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Taylor v Roper [2021] NZCA 691; [2022] 2 NZLR 671 (16 December 2021)

Last Updated: 16 October 2022

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IN THE COURT OF APPEAL OF NEW ZEALAND

I TE KŌTI PĪRA O AOTEAROA
CA597/2018
[2021] NZCA 691



BETWEEN

MARIYA ANN TAYLOR
Appellant


AND

ROBERT ROPER
First Respondent

ATTORNEY-GENERAL
Second Respondent

Court:

French, Brown and Clifford JJ

Counsel:

G F Little SC and G E Whiteford for Appellant
J F Mather and L M Herbke for First Respondent
A C M Fisher QC and E N C Lay for Second Respondent

Judgment:
(On the papers)

16 December 2021 at 10.30 am


JUDGMENT OF THE COURT

A The application for recall is granted.

B [2020] NZCA 268 is recalled and reissued.

  1. The second respondent must pay the appellant costs for a standard application on a band A basis with usual disbursements

____________________________________________________________________

REASONS OF THE COURT

(Given by Brown J)

Introduction

The recall application

2.1 Section 21B ... is relevant to the question of whether the claims for compensatory damages made by appellant, Ms Taylor, are barred by s 317 of the Act;

2.2 Cover under s 21B arises independently of cover under s 21 of the Act; and

2.3 The relevance of s 21B of the Act was not drawn to the Court’s attention by any party.

Section 21B

21B Cover for work-related mental injury

(1) A person has cover for a personal injury that is a work-related mental injury if—

(a) he or she suffers the mental injury inside or outside New Zealand on or after 1 October 2008; and

(b) the mental injury is caused by a single event of a kind described in subsection (2).

(2) Subsection (1)(b) applies to an event that—

(a) the person experiences, sees, or hears directly in the circumstances described in section 28(1); and

(b) is an event that could reasonably be expected to cause mental injury to people generally; and

(c) occurs—

(i) in New Zealand; or

(ii) outside New Zealand to a person who is ordinarily resident in New Zealand when the event occurs.

(3) For the purposes of this section, it is irrelevant whether or not the person is ordinarily resident in New Zealand on the date on which he or she suffers the mental injury.

(4) Section 36(1) describes how the date referred to in subsection (3) is determined.

(5) In subsection (2)(a), a person experiences, sees, or hears an event directly if that person—

(a) is involved in or witnesses the event himself or herself; and

(b) is in close physical proximity to the event at the time it occurs.

(6) To avoid doubt, a person does not experience, see, or hear an event directly if that person experiences, sees, or hears it through a secondary source, for example, by—

(a) seeing it on television (including closed circuit television):

(b) seeing pictures of, or reading about, it in news media:

(c) hearing it on radio or by telephone:

(d) hearing about it from radio, telephone, or another person.

(7) In this section, event

(a) means—

(i) an event that is sudden; or

(ii) a direct outcome of a sudden event; and

(b) includes a series of events that—

(i) arise from the same cause or circumstance; and

(ii) together comprise a single incident or occasion; but

(c) does not include a gradual process.

Submissions

(6) Work-related personal injury does not include a personal injury suffered by a person when all the following conditions exist:
(a) the personal injury is suffered in any of the circumstances described in subsection (1); and

(b) the personal injury is suffered in the circumstances described in section 21; and

(c) the person elects to have the personal injury regarded as a non-work injury, in which case that personal injury is a non‑work injury.

(a) Is s 21B inapplicable because it is prospective only?

(b) Were the incidents of false imprisonment “sudden” events (s 21B(7)(a)(i))?

(c) Were the incidents of false imprisonment a gradual process (s 21B(7)(c))?

(d) Did the incidents of false imprisonment arise from the same cause or circumstance and together comprise a single incident or occasion (s 21B(7)(b)(i) and (ii))?

While there is a degree of overlap in the latter issues, it is nevertheless useful for the purposes of analysis to consider them separately.

Is s 21B inapplicable because it is prospective only?

36 Date on which person is to be regarded as suffering mental injury

(1) The date on which a person suffers mental injury in the circumstances described in section 21 or 21B is the date on which the person first receives treatment for that mental injury as that mental injury.

(a) the first mention of Mr Roper in Ms Taylor’s medical notes was in 19 November 2015;[9]

(b) the first reference to PTSD was on 4 July 2016;

(c) there is no evidence of Ms Taylor ever seeing a psychologist or psychiatrist prior to December 2016;[10] and

(d) the first diagnosis of PTSD was in Dr Eshuys’ report, completed on 5 January 2017 following the interview on 5 December 2016.

Were the incidents of false imprisonment “sudden” events?

Neither were the events that occurred sudden because she was forewarned about the conduct of her tormentor so what occurred was not unexpected although it was untoward.

It is not and never has been necessary to show some causative incident which is unexpected and undesigned. That is often the situation with accident and the injury which results from it. But it is still personal injury by accident when the event or activity, or the incident is designed and intended and may have usually unremarkable results. The accident in that case is the unexpected and unintended consequence and is equally an accident as that in which the result or injury is the inevitable and expected consequence of an unforeseen event.

25 Accident

(1) Accident means any of the following kinds of occurrences:

(a) a specific event or a series of events, other than a gradual process, that—

...

(ii) involves the sudden movement of the body to avoid a force (including gravity), or resistance, external to the body; or

...

The Act covers mental injury in 2 situations: mental injury suffered because of the claimant’s physical injuries, and mental injuries suffered as a result of certain types of sexual abuse or assault. No cover is currently available for mental injury caused by exposure to a sudden traumatic event in the course of employment (for example, witnessing a colleague shot in a bank robbery, or a train driver hitting someone on the tracks).

...

The Bill introduces cover for mental injury caused by exposure to a sudden traumatic event in the course of employment. This provides cover for clinically significant mental injuries, rather than temporary distress that constitutes a normal reaction to trauma. The event must be seen, heard, or experienced by the person directly (and not, for example, seen on television), and be one which could reasonably be expected to cause mental injury. It does not introduce cover for mental injury caused by non-physical stress (gradual onset) in the workplace. ...

Were the incidents of false imprisonment a gradual process?

Submissions following this Court’s minute

[3] The parties’ submissions proceeded on the binary footing that the operative cause of a work-related mental injury was either an event as particularised in s 21B(7)(a) and (b) or the result of a gradual process. See for example paragraph 21 of the second respondent’s submissions explaining what distinguishes a “series of events” from a “gradual process”.

[4] The parties’ submissions do not explicitly address the possibility that s 21B(7) should be interpreted so as to accommodate three permutations namely:

(a) an event satisfying the criteria in s 21B(7)(a) and (b); or

(b) a sequence of events that do not fulfil the criteria in s 21B(7)(b), for example because they comprise a number of events which occur over a substantial period of time and which cannot sensibly be viewed as arising from the same cause or circumstances; or

(c) a gradual process.

... excluding the combining of a number of events on different occasions to have a cumulative effect in causing the mental injury as qualifying for cover. This is perhaps loosely described in s 21B(7)(c) as not including a gradual process i.e. not a continuum of a specific causative event but an accumulation of separate and distinct events separate in place and time. The latter cannot be converted into being “caused by a single event.”

Her submission in response to our question further stated:

Subsection 7(c) merely refers to the exclusion of a disease of gradual process to make it abundantly clear that incidents could not be accumulated over time to produce the mental injury when the entitlement was strictly controlled to a single event which could be a sole occurrence or a chain of occurrences still being part of the one event.

[Section] 21B(7) does not preclude cover for a sequence of events that do not fulfil the criteria in s 21B(7)(b). Any sequence of events that factually formed one event would come within s 21B(7)(b), and any series of events, each one of which arose from a separate cause or circumstance, would fall within s 21B(7)(a).

3.1 In some instances (such as seeing someone hit by a train or shot in a robbery), there is a singular distinct experience which would make it unnecessary to take a detailed assessment of the various components of the ‘event’.

3.2 Subsection 21B(7)(b) clarifies the definition of ‘event’, so that a person may also qualify for cover where they have experienced a series of events that arise from the same cause or circumstance and together comprise a single incident or occasion.

3.3 As this Court observed, there may be a sequence of events that do not fulfil the criteria in s 21B(7)(a) and (b). An example of this is where a person has the misfortune of falling victim to a number of unrelated events, say a mixture of work-related and personal stressors. Where the individual events alone are not of sufficient gravity to cause mental injury and are not linked to one another as required, a person would not have cover under s 21B.

3.4 The definition is also tempered by subs 21B(7)(c) which clarifies that an ‘event’ (including a series of events) does not include a gradual process. This is where the events are “so gradually incremental that they cannot be distinguished one from the other” such that a single causative event or series of events cannot be identified. A case with a background of minor events concluding with a “final straw” event may also fall into the category of a gradual process.

3.5 Finally, the Courts have recognised that there may be a combination of both a process of indistinguishable minor events as well as more significant stressor events. The question in these cases is whether the serious events can be isolated out from the other stressors — so that it is not an accumulation or constellation of stressors as a whole that can be said to be causative — but a small number of events (arising from the same cause or circumstance and comprising an event) that are a material cause of the mental injury.

It was the Attorney-General’s contention in this set of submissions that each instance of false imprisonment could qualify for cover under the first scenario, or in the alternative Ms Taylor’s circumstances satisfied the second of the scenarios and hence she qualified for cover.

“Gradual process”

Did the incidents of false imprisonment arise from the same cause or circumstance and together comprise a single incident or occasion?

Conclusion

(a) they were not “sudden” incidents; and

(b) they did not together comprise a single incident or occasion.

Result





Solicitors:
Davenports City Law, Auckland for Appellant
Barter Law, Auckland for First Respondent
Crown Law Office, Wellington for Second Respondent


[1] M v Roper [2018] NZHC 2330.

[2] Taylor v Roper [2020] NZCA 268 [Court of Appeal judgment] per Brown and Clifford JJ, French J dissenting.

[3] Attorney-General v Taylor [2020] NZSC 152.

[4] Horowhenua County v Nash (No 2) [1968] NZLR 632 (SC) at 633.

[5] The Attorney-General also makes an argument that each instance of detention could be considered a single event. This submission is discussed later.

[6] Taylor v Roper CA597/2018, 21 April 2021 (Minute No 2).

[7] Taylor v Roper CA597/2018, 21 September 2021 (Minute No 3).

[8] Court of Appeal judgment, above n 2, at [143].

[9] At [23] and [116].

[10] At [30].

[11] At [39].

[12] Reference was made to the definition in The Oxford English Dictionary (2nd ed, Clarendon Press, Oxford, 1989) vol XVII at 115: “Happening or coming without warning or premonition; taking place or appearing all at once.”

[13] Lumbercorp (BOP) Ltd v GIO Insurance Ltd (2000) 11 ANZ Insurance Cases 61-475.

[14] Citing New Zealand Municipalities Co-operative Insurance Co Ltd v Mayor, Councillors and Citizens of the City of Tauranga CA171/86, 21 September 1988.

[15] Citing Vee H Aviation Pty Ltd v Australian Underwriting Pool Pty Ltd SC61/1993, 20 December 1996 (ACTSC).

[16] Accident Compensation Corporation v E [1991] NZCA 167; [1992] 2 NZLR 426 (CA) at 428 and 432.

[17] Accident Compensation Corporation v E [1990] NZHC 1419; [1991] 2 NZLR 228 (HC) at 231.

[18] Lumbercorp (BOP) Ltd v GIO Insurance Ltd, above n 13, at [29].

[19] Sun Alliance & London Insurance Group v North West Iron Co Ltd [1974] 2 NSWLR 625 at 631–633 (NSWSC), following a similar interpretation adopted in Anderson & Middleton Lumber Co v Lumbermen’s Mutual Casualty Co 333 P 2d 938 (Wash 1959) at 940–941. This was also the interpretation adopted in the more recent case of Visy Packaging Pty Ltd v Siegwerk Australia Pty Ltd [2013] FCA 231, (2013) 301 ALR 560 at [93].

[20] At 632.

[21] KB v Accident Compensation Corporation [2013] NZACC 41 at [26]–[27]. Leave to appeal to the High Court was declined: KB v Accident Compensation Corporation [2014] NZACC 336.

[22] OCS Ltd v TW [2013] NZACC 177 at [79]–[82].

[23] MC v Accident Compensation Corporation [2016] NZACC 264, [2017] DCR 59 at [5]. The PTSD was also said to be linked to his work during a similar period as a police officer.

[24] At [77].

[25] At [83]–[85].

[26] MHF v MidCentral District Health Board [2020] NZACC 18 at [397].

[27] At [403].

[28] At [443].

[29] Found in s 28 of that act.

[30] Samuel Hack and others (ed) Personal Injury in New Zealand (online looseleaf ed, Thomson Reuters) at [AC25.09].

[31] O’Regan v Accident Rehabilitation and Compensation Insurance Corp DC Huntly No 5/99, 21 January 1999.

[32] Injury Prevention, Rehabilitation, and Compensation Amendment Bill (No 2) 2007 (170-1) (explanatory note) at 4.

[33] Section 21B(2)(a).

[34] Section 21B(2)(b).

[35] M v Roper, above n 1, at [52].

[36] Minute No 3, above n 7.

[37] Injury Prevention, Rehabilitation, and Compensation Amendment Bill (No 2) 2007 (170-1) (explanatory note) at 4.

[38] Injury Prevention, Rehabilitation, and Compensation Amendment Bill (No 2) 2007 (170-2) (select committee report) at 2.

[39] At 3.

[40] Quoting Court of Appeal judgment, above n 2, at [168] per French J.

[41] KB v Accident Compensation Corporation, above n 21.

[42] MHF v MidCentral District Health Board, above n 26, at [397].


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