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Federal Court of Australia |
Last Updated: 9 August 2011
FEDERAL COURT OF AUSTRALIA
Henderson v Comcare [2011] FCA 839
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Citation:
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Henderson v Comcare [2011] FCA 839
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Appeal from:
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Henderson and Comcare Australia [2010] AATA 700
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Parties:
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File number:
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VID 872 of 2010
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Judge:
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JESSUP J
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Date of judgment:
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Catchwords:
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Legislation:
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Place:
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Melbourne
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Division:
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GENERAL DIVISION
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Category:
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Catchwords
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Number of paragraphs:
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Solicitor for the Applicant:
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Clark Toop Taylor
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Counsel for the Respondent:
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Mr J Wallace
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Solicitor for the Respondent:
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Thomsons Lawyers
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THE COURT ORDERS THAT:
Note: Settlement and entry of orders is dealt with in Order 36 of
the Federal Court Rules.
The text of entered orders can be located using
Federal Law Search on the Court’s website.
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ON APPEAL FROM THE ADMINISTRATIVE APPEALS TRIBUNAL
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BETWEEN:
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JUDITH HENDERSON
Applicant |
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AND:
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COMCARE
Respondent |
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JUDGE:
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JESSUP J
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DATE:
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28 JULY 2011
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PLACE:
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MELBOURNE
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REASONS FOR JUDGMENT
(1) In this Act:
injury means:
(a) a disease suffered by an employee;
....
but does not include a disease, injury or aggravation suffered as a result of reasonable administrative action taken in a reasonable manner in respect of the employee’s employment.
(2) For the purposes of subsection (1) and without limiting that subsection, reasonable administrative action is taken to include the following:
(a) a reasonable appraisal of the employee’s performance;
(b) a reasonable counselling action (whether formal or informal) taken in respect of the employee’s employment;
(c) a reasonable suspension action in respect of the employee’s employment;
(d) a reasonable disciplinary action (whether formal or informal) taken in respect of the employee’s employment;
(e) anything reasonable done in connection with an action mentioned in paragraph (a), (b), (c) or (d);
(f) anything reasonable done in connection with the employee’s failure to obtain a promotion, reclassification, transfer or benefit, or to retain a benefit, in connection with his or her employment.
It was common ground before the Tribunal that the ailment suffered by the applicant was a “disease” within the meaning of s 5A(1)(a), and that, save for the matters that were in contention, the applicant would have been entitled to compensation.
Did the Tribunal fail to deal with a submission seriously advanced and relevant to the issue before the Tribunal that the senior manager’s complaint and the threat to veto salary progression conveyed to the Applicant was not action within the exclusionary proviso?
The corresponding ground of appeal was as follows:
The Tribunal was obliged to deal with a submission seriously advanced and relevant to the outcome of the review that the communication to the Applicant by her supervisor of a complaint about the failure to return a telephone call and subsequent threat to veto her salary progression made by a senior manager was action that could not be within the exclusionary proviso. The uncontradicted evidence was that the manager who made the threat had no power to do so, had made the threat based on an assumption of certain facts which were erroneous, and from a conclusion concerning the conduct of the Applicant which he had failed to investigate and which the supervisor who passed on the threat in the meeting of 25 July 2007 had adopted without enquiring as to the truth of the basis. On the evidence of the Applicant, not contradicted by the Respondent, she had attempted to return the telephone call, the subject of the complaint, in a manner which the Respondent’s witness, a Human Resources manager accepted would not constituted [sic] a basis for any relevant complaint. This threat was complained of by the Applicant as a cause of her injury to medical practitioners and medical experts in distinction to other actions in that meeting.
As will be apparent, this ground alleged a failure by the Tribunal to deal with a submission seriously advanced on behalf of the applicant.
Section 5A(2) of the SRC Act lists examples of action that might be described as reasonable administrative action for the purposes of s 5A(1) of the SRC Act, but is preceded by the words without limiting that subsection. The Tribunal accepts Mr Cavanagh’s evidence that after receiving the complaint from Mr Taylor he was required, as Ms Henderson’s supervisor, to discuss the matters with her and to provide the necessary feedback on these and other concerns that had been raised by senior management. The Tribunal concludes that the administrative action in holding the meeting to provide informal counselling and to discuss the complaint and other aspects of feedback on Ms Henderson’s performance was lawful and appropriate in the circumstances. Therefore the Tribunal finds that the 25 July meeting was reasonable administrative action.
The Tribunal accepts that during the meeting Ms Henderson became upset and was distressed at the nature of the complaints by Mr Taylor and by the feedback provided by Mr Cavanagh more generally about issues raised by senior management. However after hearing evidence from Ms Henderson and Mr Cavanagh, and examining his contemporaneous diary entries, the Tribunal is satisfied that the meeting was conducted in a professional manner and was held in private. Discussion of the issues that had been raised by senior management was conducted in a rational manner and Mr Cavanagh had given Ms Henderson adequate opportunity to respond. The diary notes suggest that the meeting covered areas where improvements could be made to Ms Henderson’s performance and included a range of possible solutions such as mentoring and improved communications. Ms Henderson’s telephone call to Ms Lindley later that day appeared to be based on the substance of Mr Taylor’s complaint and other issues rather than the conduct of the meeting. For these reasons the Tribunal finds that the administrative action was taken in a reasonable manner.
It was submitted on behalf of the applicant in this proceeding that the Tribunal had failed to deal with the point made on her behalf as to Mr Taylor’s absence of power, and that this constituted an error of law.
I recall a particular incident when Mr Cavanagh had been absent and I had received a complaint from the Senior Line Manager, Mr Martin Taylor, about the Applicant’s lack of professionalism in failing to return his calls. Mr Taylor had complained to me that he had tried to contact the Applicant on various occasions and had not received a reply. The Applicant had reported to Mr Taylor that as she was at a conference at the time of his calls, she did not consider it necessary for her to return his calls. Mr Taylor had advised me that he was extremely disappointed in the Applicant’s behaviour, particularly as she was the Safety Officer onsite and should have returned his call given that the matter could have concerned a safety issue. Mr Taylor commented that he considered this behaviour should be reflected in Ms Henderson’s next performance review. I recall Mr Cavanagh having a discussion with the Applicant in respect of Mr Taylor’s comments.
The Applicant had then called me in person to complain about Mr Taylor’s comments about her and noted that as Mr Taylor was not her direct supervisor, his comments could not influence her performance appraisal or her prospects of being promoted. I advised the Applicant, that whilst Mr Taylor was not her direct supervisor, he was mine, and that his comments would be taken into account when I was assessing the Applicant’s overall performance.
Mr Taylor’s comment to Ms Lindley was not that he would stop the applicant’s progression, but that he considered that her behaviour “should be reflected in [her] next performance review”. When Ms Lindley said, at the end of the first paragraph set out above, that she recalled Mr Cavanagh having a discussion with the applicant in respect of Mr Taylor’s comments, she was referring to the meeting of 25 July 2007. The discussion which is the subject of the second paragraph set out above was, it seems, had between Ms Lindley and the applicant some time after that meeting (probably later on the same day, but the exact timing is of no moment). Again, Ms Lindley acknowledged, in her discussion with the applicant, that it was not Mr Taylor who would directly affect the salary progression, but that his comments might be taken into account by herself when she was assessing the applicant’s performance.
I think I had – and I can’t remember whether this was two different conversations, I remember one of them happening, but it could well have been in two parts. Judy – I had told Judy that Martin – and I’ll use first names, if that’s okay – I’d said that Martin was concerned and upset about that lack – the return of the phone call, and I – we had a conversation about what the impact of his concerns would be. And I said to her that he had certainly said to me that he thought that it was bad enough that it would mean that she shouldn’t be considered fully effective, therefore shouldn’t be progressed, or – and I guess more importantly, it would be a confidence and a performance issue. She asked me – told me that that wasn’t fair, and in fact he had no right to do that – and in some ways that’s true, because in the PFADs thing, that there’s a supervisor and a second line – the second manager. However, because – I explained that it was because Martin was my direct manager, certainly his views were something that I would take into account. I didn’t say that – what I would do about it, but it was certainly something that would inform my decision on – in the feedback that I gave.
The matter was not usefully taken any further in cross-examination, save that Ms Lindley acknowledged that Mr Taylor could not “formally” threaten to block the applicant’s salary progression.
As I was the Applicant’s manager, I had been requested by senior managers to provide her with feedback in respect of her behaviour. I recall, in particular, an incident with Mr Martin Taylor, an SES Officer, who was our Assistant Secretary of Science Corporate Management at the time. He had requested that I speak with the Applicant about her failing to return his telephone call, which occurred whilst I was on leave. Given that the Applicant had not retuned [sic] Mr Taylor’s telephone call, he was underprepared for a meeting, as the Applicant had not provided him with the necessary information required at the meeting. I recall approaching the Applicant and asking that she come and speak with me about her failure to return Mr Taylor’s phone call, at which she sarcastically replied in front of her colleagues, that she was not required to return Mr Taylor’s call, as she was in training. I then requested that the Applicant come and speak with me in private about this issue.
Mr Cavanagh made notes of the terms in which the concerns were raised by Mr Taylor, which included the following:
He is inclined to recommend no salary progression unless you can demonstrate an improvement in the relationship with the executives etc. We need to include something that is reasonable in JH PFADS.
Counsel for the respondent suggested that the “you” referred to in this passage was Mr Cavanagh himself, not the applicant. “JH” was, of course, the applicant; and “PFADS” was Performance Feedback Assessment and Development Scheme. Under cross-examination, Mr Cavanagh was asked whether Mr Taylor had told him that the applicant’s performance progression could be “deferred”, and he responded that Mr Taylor had said “that he was inclined not to support her progression claim”. It was put to him, in the light of the fact that Mr Taylor had no power to affect the applicant’s progression, that it was unfair of him to pass on to her Mr Taylor’s comment that her progression could be deferred, to which Mr Cavanagh responded:
The comment I made, that I passed on, was to make Ms Henderson aware of the severity of this situation and that Mr Taylor had made that comment. Whether or not he could or couldn’t was not discussed at that time. It was simply a way of ensuring that Ms Henderson understood how serious the senior manager thought this was.
When it was put to Mr Cavanagh that it would be unfair to suggest that Mr Taylor had such a power to affect the applicant’s progression, Mr Cavanagh replied:
Well, I didn’t suggest that. I purely passed on his comment, which was saying I’m inclined not to support her salary progression.
....
The Tribunal’s conclusion in para 23 was that the meeting of 24 October 2007 “constitutes administrative action by DSTO for the purposes of the SRC Act”. The conclusion in para 25 was that the same meeting did not constitute such action.
The Tribunal accepts that Ms Henderson was distressed at the nature of the complaint by Mr Taylor regarding the threat to her salary progression. However, as Mr Cavanagh’s diary notes demonstrate, she was also upset and felt unsupported by senior management over the range of issues raised by Mr Cavanagh as relayed by management. The Tribunal concludes that, based on the evidence including reports by relevant medical professionals, the matters discussed at the 25 July meeting including the complaint by Mr Taylor and feedback on other issues raised by senior management contributed directly to her adjustment disorder. Therefore the Tribunal finds that the condition was suffered as a result of the administrative action.
In the applicant’s reading of this paragraph, it is implicit that the Tribunal relied upon reports by relevant medical professionals in support of its conclusion that the event of 25 July 2007 contributed directly to her ailment. In the relevant ground of appeal, the matter was put in the following terms:
There was no evidence from any medical expert that any complaint had been made of distress, emotional symptoms or upset from the specific event occurring on 25 July 2007, other than the threat of denial of salary progression, upon which to base such a conclusion. There was no evidence of any causal connection in the medical evidence upon which the Tribunal stated it relied that identified any contribution from matters discussed other than the unreasonable the [sic] threat to veto salary progression.
In July 2007 when she was informed by Mr Cavanagh that Mr Taylor was not satisfied with her lack of phone contact she was also advised by Mr Cavanagh that Mr Taylor had had feedback from the Melbourne executive that she was ineffective in her role and that her salary progression would be vetoed by Mr Taylor. She was upset at the time. She advised Mr Cavanagh that Mr Taylor could stick the salary progression. She advised she was disappointed and deeply hurt. That night however she did ring Ms Lindley and advised what had transpired and from that telephone conversation she understood that Mr Taylor had no role in the salary progression and Ms Lindley confirmed this. She also understood that Mr Taylor was a strong man with firm opinions and it was hard to change his views and perceptions. She advised Ms Lindley that the role clarity would still be required. She states Ms Lindley indicated she could hear she was upset on the telephone call and that they would need to have a further conversation about what needs to happen.
Self-evidently, this passage in Dr Webster’s report set out part of the factual history provided to him by the applicant. In that part of his report headed “Assessment” Dr Webster said:
Ms Henderson documents difficulties in early 2007 with executives whom she provides consultancy service to. She reports there was no action taken and that there are ongoing issues with these executives. She documents a number of incidents that I have reported in this history.
Ms Henderson now appears to be suffering from an Adjustment Disorder and is still having difficulty. She is still emotionally fragile. For her to progress she needs to have mediation with Mr Cavanagh in good faith and have outstanding issues resolved and a developed plan for a way forward.
Ms Henderson will require role clarity of her position description with accountabilities in writing so that this can be utilised as part of her communication with executive level employees so her roles and responsibilities of safety are clear to all.
Asked to provide his diagnosis, Dr Webster said that the applicant suffered from an “adjustment disorder with depression”. Asked to set out the basis upon which he made that diagnosis, Dr Webster said:
Ms Henderson has had significant stressors which she relates to employment and she presents in such a manner that she is tearful, upset, agitated and appears mildly depressed.
There was, in my opinion, sufficient in the report by Dr Webster to justify the conclusion of the Tribunal which I have set out in para 17 above.
That she was called to account for not attending to a request by a senior staff member when that was not, in her view, part of her responsibilities. Furthermore that it was indicated by a senior staff member that this would adversely affect her salary progression.
Although noting that he was neither sufficiently informed nor appropriately qualified to comment on whether the applicant’s perceptions of the events which she related to him was accurate, Mr Adler continued:
From a psychological perspective however I can confirm that these events, as perceived by Mrs Henderson, have had a significant adverse effect on her mental health and wellbeing.
Self-evidently, the event of 25 July 2007 was within those related to Mr Adler by the applicant, and utilised by him in reaching that conclusion. I consider that Mr Adler’s report, together with the other evidence which was before it, provided support for the Tribunal’s conclusion as set out in para 17 above. I would, therefore, reject the submission made on behalf of the applicant that there was no evidence before the Tribunal which could provide support for its conclusion that the matters discussed at the meeting of 25 July 2007, including the complaint by Mr Taylor, and feedback on other issues raised by senior management, contributed directly to the applicant’s adjustment disorder.
Dated: 28 July 2011
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