As you would be aware, the New South Wales Court of Appeal
handed down a decision earlier this year, Sabanayagam v St
George Bank Limited.1 The case held that if an
insurer declines liability because the worker is no longer totally
or partially incapacitated (section 33 of the Workers
Compensation Act 1987), this is not a "work capacity
decision" under the Act.
When we reported on the case earlier this year,2 we
considered the wider implications of Sabanayagam. We now
update you with new developments following the recent Presidential
decision in D'Er v Glemby International (Aust) Pty
Ltd3.
Consideration of Sabanayagam by the WCC
Ms D'Er was a hairdresser who suffered from carpal tunnel
syndrome in her right hand and wrist. Initially she was paid
voluntary payments and then in accordance with a Compensation Court
award. In 2005 lump sum compensation was agreed. Then in 2007 she
received an award from the WCC for ongoing weekly payments, which
were discontinued
