Watkins Ltd v. Renata, W. [1985] FCA 254

Watkins Ltd v. Renata, W. [1985] FCA 254

The assessment of 'loss of capacity to work' under cl.(1B) of Schedule 2 of the Workmen's Compensation Act (NT) should be made by reference to physical incapacity for work, not solely economic loss. Where the conditions for redemption are met and redemption is not unjust to the workman, the Tribunal is required to grant redemption of weekly payments and must base the redemption sum on the employer’s liability for gross weekly amounts, not net of tax. The respondent suffered a compensable loss relating to the efficient use of his left leg within the meaning of the Act, justifying the award.

Parties
Appellant: Watkins Limited; Respondent: Wiremu Renata
Jurisdiction
Australia
Judgment Date
14 June 1985
Procedural Posture
Appeal / Appeal From Supreme Court of Northern Territory to Federal Court
Outcome
Appellant's appeal dismissed; respondent's cross-appeal allowed to the extent of increasing the redemption sum; orders as to costs made.
Legal Topics
Construction of Compensation Statutes, Assessment of Incapacity, Redemption of Weekly Payments, Partial Incapacity, Statutory Interpretation
Workers' Compensation Employment Law Construction of Compensation Statutes Assessment of Incapacity Redemption of Weekly Payments Partial Incapacity Statutory Interpretation

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Parties

Watkins Limited

Appellant

Wiremu Renata

Respondent

Procedural Posture

Appeal / Appeal From Supreme Court of Northern Territory to Federal Court

Legal Issues

  1. 1 Proper construction of cl.(1B) of Schedule 2 of Workmen’s Compensation Act (NT) regarding matters relevant to loss of capacity to work and amount of compensation payable;
  2. 2 Whether the respondent is entitled to redemption of gross weekly compensation amounts or net of tax;
  3. 3 Extent of Tribunal's discretion in allowing for contingencies and the manner of calculation of a redemption sum;

Ratio Decidendi

The assessment of 'loss of capacity to work' under cl.(1B) of Schedule 2 of the Workmen's Compensation Act (NT) should be made by reference to physical incapacity for work, not solely economic loss. Where the conditions for redemption are met and redemption is not unjust to the workman, the Tribunal is required to grant redemption of weekly payments and must base the redemption sum on the employer’s liability for gross weekly amounts, not net of tax. The respondent suffered a compensable loss relating to the efficient use of his left leg within the meaning of the Act, justifying the award.

Court Disposition

Appellant's appeal dismissed; respondent's cross-appeal allowed to the extent of increasing the redemption sum; orders as to costs made.

Orders

  • The appellant’s appeal is dismissed.
  • The respondent’s cross-appeal is allowed by substituting for the amount of $130,760.65 ordered by way of redemption the amount of $153,437.50; otherwise the cross-appeal is dismissed.