitration can be directly affected by the operation of the statute law of a State as the decision in Metrocall Inc v Electronic Tracking Systems Pty Ltd (2000) 52 NSWLR 1 illustrates.
In that case, it was held that the operation of the provisions of the Industrial Relations Act of New South Wales rendered a dispute involving a contract containing a United States arbitration clause incapable of settlement by arbitration with the consequence that no stay was granted pursuant to section 7(2) of the International Arbitration Act.
48 The judgment of the full bench of the Industrial Relations Commission in Court Session in Metrocall includes the following:
“We are satisfied that no inconsistency arises between the International Arbitration Act (Cth) and s106 of the Industrial Relations Act so as to deprive the Commission in Court Session of jurisdiction to hear the application.
We agree with Schmidt J that s7 of the International Arbitration Act (Cth) is to be construed as operating on the basis that the relevant court has jurisdiction as to the proceedings sought to be stayed.
The International Arbitration Act (Cth) does not purport to alter the jurisdiction of courts to entertain proceedings as to agreements to which it applies. It merely requires those courts to stay proceedings in the event that there is an arbitration agreement which applies to the matters raised in those proceedings.
Even then, the court is only required to stay the proceedings on application by a party.
The International Arbitration Act (Cth) contemplates courts having jurisdiction to determine the existence of an arbitration clause, whether the proceedings involve a matter which is capable of settlement by arbitration (s7( 2)), whether to make any interim or supplementary orders (s7(3)) and whether the arbitration clause is “null and void, inoperative or incapable of being performed” (s7(5)). | [
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] | null |
|
nsw_caselaw:549fd5913004262463bf2113:4 | nsw_caselaw:549fd5913004262463bf2113 | a) in total, for HIH C&G, there are $487.3 million in possible recoveries from reinsurers, comprising $139.4 million of unpaid balances owing by reinsurers and $347.9 million in outstanding loss reserves. This estimate (which includes the figures referred to in paragraph 22) does not include an amount for incurred but not yet reported claims, which could be substantial.
b) in total for all HIH Companies, there are $650.2 million in possible recoveries from reinsurers, comprising $199.4 million of unpaid balances owing by reinsurers and $450.8 million in outstanding loss reserves, this estimate not including an amount for incurred by not yet reported claims.
iv. the Liquidators consider the potential impact of the pay as paid issue on not only the liquidation of the licensed insurers within the HIH and FAI groups, but also possible future insurance company insolvencies to be extremely important.
v. the potential denial of the access of creditors to reinsurance assets that form part of an insurance company's solvency requirements, once the company has entered formal insolvency, may well have serious regulatory implications.
The Notice of Motion seeking a stay of proceedings
7 As at the present time no defence has been filed for the reason that by notice of motion filed on 13 July 2006, Syndicate 683 sought orders that the proceedings be stayed pursuant to section 7 of the International Arbitration Act 1974 (Cth) or,
in the alternative, pursuant to section 53 of the Commercial Arbitration Act 1984 (NSW) or in the further alternative, at common law pursuant to the inherent jurisdiction of the Court.
The provisions of the material instruments
8 It is convenient to commence by setting out the material provisions of the sundry instruments/legislation falling to be considered on the hearing of the instant motion.
Section 7 of the International Arbitration Act 1974
9 Section 7 of the International Arbitration Act provides as follows:
(1) Where:
(a) the procedure in relation to arbitration under an arbitration agreement is governed, whether by virtue of the express terms of the agreement or otherwise, by the law of a Convention country;
(b) the procedure in relation to arbitration under an arbitration agreement is governed, whether by virtue of the express terms of the agreement or otherwise, by the law of a country not being Australia or a Convention country, and a party to the agreement is Australia or a State or a person who was, at the time when the agreement was made, domiciled or ordinarily resident in Australia;
(c) a party to an arbitration agreement is the Government of a Convention country or of part of a Convention country or the Government of a territory of a Convention country, being a territory to which the Convention extends; or
(d) a party to an arbitration agreement is a person who was, at the time when the agreement was made, domiciled or ordinarily resident in a country that is a Convention country;
this section applies to the agreement.
(2) Subject to this Part, where:
(a) proceedings instituted by a party to an arbitration agreement to which this section applies against another party to the agreement are pending in a court; and
(b) the proceedings involve the determination of a matter that, in pursuance of the agreement, is capable of settlement by arbitration;
on the application of a party to the agreement, the court shall, by order, upon such conditions (if any) as it thinks fit, stay the proceedings or so much of the proceedings as involves the determination of that matter, as the case may be, and refer the parties to arbitration in respect of that matter.
(3) Where a court makes an order under subsection (2), it may, for the purpose of preserving the rights of the parties, make such interim or supplementary orders as it thinks fit in relation to any property that is the subject of the matter to which the first-mentioned order relates. | [
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|
nsw_caselaw:549fd5913004262463bf2113:9 | nsw_caselaw:549fd5913004262463bf2113 | This is said to follow from the definition of treaty reinsurance to be found in (Parkington & Ors, ‘MacGillvaray and Parkington on Reinsurance Law’ 9th ed at para [33-17]):
“The treaty method of reinsurance proceeds by way of an agreement, or treaty, between reinsured and reinsurer that all risks of the class of business specified by the treaty which are accepted by the reinsured will be ceded to the reinsurer and duly accepted by him.
Thus, the reinsurer binds himself in advance to cede business of the relevant kind, and the reinsured binds himself to take it, contrary to the freedom of choice allowed to each in facultative transactions.”
24 Syndicate 683 contends that direct insurance protects the insured against extraordinary risks outside the ordinary course of events, whereas reinsurance is concerned with the management of risks which it is the ordinary business of both parties to underwrite.
The proposition is that reinsurance is essentially a professional hedging operation by which the reinsured assigns all or part of his insurance liabilities to the reinsurer. Reliance was sought to be placed inter alia on Agnew v Lansforsakringsbolagens [2000] Lloyd’s Rep IR 317 at 330-331.
25 The matter at issue is of some importance concerning as it does the meaning of the term "Insurance" in section 19.
Finding
26 The finding is that “Insurance” within the meaning of the Insurance Act includes reinsurance: see Sutton Insurance Law in Australia (3rd ed., 1999) at 2.65, cf AssetInsure Pty Ltd v New Cap Reinsurance Corporation Ltd (in liq) (2006) 226 ALR 1 at [86], [28].
27 As HIH has submitted:
i. It is well established that a reinsurance contract is a contract of insurance: see, for example, British Dominions General Insurance Company Ltd v Duder [1915] 2 KB 394 at 400; Forsikringaktieselskapet National of Copenhagen v Attorney General [1925] AC 639 at 642; Toomey v Eagle Star Insurance Co.
Ltd [1994] 1 Lloyd’s Rep. 516 at 523; Forsikringaktieselskapet Vesta v J N E Butcher [1989] AC 852 at 908.
ii. It is a well-established canon of statutory construction that when legislation uses a term which has acquired a settled meaning at common law, the legislature is ordinarily taken to have intended to pick up that meaning when employing that term in legislation. As O’Connor J. said in Attorney-General (NSW) v Brewery Employees Union of New South Wales (1908) 6 CLR 469 at 531:
Where words have been used which have acquired a legal meaning it will be taken, prima facie , that the legislature has intended to use them with that meaning unless a contrary intention clearly appears from the context.
To use the words of Denman J in R v Slator (1881) 8 QBD 267 at 272): ‘it always requires the strong compulsion of other words in an Act to induce the Court to alter the ordinary meaning of a well known legal term’.
[See also Wik Peoples v State of Queensland (1996) 187 CLR 1 at 151 per Gaudron J,[“Ordinarily, words which have an established meaning at common law are construed as having the same meaning in a statute unless there is something in the words or the subject matter of the statute to indicate otherwise.”].
iii.
So much was implicitly recognised in the Insurance Contracts Act 1984 (Cth) (section 9(1)(a)) where reinsurance was expressly excluded,
consistent with the express recognition in the Australian Law Reform Commission Report No 20 on Insurance Contracts that the generally accepted meaning of the term “contract of insurance” would include a reinsurance contract [see paragraph 10 of that Report which states “reinsurance is a form of insurance”].
28 I further accept that the Insurance Act, being beneficial and remedial legislation, ought be construed broadly, not narrowly, a proposition also consistent with well-established principles of statutory construction:
see, for example, Bull v Attorney-General (NSW) (1913) 17 CLR 370 at 384 where Isaacs J said that such legislation “should be construed as to give the fullest relief which the fair meaning of its language will allow”; | [
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|
nsw_caselaw:549fd5913004262463bf2113:26 | nsw_caselaw:549fd5913004262463bf2113 | Steyn J held that there was no inconsistency because clause 14 merely specified the law governing the arbitration. This was not to be confused with either the proper law of the contract, the proper law of the arbitration agreement, or the procedural rules which would apply in the arbitration (see pp 129 – 130).
Steyn J noted without any disagreement, the plaintiff’s observation that the clauses in issue did not confer an “option” to resort to arbitration or legal proceedings (see p 129, col 2 at .6).
Hence the contract in question did not include a choice of law clause governing the contract, a service of suit clause, nor a choice of law and jurisdiction clause conferring an option to litigate.
109 Shell International Petroleum v Coral Oil Co Ltd [1999] 1 Lloyd’s Rep 72 concerned the construction of a choice of law and jurisdiction clause (art 13) and an arbitration clause (art 14). The jurisdiction clause was held to confer only limited jurisdiction on English Courts in relation to any dispute “under this provision”, being the choice of law clause itself.
This case is distinguishable because the scope of disputes the subject of the jurisdiction clause was construed as being limited to disputes about the proper law only. Article XVIII presently before the Court is however expressed in broad terms covering a dispute arising “under this Agreement” and is not limited to disputes about the proper law of the treaties.
110 Daval Aciers D’Usinor et de Sacilor v Amare SRI [“The Nerano”] [1996] 1 Lloyd’s Rep 1 concerned an arbitration clause in a charter party which was held to have been incorporated into a bill of lading, the terms of which provided “English Law and Jurisdiction applies”.
The arbitration clause was able to be read consistently with the provision in the bill of lading on the basis that the English Court retained a supervisory jurisdiction over the arbitration. The case did not concern a service of suit clause, nor a choice of law and jurisdiction clause conferring an option to litigate.
Returning to the present litigation
111 In the result whatever the proper law of the policies may have been prior to the commencement of the proceedings, it was “retrospectively varied on the exercise of a contractual option” (to quote Bingham LJ in Du Pont v Agnew at 592) and that exercise rendered New South Wales the governing law of the policies referred to in the summons.
112 Later in these reasons the section 109 issue is determined adversely to the Syndicate. Taking that finding into account for present purposes, the correct analysis is that it is because the policies were governed by New South Wales law that section 19 of the Insurance Act applies, with the effect that the arbitration clause does not bind HIH: cf.
for example, Wanganui-Rangitikei Electric Power Board v Australian Mutual Provident Society (1934) 50 CLR 581 at 601 where Dixon J said:
“…an enactment describing acts, matters or things in general words, so that, if restrained by no consideration lying outside its expressed meaning, its intended application would be universal, is to be read as confined to what, according to the rules of international law administered or recognized in our Courts, it is within the province of our law to affect or control.
The rule is one of construction only, and it may have little or no place where some other restriction is supplied by context or subject matter.
But, in the absence of any countervailing consideration, the principle is, I think, that general words should not be understood as extending to cases which, according to the rules of private international law administered in our Courts, are governed by foreign law.”
113 The converse of this proposition is that statutes whose criterion of operation is not spelt out in terms on the face of the statute apply to contracts whose governing law, according to the forum’s choice of law rules, “picks up” the statute: see Akai Pty Limited v People’s Insurance Company Ltd (1996) 188 CLR 418 at 442-443. | [
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] | null |
|
nsw_caselaw:549fd5913004262463bf2113:0 | nsw_caselaw:549fd5913004262463bf2113 | Reported Decision : (2007) 14 ANZ Insurance Cases 61-721
New South Wales
Supreme Court
CITATION : HIH Casualty & General Insurance Limited (in liquidation) v R J Wallace sued on his own behalf and on behalf of all other members of Syndicate No 683 at Lloyd's of London for the 1993 underwriting account & Ors [2006] NSWSC 1150
HEARING DATE(S) : 23/10/06, 24/10/06
JUDGMENT DATE : 3 November 2006
JURISDICTION : Equity Division
Commercial List
JUDGMENT OF : Einstein J
DECISION : Notice of motion seeking stay of proceedings to be dismissed
CATCHWORDS :
Reinsurance Treaties - Proper construction and effect of service of suit and arbitration articles - Service of suit article providing that in the event of a dispute arising under the agreement,
reinsurers at request of insurer will submit to jurisdiction of any competent court in the Commonwealth of Australia such dispute to be determined in accordance with the law and practice applicable in such court and reinsurers to abide final decision of such court or any competent appellate court - Arbitration
article providing that disputes arising out of agreement or concerning its validity to be submitted to decision of a Court of Arbitration consisting of three members to meet in Australia and that decision of Court of Arbitration shall not be subject to appeal - HIH Casualty & General Insurance Ltd (in Liquidation)
commences proceedings against Lloyd’s Syndicate in Supreme Court seeking to test the analysis of the House of Lords in Charter Reinsurance Co Ltd v Fagan [1997]
AC 313 on question of whether payment by the insurer to its insureds is a condition precedent to its right to recover from the reinsurers the balances confirmed from time to time to be owing by reinsurers - Test case likely to
affect recovery of amounts from other reinsurers on other reinsurance contracts - Evidence that potential denial of the access of creditors to reinsurance assets that form part of an insurance company's solvency requirements,
once the company has entered formal insolvency,
may well have serious regulatory implications - Reinsurers seek stay of proceedings under section 7 of International Arbitration Act 1974 (Cth) - Whether arbitration clause/agreement not binding upon HIH by reason of the provisions of section 19 of the Insurance Act 1902 (NSW)
- Whether section 19 inconsistent with section 7 of International Arbitration Act and therefore inoperative by virtue of section 109 of the Constitution (Cth) - Whether the effect of section 7 (2)
of International Arbitration Act is to provide a party with a right to a stay of proceedings whereas section 19 of Insurance Act purports to limit the availability of that right - Whether International Arbitration Act intended
to cover the field for regulating recognition and enforcement of foreign arbitration agreements leaving no scope for operation of section 19 of Insurance Act - Meaning of the term 'Insurance' in section 19 - Whether as a matter of
construction section 19 inapplicable to instant circumstances because article dealing with arbitration not 'a provision in a contract of insurance' or 'a provision with respect to the submission to arbitration of any matter
arising out of the contract of insurance' - Whether arbitration clause not engaged because properly construed policy gives an option to HIH to litigate rather than to arbitrate - Whether arbitration clause not engaged because action
is for payment of 'a confirmed balance' - Whether arbitration agreement not one to which International Arbitration Act applies as it is not ' an agreement in writing' - Consideration of procedures whereunder Lloyds syndicates
contractually bind themselves in relation to inwards reinsurance including affixation of syndicate's stamp and 'scratching' on slips presented by broker as agent for ceding insurer - Procedures taken by Lloyds Policy Signing Office | [
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|
nsw_caselaw:549fd5913004262463bf2113:22 | nsw_caselaw:549fd5913004262463bf2113 | 95 Syndicate 683 also sought to pray in aid the terms of section 1(1) of the Arbitration Act 1975 (UK) in giving meaning to the policy. However the particular phrase from that section relied upon– “there is not in fact any dispute between the parties with regard to the matter agreed to be referred” – has no counterpart in any Australian legislation.
As HIH has contended, this is significant because the arbitration clause in the policies contemplates arbitration not in the United Kingdom but in Australia.
96 HIH also contends and I accept that Syndicate 683's submission is also inconsistent with the width of the phrase “dispute arising under this agreement”. Section 1(1) of the Arbitration Act 1975 (UK) contemplates no disputes; Article XVIII contemplates the opposite.
97 As HIH has further contended, the dispute raised in the current proceedings is a dispute arising under the reinsurance policies, namely whether or not, on their proper construction, the balances claimed to be owing to HIH under the policies are owing and,
in particular, the question whether the policies require a reinsured first to have paid out its underlying insureds as a precondition to its entitlement to indemnity under the reinsurance policy.
This is the issue which went to the House of Lords in Charter Reinsurance Co Ltd v Fagan [1997] AC 313.
98 In my view where, as here, a dispute arises under the policies, provided that the dispute is not in effect a claim for a confirmed balance [in which case it cannot be the subject of a reference to arbitration],
HIH has an option to require that dispute to be litigated pursuant to Article XVIII in a competent court in the Commonwealth of Australia of its choosing or, alternatively, to submit that dispute for determination by way of arbitration.
The issue is dealt with below.
99 Syndicate 683's submission that Article XVIII is limited to actions for payment of confirmed balances, and that such “actions” ought to be limited to proceedings commenced pursuant to the statutory demand procedure, or other proceedings of a similar nature, also fails to take account of the jurisdiction choice provided to HIH under Article XVIII, namely the Courts of Australia, not England.
The statutory demand procedure under section 459E Corporations Act 2001, and any consequential proceedings under section 459P, are simply unavailable to HIH in Australia against the Syndicate or any of its members or the other reinsurers, since they have no relevant presence within the jurisdiction, such as registration, or carrying on business in the jurisdiction.
100 The suggested limitation to the nature of “actions” under Article XVIII is ignores the clear words of the Article which is not limited to claims for debts which are not disputed.
An option to litigate
101 Continuing the analysis pointing up New South Wales as the governing law of the policies, the following matters may be noted, again adopting the submissions put by HIH:
i. a clause such as Article XVIII has been described as conferring an “ option to select law and jurisdiction ”, per Colman J. in King v Brandywine Reinsurance Co (UK) Ltd [2004] 2 Lloyd’s Rep. 670 at 681 [47].
Thus, when HIH commenced its proceedings in the Supreme Court of New South Wales, it selected New South Wales law as the governing law of the agreement. Article XVIII of the policy was the source of its contractual right to do so;
ii. The above decision of Colman J also involved a reinsurance policy which juxtaposed a “ Service of Suit Clause ” in materially similar terms to Article XVIII with an arbitration clause. The Service of Suit Clause in Brandywine relevantly provided that:
"It is agreed that in the event of the failure of Insurers hereon to pay any amount claimed to be due hereunder, Insurers hereon, at the request of the Insured, | [
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|
nsw_caselaw:549fd5953004262463bf2239:77 | nsw_caselaw:549fd5953004262463bf2239 | He thought that the dependence in clinical practice, particularly in cardio-thoracic surgery, on objective tests such as x-rays, CT scans and ultrasounds was more beneficial than reliance on percussion. However, in cross-examination, he agreed that a percussion test could diagnose a pneumothorax because the sound produced is a hollow one.
512 Dr Wilson agreed that the test is subjective, and subject to variable skill levels. He said that it does not give “actionable information”. Like Professor Tatoulis, he thought that it had been superseded by radiological tests and he described it as “a diminishing facility”.
In cross-examination he gave a long answer, suggesting that, in Mr Sherry’s particular circumstances, a percussion test may have produced confusing and conflicting information.
513 Professor Hillman also thought that percussion is a less accurate indicator, but, nevertheless, could have provided information. He agreed that it is the most important way of distinguishing between a pneumothorax and haemothorax. Nevertheless, he would have preferred to wait for the x-ray. He, too, observed that percussion is rarely done and is subjective.
514 Dr Stow was firmly of the view that, at the 10.15 pm examination by Dr Walsh, percussion should have been performed. He did not agree that it is a rarely used test and said that a good examination of the chest involves percussion. Different sounds are produced where a pneumothorax is present from those produced where a haemothorax is present.
515 Analysis of the above views is not easy. A common element is that, subject to the skill of the doctor using the test, it has the potential to identify the nature of a recognised chest problem – that is, whether it is a pneumothorax or a haemothorax.
The use of percussion does not obviate the need for an x-ray, but, in this case, it could have diverted Dr Walsh from his focus upon a potential pneumothorax and turned his attention to the possibility of a haemothorax. Had that occurred, he would, almost certainly, have taken a different course.
516 The other thing to observe about percussion is, as I have mentioned before, that it is exceedingly quick, exceedingly simple, and requires no specialised equipment.
517 I have come to the view that Dr Walsh’s omission to percuss the chest was a tragic mistake, indicative of a less than acceptable level of care. This is, in part, because percussion is such a simple and rapid test, potentially yielding valuable information.
518 The next breach alleged against Dr Walsh is the omission to give fluid at 10.15 pm, following examination. This cannot be considered in isolation. Based on the signs as interpreted by Dr Walsh at the time, fluid administration was not an urgent priority. However, based on the signs as later interpreted by Mr Glenville and Dr Stow, it was.
Thus, this question really depends, not upon what, objectively speaking and in the light of the knowledge of later events and the luxury of a three month examination of the ICU Chart and Progress Notes, Dr Walsh ought to have done at 10.15 pm, but what he ought, acting reasonably, to have made of those signs when he saw them at 10.15 pm.
I have regretfully come to the conclusion that Dr Walsh ought to have recognised the possibility of haemothorax as well as pneumothorax: that, had he included haemothorax as part of his differential diagnosis, he would have percussed; that that test would, in all probability, have moved him in the direction of a diagnosis of haemothorax; and he would have administered fluid.
Certainly he would have prepared to insert chest drains.
Probably he would have remained with Mr Sherry. He would have been in a position to administer fluid, and would have done so. Thus, by a complex series of connected findings, I conclude that, at 10.
15 pm or soon thereafter, Dr Walsh ought to have administered some fluid, but this is because of what he ought to have made of the signs. His failure properly to recognise the signs was a breach of his duty to Mr Sherry. | [
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] | What was the view of Dr Stow regarding the use of percussion in the examination of Mr Sherry? | [
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nsw_caselaw:549fd5953004262463bf2239:7 | nsw_caselaw:549fd5953004262463bf2239 | What follows is not intended to represent findings of fact as to the accuracy of the information contained in the notes or the ICU Chart (although, with some notable exceptions, that is largely uncontroversial). The extracts from the Progress Notes below represent the entries after translation of the medical shorthand and symbols.
post operative history
34 On 13 August Dr Wilson recorded the operation in the Progress Notes. He outlined a plan for future care which he noted as “routine”. His notes included medication to be administered.
35 The plaintiff visited her husband in the ICU at about 2.30 in the afternoon of 13 August, immediately following the surgery. He was not then conscious and she did not remain very long. She returned at about 6.00 pm, with the children, although they were permitted to visit only one at a time. Mr Sherry still was not conscious.
36 At 8.30 pm a nurse recorded a “satisfactory post-op evening” and noted that Mr Sherry was then “haemodynamically stable”, that the chest drains were drained, yielding large amounts of haemoserous fluid and that Drs Wilson and Marshman were aware of this.
(The term “haemodynamically stable” appears repeatedly in the Progress Notes, and in the evidence. As defined by Dr Wilson in his evidence, it is a term used to denote that blood pressure, heart, and cardiac output are normal and that the rhythm is stable.)
37 At 2.00 am on 14 August Mr Sherry was given Ventolin. This was repeated from time to time during the day. At 5.00 am on that day in a “night report, day 1 post-op” a nurse recorded again that Mr Sherry was “haemodynamically stable with the help of some GTN” (a drug also known as Tridil, used to lower blood pressure, which, the ICU Chart shows, was administered between 4.
00 am and 5.00 am). At 8.30 am a physiotherapist described Mr Sherry as “alert” but suffering pain on inspiration. His parameters were stable and his cough was weak. He was given COACH treatment. A “COACH” device is a physiotherapy apparatus designed to encourage deep breathing. It allows readings of inspiration.
38 At 7.47 am a chest x-ray was taken. This, like the x-ray of the previous day, showed some degree of left lung collapse but not to such a degree as to cause concern. At 8.
30 am a physiotherapist recorded a clinical observation (as distinct from radiological evidence) of decreased air entry on the right base of the lung due to Mr Sherry’s shallow breathing. It is of some significance that she made no similar record of clinical observation of decreased air entry to the left lung.
39 In an un-timed note of 14 August (but which, it may be inferred from its position in the Progress Notes, was between 8.00 am and 2.
30 pm), Dr Wilson recorded that Mr Sherry was haemodynamically stable, that there were difficulties with pain relief, that chest drainage had decreased, and that an electro-cardiogram (“ECG”) showed non-specific changes consistent with pericarditis (inflammation of the membrane enclosing the heart).
He again recorded a plan, consisting of increased morphine dosage, the removal of drains and repeat ECG, enzymes and chest x-rays.
40 The plaintiff returned alone at about 11.00 am the following morning, 14 August. Mr Sherry was conscious. The plaintiff observed that the chest drains were still in place at that time.
She discussed Mr Sherry’s progress with the nurse, who was very positive and who said that she anticipated removing the chest drains at about lunchtime that day. The plaintiff observed that her husband was recovering his colour and did not appear to be in pain. She left at about 12.30. The drains were removed at about 1.30 pm.
41 At 2.00 pm more Ventolin was administered. At 2.30 pm the physiotherapist recorded increased pain from the surgery incision, that COACH treatment was given and pain inhibited. | [
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] | What does the term "haemodynamically stable" mean in the context of the Progress Notes in Sherry v Australasian Conference Association (trading as Sydney Adventist Hospital) & 3 Ors [2006] NSWSC 75? | [
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nsw_caselaw:549fd5953004262463bf2239:48 | nsw_caselaw:549fd5953004262463bf2239 | 311 Professor Skowronski also recognised that, in hindsight, the ICU Chart could be interpreted as showing signs of extra cellular volume depletion, but added that the degree of this was minor and the evidence quite subtle, and the signs not inconsistent with Mr Sherry’s post-operative state and his relatively low fluid intake.
Professor Skowronski did not consider that any of the doctors should, at this time, have deduced that serious underlying bleeding was occurring in the hours before Mr Sherry’s death.
312 Professor Skowronski was cross-examined about the observations recorded in the Progress Notes, together with those of Ms (Leigh-Anne) Sherry. These included the pallor and body temperature recorded by Ms Sherry, together with a relatively low CVP, tachycardia and oliguria (one hour as at 6.
00 pm). He agreed that a doctor presented with all of these findings would consider a diagnosis of hypovolaemia, at least as part of a differential diagnosis.
313 He was less willing to accept that such a doctor would take steps to exclude hypovolaemia as a possibility. He agreed that the signs noted were all consistent with hypovolaemia, but said that to take the next step of excluding hypovolaemia required a judgement about the magnitude and specificity of each of the signs.
He said many of the signs that had been mentioned were “quite non-specific” or only minimally abnormal, such as the heart and (as at 6.
00 pm) one hour of oliguria. I found this difficult to accept. It would seem to me that it is proper to include a particular condition as part of a differential diagnosis. Then some steps might be called for to confirm or exclude it, even if those steps are, initially, no more than monitoring. Indeed, when pressed, Professor Skowronski acceded to a proposition put in the following form:
“Q: If that was part of the differential diagnosis, responsible clinical practice includes taking steps to exclude it as a possibility, doesn't it?” (t 3611)
314 He also accepted that to exclude hypovolaemia as a diagnosis requires an increase in fluid replacement. He accepted that, assuming all of the features put to him as at 6.00 pm:
“It would be reasonable to do [a fluid challenge].” (t 3612)
315 Thereafter what would be required would depend upon the response to the fluid challenge.
316 Professor Skowronski acknowledged that, in writing his supplementary report, he had relied upon the Progress Notes. He obviously did not then have access to the description of Mr Sherry’s condition given by Ms Sherry in her evidence, to which he was taken in cross-examination.
317 Somewhat puzzlingly, despite having in the second paragraph of the extract above acknowledged that Mr Sherry’s CVP was low, in cross-examination he challenged that description when it was used by cross-examining counsel; he corrected counsel’s question by saying that the CVP was normal. In the end, he accepted “low end of normal” as an accurate description.
He accepted that, in his report, he had said the combination of three factors, that is, low CVP, rising heart rate and low urine output, together indicate “clear evidence of volume depletion”, and agreed that that had been his view when he signed his supplementary report on 30 July 2002.
However, he said that his view was “not as clear cut” as it had been at that time. He thought that, by 8.00 pm, the three hours of oliguria was “the most impressive feature”; but that the CVP was unchanged, the heart rate “barely elevated”, the blood pressure normal.
He accepted that the description of Mr Sherry as “pale and cold” added weight to the volume depletion theory. He again accepted that it would be “a reasonable thing to do” to administer more fluid at 8.00 pm (t 3622).
He did not think it was “necessarily correct” to say that any doctor working in intensive care who saw three hours of urine output of the level exhibited by Mr Sherry, in combination with the CVP and pulse rate would, in the exercise of ordinary skill and care, have given a fluid challenge at 8. | [
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