Ellen Malvina Dey (widow of Gordon Dey) v Victorian Railways Commissioners
[1949] HCA 1
High Court of Australia
1949-01-01
cited 12×
Justice Barry
Leading authority
Treatment by later cases (13)
12 neutral
1 caution
Citation timeline
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Applicant: Ellen Malvina Dey (widow of Gordon Dey)
Respondent: Victorian Railways Commissioners
Ratio
An employee's widow and dependants retain the right to sue independently at common law for damages under Lord Campbell's Act notwithstanding a prior award of workers' compensation, unless the employee or dependant has exercised a conscious choice between remedies with full knowledge of both alternatives. The making of a compensation award does not by itself bar independent proceedings; rather, the bar arises only from an actual election made with knowledge. Children who were not properly represented before the compensation board (lacking a next friend as required by rules) are not bound by an award obtained in the mother's name.
Outcome
Resolved
partial
Authority signal
Leading authority
Signal-weighted score: 14.1
Derived from how later decisions have treated this case. Dark green = leading authority,
green = positively treated, grey = neutral or sparse data,
amber = caution, red = treated negatively.
Key facts · 10
- Gordon Dey, an assistant station master employed by Victorian Railways Commissioners, was killed on 29 April 1947 in an accident at work (struck by trucks at a level crossing)
- On 9 May 1947, a union official (E.H. Ruddell) wrote to the employer applying for workers' compensation on behalf of the widow and four dependent children
- On 19 May 1947 the employer notified the Workers' Compensation Board of the claim naming the widow and four children as claimants
- On 26 May 1947 the Board made an award of £1,100 to be paid into the custody of the Board (£1,000 base plus £25 per child under 16)
- On 28 May 1947 the employer paid the award amount into the Board's custody
- On 28 May 1947 (same day) the widow's solicitors wrote to the Board stating the widow was unaware of her option to sue independently and requesting the Board withhold payment
- On 30 September 1947 the widow commenced an action in County Court (later transferred to Supreme Court) claiming £9,006 4s 6d damages under the Wrongs Act 1928 (Lord Campbell's Act) on behalf of herself and her four children
- The defendant applied to dismiss the action as frivolous and vexatious, relying on s.5(2)(b) of the Workers' Compensation Act 1928 (Vict.)
- Barry J. dismissed the action, holding that the award created a final determination barring independent proceedings
- Four children were all under age 16 at time of award; no next friend was appointed or directed by the Board to represent them
Legislation referenced
- Workers' Compensation Act 1928 (Vict.) s.3(2), s.5(2)(b), s.12
- Workers' Compensation Act 1946 (Vict.) s.4, s.16, s.17, First Schedule
- Workers' Compensation Rules 1946 (Vict.) r.8, r.41, r.43, r.74, r.81
- Wrongs Act 1928 (Vict.) Part III (Lord Campbell's Act)
- County Court Rules 1930 (Vict.) Order 4, r.15, r.16
- County Court Act 1928 (Vict.) s.61
- Railways Act 1928 (Vict.) s.200, s.201
- Rules of Supreme Court (Vict.) Order XIV, Order XIX r.27, Order XXV r.2 r.4, Order XIVA
Concept tags · 6
Cases cited in this decision · 32
Cited
(1949) 78 CLR 62
(not in corpus)
"…Dey v Victorian Railways Commissioners [1949] HCA 1; (1949) 78 CLR 62 (22 February 1949) HIGH COURT OF AUSTRALIA DEY v. VICTORIAN RAILWAYS COMMISSIONERS [1949] HCA 1 ; (1949) 78 CLR 62 Workers' Compensation -...…"
Cited
[1936] HCA 70
(not in corpus)
"…of the Act. The words "at his option" have now been construed to involve a choice between the two alternatives mentioned with knowledge that the two alternatives are available. This view was taken in this Court in...…"
Cited
(1936) 56 CLR 422
(not in corpus)
"…words "at his option" have now been construed to involve a choice between the two alternatives mentioned with knowledge that the two alternatives are available. This view was taken in this Court in Latter v....…"
Cited
(1909) 2 KB 551
(not in corpus)
"…ly obtained an award under the Workers' Compensation Act , had thereby conclusively exercised his option. It was also held that even if the worker failed in a common-law action the option had been finally exercised:...…"
Cited
(1899) 2 QB 333
(not in corpus)
"…s' Compensation Act , had thereby conclusively exercised his option. It was also held that even if the worker failed in a common-law action the option had been finally exercised: see Cribb v. Kynoch, Ltd. (No. 2)...…"
Cited
(1902) 2 IR 504
(not in corpus)
"…Godfrey (1899) 2 QB 333 , where it was held that the worker had "exercised his option in favour of bringing a common law action which has failed." There were differences of opinion between the English and the Irish...…"
Cited
(1922) 2 KB 674
(not in corpus)
"…had "exercised his option in favour of bringing a common law action which has failed." There were differences of opinion between the English and the Irish Courts: see Beckley v. Scott & Co. (1902) 2 IR 504 ; Harrison...…"
Applied
(1913) 111 LT 512
(not in corpus)
"…e that it has often been held that the power of the court created by the rules mentioned or existing under the inherent jurisdiction of the court should not be exercised except in clear cases: see, for example,...…"
Cited
(1944) 1 KB 685
(not in corpus)
"…a responsibility to guard their interests. It is the interposition of the court, charged with the duty to watch over the infant's interests, that lends sanctity to a judgment for or against an infant and binds him:...…"
Cited
[1908] HCA 39
(not in corpus)
"…it must have failed. Order XIVA. is the counterpart for defendants of Order XIV. It confers a power of summarily dealing with an action which Barton J. said should be reserved for exercise as to actions that are...…"
Cited
(1908) 6 CLR 382
(not in corpus)
"…led. Order XIVA. is the counterpart for defendants of Order XIV. It confers a power of summarily dealing with an action which Barton J. said should be reserved for exercise as to actions that are absolutely hopeless:...…"
Cited
(1920) 42 ALT 98
(not in corpus)
"…g in such a way that either of those rules could be used, the application must have failed. For the power they confer is not to be used in cases of doubt or difficulty or where the pleading raises a debatable...…"
Cited
(1898) 24 VLR 405
(not in corpus)
"…sed, the application must have failed. For the power they confer is not to be used in cases of doubt or difficulty or where the pleading raises a debatable question of law: Agar v. Williamson Ltd. (1920) 42 ALT 98 ;...…"
Cited
(1890) 16 VLR 2
(not in corpus)
"…er they confer is not to be used in cases of doubt or difficulty or where the pleading raises a debatable question of law: Agar v. Williamson Ltd. (1920) 42 ALT 98 ; Healey v. Bank of New South Wales (1898) 24 VLR...…"
Cited
(1908) 1 KB 761
(not in corpus)
"…ses of doubt or difficulty or where the pleading raises a debatable question of law: Agar v. Williamson Ltd. (1920) 42 ALT 98 ; Healey v. Bank of New South Wales (1898) 24 VLR 405 ; Wall v. Bank of Victoria Ltd....…"
Cited
(1916) 115 LT 772
(not in corpus)
"…of law: Agar v. Williamson Ltd. (1920) 42 ALT 98 ; Healey v. Bank of New South Wales (1898) 24 VLR 405 ; Wall v. Bank of Victoria Ltd. (1890) 16 VLR 2 ; Goodson v. Grierson (1908) 1 KB 761, at pp 763, 764 ; Wright v....…"
Cited
(1914) 111 LT 512
(not in corpus)
"…. Bank of New South Wales (1898) 24 VLR 405 ; Wall v. Bank of Victoria Ltd. (1890) 16 VLR 2 ; Goodson v. Grierson (1908) 1 KB 761, at pp 763, 764 ; Wright v. Prescott Urban District Council (1916) 115 LT 772 ; Mayor,...…"
Cited
(1899) 1 QB 86
(not in corpus)
"…1890) 16 VLR 2 ; Goodson v. Grierson (1908) 1 KB 761, at pp 763, 764 ; Wright v. Prescott Urban District Council (1916) 115 LT 772 ; Mayor, &c., of City of London v. Horner (1914) 111 LT 512 ; Hubbuck & Sons, Ltd. v....…"
Cited
(1908) 7 CLR 76
(not in corpus)
"…whether of fact or law and that the rights of the parties depend upon it, then it is not competent for the court to dismiss the action as frivolous and vexatious and an abuse of process. (at p91) 14. In Burton v....…"
Cited
[1908] HCA 57
(not in corpus)
"…that the rights of the parties depend upon it, then it is not competent for the court to dismiss the action as frivolous and vexatious and an abuse of process. (at p91) 14. In Burton v. Shire of Bairnsdale [1908] HCA...…"
Cited
(1926) 2 KB 380
(not in corpus)
"…made liable thereafter under the other. It did not matter that some of the dependants were unaware of or were opposed to the imposition of that liability upon him. "Otherwise the employer might have to pay twice":...…"
Cited
(1914) 2 KB 61
(not in corpus)
"…some of the dependants were unaware of or were opposed to the imposition of that liability upon him. "Otherwise the employer might have to pay twice": Bennett v. L. & W. Whitehead, Ltd. (1926) 2 KB 380, at p 409 ;...…"
Applied
(1940) 1 KB 658
(not in corpus)
"…is option,' etc.), and not as further restricting by an added condition the workman's right of option. As Lord Patrick points out, and as was also laid down by the present Lord Goddard in the Court of Appeal in...…"
Cited
(1940) 1 KB 56
(not in corpus)
"…ption, he receives one or more weekly payments under the Act, and he then opts to issue a writ and recovers damages, the damages in the action would be reduced by the amounts already received. This view secures what...…"
Cited
(1908) 2 KB 551
(not in corpus)
"…n infant is as much bound by a judgment in his own action, as if of full age; and this is general, unless gross laches, or fraud and collusion appear in the prochein amy, then the infant might open it by a new bill."...…"
Applied
(1906) 2 KB 558
(not in corpus)
"…n, duly commenced in the name of the infant by a next friend, was prosecuted to judgment. In such case an infant is just as much bound by the proceedings as if he were adult. If authority be needed, Neale v. Electric...…"
Cited
(1889) 22 QBD 577
(not in corpus)
"…sence of a next friend who would have been responsible for the proper conduct of the proceedings on their behalf, and subject to the supervision which the court exercises over a next friend in the conduct of the...…"
Cited
[1833] EngR 842
(not in corpus)
"…tters, and if it appears on inquiry, or in clear cases without inquiry, that the proceeding is not for the infant's benefit it will be stayed, or, if the circumstances warrant it, dismissed with costs to be paid by...…"
Cited
(1732) 3 PW 140
(not in corpus)
"…at the proceeding is not for the infant's benefit it will be stayed, or, if the circumstances warrant it, dismissed with costs to be paid by the next friend: Nalder v. Hawkins [1833] EngR 842 ; (1833) 2 Myl & K 243...…"
Cited
[1852] EngR 181
(not in corpus)
"…it will be stayed, or, if the circumstances warrant it, dismissed with costs to be paid by the next friend: Nalder v. Hawkins [1833] EngR 842 ; (1833) 2 Myl & K 243 (39 ER 937) ; Da Costa v. Da Costa (1732) 3 PW 140...…"
Cited
[1839] EngR 919
(not in corpus)
"…costs to be paid by the next friend: Nalder v. Hawkins [1833] EngR 842 ; (1833) 2 Myl & K 243 (39 ER 937) ; Da Costa v. Da Costa (1732) 3 PW 140 (24 ER 1003) ; Anderton v. Yates [1852] EngR 181 ; (1852) 5 De G & S...…"
Cited
[1840] EngR 523
(not in corpus)
"…EngR 842 ; (1833) 2 Myl & K 243 (39 ER 937) ; Da Costa v. Da Costa (1732) 3 PW 140 (24 ER 1003) ; Anderton v. Yates [1852] EngR 181 ; (1852) 5 De G & S 202 (64 ER 1081) ; Fox v. Suwerkrop [1839] EngR 919 ; (1839) 1...…"
Subsequent treatment · 13
Caution· 1
Doubted
[2001] WASC 20
WA Supreme Court
— Hamersley Iron Pty Ltd v The Automotive, Food, Metals, Engineering, Printing...
Cited / considered· 12
Cited
[1964] HCA 69
High Court
— General Steel Industries Incorporated v Commissioner for Railways (NSW),...
Cited
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[2022] WAIRC 152
WAIRC — Single Commissioner
— Health Services Union of Western Australia (Union of Workers) v East...
¶28
Archived text (22332 words)
Dey v Victorian Railways Commissioners [1949] HCA 1; (1949) 78 CLR 62 (22 February 1949)
HIGH COURT OF AUSTRALIA
DEY v. VICTORIAN RAILWAYS COMMISSIONERS
[1949] HCA 1
; (1949) 78 CLR 62
Workers' Compensation - Practice
High Court of Australia
Latham C.J.(1), Rich(2), Dixon(3), McTiernan(4) and Williams(5) JJ.
CATCHWORDS
Workers' Compensation - Injury by accident arising out of or in course of
employment - Death of worker - Negligence of employer
- Option of dependants
to apply for compensation or take other proceedings - Award of compensation
obtained by widow on behalf of
herself and children - Effect of award as
barring claim by dependants under Lord Campbell's Act - Workers' Compensation
Acts 1928-
1946 (No. 3806 - No. 5128) (Vict.)* - Wrongs Act 1928 (No. 3807)
(Vict.), Part III. - The 1946 Workers' Compensation Rules, rr. 8,
81.*
Practice - Supreme Court (Vict.) - Dismissal of action - Abuse of process -
Inherent jurisdiction - Rules of the Supreme Court
(Vict.), Order XXV., rr. 2,
4.
HEARING
Melbourne, 1948, October 25-27; 1949, February 22. 22:2:1949
APPEAL from the Supreme Court of Victoria.
DECISION
1949, Febraury 22.
The following written judgments were delivered: -
LATHAM C.J. This appeal raises two questions: (1) The first question is
pursuance of which an employer has paid the amount awarded
into the custody of
the Workers' Compensation Board, prevents, in the circumstances of this case,
the widow of the worker or his
infant children from proceeding under the
Wrongs Act 1928
(Lord Campbell's Act) for damages. The Supreme Court of
Victoria (Barry
J.) answered this question in the affirmative and dismissed
the action under the
Wrongs Act
as frivolous and vexatious. (2) The second
question is whether the learned judge (whatever the answer to the first
question should
be) exercised his discretion rightly in striking
out the
action as frivolous and vexatious either under the Rules of the Supreme
Court,
Order XIVA or Order XXV, rule 4, or under
the inherent jurisdiction of the
court. The first question, it is contended by the
appellant, is a question of
substance and difficulty
and the plaintiff should have been allowed to go to
trial. (at p70)
2. The evidence before the Supreme Court showed that the husband of the
appellant was killed on 29th April 1947 by an accident arising
out of and in
the course of his employment with the defendant, the Victorian Railways
Commissioners. On 9th May 1947 Mr. E. H. Ruddell,
accountant of the Australian
Railways Union, wrote to the Secretary for Railways the following letter: -
"On behalf of the dependants of the late Gordon Dey,
formerly A.S.M. at Williamstown Beach, who was killed as a
result of accident on duty on 29th ultimo, I desire to apply
for compensation.
Deceased leaves a widow, Ellen Malvina Dey, born 22/10/07,
and four sons - Ivor William Dey, born 7/4/32; Timothy
Gordon Dey, born 29/6/35; Gordon Joseph Dey, born 18/3/39;
and John Anthony Dey, born 5/12/41."
On 19th May the employer, in accordance with s. 17 of the
Workers'
Compensation Act 1946
and the 1946 Workers' Compensation Rules,
rule 9, gave
notice that a claim for compensation had been made: see Form 12 in the
Appendix
to the rules. The notice was introduced
by the following statement,
as required by the prescribed form: -
"To the Registrar, Workers Compensation Board, 412 Collins
Street, Melbourne.
Take notice that a claim for compensation has been made
by or on behalf of Ellen Malvina Dey on her own behalf and
on behalf of her sons Ivor William Dey, Timothy Gordon Dey,
Gordon Joseph Dey and John Anthony Dey of 59 Railway
Crescent, Williamstown Beach - Claimants.
to The Victorian Railways Commissioners of Spencer Street,
Melbourne an employer in respect of the death of Gordon Dey
late of 59 Railway Crescent, Williamstown Beach Deceased,
ex Relieving Assistant Station Master."
It will be observed that the letter written by the accountant of the
Australian Railways Union made the claim on behalf of the widow
and the
children, and that in the employer's notice the claim was described as a claim
by the widow on her behalf and on behalf of
the children, and that they were
all described as claimants. The particulars in the notice stated that the
deceased left as dependants
his widow and four children under sixteen years of
age. The employer admitted liability to pay such compensation as the employer
was lawfully obliged to pay, "the amount of which is to be ascertained by the
Board." Notice of hearing of the proceedings was given
to the solicitor for
the commissioners on 21st May 1947. It was headed "In the matter of a claim by
Ellen Malvina Dey against the
Victorian Railways Commissioners" and gave
notice that the Board would proceed to hear "the claim in this matter" on 26th
May. In
accordance with s. 17 (2) of the
Workers' Compensation Act 1946
the
proceedings for the settlement of the claim were placed in the
summary list.
(at p71)
3. The widow was represented at the hearing by Mr. Ruddell, and she gave
evidence that she was the widow of the deceased and that
there were four
children of the marriage dependent upon him and that the names and dates of
birth of the children were as set out
in the claim for workers' compensation
which had been made on behalf of her and the said children by Mr. Ruddell. The
Board made
an award against the employer for 1,100 pounds, that amount being
determined by the provisions of clause 1 (a) of the First Schedule
to the
Workers' Compensation Act 1946
- 1,000 pounds and an additional sum of 25
pounds for each child under sixteen. The award was
in the following form: -
"Workers Compensation Acts
SUMMARY LIST Number 3169/47.
Before the Workers
Compensation Board (at p71)
4. In the Matter of a claim for Compensation made by Ellen Malvina Dey, the
Claimant to the Victorian Railways Commissioners, the
Employer in respect of
the death of Gordon Dey, the Deceased. AWARD
The Board having found that the deceased left Ellen Malvina Dey, his
widow, Ivor William Dey, Timothy
Dey, Gordon Joseph Dey and John Anthony Dey children
under 16 years of age at time of accident wholly dependent
upon his earnings.
Doth award the sum of 1,100 pounds to be paid into the custody of the Board,
the amount of the award being limited to the said sum
unless and until it is
shown that the deceased left a child or children under 16 years of age as
aforesaid other than the above-named
children. Leave being reserved to the
Claimant to prove in respect of costs of medical, hospital, nursing or
ambulance services or
of burial. Amount of Award: 1,100 pounds.
Dated the 26th day of May 1947
By Order of the Workers Compensation Board
Geo. T. Smith
Registrar." (at p72)
5. On 28th May the commissioners paid the amount of the award, 1,100 pounds,
into the custody of the Board and a receipt was given
by the registrar of the
Board as Receiver of Revenue for the Workers' Compensation Board. (at p72)
6. On the same day, 28th May, the solicitor for the widow and children wrote
to the registrar of the Board, stating that he had
been instructed to
institute a common-law action against the commissioners to claim damages on
behalf of the widow and children.
The letter included the following: - "I have
been instructed that an award has been made relative to the widow and children
of the
above deceased.
"I was instructed to act for the widow at an Inquest, which was heard this
day and I have been instructed to launch a Common Law
action against the
Victorian Railways Commissioners to claim damages on behalf of the widow and
children against the Victorian Railways
Commissioners.
"I am instructed that an official of the Railways' Union, who acted on
behalf of the widow, at no time explained to her that she
was making an
election to accept workers' compensation as distinct from an action at Common
Law and the Union Official today intimated
to my Mr. Quinn that he at no time
apprised her of the fact that she had a claim at Common Law before she elected
to take workers'
compensation.
"Under these circumstances would your Board kindly withhold any payments
herein until thorough investigations can be made preparatory
to the action
contemplated." (at p73)
7. On 30th May the registrar replied, stating that no further action would be
taken in the matter pending further instructions from
the solicitor for the
widow and children, but, that as already stated, the amount of the award had
been paid into the custody of
the Board on 28th May. (at p73)
8. On 30th September the appellant issued a County Court summons claiming
9,006 pounds 4s. 6d. against the commissioners on behalf
of herself and her
four children. The defendant applied for transfer of the action from the
County Court to the Supreme Court under
s. 61 of the
County Court Act 1928
upon the ground that the defendant proposed to conduct a defence based on the
fact that an award
had been made by the Workers' Compensation
Board and
contended that this defence would raise a difficult question of law. An order
was made transferring the action to the Supreme
Court and pleadings were
delivered. In her statement of claim the plaintiff alleged
negligence on the
part of the defendant commissioners
in seventeen particulars. The defendant,
who delivered a defence (agreed to
be without prejudice to proceedings for the
dismissal
of the action), relied upon contributory negligence under eleven
heads, as
well as on the defence already mentioned based upon the
making of
the award. Upon application by the defendant the action was dismissed
by Barry
J., his Honour stating that the facts were
indisputable and permitted of only
one conclusion, namely, that the award was
a final determination of a
statutory tribunal whereby
the employer became liable to pay compensation for
the fatal injury to the
deceased, and that the effect of s. 5 of the
Workers'
Compensation Act 1928
as amended was that the employer therefore could not
be
made liable to pay compensation for the injury to the worker independently
of
the Act. Therefore the action must fail, and his
Honour dismissed it instead
of involving the parties in a trial, which would
have involved unnecessary
delay and expense, and, if
his Honour's conclusion as to the law was correct,
would have resulted in the
same way. (at p73)
9. I propose now to refer to the relevant statutory provisions. The
Workers'
Compensation Act 1928
has been amended on several occasions.
The 1928 Act, s.
3 (2), provides: - "Any reference to a worker who has been injured shall
where
the worker is dead include a reference
to his legal personal representative or
to his dependants or other person to whom or
for whose benefit compensation is
payable."
Section 5, as last amended in 1946, contains the following
provisions: - "(1) If in any
employment personal injury by accident arising
out of or in the course of the employment is caused to a worker his employer
shall
subject as hereinafter mentioned be liable to
pay compensation in
accordance with the provisions of the Workers' Compensation Acts.
(2) Provided
that - . . . (b) - when the injury
was caused by the personal negligence or
wilful act of the employer or of some person
for whose act or default the
employer is responsible
or was such as to give a right to recover compensation
under section four hundred
and forty-one of the
Mines Act 1928
nothing in
this
Act or in any scheme under section thirteen of this Act shall affect any civil
liability of the employer, but in
any such case
the worker may at his option
either claim compensation under this Act or the said scheme (as the case may
be) or take
proceedings
independently of this Act or the said scheme (as the
case may be) but the employer shall not be liable to pay compensation
for
injury
to a worker by accident arising out of or in the course of the
employment both independently of and also under this Act
or the said
scheme
(as the case may be), and shall not be liable to any proceedings independently
of this Act or the said scheme
(as the case
may be), except in the cases
aforesaid." Section 12 as amended by the Act of 1937 is as follows: - "12. (1)
Proceedings
where action
brought independently of this Act or where appeal
from judgment therein - If, within the time limited for taking proceedings
under
this Act, an action is brought to recover damages independently of this
Act for injury caused by an accident, and it is determined
in such action or
on appeal that the injury is one for which the employer is not liable in such
action, but that he would have been
liable to pay compensation under the
provisions of this Act, the action shall be dismissed; but - (a) the court in
which the action
is tried, or (b) if the determination is the determination
(on an appeal by either party) by an appellate tribunal - that tribunal
-
shall remit the case to the Board for the assessment of compensation and in
such case the Board may deduct from the amount of compensation
assessed by it
all or part of the costs which in its opinion have been caused by bringing the
action instead of proceeding under
this Act. (2) Action independently of Act
after unsuccessful claim hereunder - Subject to this Act if it is determined
in any proceedings
under this Act that the injury is one for which the
employer is not liable under this Act such determination shall not prevent an
action being brought in respect of such injury independently of this Act and
the court in which such action is tried may deduct from
any damages awarded by
such court all or part of the costs which in its opinion have been caused by
the plaintiff having proceeded
under this Act instead of bringing the action."
This section gives the worker or his dependants a second chance where a claim
has
been unsuccessfully made either independently of the Act or under the Act.
It does not provide a second chance where either claim
has been successful.
(at p75)
10. By s. 16 of the 1946 Act a new s. 10 is inserted in the
Workers'
Compensation Act 1937
. That section provides that no payment,
with certain
exceptions, shall be deemed to be a payment of compensation or in valid
compromise
of any claim under the Act unless
the payment is made pursuant to
an award or an order of the Board. The section also provides that
if any
person otherwise than in
accordance with the award of the Board makes a
payment (other than a weekly payment to an infant
or a payment of medical &c.
expenses)
in purported payment of compensation or in purported compromise of
any claim under the
Act, then the person who makes the
payment
and (if that
person is an employee or agent of the employer concerned or of the employer's
insurer) the employer or insurer,
as the
case may be, shall be guilty of an
offence against the Act and liable to penalties. (at
p75)
11. The First Schedule to the 1946 Act (to which effect is given by s. 4 of
the Act) provides in par. 1 (1): - "The amount of compensation
shall be
ascertained as follows: - (a) Where death results from the injury: - (i) If
the worker leaves a widow or any children under
sixteen years of age at the
time of the accident or leaves any other dependants wholly dependent upon his
earnings, the amount of
compensation shall be the sum of One thousand pounds
together with an additional sum of Twenty-five pounds in respect of each such
child." Paragraph 5 of the First Schedule provides: - "The payment in the case
of death and any payment (other than a weekly payment)
payable to a person
under twenty-one years of age shall be paid into the custody of the Board and
any sum so paid shall, subject
to rules made by the Board and the provisions
of this Schedule, be invested applied or otherwise dealt with by the Board in
such
manner as the Board in its discretion thinks fit for the benefit of the
persons entitled thereto under this Act and the receipt of
the registrar shall
be a sufficient discharge in respect of the sum so paid." Under other
provisions in this paragraph the Board
may apply or otherwise deal with any
sum so paid into its custody in such manner as in the opinion of the Board
will for the time
being be most beneficial to the dependants, and generally
the Board is to administer the moneys paid into the custody of the Board.
(at
p75)
12. The principal matter arising upon this appeal depends upon the
construction of s. 5 (2) (b) of the 1928 Act. Sections 5 (2)
(b) applies, so
far as relevant, only in cases where the injury was caused by the personal
negligence or wilful act of the employer
or of some person for whose act or
default the employer is responsible. The following provisions apply to such
cases: -
(a) Nothing in the Act shall affect any civil liability of the employer.
Thus the claimant may sue the employer in the ordinary
way at common law or
under Lord Campbell's Act (Wrongs Act 1928) or under the Employers and
Employes' Act 1928, without being impeded
in any manner by the provisions of
the Act.
(b) In any such case the worker may at his option either claim compensation
under the Act or take proceedings independently of
the Act. The words "at his
option" have now been construed to involve a choice between the two
alternatives mentioned with knowledge
that the two alternatives are available.
This view was taken in this Court in Latter v. Muswellbrook Corporation
[1936] HCA 70
; (1936)
56 CLR 422
, and has since been taken by the House of Lords in Young v.
Bristol Aeroplane Co. Ltd. (1946) AC 163, at pp 173,
176, 187 . In the
present
case the widow was not aware that she had the right to sue independently of
the Act and accordingly did
not exercise or purport
to exercise any option
either on her own behalf or on behalf of the children.
(c) "But the employer shall not be liable to pay compensation for injury . .
. both independently of and also under this Act."
(d) The employer shall not be liable to any proceedings independently of the
Act except in the cases aforesaid; that is, except
in the cases where injury
was caused by the personal negligence or wilful act of the employer or of some
person for whom the employer
was responsible. (at p76)
13. The
Workers' Compensation Act
created a new means of obtaining
compensation for injuries the result of an accident arising out
of or
(originally "and") in the
course of the employment of a worker. The
establishment of this new remedy inevitably involved the
consideration of
difficulties
arising from the fact that where a person was injured there might
be several remedies available to
him. First, he might contend that
he was a
worker within the meaning of the
Workers' Compensation Act
, and that his
injury was due
to an accident arising out of or in the course of his
employment, and make a claim under that Act. In
the event of the death of the
worker his dependants might have rights under the Act. Secondly, the worker
might sue at common law
for damages for negligence. In
this case the questions
whether he was a "worker" and whether the accident which had caused his injury
arose out of or in the course
of his employment would be immaterial. Thirdly,
he might sue under the Employers and Employes' Act
1928, s. 35, alleging some
defect
in ways, works, machinery or plant, or some other of the grounds of
liability specified in s. 35
of that Act. Finally, if death resulted
from the
accident his dependants could claim under the
Wrongs Act 1928
for damages for
a wrongful act, neglect or default. The issues
in these proceedings would be
different, and the law as to estoppel
by judgment would not readily and
clearly solve the questions
which would arise. Unless some provision had been
made dealing with
these various possibilities an employer might be subjected
to
several proceedings at the same time in respect of the same injury,
and
unless it were made clear that the liability under the
Workers'
Compensation
Act
was not cumulative upon the other remedies mentioned the employer might
have to pay more than once to or for the
same claimants in
respect of the same
injury. Section 5 (2) (b) represents the endeavour of the legislature to deal
with these matters.
Lord Porter
said in Young v. Bristol Aeroplane Co., Ltd.
(1946) AC, at p 184 , with respect to the substantially identical English
section, "The
wording is not very artistic, but the aim is, I think, clear
enough, namely, to leave the workman his choice of two
remedies whilst
preventing the employer from having to pay both damages and compensation." The
aim of the section may have been clear
enough, but
the great and increasing
mass of judicial decisions shows that the section has not been a striking
legislative success.
In the course
of the argument upon this appeal we were
referred to a large number of these cases. Some of them can, I think, at once
be put on
one side as irrelevant for the purposes of the decision of this
appeal, either because they are based upon a view of the
meaning
of the
provisions with respect to the exercise of an option by a workman which has
now been displaced, or because there are
provisions
in the Victorian Act which
avoid a number of difficulties which have been found in other legislation
dealing with the
subject of
workers' compensation. (at p77)
14. In several cases it was held that if the worker pursued one or other of
his alternative remedies to a final conclusion he must
be deemed to have
exercised his option irrevocably - even though he did not know that there was
an option which he could exercise.
An example is to be found in Neale v.
Electric and Ordnance Accessories Co., Ltd. (1906) 2 KB 558 , where it was
held that a plaintiff
in an action at common law who had previously obtained
an award under the
Workers' Compensation Act
, had thereby conclusively
exercised
his option. It was also held that even if the worker failed in a
common-law action the option
had been finally exercised: see Cribb
v. Kynoch,
Ltd. (No. 2) (1909) 2 KB 551 ; Edwards v. Godfrey (1899) 2 QB 333 , where it
was
held that the worker had "exercised his
option in favour of bringing a
common law action which has failed." There were differences
of opinion between
the English and the
Irish Courts: see Beckley v. Scott & Co. (1902) 2 IR 504 ;
Harrison v. Wythemoor Colliery
Co., Ltd. (1922) 2 KB 674, at pp 687-688,
697-698 . But it is no longer possible after the decision in Young's Case
(1946) AC 163
to hold that the fact that the worker has
instituted proceedings
under the Act or otherwise or has obtained an award under the Act
or a
judgment, as the case may be, in itself
constitutes an exercise of his option.
The one thing which is clearly decided in Young's
Case (1946) AC 163 is that
there can be
no exercise of the option without a knowledge that alternative
courses are open. Thus the
cases which hold that obtaining an award
or a
judgment has the effect of exercising an option can no longer be regarded as
authorities
upon what I have referred to as provision
(b) in s. 5 (2). (at
p78)
15. Further, there are special provisions in the Victorian Acts which remove
difficulties which have been experienced in the interpretation
of the
application of other legislation. Questions arose whether agreements to accept
a sum by way of compensation or actual acceptance
of moneys by way of
compensation prevented the worker from taking proceedings independently of the
Act, either because such agreement
or such acceptance had the same effect as
an award under the Act, or because the liability under the Act was discharged
and satisfied
by the agreement and the acceptance of moneys as compensation.
As already stated, the 1946 Act, s. 16, prohibits under penalty, in
such a
case as the present, which is a case of death, the making of agreements as to
compensation, and prevents any acceptance of
moneys from operating as a
satisfaction of liabilities under the Act. There must be an award in this case
to create liability under
the Act, and no acts of the parties can substitute
any agreement or course of action so as to bring about the same result as an
award.
(at p78)
16. Another provision in the Victorian Act which provides for cases not
covered in similar Acts is to be found in the 1928 Act,
s. 12, as amended by
the Act of 1937. Section 12 (1) provides for the case where the workman makes
an unsuccessful claim independently
of the Act for damages for injury caused
by an accident. Provision is made for the court in which the action is tried
to determine
whether the employer would have been liable to pay compensation
under the
Workers' Compensation Act
, and, if so, to remit the case
to the
Workers' Compensation Board for assessment of compensation. Provisions of this
character are
to be found in other legislation.
But s. 12 (2) is an additional
provision not to be found in any other legislation to which reference
has been
made during argument.
It provides for the case of an unsuccessful claim under
the Act and enacts that, if it is determined
in proceedings under the Act
that
the injury is one for which the employer is not liable under the Act, that
determination shall
not prevent an action being brought
in respect of that
injury independently of the Act. The absence of such a provision has caused
many difficulties in England, but
these difficulties do not arise under the
Victorian Act. (at p79)
17. The principal argument for the appellant was that the operation of
provision (c) in the section depended entirely upon the prior
operation of
provision (b); that is to say, that provision (c) never came into operation so
as to limit in any way the rights of
a worker unless the worker had actually
exercised the option given to him by provision (b). That option could not be
exercised unless
there were knowledge of the available alternatives. In the
present case neither the widow nor the children had exercised the option,
and
therefore, it was said, provision (c) had no application to the present case.
Reliance was placed upon what was said in Young's
Case (1946) AC 163 with
respect to the relation of these two provisions. There Lord Simon (1946) AC,
at p 171 referred to the judgment
of Lord Patrick in Brown v. William Hamilton
& Co. (1944) ScLT 282, at p 286; 37 BWCC Supp 52, at p 61 , and said: - "I
think
that
the Scotch authorities quoted by Lord Patrick (1944) ScLT, at p
285; 37 BWCC Supp, at p 60 are right in treating the final part
of
s. 29 ('but
the employer,' etc.), as exegetical of the preceding part ('but in that case
the workman may, at his option,' etc.),
and not as further restricting by an
added condition the workman's right of option." Lord Russell of Killowen
(1946) AC, at p 176
also expressed agreement with this opinion. Lord Macmillan
takes a contrary view (1946) AC, at p 184 and Lord Simonds does not expressly
refer to the case. Lord Porter (1946) AC, at p 186 expresses approval of the
reasoning of Lord Patrick, but (1946) AC, at p 188 regards
the wording of the
second half of the sub-section (that is provision (c)) as protecting the
employer, even though it was considered
that a judgment in favour of the
workman was not necessarily a final choice - a view which gives provision (c)
an operation even
though no option has been exercised under provision (b).
Thus Lord Patrick's view can be regarded as definitely approved only by
two of
their Lordships. (at p80)
18. I have difficulty in understanding the view that provision (c) is
exegetical of provision (b). Provision (b) relates to an exercise
of an option
by the workman. That is one subject. Provision (c) relates to the liability of
the employer under the Act or independently
of the Act. That is a different
subject. The provision as to the liability of the employer cannot, in my
opinion, be regarded as
expository or explanatory of the provision relating to
the exercise of the option. Provision (c) is introduced by the word "but".
It
follows upon the alternative given to the worker to claim compensation under
the Act or to take proceedings independently of the
Act. "But" is adversative
in sense; it is not complementary or explanatory. It introduces a reference to
circumstances which limit
or prevent the application of some prior
proposition. An exegetical statement may properly be introduced by "that is to
say." A proposition
introduced by the word "but" is intended to introduce a
statement which modifies or qualifies the proposition to which it is attached
by preventing that proposition from being understood or applied in what (apart
from the adversative sentence) might have been regarded
as its proper
significance. The word "but," where it here appears in the section, produces
in my opinion the following result as
the meaning of (c): - provision (c)
should be read as meaning - "but (whatever the worker does about his option -
whether he exercises
it or not - and however he exercises it) the employer
shall not be liable to pay compensation both independently of and also under
the Act." The provision deals with the liability of the employer to pay
compensation, not with the exercise of an option by the worker.
This part of
the section does not (though provision (b) does) relate to the worker claiming
compensation or taking legal proceedings.
It relates to the liability of the
employer to pay compensation for injury. In case of death that liability can
arise under the Victorian
Act only by reason of an award being made. Reference
has already been made to s. 16 of the 1946 Act, introducing a new s. 10 into
the Act, which prohibits any compromise or agreement with respect to
compensation unless it is embodied in an award. Accordingly
the only manner in
which the employer can become liable under the Act is by an award being made
against him. Such an award has been
made in the present case. The employer
paid the amount awarded (1,100 pounds), which was the maximum amount which
could be obtained
by any proceedings by or on behalf of any person under the
Act - 1946 Act, First Schedule, par. 1. The employer paid that sum into
the
custody of the Board and obtained a receipt. Under par. 5 of the First
Schedule to the Act that receipt is a discharge to the
employer. The sum paid
into the custody of the Board is then administered by the Board. The employer
has no further concern with
the matter - he cannot be heard with respect to
the disposition of the money among the dependants. (at p81)
19. It is the award which creates the liability to pay a sum of money. The
money is not payable by the employer to the claimant
- the Act requires it to
be paid into the custody of the Board - 1946 Act, Schedule 1, par. 5. The
employer does not become "liable
to pay compensation" under the Act in the
case of death unless and until an award is made. Similarly, the employer does
not become
"liable to pay compensation" independently of the Act unless and
until judgment is given against him in proceedings under some law
other than
that contained in the Act. Until there is an award or a judgment no-one can
say whether the employer is or is not liable
to pay any and what amount of
compensation. If the claimant fails in his proceeding there is no liability
under the law upon which
the claimant relies. (at p81)
20. Thus in the present case the employer became liable to pay compensation
under the Act. Accordingly he is not liable to pay compensation
independently
of the Act. But what I have called provision (c) does not prevent an employer
from being held to be liable in respect
of some persons - e.g. dependents such
as children - under the Act, and in respect of other persons - e.g. a widow -
independently
of the Act. The double liability which the provision excludes is
a double liability in respect of the same person. If the worker
himself takes
proceedings, it is possible to apply the provisions of the Act in a reasonably
satisfactory manner. If, however, the
worker was killed as a result of the
injury, his dependants possibly have claims - not at common law (except in
Scotland), but under
the
Workers' Compensation Act
, Lord Campbell's Act or the
Employers' Liability Act. Some may wish to take proceedings under one Act
and
others under another Act.
Section 3 (2) of the Act provides that any reference
to a worker who has been injured shall include
a reference to his legal
personal
representative or to his dependants. Section 5 (2) (b) must therefore
be applied to cases where
there are several dependants. The
liability to each
dependant is a several liability and proceedings for compensation under the
Act
by one dependant do not constitute
a bar to proceedings by another
dependant independently of the Act - Kinneil Cannel and Coking
Coal Co. Ltd.
v. Waddell (1931) AC
575 . But the employer has some protection against
separate claims in separate proceedings in
addition to that afforded by
provision
(c). There can be only one proceeding in respect of an injury for
compensation under the
Workers'
Compensation Act
- to which all dependants (in
the case of death) must be parties as applicants or as respondents: see Rules
under
the Act (1938),
rule 3. So also there can be only one action under Lord
Campbell's Act or the Employers' Liability Act. These propositions
were
established
in Avery v. London and North Eastern Railway Co. (1938) AC 606 -
and they leave many difficulties unsolved - see
the report at p.
622. Thus the
employer may have to pay in respect of one person under the Act and in respect
of another person independently
of the
Act. But provision (c) excludes
liability in respect of the same person both under the Act and independently
of the Act. Unless
it
has at least this effect, it would appear to be
completely nugatory. (at p82)
21. In the present case the employer became liable, by reason of the award,
to pay compensation under the Act. Accordingly he is
not liable to pay
compensation independently of the Act in respect of the person with respect to
whom he has become liable to pay
compensation under the Act. It therefore
becomes necessary to inquire as to the persons in respect of whom the award
ascertained
and created liability under the Act. If those persons were the
widow and the children, the employer cannot be made liable independently
of
the Act in respect of any of those persons and the present action must fail.
(at p82)
22. I take first the position of the widow, who was a claimant under the
Workers' Compensation Act
and is the sole plaintiff in
this action under the
Wrongs Act
suing on behalf of herself and the children. A final award has been
made upon a claim by her on
her own behalf. From that award there
is no
appeal: see the
Workers' Compensation Act 1937
, s. 9. It is a conclusive
determination
that the employer is liable to pay compensation under the Act so
far as the widow is concerned.
The employer has paid the compensation
awarded.
It follows that he is not "liable to pay compensation independently of the
Act" in
respect of the widow - provision (c).
(at p82)
23. It is argued, however, that for various reasons these considerations do
not apply in the case of the infant children. It is
contended that the infants
were not parties to the proceedings under the Act, that they could not be
parties except by a next friend,
and that there is no determination that
proceedings under the Act and obtaining an award thereunder were for their
benefit. (at p83)
24. The claim upon which the Workers' Compensation Board in fact adjudicated
when it made its award was a claim which was made by
the widow on behalf of
herself and her children. Mr. Ruddell's letter was written with the authority
of the widow, and he claimed
on behalf of the widow and the children. The
employer gave notice to the registrar of the Board that a claim for
compensation had
been made by or on behalf of the widow on her own behalf and
on behalf of her sons, who were named in the notice. That claim made
by the
widow was dealt with by the Board and an award was made. Thus the infants were
represented to be claimants in the proceedings
and were described as such. But
the 1946 Workers' Compensation Rules, rule 8, provide that the provisions of
the County Court Rules
as to persons under disability shall, with the
necessary modifications, apply to proceedings under the Act. This rule is
subject
to a proviso that the Board may at any time direct that an infant
shall appear either as applicant or respondent in the same manner
as if he
were of full age. No such direction was given in the present case. The County
Court Rules 1930, Order 4, rules 15 and 16,
provide for infants suing by their
next friend. Therefore the infants should have claimed before the Workers'
Compensation Board
by a next friend. But rule 81 of the Workers' Compensation
Rules is as follows: - "Non-compliance with any of these rules shall not
render any proceedings void unless the Board so directs, but such proceedings
may be set aside either wholly or in part as irregular,
or amended, or
otherwise dealt with in such manner and upon such terms as the Board shall
think fit." The Board has not set aside
the award, but it does not appear that
the attention of the Board was drawn to the fact that the infants had no next
friend. Non-compliance
with the requirement that the rules of the County Court
should be observed did not render the proceedings void - but it does not
dispense with the necessity of ascertaining what the proceedings were. It
deals with irregularities in the course of proceedings
between two persons, A
and B, but it does not operate so as to affect the rights of persons other
than A or B, if they were not parties
to the proceedings. If proceedings were
instituted in the name of an adult person without his authority, he could not
be prejudiced
by them. An infant cannot give authority to institute
proceedings so as to bind himself, and that is one of the reasons why a next
friend is required. Accordingly, in my opinion, the better view is that the
rights of the infants were not affected by the result
of the proceedings taken
without observance of the legal requirement of a next friend. (at p84)
25. This conclusion renders it unnecessary for me to consider the further
separate argument that the award does not bind the infants
unless it is shown
that it is for their benefit so to be bound. I will say only that awards and
orders of courts in cases of infants
are on a different footing in this
respect from agreements by infants: see Neale v. Electric and Ordnance
Accessories Co., Ltd. (1906)
2 KB, at p 566 , and Cribb v. Kynoch, Ltd. (No.
2) (1908) 2 KB, at p 561 . (at p84)
26. The question remains whether an order should have been made for the
dismissal of the action against the widow. No evidence could
affect the
decision upon this point. The relevant facts are indisputable, as the learned
judge said. But it is argued that if a case
involves any question of
difficulty the summary procedure of dismissing an action as vexatious should
not be applied. In the present
case there is nothing frivolous about the
action, but if a court is of opinion that the plaintiff cannot succeed there
is every reason
for protecting a defendant from vexation by the continuance of
proceedings which must be useless and futile. The contention of the
appellant
really is that procedure under Order XIVA or Order XXV., rule 4, or under the
inherent jurisdiction of the court for dismissing
an action at an early stage,
should be used only in easy cases. I do not agree with this view where there
is opportunity for full
argument and full consideration of the question
raised. In the present case the argument before the learned judge was
evidently a
thorough argument. It is true that it has often been held that the
power of the court created by the rules mentioned or existing
under the
inherent jurisdiction of the court should not be exercised except in clear
cases: see, for example, Mayor, &c. of City
of London v. Horner (1913) 111 LT
512 , and Hubbuck & Sons, Ltd. v. Wilkinson, Heywood & Clark, Ltd. (1899) 1 QB
86 . It
is also
true that the procedure provided by Order XXV., rule 2
(raising a question of law for argument) might have been applied;
but if that
procedure had been adopted exactly the same arguments before a judge sitting
in chambers would have been presented. It
was said in
Hubbuck's Case (4) that
this method was appropriate to cases requiring argument and careful
consideration, and that the
summary procedure
under Order XXV., rule 4, was
appropriate only to cases which were plain and obvious, so that any master or
judge
could say at once
that the statement of claim was insufficient, even if
proved, to entitle the plaintiff to what he asked. In Victoria
applications
for the dismissal of the action are not dealt with by a master, and they can
be and are fully argued. If, as a result
of argument,
the court reaches a
clear decision which could not be altered by any evidence which could be
adduced at the trial, then
it is proper
in the interests of both parties to
dismiss the action instead of allowing the parties to incur completely useless
expense.
In my
opinion Barry J. acted within his powers in dismissing the
action so far as the widow is concerned, the ground upon which he
acted
was in
my opinion right, and therefore the appeal should be dismissed in respect of
the widow but allowed in respect of the
infants.
(at p85)
RICH J. I am in substantial agreement with the judgment of my brother
Williams but, as, in my opinion, the matter is of importance,
I shall add a
few words of my own. (at p85)
2. I do not consider that the course taken by the learned primary judge was
the appropriate course to be taken in the circumstances.
In my opinion it
would have been better if a statement of claim had been delivered, the issues
defined by the pleadings and the children
had been properly represented. It is
clear that the widow by her agent Mr. Ruddell had made her election from which
she could not
retract but she as mother was not empowered to make any election
on behalf of her infant children. They are not bound. They should
have been
represented by a duly appointed next friend whose responsibility is not merely
one for costs but is a responsibility to
guard their interests. It is the
interposition of the court, charged with the duty to watch over the infant's
interests, that lends
sanctity to a judgment for or against an infant and
binds him: Arabian v. Tufnall & Taylor, Ltd. (1944) 1 KB 685, at p 688 .
(at
p85)
3. In the result I consider that my brother Williams came to a right
conclusion. (at p85)
DIXON J. This appeal is from an order made in chambers. (at p85)
2. The order is that "the action herein be dismissed" and that the costs of
the action be paid by the plaintiff excepting, for some
reason not explained,
the costs of the summons upon which the order was made. The summons was
expressed as an application on the
part of the defendants in the action for an
order that the action be dismissed or forever stayed on the grounds that it
was frivolous,
vexatious and an abuse of the process of the court. The action
was by a widow under Lord Campbell's Act. She had named herself and
four
children as the persons by whom and for whom the action was brought. The
summons stated the reason why the action was frivolous,
vexatious and an abuse
of the process of the court. It consisted in the allegation that the plaintiff
on behalf of herself and others
dependent on the deceased obtained an award of
the Workers' Compensation Board against the defendant in respect of an
accident to
the deceased by which he was fatally injured and that the facts of
the accident formed the basis of the action. (at p86)
3. From the affidavits in support of the summons it appeared that the
deceased had been employed as an assistant station master
by the Victorian
Railways Commissioners, the defendants, and that he had been killed on 29th
April 1947 while he was driving a tractor
at a level crossing at Williamstown.
He had been struck by some trucks propelled by an engine. It was alleged by
the plaintiff that
the accident arose from the negligence of the defendants
and their servants in the lighting and management of the level crossing
and of
the trucks. (at p86)
4. The four children were all boys; the eldest was fifteen years of age, the
youngest five. On 9th May an officer of the Australian
Railways Union, who, it
is said, deals with the claims to workers' compensation of members of the
union and their dependants, wrote
to the defendants saying that on behalf of
the dependants of the deceased he desired to apply for compensation. The
letter went on
to state that the deceased left a widow and four sons, giving
their names and the dates of birth. Sub-section (1) of s. 17 of the
Workers'
Compensation Act 1946 (No. 5128) provides that when a claim for compensation
is made to any employer the employer shall
within fourteen days give to the
registrar of the Workers' Compensation Board notice that the claim has been
made setting out particulars
of the claimant, the accident and other relevant
matters. In consequence of this sub-section the Victorian Railways
Commissioners
gave notice of the claim to the registrar in the form prescribed
by the 1946 Workers' Compensation Rules (Form 9). Pursuant to rule
11 a notice
was included admitting liability. Sub-section (2) provides that upon receipt
by the registrar of the notice proceedings
for the settlement of the claim
shall be deemed to have been instituted by the claimant and such proceedings
shall be placed in the
summary list. Sub-section (3) provides that in any such
proceedings the Board may make any order determination or award that it is
empowered to make upon any proceedings under the Workers' Compensation act.
Rule 17 provides that where the employer admits liability
and gives no further
notice the proceedings shall forthwith be set down for hearing. Notice was
given to the Victorian Railways Commissioners
fixing 26th May 1947 as the day
for hearing the claim. The notice was entitled in the matter of a claim by the
widow (the plaintiff)
against the commissioners. She was not described as
representing the children. Presumably a similar notice was given to the
plaintiff.
(at p87)
5. On the appointed day the widow, that is the plaintiff, and the officer of
the union were present. The commissioners, the defendants,
were represented by
a clerk of the Crown Solicitor. The plaintiff gave evidence that she was the
deceased's widow and that there
were four dependent children. An award was
made which as drawn up is entitled in the matter of the widow, described as
the claimant
to (sic, meaning apparently claimant upon) the Victorian Railways
Commissioners in respect of the death of the deceased. The award,
after
reciting that the Board had found that the deceased left his widow and four
children under sixteen naming them wholly dependent
upon his earnings, awarded
the sum of 1,100 pounds to be paid into the custody of the Board. A provision
followed not presently material
limiting the amount to that sum unless it was
shown that another child existed and providing for that possibility. Under the
Workers'
Compensation Acts the amount of compensation is fixed where death
results from the injury and the deceased leaves a widow and children
under
sixteen: it is fixed at 1,000 pounds together with an additional sum of 25
pounds in respect of each such child (s. 4 and clause
1 (1) (a) (i) of First
Schedule of Act No. 5128). That meant that the 1,100 pounds awarded to be paid
to the Board was a sum fixed
by law. Though the sum is calculated by reference
to the number of children under sixteen that does not mean that any such child
has a right to any specific part of it. The calculation is only a means of
ascertaining the amount in respect of which the employer
is liable. (at p87)
6. The Acts provide that the payment in the case of death shall be paid into
the custody of the Board and any sum so paid shall,
subject to the rules and
the provisions of the schedule, be invested applied or otherwise dealt with by
the Board in such manner
as the Board in its discretion thinks fit for the
benefit of the persons entitled thereto under the Acts and the receipt of the
registrar
is a sufficient discharge. The Board may apply the sum or otherwise
deal with it as in its opinion will for the time being be most
beneficial to
the dependants and may exclude any dependant from participating in any
benefits (clause 5 (1) and (2) (a) and (c) of
First Schedule of Act No. 5128).
Except for authoritatively fixing the number of children and therefore the
amount of the compensation
the award seems to have served no purpose. The duty
of the employers to pay the money into the custody of the registrar arose
under
the statute and no further liability was imposed upon them by the award,
the making of which seems to be rather the result of the
requirement of rule
17 that on an admission of liability the proceedings shall forthwith be set
down for further hearing. (at p88)
7. The award did not invest in the widow, the plaintiff, nor in any of the
four children any greater right in or to or with respect
to the money to be
paid into the custody of the registrar. (at p88)
8. The material placed before the Court includes nothing upon which to impute
to the children any legal responsibility for or in
connection with these
proceedings. Rule 41 says that, subject to the provisions of the Act, in any
case not provided for by the Act
or rules, the general principles of practice
and the rules observed in County Courts may in the discretion of the Board be
adopted
and applied to any proceedings or matter with such modifications as
may appear necessary or desirable. Rule 74 provides that where
any matter or
thing is not provided for under the rules the same procedure shall be followed
and the same provisions shall apply
with the necessary modifications and, as
far as practicable, as in a similar matter or thing under the County Court
Acts and rules
thereunder. It follows that in proceedings instituted on behalf
of infants they should be represented by a next friend and in proceedings
to
which they are parties respondent they should appear by a guardian ad litem.
Thus the manner prescribed by law for proceeding
in a way which will
presumptively bind infants was not pursued. There is however in rule 81 the
usual non-compliance provision and
s. 9 of Act No. 4524 says that no award
shall be vitiated by reason of any informality or want of form. If therefore
some ground
could be discovered for ascribing to the infants a responsibility
for the proceedings in law or perhaps even in fact, a question
might arise
whether the absence of a next friend and of a guardian ad litem was fatal. But
no facts appear to support the notion
that legal responsibility for the
proceedings may be fastened upon the infants or that any of them was in fact
associated with them.
The mother is probably sole guardian of the children but
even that does not appear. There is nothing to suggest that it would be
for
the benefit of the infants to make a claim on their behalf as well as on their
mother's behalf and it seems almost impossible
that it should be. For whoever
among dependants puts forward the claim the Victorian Railways Commissioners
would be bound to act
in the same way and place in the hands of the Board the
same sum of money. There could therefore be no advantage to the infants in
joining in the claim. The disabilities of an infant are such that it is
difficult to suppose that the actual authority of any of
them would matter,
however much virtue may be claimed for the non-compliance provision. But no
ground appears for believing that
even the boy aged fifteen knew anything of
the claim. (at p89)
9. As to the widow herself it may be supposed that she left everything in the
hands of the officer of the union. It would be natural
therefore to treat him
as acting with her authority. Further, after the making of the award had been
announced the chairman of the
Board informed the plaintiff that she should
attend at the office of the registrar to make the necessary arrangements for
the distribution
of the money to her. She and the officer of the union at once
so attended and she signed a paper stating how she desired the sum
to be paid
to her. But whatever view may be adopted or assumed as to her authority to the
officer of the union, for present purposes
at all events it must be taken that
she had no knowledge of the existence of any alternative remedy or remedies
against the Victorian
Railways Commissioners. For she is alleged to have been
ignorant of her rights and there is nothing to the contrary. Two days later
an
inquest was held by a coroner into the deceased's death. A solicitor appeared
for the plaintiff before the coroner and upon the
same day but after the
inquest he wrote to the registrar informing him that an action would be
brought on behalf of the widow and
the children against the Victorian Railways
Commissioners at common law, that is under Lord Campbell's Act, and requesting
the registrar
to withhold any payments. On the same day as the letter the
Railways Commissioners paid into the custody of the Board the 1,100 pounds.
The plaintiff gave notice of action under s. 200 of the
Railways Act 1928
and
on 30th September 1947 the widow on behalf of herself
and her four children
brought an action against the commissioners in the
County Court in pursuance
of s. 201 (2) of that Act. (at
p89)
10. On 23rd February 1948 the Crown Solicitor acting on behalf of the
Railways Commissioners requested the plaintiff's solicitor
to consent to the
removal under s. 61 of the
County Court Act 1928
of the action into the
Supreme Court on the ground that important
questions of law would arise in the
action. That assent was given
and an order was made accordingly. On 17th March
1948 the defendants
issued the summons to dismiss the action. The summons was
issued
upon the footing that upon the foregoing facts the action must fail
by
reason of s. 5 (2) (b) of the
Workers' Compensation Act 1928
. The difficulties
of that provision are notorious. Substantially
in the same form it was in
force in the United Kingdom from the
passing of the Workmen's Compensation Act
1897 until the National
Insurance (Industrial Injuries) Act 1946 came into
operation. As
to the repeated efforts of the courts of England, Scotland and
Ireland
during those fifty years to settle its meaning and application
they
may be described as fifty years of failure. At the very end of
the period the
House of Lords made a final attempt to expound
some of its meaning: Young v.
Bristol Aeroplane Co., Ltd. (1). But
much difference of opinion is disclosed
by the opinions of their
Lordships. In the words of a commentator - In view of
the marked
differences of opinion held by their Lordships it is clear that
Young's Case (1946) AC 163 , turning as it did upon its own peculiar
facts, in
no way provides a solution to those many cases on
this subject where the
workman has at no time during receipt of compensation
had any knowledge of his
option (Law Quarterly Review
(1946), vol. 62, p. 120). Nor does it appear to
me to have provided any solution
of the question whether such an award as the
present
makes any inquiry into the exercise of the option irrelevant and of
itself precludes
the plaintiff and the children from asserting
a claim under
Lord Campbell's Act. The defendants could not succeed in their application
without making good one or other of two
propositions. One is that to make a
claim before the Board to workers' compensation and pursue
it to award of the
kind here made
amounted necessarily to an exercise of the option between the
two remedies. The other proposition
is that the award itself meant
an
imposition of liability upon the employers precluding the plaintiff and the
children from resorting
to the remedy under Lord Campbell's
Act. (at p90)
11. But to say the least of them these are very dubious propositions and on
the decided cases they involve very difficult questions.
Nevertheless the
defendants by their application undertook to show that it was so certain that
one or other of these questions must
be answered in the defendants' favour
that it would amount to an abuse of the process of the court to allow the
action to go forward
for determination according to the appointed modes of
procedure. It is not hard to understand the defendants desiring to have the
effect of s. 5 (2) (b) of the
Workers' Compensation Act 1928
as a bar to the
plaintiff's action determined as a preliminary question
before going to trial
before a jury upon the issues of negligence
and damages. But the appointed
procedures provide for the disposal
of questions of law before trial in proper
cases and for the separate
determination of independent questions of fact
(Order XXV.
rules 2 and 3, Order XXXIV. rules 1 and 2 and Order XXXVI. rule
8). The
application was not made for summary judgment for the defendants
under
Order XIVA., an order peculiar to Victoria. But if it had
been it must have
failed. Order XIVA. is the counterpart for defendants
of Order XIV. It confers
a power of summarily dealing with
an action which Barton J. said should be
reserved for exercise as to actions
that are absolutely hopeless: Bayne v.
Riggall
[1908] HCA 39
; (1908) 6 CLR 382 . (at p91)
12. The application was not made under, nor could it be supported inder,
Order XXV. rule 4 or Order XIX. rule 27. The question does
not arise on the
statement of claim and it involves no matter of pleading. It is a substantive
question chiefly of law relating to
an alleged bar to the cause of action to
be pleaded by way of confession and avoidance. But had it been a question
capable of arising
in such a way that either of those rules could be used, the
application must have failed. For the power they confer is not to be
used in
cases of doubt or difficulty or where the pleading raises a debatable question
of law: Agar v. Williamson Ltd. (1920) 42
ALT 98 ; Healey v. Bank of New South
Wales (1898) 24 VLR 405 ; Wall v. Bank of Victoria Ltd. (1890) 16 VLR 2 ;
Goodson v. Grierson
(1908) 1 KB 761, at pp 763, 764 ; Wright v. Prescott Urban
District Council (1916) 115 LT 772 ; Mayor, &c., of City of London
v.
Horner
(1914) 111 LT 512 ; Hubbuck & Sons, Ltd. v. Wilkinson, Heywood & Clark, Ltd.
(1899) 1 QB 86, at p 91 . (at p91)
13. The application is really made to the inherent jurisdiction of the court
to stop the abuse of its process when it is employed
for groundless claims.
The principles upon which that jurisdiction is exercisable are well settled. A
case must be very clear indeed
to justify the summary intervention of the
court to prevent a plaintiff submitting his case for determination in the
appointed manner
by the court with or without a jury. The fact that a
transaction is intricate may not disentitle the court to examine a cause of
action alleged to grow out of it for the purpose of seeing whether the
proceeding amounts to an abuse of process or is vexatious.
But once it appears
that there is a real question to be determined whether of fact or law and that
the rights of the parties depend
upon it, then it is not competent for the
court to dismiss the action as frivolous and vexatious and an abuse of
process. (at p91)
14. In Burton v. Shire of Bairnsdale
[1908] HCA 57
; (1908) 7 CLR 76, at p 92;
[1908] HCA 57
; 14 ALR 529, at
p 534 , O'Connor J. said: "Prima facie
every litigant
has a right to have
matters of law as well as of fact decided
according to the ordinary rules of
procedure, which
give him full time
and opportunity for the presentation of
his case to the ordinary
tribunals and the inherent jurisdiction of the
court
to protect
its process from abuse by depriving a litigant of these rights and
summarily disposing of an action as frivolous
and vexatious will
never be
exercised unless the plaintiff's claim is so obviously
untenable that it
cannot possibly succeed." Higgins
J. made some
observations which may be
applied to the present case. "It is my
opinion" he said "that the Full Court
were led, by
a very natural
process I admit, to take a wrong attitude. They
dealt with the
matter as if they were deciding it on the merits whereas
they
had
merely to decide whether there was anything in fact or in law that
was
fairly triable or arguable." Then his Honour said,
"It is
surely absurd to
argue for days as to a plaintiff's case being arguable."
"It cannot be
doubted," said Lord Herschell in Lawrance
v. Norreys (1888) 39 Ch D 213; 15
App Cas 210, at p 219 , "that the court
has an inherent jurisdiction to
dismiss an action which
is an abuse of the process of the court. It is a
jurisdiction which ought
to be very sparingly exercised and only in very
exceptional
cases." (at p92)
15. It sometimes happens that an application in chambers under one of the
rules mentioned or perhaps even in the inherent jurisdiction
is by common
consent treated as an occasion for settling some question. But that did not
take place in the present case. We are informed
that the plaintiff's counsel
objected that it was not a case for the exercise of any summary power and that
he persisted in that
objection. It is to be noticed that notwithstanding that
no jurisdiction under the rules attached an order for the dismissal out
of
court of the action was made in chambers. But, although of its own force the
order finally determined the action, it may not have
been so intended. For an
order for leave to appeal was made on the footing that it was interlocutory.
(at p92)
16. It is in my opinion of more importance to maintain the integrity of the
principle that under cover of the inherent jurisdiction
to stop abuse of
process litigants are not to be deprived of the right to submit real and
genuine controversies to the determination
of the courts by the due procedure
appropriate for the purpose than for this Court to add another to the many
judicial attempts that
have been made to construe and apply the perplexing
provisions that stand in Victoria as s. 5 (2) (b) of the
Workers' Compensation
Act 1928
. (at p92)
17. The use that the defendants have here made of the summary powers of the
court raises at all events a question of principle about
which I have not
hitherto understood there was any doubt, even if at times courts with or
without the help of the parties have overlooked
it. I would allow the appeal
on this simple ground. But as opinions are to be expressed about the operation
in this case of s. 5
(2) (b) I shall state mine. (at p92)
18. I shall not enter upon any general discussion of s. 5 (2) (b) of the
Workers' Compensation Act 1928
. I shall confine myself
to specific points
which appear to decide the question whether the widow and children are barred
of the action
under Lord Campbell's
Act. These points arise upon the words
"the worker may at his option claim compensation under this Act . .
. or take
proceedings
independently of this Act . . . but the employer shall not be
liable to pay compensation for injury to a worker
. . . both independently
of
and also under this Act." For the purposes of this case, as it is a death
claim, the word "worker" where
it first occurs, must
be taken to refer to the
worker's legal personal representative or to his dependants or other person to
whom
or for whose benefit
compensation is payable (s. 3 (2) of the Act of
1928). The effect which is produced by the substitution was
stated as follows
by
Lord Russell in Kinneil Cannel and Coking Coal Co., Ltd. v. Waddell (1931)
AC 575, at pp 594, 595 : "I find
no difficulty in construing
it in relation to
the dependants of an injured workman who is dead - as if (omitting immaterial
words)
it ran thus: 'but in that
case the dependants may at their respective
options either claim compensation under this Act or take proceedings
independently of
this Act; but the employer shall not be liable to pay to any
dependant compensation . . . both independently of
and also under this
Act.'"
(at p93)
19. It is important steadily to bear this adaptation of the words of the
provision to dependants of a deceased worker in mind in
considering its
application to the facts of the present case. It will be found that by doing
so some of the difficulties are made
to wear a different aspect. (at p93)
20. The first point that it is desirable to make is one that does no more
than exclude a possible, indeed a plausible, interpretation
of the words
"either claim compensation under this Act or take proceedings independently of
this Act," an interpretation which if
valid would tend against the plaintiff.
It has been clear that these words cannot operate under the Victorian
legislation to make
the formulation of a claim under the Act that is
unfruitful or the institution of proceedings independently of the Act that
fail
a ground for excluding resort by the worker or his dependants to the
alternative remedy. That is made clear by the fact that not
only does the
legislation provide, as in England, a procedure for assessing compensation in
the same litigation when an action for
negligence against an employer fails
(s. 12 (1) as amended by Act No. 4527) but it expressly enacts that if it is
determined in any
proceedings under the Act that the injury is one for which
the employer is not liable such determination shall not prevent an action
being brought in respect of the injury independently of the Act (s. 12 (2)).
(at p94)
21. It may be that after unsuccessful proceedings independently of the Act
compensation cannot be obtained except by the procedure
provided. There is not
a little authority for that position. But it is a result to be attributed not
to the meaning of the words
in s. 5 (2) (b) but to an interpretation placed
upon s. 12 (1). If the unsuccessful pursuit of one alternative remedy whether
by
claim or proceedings is not a bar to resorting to the other alternative, it
is hard to see how the making of a claim or the institution
of proceedings
could be a bar before the result is known. (at p94)
22. The second point to be made is that the "option" conferred by the opening
words of the clauses I have quoted from s. 5 (2) (b)
cannot be exercised by
one who is not aware of the existence of both remedies. That was established
finally by the decision of the
Court of Appeal in Leathley v. John Fowler &
Co. Ltd. (1946) KB 579 , giving effect to the opinions expressed by Viscount
Simon
Lord
Russell and Lord Porter in Young v. Bristol Aeroplane Co. (1946)
AC, at pp 169, 173, 186 . (at p94)
23. As we must assume in the present case that the plaintiff was ignorant of
the availability of the two remedies and of her right
to pursue either at her
option, it follows that the defendants cannot succeed upon the words alone
"may at his option either claim
compensation under this Act . . . or take
proceedings independently of this Act." They must succeed, if at all, by force
of the words
"but the employer shall not be liable to pay compensation for
injury to a worker . . . both independently of and also under this
Act." (at
p94)
24. The third point which I wish to make is upon the operation of these words
in relation to the description of award made by the
Board in this case. That
award gave neither the plaintiff nor any of her children any right to
participate in the distribution of
the money paid by the employers into the
custody of the registrar. Their respective claims to participate remained
dependent upon
clauses 5 (1) and (2) of the First Schedule of Act No. 5128,
the effect of which has been stated above. What the award did was to
ascertain, at all events provisionally, the number of children, specify the
money figure that resulted, and translate, perhaps unnecessarily,
the
statutory liability imposed upon the employers by the earlier words of clause
5 (1) into an award, which, had it been found necessary
to enforce the
obligation to pay the money into the custody of the registrar, might have been
converted into a judgment of the County
Court, by the means prescribed by s.
11 of Act No. 4524 as substituted by s. 4 of Act No. 4593 and amended by Act
No. 5128. At first
sight this may seem in strict logic to have imposed a
liability, a fresh liability juristically different from the old liability,
upon the employers to pay compensation under the Act, so that it would no
longer be possible for the plaintiff, who has been taken
as authorizing the
claim that led to the award, and perhaps for the infants notwithstanding that
they cannot be taken to have done
so, to seek to impose a liability
independently of the Act in respect of the same matter. But it has been found
necessary to place
upon the critical words an entirely different meaning. The
necessity was felt in cases where death had resulted and different dependants
took different courses. Lord Atkin, as a judge of the King's Bench and
afterwards in the Court of Appeal, had adopted the view that
once an order was
made requiring an employer to pay over to or for the benefit of any dependants
the compensation provided by the
Act the employer could not thereafter be made
liable independently of the Act in respect of the injury, the death. The
employer had
become liable under one alternative and he could not be made
liable thereafter under the other. It did not matter that some of the
dependants were unaware of or were opposed to the imposition of that liability
upon him. "Otherwise the employer might have to pay
twice": Bennett v. L. & W.
Whitehead, Ltd. (1926) 2 KB 380, at p 409 ; Codling v. John Mowlem & Co., Ltd.
(1914) 2 KB 61;
3 KB 1055
. Now it is apparent that this view takes into
account not the relation of the employer to each dependant, not the right
of
each
dependant to claim upon the sum, but the liability only of the employer
to make available the total sum. It is not easy to
reconcile
with Lord
Russell's translation, already set out, of the material part of s. 5 (2) (b)
when adapted to the case of dependants
of
a workman who has been killed. In
his Lordship's version, to repeat it, he makes the words equivalent to this
statement: - "but
the
employer shall not be liable to pay any dependant
compensation . . . both independently of and also under the Act." In other
words
you look to the liability to each dependant, not to the employer's
preliminary responsibility for making the total sum available.
The liability
to each dependant must be dealt with separately. Lord Atkin's view was held to
be erroneous by the House of Lords which
in two cases settled the operation of
the provision with respect to the choice of remedies. In Kinneil Cannel and
Coking Coal Co.
Ltd. v. Waddell (1931) AC 575 it was decided that each
dependant had a separate choice between compensation under the Act and his
cause of action for negligence, in England under Lord Campbell's Act, and that
each could exercise his option independently of the
other and in a different
way. In Avery v. London and North Eastern Railway Co. (1938) AC 606 it was
held that the amount of compensation
to be paid in a death claim could not be
diminished because some of the dependants recovered damages under Lord
Campbell's Act and
the Employers' Liability Act and that in assessing those
damages no account could be taken of the fact that the first dependants
claimed not thus but under the Workmen's Compensation Act. In the latter case
Lord Macmillan described the option as personal to
each dependant of a
deceased workman. "The effect of the . . . interpretation section in requiring
every reference in the Act to
a workman to include, where the workman is dead,
a reference to his dependants, as construed in this House, is undoubtedly to
permit
duplication of proceedings" (1938) AC, at p 621 . The basal reason for
these decisions lies in the conception that the several dependants
are given
several and unconnected rights. It places on the provision a meaning which
makes it necessary to consider not whether the
employer has made over to the
authority the fixed lump sum. He must do that if any one of the dependants
requires him to do so. The
fact that the others stand out does not relieve him
of the liability or reduce the amount. What the meaning placed on the
provision
makes it necessary to consider is whether the individual dependant
has taken a course which gives that dependant a claim only upon
the fund or a
claim only for negligence as the case may be. On the surface of this
interpretation it is plain enough that the children
in the present case cannot
be precluded by anything done by their mother, unless at all events in a
representative capacity. Legal
responsibility must be properly attributable to
them before they can be affected. (at p96)
25. But the importance of the interpretation is not confined to the children.
For the interpretation rests upon or implies a principle
which has yet another
application in the circumstances of the case. The principle which the
provision is interpreted as seeking to
express and put into effect is not that
an employer shall be protected from exposure to two proceedings, not that he
shall be protected
from exposure to more than one head or form of liability,
not even that he shall be protected from liability to the maximum extent
under
both forms of liability provided that the payees are different, but that no
workman and no dependant of a workman shall be
entitled to recover more than
the full sum under one of the two heads or forms of relief or remedy. Lord
Dunedin in Kinneil Cannel
and Coking Coal Co. Ltd. v. Waddell (1931) AC, at pp
584, 585 goes to the central point and states it almost in a sentence. "The
compensation to be paid by the employer may be viewed as a lump sum, and an
aggregate of what is actually called a lump sum, plus
a children's allowance
if there are such. But the claim to participate in this lump sum is an
individual claim, and what I think
the section means to say, and what involves
no absurdity, is that no individual is to get two payments, one at common law
and the
other under the Act." (at p97)
26. Apart from all other considerations the plaintiff, the widow, having
exercised no option is not to be precluded under the words
"an employer shall
not be liable both independently and under the Act" unless her individual
claim to workers' compensation has become
the subject of a distinct liability
to her, a liability whether on the part of the employers directly or of the
fund they have placed
in the custody of the registrar. (at p97)
27. Whether, without an exercise of her option, she would be precluded even
by the creation of such a liability is another question,
a question depending
in some measure upon the deductions to be drawn from the decision of the House
of Lords in Young v. Bristol
Aeroplane Co., Ltd. (1946) AC 163 . But short of
the creation of an individual right in her to a separate sum and a
corresponding
liability on the side of the employer she is not barred. (at
p97)
28. The fourth point which I think should be made relates to the effect of
the judgment of Lord Patrick in Brown v. William Hamilton
& Co. (1944) ScLT
282; 37 BWCC Supp 52 . This judgment commanded the approval of Viscount Simon,
Lord Russell and Lord Porter
in
Young's Case (1946) AC, at pp 171, 176, 186
though with some qualification as to the differences between option and
election.
Their
Lordships made use of opinions and expressions to be found in
the judgment. In particular Viscount Simon and Lord Russell adopt
the
view
that the words "the employer shall not be liable . . . both independently of
and also under this Act" do not confer a distinct
and additional protection
upon the employer which does not depend upon the worker's option but, as I
understand it, that it expresses
a consequence of the existence and ultimately
inevitable exercise of the option. A second matter which Viscount Simon, Lord
Porter
and perhaps Lord Russell take from the same source though it is to be
found elsewhere is the view that in assessing damages in an
action of
negligence the amounts already received by a workman as compensation under the
Act must be taken into account and allowed
to the employer in reduction of the
damages. Thus resort to an action of negligence after the enjoyment of
compensation under the
Act can never result in a double recovery. (at p98)
29. The first of these propositions did not originate with Lord Patrick but
with Lord Low (Burton v. Chapel Coal Co., Ltd. (1909)
SC 430 ). Lord Patrick
says (1944) ScLT, at p 285 : "It is assumed by the judges in the Scots cases
rather than stated that the second
part of the subsection (i.e. the words 'but
the employer shall not be liable . . . both independently etc.') has no effect
independent
of and different from the first part and in particular has no
effect restrictive of the right to elect conferred by the first part.
That
view is, however, expressly stated by Lord President Clyde in King v.
Edinburgh Collieries Co., Ltd. (1924) SC 167 when he said
that in his opinion
the second part was exegetical of the first part and I read Lord Low's opinion
in Burton v. Chapel Coal Co. Ltd.
(1909) SC 430 as being to the same effect."
Again Lord Patrick says (1944) ScLT, at p 286 : "The words of the second part
of the
subsection can receive adequate effect if one regards them only as
exegetical of the first part of the subsection, as Lord Clyde
did, or to put
it in another way, if one regards the first part of the subsection as defining
the rights of the workman and the second
part as defining, perhaps
unnecessarily, the resulting rights of the employer, as Lord Low did in
Burton's Case (1909) SC 430 ".
(at p98)
30. In Young's Case (1946) AC, at p 171 Viscount Simon says: "Lord Patrick in
Brown v. William Hamilton & Co. (1944) ScLT 282,
at
p 286; 37 BWCC Supp 52, at
pp 63, 84 develops the view which I would uphold with much clearness and
cogency. I think that the
Scotch
authorities quoted by Lord Patrick (1944)
ScLT 282, at p 285; 37 BWCC Supp 52, at p 60 are right in treating the final
part
of s.
29 ('but the employer,' etc.), as exegetical of the preceding part
('but in that case the workman may, at his option,' etc.),
and
not as further
restricting by an added condition the workman's right of option. As Lord
Patrick points out, and as was also laid
down by the present Lord Goddard in
the Court of Appeal in Unsworth v. Elder Dempster Lines, Ltd. (1940) 1 KB 658,
at p 674 , no
difficulty in adopting this construction arises from the rule
that the employer is not to be bound to pay twice over. If, before
the workman
can be regarded as having really exercised his option, he receives one or more
weekly payments under the Act, and he
then opts to issue a writ and recovers
damages, the damages in the action would be reduced by the amounts already
received." (at
p98)
31. Lord Clyde's word "exegetical" may perhaps be not a very happy expression
of his meaning. Moreover in view of the mystery in
which the provision has so
long been enveloped it may have been unfortunate to choose a word of which a
classical or post-classical
use was to describe books explaining the
significance of omens. Grammarians are perhaps more accustomed to the word
epexegetical,
but it has a narrower use I imagine. However Lord Clyde means
that the second limb of the clause explains, expounds, carries out
and
interprets the first. How this is done is made quite clear by a passage in
Lord Russell's opinion which should be read but of
which I shall quote only
three sentences. His Lordship says (1946) AC, at p 176 : "to make a choice the
workman must be aware of
his right to choose, and of the alternatives open to
his choice . . . On the other hand, if a workman, who knows of his right to
choose and of the alternatives open to his choice, has enforced his claim to
compensation independently of or under the Act, he cannot
thereafter seek to
enforce any other liability of the employer . . . But unless and until he has
so enforced the liability of his
choice, I find nothing in the sub-section to
prevent him from changing his mind, abandoning any pending proceedings in
reference
to one liability, and commencing proceedings to enforce the other
liability." Lord Porter did not concur in the view thus expressed.
He appears
to have considered that the limb of the clause, which in these judgments is
called the second, operated independently
of the option conferred by the first
but that it did not apply unless a stage had been reached at which the
employer is at least
compellable to pay (the workman) either by judgment in an
action by award or by registered agreement (1946) AC, at p 187 . (at p99)
32. Lord Macmillan and Lord Simonds however differed from Viscount Simon,
Lord Russell and Lord Porter in the entire interpretation
of the section and
if this pronouncement of the House upon the provision is to be used as an
authority, as the Court of Appeal used
it in Leathley v. John Fowler & Co.
Ltd. (1946) KB 579 , it seems to me that attention must be confined to the
judgments of the
three
Lords last named. (at p99)
33. I have made no attempt to form, or perhaps I should say to persist in,
views of my own concerning the meaning of the section,
but I have applied
myself to an attempt to ascertain the effect which the weight of authority
seems to give to the provision. So
regarding the matter I think that in this
as in so many other questions of workmen's compensation what may be called the
Scots view
has been justified and has prevailed and that the general
conception of the provision which has now been adopted either in the House
of
Lords or as a result of opinions expressed in the House is more in harmony
with the view expressed by Lord Patrick and adopted
by Viscount Simon and Lord
Russell. I think therefore that for the reason that the plaintiff was unaware
of the existence of the
two remedies and the choice open to her she could not
be barred under the words "but the employer shall not be liable . . . both
independently of and also under this Act." (at p100)
34. The fifth point I shall make relates to the particular position of the
infants. Even if I had been of opinion that the plaintiff,
the widow, was
barred I should have thought that the infants were not. On the assumption I
have stated the position of the infants
would depend on their responsibility
in law for the claim which led to the award. To my mind it is not a question
of the "validity"
of the award, but of the legal connection of the infants
with the proceedings. Suppose that in an imaginary case dependants though
not
infants are numerous and one of them without the authority of the others
proceeds in the most formal manner on behalf of himself
and the other
dependants. Are they "bound" in the sense that the proceedings preclude them
from alternative remedies, conclude them
so that they no longer may exercise
an option? I should say clearly not: because the representation of them is
unauthorized. In the
case of infants the agency or representation must be
established by legal means. The infants are under a disability depriving them
of the power of employing an attorney or other agent. Not that they attempted
to do so in the present case. The law however supplies
the means of providing
representation of infants and by that means making legal proceedings available
to them. In describing the
circumstances I have shown that whether regularly
or irregularly the proceedings could not be treated as proceedings of the
infants.
For so far as appears there are no grounds for connecting the infants
legally with the claim. It is not shown to be for their benefit.
There was no
next friend. So far as appears the proceedings were res inter alios acta. On
the face of the Board's documents they
do not purport to make the infants
parties, though I do not think that is of great importance. It is true that s.
17 (2) of Act No.
5128 says that proceedings shall be deemed to have been
instituted by the claimant. But the infants were not "claimants." (at p100)
35. For all these reasons I am of opinion that neither the plaintiff in the
action nor the four children she names pursuant to Lord
Campbell's Act are
precluded by anything that appears from prosecuting the action. (at p100)
36. In my opinion the appeal should be allowed with costs and the order
discharged the defendants respondents paying the taxed costs
of the summons
and the attendance of counsel in chambers being certified for. (at p101)
MCTIERNAN J. The ground of this application to dismiss the present action
raises a question involving the construction and application
of s. 5 (2) (b)
of the
Workers' Compensation Act 1928
, as amended, of Victoria. The
application results from the defence framed upon
this provision and filed in
this action. (at p101)
2. The plaintiff and her children are brought within the operation of this
sub-section by s. 3 (2) of the Act. In this defence there
is an allegation
that the plaintiff's application for compensation under the
Workers'
Compensation Act
was an exercise of the statutory
option for herself and her
children. This allegation must for the present purposes be disregarded
because
there is no proof of any
element of knowledge necessary to give the
plaintiff's application the character of an exercise
of her statutory option.
(at p101)
3. The defence also contains an allegation that an award was made upon the
plaintiff's application under the Act, and that the defendant
paid the sum
awarded into the statutory court for the benefit of the dependants of the
deceased. There is a question whether the
award, although it is expressed in
this way, binds the rights of the plaintiff's children in such a way as to
effect the present
action. The rest of this allegation is, however,
incontestably proved. It raises the question whether irrespective of any
effect
which the exercise of the statutory option would have, the award debars
her from maintaining this action. The award by its own force
cannot do this.
It can bar the action only if it derives that force from s. 5 (2) (b). (at
p101)
4. In Young v. Bristol Aeroplane Co., Ltd. (1946) AC 163, at p 175 , Lord
Russell of Killowen made an analysis which applies to
s. 5 (2) (b). The
analysis is as follows: - "On the one hand the first provision preserves to
the workman the civil liability of
the employer, and the second provision
gives him a choice between enforcing that liability and enforcing the
liability imposed on
the employer by the Act. On the other hand, the third
provision protects the employer from being obliged to meet both liabilities."
(at p101)
5. The plaintiff relies upon the first and second provisions of s. 5 (2) (b)
to give her the right to maintain this action notwithstanding
the award. These
provisions in terms give her this right. The defendant relies upon the third
provision to give the award the force
of a bar to the action, a force over and
above that which it has per se. This provision does not in terms say that upon
the making
of an award the civil liability of the employer shall be
extinguished or that the option given by the second provision is to cease
upon
such an event. (at p102)
6. In Young's Case (1946) AC, at p 171 Viscount Simon very decisively upheld
the view expressed by Lord Patrick in Brown v. William
Hamilton & Co. (1944)
ScLT 282, at p 285 , that a legislative provision similar to the third
provision of s. 5 (2) (b) and incorporated
in a similar context is
"exegetical" of a provision similar to the second provision of the present
sub-section, and should not be
treated "as further restricting by an added
condition the worker's right of option." In the same case (1946) AC, at pp
176, 177 Lord
Russell of Killowen said that he found himself in substantial
agreement with Lord Patrick's views in Brown v. William Hamilton &
Co. (1944)
ScLT 282; 37 BWCC Supp 52 and added these observations: "As I have said, the
primary object of the section is to preserve
the civil liability of the
employer, making it plain on the one hand that it is the workman who may
choose which liability shall
be enforced against the employer, and on the
other hand that the employer cannot be made to pay more than the measure of
his liability
independently of, or under, the Act as the case may be." (at
p102)
7. The reasoning of Lord Patrick, to which Viscount Simon and Lord Russell of
Killowen gave their adherence, is also generally accepted
by Lord Porter
(1946) AC, at p 186 , but his construction of the English sub-section differs
from that of Viscount Simon and Lord
Russell of Killowen. Lord Porter's
construction is stated in these terms: "If the workman, knowing of the
alternative, makes his
choice, I should regard the option as exercised. But if
he had not this knowledge, a claim for damages which either was not brought
to
a conclusion, or if brought to a conclusion failed, need not be a final
election. Even judgment in favour of the workman would
not of itself
necessarily be a final choice, but it would bar a claim under the Act because
the employer, being thereby liable to
pay independently of the Act, could not
be made liable to pay under it; the wording of the second half of the
sub-section would protect
him. For the same reason an award or registered
agreement under the Act would likewise protect the employer" (1946) AC, at p
188
. (at p102)
8. Lord Macmillan said (1946) AC, at p 184 that he could not accept Lord
Patrick's reasoning. The only other member of the House,
Lord Simonds, does
not refer to this reasoning but his construction inferentially rejects it. (at
p103)
9. Young's Case (1) must be regarded as an authority on the construction of
s. 5 (2) (b). Lord Patrick's reasoning which is accepted
by a majority,
provides the cardinal rule for the interpretation of s. 5 (2) (b). But there
is a difference of opinion between Viscount
Simon and Lord Russell of Killowen
on the one hand and Lord Porter on the other hand, who are the majority, how
the provision protecting
the employer against double liability operates. Lord
Russell of Killowen said that the English sub-section is not "worked out"
until
the worker has made his option, and that it is not until then that the
"chapter is closed." It follows that s. 5 (2) (b) is not "worked
out" by the
making of an award or that an award "closes the chapter" unless the award
results from a choice by the worker made with
the requisite knowledge of his
rights. (at p103)
10. The order of Barry J. in so far as it depends upon the interpretation of
s. 5 (2) (b) has the support of Lord Porter, but I
do not think that it can
stand with the opinions of Viscount Simon and Lord Russell and Lord Patrick.
(at p103)
11. I do not see how the reasons of Lord Macmillan or Lord Simonds can be
used to support the order because their view of the subsection
was that if a
worker in fact claimed under the Act he debarred himself from taking
proceedings independently of the Act and it is
immaterial whether he knew of
his rights or not. (at p103)
12. If in Young's Case (1946) AC 163 the facts had been like those assumed to
be proved in the present proceedings, I apprehend
that Lord Macmillan and Lord
Simonds would have said that the guillotine fell on the plaintiff's statutory
right to take proceedings
independently of the Act when she claimed
compensation. Lord Porter would have said that it fell when the award was
made, and Viscount
Simon and Lord Russell would have said that the sub-section
did not give the award the force of a bar to the action. It would be
contrary
to the views of the majority about the conditions requisite for the exercise
of the statutory option to apply the construction
which Lord Macmillan and
Lord Simonds adopted in Young's Case (1). (at p103)
13. The sub-section having given the worker a benefit because he is ignorant
of his rights, it would be a strange result if he lost
the benefit as from the
time an award was made upon his application, although then and after the award
his ignorance of his rights
continued. This benefit is to take proceedings
independently of the Act notwithstanding that he has already claimed
compensation
under the Act. I think it is not a correct view of the operation
of the sub-section that the worker's ignorance of his rights is
an important
factor up to the time of the award, but that then all other remedies are as
effectively closed to him as if he had full
knowledge of his rights from the
time he applied for the award. In Young's Case (1946) AC, at p 177 , Lord
Russell said: "Lord Patrick
has pointed out the harsh results and the
difficulties which would ensue if a workman is to be held to be deprived of
his rights
against the employer which are independent of the Act, by the mere
acceptance as such of compensation paid under the Act. I need
not repeat them,
but they appear to me very real; and while no suggestion is or could be made
against the employers in the present
case, it is obvious that instances might
arise in which, on the construction of the sub-section adopted by the Court of
Appeal, very
grave injustice might be inflicted on a workman by his employer."
These observations apply to an award obtained by a worker in ignorance
of his
right to enforce payment of the employer's civil liability. The observations
apply with special force to a consent award.
But no suggestion of course is
made in this case that the consent was given in order to close speedily all
other alternative remedies
which s. 5 (2) (b) leaves open to a worker or his
dependants. (at p104)
14. The liability to pay compensation is imposed upon the employer by the Act
and not by the award. The third provision of s. 5
(2) protects the employer
from being obliged to meet both the statutory liability and his civil
liability. The latter liability is
preserved to the worker by the first
provision in the sub-section. The problem is how to apply this provision if an
award is made
and the worker then proceeds to enforce the civil liability. The
first case is where the worker obtains an award with full knowledge
of his
rights. In other words he has exercised his statutory option. The third
provision of the sub-section then comes into play
for the employer's
protection. It relieves him from any liability which he has independently of
the Act to pay damages in respect
of the injury to which the award refers. It
is clearly this provision and not the award which relieves the employer of
this liability.
The terms of the provision are not apt to bring in the award
as a bar to an action. The second case is where the worker obtains an
award
without knowledge of his rights. In this case he has not at that stage
exercised his statutory option. The sub-section has
not then been "worked out"
or "the chapter closed." The worker's right of option remains notwithstanding
the award. The third provision
of the sub-section must of course be applied.
It protects the employer in all circumstances from liability to pay twice
over. In
other words the protection extends to the employer whether the award
is the result of the worker's deliberate choice or not. But
the third
provision does not deprive the worker of his right of option. It would strain
the terms of the provision to construe them
in that way. Indeed the protection
which this provision gives to the employer is extended to him because a right
of option is given
to the worker. Hence if an award is made at the worker's
option, it is clearly to the third provision and not to the award that the
employer must look for protection against paying up on account of this civil
liability as well as upon the statutory liability. If
the award is not the
result of the worker's deliberate choice, I do not see upon what principle the
third provision should be given
a different construction. In that case it
would not authorize the award being brought in to stop the worker from
exercising his choice
by bringing an action to enforce the employer's civil
liability. Upon the assumption that the worker has not made his choice the
third provision cannot prohibit him from exercising it. It does not annihilate
the second provision from which the worker derives
his right of option. But
the third provision would limit the employer's liability to paying the amount
of the verdict in the action
even if the amount of the award exceeded the
verdict; it would do so, as I have said, whether the worker obtained the award
with
knowledge of his rights or not. (at p105)
15. In Young's Case (1946) AC, at p 171 Viscount Simon said: "If, before the
workman can be regarded as having really exercised
his option, he receives one
or more weekly payments under the Act, and he then opts to issue a writ and
recovers damages, the damages
in the action would be reduced by the amounts
already received. This view secures what Lord Greene M.R. in Perkins' Case
(1940) 1
KB 56, at p 65 , described as the effect of the final words, namely,
that 'the employer is not to be made to pay twice over to the
same person.' I
cannot agree that the deduction from damages of a sum already paid in respect
of the same injury is contrary to any
'principle of law' (1940) 1 KB, at p 67
. On the contrary, I would adopt Lord Patrick's statement that 'when the
workman sues at
common law, if the sum awarded in name of damages exceeds the
sums already paid to him in name of workmen's compensation, these sums
will
form a good set-off or will have to be taken into account in diminution of
damages' (1944) ScLT 282, at p 286; 37 BWCC Supp
52, at p 64 ." The case to
which these observations are intended to apply is expressed by the words "If
before the workman can be
regarded as having really exercised his option." The
phrases "he receives one or more weekly payments under the Act" and "the sum
awarded in the name of damages" are, I think, of general application to all
payments which are not the fruit of a real exercise by
the worker of his
statutory option whether made under the compulsion of an award or not. (at
p106)
16. In the present case, however, neither the plaintiff nor any of her
children has received any sum from the money which the defendant
paid into
court under the obligation of the award. This fact, of course, would not
assist her if the making of the award debars her
from maintaining the action.
(at p106)
17. I come to the conclusion that upon the true construction and application
of s. 5 (2) (b), the making of the award does not destroy
or restrict the
right of option given to the plaintiff or any of her children by virtue of
their status as dependants. If the action
succeeds the plaintiff at least must
be content with the quantum of her interest in the damages. The question
whether the children
would be bound to take their share of the damages, rather
than compensation under the Act, might depend upon the question whether
it was
for their benefit for the plaintiff to choose the present remedy. But subject
to this suggested contingency, the provision
in s. 5 (2) (b), protecting the
defendant from being obliged to pay twice over, would sterilize the award
under the
Workers' Compensation
Act
, whether the damages awarded in the action
were more or less than the amount of the award: nothing has been paid under
the award
and there would therefore be no set-off against the verdict if in
favour of the plaintiff. (at p106)
18. I am of the opinion that the summons should have been dismissed upon the
ground that upon the true construction of s. 5 (2)
(b) the plaintiff is not
debarred from maintaining this action either for herself or for any of her
children. (at p106)
19. For these reasons I should allow the appeal. (at p106)
WILLIAMS J. This is an appeal from an order made by Barry J. dismissing an
action brought by the plaintiff, the present appellant,
for the benefit of
herself and her four children, all under the age of sixteen years, against the
defendant, the Victorian Railways
Commissioners, the present respondent, under
Part III.
of the
Wrongs Act 1928
(Vict.) claiming 9,000 pounds damages in
respect of
the death of her husband Gordon Dey alleged to have been caused by
the negligence
of the defendant or of its servants or agents acting
in the
course and within the scope of their employment. The order was made on
a
summons dated 17th March 1948 taken out by the defendant
to have the action
dismissed or forever stayed on the grounds that it
was frivolous, vexatious
and an abuse of the process of the
Court in that on 26th May 1947 the
plaintiff on behalf of herself and
her four children dependent on the deceased
obtained an award
of the Workers' Compensation Board against the defendant in
respect
of the same accident. (at p107)
2. The facts may be shortly stated. On 29th April 1947 Gordon Dey, who was in
the employment of the defendant, met his death as
a result of personal injury
by accident arising out of or in the course of his employment. On 9th May 1947
the defendant received
a letter from E. H. Ruddell, the accountant of the
Australian Railways Union, Victorian Branch, stating that he desired to apply
for compensation on behalf of the widow and four children of the deceased. On
19th May 1947 the defendant, pursuant to s. 17 of the
Workers' Compensation
Act 1946
(Vict.), gave notice in writing to the registrar of the Workers'
Compensation Board that a claim for
compensation had been made by
or on behalf
of the widow on her own behalf and on behalf of the four children (naming
them) as claimants,
that the deceased left
as dependants wholly dependent on
his earnings the plaintiff and the four children, and that the defendant
admitted liability to
pay such compensation as the employer was lawfully
obliged to pay, the amount of which was to be ascertained
by the Board. On
21st
May 1947 the Board made an award entituled in the matter of a claim for
compensation made by the widow as claimant
to the defendant
as employer in
respect of the death of Gordon Dey. The award stated, so far as material, that
the Board, having
found that the deceased
left his widow and four children,
naming them, under sixteen years of age at the time of the accident wholly
dependent upon his earnings,
awarded the sum of 1,100 pounds to be paid into
the custody of the Board. At the hearing before the
Board the plaintiff, who
was
represented by E. H. Ruddell, gave evidence on oath that she was the widow
of the deceased, that there
were four children under the
age of sixteen years
wholly dependent on the deceased, and that the names and dates of birth of the
children were as set out in the
claim for workers' compensation made on behalf
of herself and the children by E. H. Ruddell. At the
conclusion of the
evidence the
chairman of the board announced that the Board awarded the sum of
1,100 pounds as compensation to
the widow and her children, and
informed the
widow that she should attend at the office of the registrar of the Board to
make the
necessary arrangements for the
distribution of this sum to her. On
28th May 1947 the defendant paid the sum of 1,100 pounds to the
Board. This
sum was the amount
prescribed by par. (1) (a) (i) of the First Schedule to the
Workers' Compensation Act 1946
which provides
that where death results from an
injury, if a worker leaves a widow or any children under sixteen years of age
at
the time of the
accident, the amount of compensation shall be 1,000 pounds
together with an additional sum of 25 pounds in respect
of each such child.
(at p108)
3. On the same day the solicitors for the plaintiff wrote to the registrar of
the Board stating in effect that the widow did not
know that she had an option
to elect whether to claim compensation under the
Workers' Compensation Act
or
to sue for damages under
the
Wrongs Act
, and requesting the Board to withhold
any payments of compensation until the question of commencing an action for
damages could be
investigated. On 30th May 1947 the registrar of the Board
replied that the Board would take no further action pending
further
instructions
from the plaintiff's solicitors. On 30th September 1947 the
present action was commenced in the County Court
and on 27th February
1948 an
order was made under s. 61 of the
County Court Act 1928
(Vict.) transferring
the action to the Supreme
Court of Victoria. Section 5 (2) (b) of the
Workers'
Compensation Act 1928
(Vict.) provides, so far as is material, that where the
injury (in this case the death of Gordon Dey) was caused by the personal
negligence or wilful act of the employer or of some person
for whose act or
default the employer is responsible . . . nothing in
this Act shall affect any
civil liability of the employer,
but in any such case the worker may at his
option either claim compensation
under this Act . . . or take proceedings
independently
of this Act but the employer shall not be liable to pay
compensation for injury
to a worker by accident arising out of and in the
course of the employment both independently and also under this Act. The
ground
on which his Honour made the order dismissing the
action was that, to
use his own words, "once there has been a final determination,
whether by
judgment or award, imposing a liability
on the employer, the chapter is closed
so far as the worker or the person by or
on whose behalf the judgment or award
was obtained
are concerned, and no other proceedings by him or them or on
their behalf to establish
the employer's liability are permissible."
(at p108)
4. It was contended on three main grounds that it was wrong for his Honour to
order the action to be dismissed, the first ground
being of a technical
nature, and the other two going to the merits. The first ground was that the
facts and circumstances were not
such as to justify his Honour in exercising
the power under Order XXV, rule 4, of the Rules of the Supreme Court or under
the inherent
jurisdiction of that Court summarily to dismiss the action. The
second and third grounds were that his Honour was wrong in holding
that the
award of the Workers' Compensation Board had the effect of precluding the
widow and children from proceeding under Part
III. of the
Wrongs Act 1928
, and
alternatively that his Honour was wrong in holding that the award precluded
the children of the
deceased from proceedings under
Part III.
of that Act.
Order XXV, rule 4, provides that the court or a judge may order any pleading
to be struck out on the ground that it
discloses no reasonable cause of action
or answer; and in any such case or in case of the
action or defence being
shown by the pleadings
to be frivolous or vexatious the court or a judge may
order the action to be stayed
or dismissed, or judgment to be entered
accordingly,
as may be just. The jurisdiction to strike out or stay an action
under this
rule is practically concluded by what appears in the
pleadings. The
only pleading so far filed in the action is the statement of
claim and there
is nothing on the face of this pleading
to bring the rule into operation. It
seems to me therefore that his Honour
must have relied on the inherent
jurisdiction of the court
to strike out or stay an action which is shown to be
frivolous or vexatious
or an abuse of its process. This jurisdiction is not
confined to cases where the abuse is manifest from the pleadings, the
application
may be supported by affidavits, and the jurisdiction
may be
exercised where the facts proved raise a complete legal bar to the action
so
that the action is vexatious in that it must
fail. In the present case his
Honour appears to have considered that it was clear
that the award of the
Board was made on the application
of the widow and children, and that this
raised the question of law whether
the liability of the defendant to pay
compensation, which
crystallised upon the making of the award, was not a
complete legal bar
to these persons suing under the
Wrongs Act
. If it was such
a bar, then the whole of the expenditure of energy and money required
to
prepare the action for trial on the facts
would be wasted. In these
circumstances I am not prepared to uphold the first contention,
although I am
of opinion that it would
have been preferable for his Honour to have refused
summarily to dismiss the action, and to
have left the defendant to plead the
facts raising the legal bar and then apply to have the point disposed of as a
question of law
before trial under Order XXV., rule
2. (at p109)
5. I shall therefore proceed to consider the other two contentions which go
to the merits. Assuming for the moment that the application
for compensation
made to the Board was an application by the widow and her four infant
children, I am of opinion that his Honour's
decision was right. Section 5 (2)
(b) of the
Workers' Compensation Act 1928
provides that an employer shall not
be liable to pay
compensation . . . both independently of and also under this
Act. The award
of the Board made the defendant liable to pay compensation
under the
Workers' Compensation Act
, and the section appears to me to provide
in clear and unambiguous terms that the defendant shall
not also be made
liable to pay
damages to the same applicants under the
Wrongs Act
. The
provisions of s. 5 (2) (b) of the Victorian
Act correspond to s. 29, sub-s.
(1), of the English Workmen's Compensation Act 1925.
The meaning of this
sub-section was recently
discussed by the House of Lords in Young v. Bristol
Aeroplane Co., Ltd. (1946) AC 163
. The House consisted of Viscount Simon,
Lord
Russell of Killowen, Lord Macmillan, Lord Porter and Lord Simonds. Three
of their Lordships,
Viscount Simon, Lord Russell of Killowen
and Lord Porter
expressed the opinion that the choice given to the workman necessarily
involves
a choice between known things. Viscount
Simon said (1946) AC, at pp
172, 173 that it is the workman who has the option and that he
does not lose
his alternative remedy merely
because he accepts some payments under the Act
when the option is unknown to him. Lord
Russell of Killowen said (1946) AC, at
p 176
that to make his choice the workman must be aware of his right to choose
and of the
alternatives open to his choice. He said that:
"In the case of a
workman who, owing to ignorance in these respects, has been unable
to exercise
his option under the sub-section,
but who has been paid and has accepted
compensation under the Act, even to the full
amount, I cannot see how he can
be prevented,
on discovering his right to choose, from recovering compensation
independently of the
Act, if he be not barred by lapse of time."
Lord Porter
said (1946) AC, at p 185 that: "Apart from authority, I should have thought
it
reasonably plain that whereas the workman
can choose which of his two types of
remedy he would pursue, he cannot recover both
damages and compensation, and
at some time or
other he must reach the position when he is bound to the one
and debarred from the
other." At (1946) AC, at p 187 he said: "In my
view,
unless the dispute has reached the stage at which the employer is at least
compellable
to pay, either by judgment in an action
or by award or registered
agreement under the Act, he cannot be said to be liable to pay
within the
wording of the sub-section. Even
a failure at law or the dismissal of a claim
for compensation would not be enough; there
must be some binding decision
under which
the employer is liable to pay. The provisions of this part of the
sub-section are a defence
against a legal liability to pay twice,
not a method
of ascertaining whether the workman has or has not made an irrevocable choice.
But a choice has to be made under the
first part of the sub-section and must
at some time become irrevocable. When does this occur?
I can find no answer,
except that it
comes when the workman is fully aware of the alternatives and
deliberately makes his choice
between them. He must not only know that
he has
claimed, or is offered or is receiving, workman's compensation as such, he
must also
know that he has an alternative remedy."
(at p111)
6. I have not cited any passages from the speeches of Lord Macmillan and Lord
Simonds because they thought that the acceptance of
payments knowing them to
be compensation under the Act barred a claim at common law irrespective of the
plaintiff's knowledge of
his option. In this conflict of opinion of their
Lordships, I feel that I am free to accept the opinion of Lord Porter which is
exactly
in point that once the workman has obtained an award of compensation
or a judgment for damages, even if he did not know that he had
a choice, the
prohibition against double liability prevents him from thereafter choosing to
pursue the other remedy. Accordingly
the widow of the decaseed who clearly
applied for and obtained an award of compensation under the
Workers'
Compensation Act
is barred
from suing for damages under the
Wrongs Act
. (at
p111)
7. It remains to consider the case of the four children. Unless they were
applicants before the Board they are not barred from suing
for damages under
the
Wrongs Act
. The authorities are clear that where a worker is killed each
of his dependants as defined by the
Workers' Compensation Act
has a separate
right to claim compensation under that Act, and that any of these dependants
who are also
persons entitled to sue
for damages under the
Wrongs Act
has an
individual choice as to which remedy he or she will pursue. In the
present
case the widow and children of the deceased were
all persons having rights of
action under both Acts. The widow, as I have
said, is barred from suing under
the
Wrongs Act
. The amount of compensation awarded by the Board was calculated
on the basis that
the deceased left a widow and four children wholly
dependent
on him, but this was the amount which the Board was bound to award whether
all
or some or one only of the class consisting
of the widow and her four children
applied to the Board to make an award. Assuming
that the award was made on the
application of
the widow alone, there would be no legal bar to the four
children suing under the
Wrongs
Act
and the amount of damages which they could
lawfully recover under that Act would not be affected by the fact that the
widow had
been
awarded 1,100 pounds as compensation under the
Workers'
Compensation Act
calculated on the basis that there were four children
under
sixteen also wholly dependent on the deceased. Nor would the amount awarded
to
the widow as compensation be affected by the
amount of damages recovered by
the children: London Brick Co. Ltd. v. Robinson (1943)
AC 341 . In my opinion
the children should
not be held to have been applicants in the application
which was made to the Board for
an award of compensation. Rule 43 of the 1946
Workers' Compensation Rules provides that a party to any proceedings or matter
may
appear (d) by agent. Ruddell presumably acted
for the widow and purported
to act for the children under this rule, but the children
could not authorize
Ruddell to act on their
behalf or appear for them: Geilinger v. Gibbs (1897) 1
Ch 479, at p 482 . Rule 8 of the
1946 Workers' Compensation Rules provides
that the provisions of the County Court Rules as to persons under disability
shall, with
the necessary modifications, apply to proceedings
under the Act.
Provided that the Board may at any time direct that an infant shall
appear
either as applicant or respondent in the
same manner as if he were of full
age. Rule 15 of the County Court Rules provides
that infants may sue in the
court as plaintiffs
by their next friends and be defended by their guardians
appointed for that purpose.
Rule 16 provides that where an infant desires
to
commence an action he shall procure the attendance of a next friend at the
office
of the registrar at the time of entering the
plaint. The plaint shall
not be entered until the next friend has undertaken to be responsible
for
costs and the action shall proceed
in the name of the infant by such friend.
The procedure required by these rules was not adopted
and the children were
not made applicants
before the Board by a next friend. The Board did not
direct that the infants should appear
as applicants in the same manner as if
they were of full age. (at p112)
8. In Gregory v. Molesworth (1747) 3 Atk 626, at p 627 (26 ER 1160, at p
1161) , Lord Hardwicke L.C. said: "it is right to follow
the rule of law,
where it is held an infant is as much bound by a judgment in his own action,
as if of full age; and this is general,
unless gross laches, or fraud and
collusion appear in the prochein amy, then the infant might open it by a new
bill." In Cribb v.
Kynoch, Ltd. (No. 2) (1908) 2 KB 551, at p 561 , Buckley
L.J. said: "The point was taken that the workman in this case was an infant.
.
. . There is nothing in the point . . . the litigation, duly commenced in the
name of the infant by a next friend, was prosecuted
to judgment. In such case
an infant is just as much bound by the proceedings as if he were adult. If
authority be needed, Neale v.
Electric & Ordnance Accessories Co., Ltd. (1906)
2 KB 558 is authority for the proposition." See also Condon v. Mudgee Council
(1945)
45 SR (NSW) 258 . Accordingly, if the infants had duly applied for and
obtained an award of compensation under the
Workers'
Compensation
Act
in the
manner prescribed by the rules, they would have been barred like the widow
from suing for damages under the
Wrongs Act
.
But, apart from a direction by
the Board under the proviso to rule 8, the infants could only have duly
applied, if the
application
had been commenced in their names by a next
friend, and their interests had been protected by the presence of a next
friend who would
have been responsible for the proper conduct of the
proceedings on their behalf, and subject to the supervision
which the court
exercises
over a next friend in the conduct of the proceedings. In Rhodes v.
Swithenbank (1889) 22 QBD 577, at p
579 Bowen L.J. said: "The
only reason that
the next friend of an infant is entitled to bind the infant in matters
connected with
the cause is that he is the
officer of the court to take all
measures for the benefit of the infant in the litigation in which he
appears
as next friend. One
of the purposes of appointing a next friend is to have a
person on the record who is personally liable
for costs. But that is not
the
only purpose for which a next friend is appointed. He is appointed principally
to institute and carry
on the proceedings on behalf
of the infant because the
law considers that an infant is incapable of asserting or protecting his
rights
or forming a judgment as
to the necessity of applying for protection or
redress to the tribunals of the country. Accordingly, where
more than one
person is
willing to act as a next friend, the court will appoint as most
suitable the father or if he is dead the
widow or some near relative
in
preference to a stranger unless the interest of the father or other relative
is adverse to that of
the infant. The next friend
will be removed by the court
if he has an interest, or is closely connected with some person who has
an
interest, which is adverse
to that of the infant, or if for any reason the
court considers that the infant's interests will not
be properly protected by
him.
If there be any suspicion that the proceeding is an improper one or that
the next friend is unfit to
have the conduct of it, an inquiry
may be directed
on such matters, and if it appears on inquiry, or in clear cases without
inquiry,
that the proceeding is not for
the infant's benefit it will be
stayed, or, if the circumstances warrant it, dismissed with costs
to be paid
by the next friend:
Nalder v. Hawkins
[1833] EngR 842
; (1833) 2 Myl & K 243 (39 ER 937) ; Da
Costa v. Da Costa (1732) 3 PW 140 (24
ER 1003) ; Anderton v. Yates
[1852] EngR 181
; (1852)
5 De
G & S 202 (64 ER 1081) ; Fox v. Suwerkrop
[1839] EngR 919
; (1839) 1 Beav 583 (48 ER 1068) ; Guy
v. Guy
[1840] EngR 523
; (1840) 2 Beav 460 (48 ER 1259) ". See
generally Simpson on The Law and
Practice relating to Infants, 4th ed. (1926), pp. 293 to
297;
Halsbury's Laws
of England 2nd ed.,
vol. 17, pp. 702 to 707. (at p114)
9. Rule 81 of the 1946 Workers' Compensation Rules provides that
"Non-compliance with any of these rules shall not render any proceedings
void
unless the Board so directs, but such proceedings may be set aside either
wholly or in part as irregular, or amended or otherwise
dealt with in such
manner and upon such terms as the Board shall think fit." But this rule could
not operate to make an award binding
upon a person who was not properly before
the Board as a party. In Ex parte Brocklebank, In re Brocklebank (1877) 6 Ch D
358 , Bradshaw,
an infant, by his next friend sued Brocklebank for breach of a
contract of apprenticeship, and recovered damages and costs amounting
to 255
pounds 11s. 4d. Bradshaw then issued a debtor's summons without a next friend
to recover this amount. Brocklebank applied
to have the summons dismissed on
the ground that he was not indebted in the amount claimed. An order was made
staying the proceedings
on the terms of the debtor giving security for the
debt. The security was not given within the time fixed, the debt was not paid,
and Bradshaw by his next friend then presented a bankruptcy petition upon
which Brocklebank was adjudicated bankrupt by the registrar.
Brocklebank
appealed on the ground that no act of bankruptcy had been committed because
Bradshaw, being an infant, was not competent
to instruct a solicitor to issue
the summons and was incapable of giving a valid discharge for the debt if it
had been tendered to
him. The Court of Appeal was not satisfied that it was
irregular for an infant to issue a debtor's summons without a next friend.
Assuming that it was, the Court was of opinion that the debtor had waived the
irregularity by his own conduct. In the course of his
judgment, James L.J.
said (1877) 6 Ch D, at p 360 , "It is said that the debtor's summons ought to
have been issued by a next friend
on behalf of the infant. I am not aware of
any such practice in the Court of Bankruptcy. In the Court of Chancery a suit
on behalf
of an infant was brought in his name by a next friend in order to
give security for the costs to the Defendant, but if the suit had
been
commenced without the intervention of a next friend, and the Defendant chose
to appear, I know of no reason why it should not
have been prosecuted without
a next friend. Probably, if in the present case an application had been made
by the debtor in the first
instance, that some adult person should be named
for the purpose of giving security for the costs of the debtor's summons, the
application
would have been successful. If, however, there was any
irregularity in this respect, it has been waived by the debtor." The facts
of
Brocklebank's Case (1877) 6 Ch D 358 were very special. The proceeding under
appeal was the bankruptcy petition which had been
properly presented by
Bradshaw by his next friend, the action which resulted in Brocklebank becoming
indebted to Bradshaw was also
properly brought in the name of the infant by
his next friend and the debtor's summons was simply a step in the proceedings
to recover
the judgment debt and was plainly for his benefit. Cotton L.J. said
(1877) 6 Ch D, at p 361 that "the question of substance is, whether
the
adjudication ought to have been made. . . . A judgment having been recovered
for the debt, there was a regular mode of discharging
the liability created by
it, and, as the debtor did not choose to avail himself of it, the adjudication
was rightly made." Brocklebank's
Case (1877) 6 Ch D 358 is not to my mind any
authority for the proposition that an infant is bound by proceedings which
have not
been duly instituted and litigated on his behalf. In the present case
the four children were not in my opinion properly before the
Board as
applicants and are not bound by the award. (at p115)
10. I would therefore allow the appeal. (at p115)
ORDER
Appeal allowed. Order of Supreme Court discharged. Declare that the
plaintiff is not entitled to maintain the action in her own
right, but that
the infant children of Gordon Dey deceased are competent to sue by their next
friend. Liberty to such infants or
any of them by their next friend to apply
to the Supreme Court or a judge thereof for change of parties. Otherwise
action stayed
until further order of the Supreme Court or a judge thereof. No
order as to costs of appeal or of summons to dismiss action.