6 PDF
6 PDF
JENNIFER YULE∗
I. INTRODUCTION
On the 10th anniversary of the beginning of the insurance crisis and a period of significant torts
law reforms, it is appropriate to take this opportunity to considers to what extent civil liability
legislation (in various jurisdictions) has limited the liability of health professionals in Australia.
Prior to the last decade, legislation on civil liability was usually used to extend liability, rather
than to limit it.1 Tort law reform has now resulted in legislation being passed by all Australian
jurisdictions, implementing some recommendations contained in the Ipp Report2 as well as
other reforms that were not included in the recommendations.
The review of the law of negligence was in response to a perceived crisis in liability insurance;
in particular, medical indemnity insurance.3 This perceived crisis resulted from several factors,
including the collapse of HIH, the destruction of the World Trade Centre, the provisional
liquidation of Australia’s largest medical defence organisation (United Medical Protection),
and the subsequent substantial increases in medical indemnity insurance. The objective of the
review was to restrict and limit liability in negligence actions.4
This article will consider and reflect upon the extent to which those reforms have affected
the liability of health professionals in medical negligence actions. It is not within the scope of
this article to consider the elements of the negligence action: duty of care, breach and damage.
Rather, this article will consider the areas of defences and assessment of damages: contributory
negligence, voluntary assumption of risk, good Samaritans, the peer acceptance defence,
apologies and statutory limits on damages.
It will be argued in this article that the courts have generally interpreted the civil liability
reforms as being consistent with the common law. However, the liability of health professionals
has been limited by the civil liability legislation through the use of thresholds, caps and
presumptions in the assessment of damages and apportioning liability between the parties rather
than by the application of defences. Therefore, this paper will first consider defences and then
statutory limits.
II. DEFENCES
There are a number of possible defences to a negligence action, including contributory
negligence and voluntary assumption of the risk. There are also specific defences in medical
negligence like the peer acceptance defence. Other topics included in this section include the
Good Samaritan defence and apologies.
53
Journal of the Australasian Law Teachers Association
A. Contributory Negligence
A common defence to an action in negligence is contributory negligence. Contributory negligence
was once a complete defence to an action in negligence;5 however, since the introduction of
apportionment legislation, liability can now be apportioned and damages reduced.6 The Ipp
Report recognised that at common law the courts were applying a lower standard of care and
made the recommendation that emphasis must be made to the fact that contributory negligence
had to be measured against an objective standard (the standard being the same as in establishing
negligence against the defendant). The civil liability legislation has introduced a number of
sections to further this aim. Presumptions and mandatory reductions for contributory negligence
have attempted to reduce the liability of defendants. It is now possible for damages to be reduced
by 100 per cent for contributory negligence. Legislation now also expressly provides that the
standard of care for contributory negligence is the same as for negligence.
There is an argument about whether the standard of care owed by the defendant and the
plaintiff should be the same or a different standard. The common law has treated the standard
differently because the failure by a defendant puts others at risk, whereas the failure by the
plaintiff impacts on only them. However, the civil liability legislation states that they are the
same. This idea has also found support from Callinan and Heydon JJ in Vairy, where it was
stated that the plaintiff’s contributory negligence involves a breach of one’s duty to society not
to become a burden on it by exposing oneself to risk where, at 483, their Honours said:7
The ‘duty’ to take reasonable care for his own safety that a plaintiff has is not simply a nakedly
self-interested one, but one of enlightened self-interest which should not disregard the burden,
by way of social security and other obligations that a civilised and democratic society will
assume towards him if he is injured. In short, the duty that he owes is not just to look out for
himself, but not to act in a way which may put him at risk, in the knowledge that society may
come under obligations of various kinds to him if the risk is realised.8
This statement was supported by Ipp JA in CBH v Edwards, where his Honour noted the
equivalence between the civil liability legislation and Callinan and Heydon JJ in Vairy.9 Given
this, the Court did not accept that the plaintiff’s contributory negligence was less serious than
the defendant’s breach of duty of care.10
Prior to the recent civil liability reforms, apportionment legislation did not permit a court
to find a plaintiff was 100 per cent contributorily negligent.11 However, the situation is now
different under new civil liability legislation,12 where 100 per cent apportionment is possible.
In Adams by her next friend O’Grady v State of New South Wales,13 the Court held that it was
‘entitled to come to a view that the contributory negligence should be assessed at 100 per
cent of the cause of the injury’.14 But this has not happened in medical negligence cases and,
considering the expert knowledge involved, it is difficult to imagine such a case.
54
Defences in Medical Negligence
All jurisdictions, except for the Australian Capital Territory and the Northern Territory, have
sections in their civil liability legislation dealing with contributory negligence,15 which have
been held to be reflective of the common law16 — that is, the standard of care is the same as
for negligence.17 The standard is different when the plaintiff is a child.18 Once contributory
negligence is proven, the appropriate apportionment needs to be considered to determine what
is ‘just and equitable’ in accordance with the legislation. This is subjective and based on findings
of fact:
No doubt the making of the apportionment which the legislation requires involves a comparison
of culpability of both parties ie, the degree to which each has departed from what is reasonable,
but that is not the only element to be considered. Regards must be had to the relative importance
of the acts of the parties in causing damage and it is the whole conduct of each negligent party in
relation to the circumstances of the accident which must be subject to comparative examination.19
There are mandatory reductions for intoxication20 but it would seem unlikely that intoxication
would be relevant in medical negligence cases. The mandatory presumption can be rebutted by
establishing that the intoxication did not contribute to the breach of duty.
Since the High Court decision in Rogers v Whitaker,21 courts have been prepared to focus
on the conduct of the patient.22 However, cases involving successful claims of contributory
negligence are rare.23 There are some scenarios when contributory negligence can arise and be
raised in medical negligence cases. One is when the patient does not return to see the doctor
when requested or the patient does not adequately inform the doctor of the nature of their
symptoms. In such a situation, damages may be reduced by 20 per cent, depending on the facts
of the case.24 There is a theme in the cases of an idea of ‘shared responsibility’25 between the
health professional and the patient and that there are rights and responsibilities as a ‘consumer
of medical services’.26 Other scenarios include the patient failing to keep appointments with the
doctor (in one case, liability was reduced by 50 per cent),27 and the patient failing to advise the
staff at a fertility clinic that only one, not two, embryos should be transferred (where the liability
15 Civil Liability Act 2002 (NSW) s 5R; Civil Liability Act 2003 (Qld) s 23; Civil Liability Act 1936
(SA) s 5K; Civil Liability Act 2002 (Tas) s 23; Wrongs Act 1958 (Vic) s 44; Civil Liability Act 2002
(WA) s 5K.
16 Consolidated Broken Hill Ltd v Edwards [2005] NSWCA 380, [67]–[70].
17 Civil Liability Act 2002 (NSW) s 5R; Civil Liability Act 2003 (Qld) s 23; Civil Liability Act 1936
(SA) s 44; Civil Liability Act 2002 (Tas) s 23; Wrongs Act 1958 (Vic) s 62; Civil Liability Act 2002
(WA) s 5K.
18 Doubleday v Kelly [2005] NSWCA 151, [26].
19 Wynbergen v The Hoyts Corporation Pty Ltd (1998) 149 ALR 25, 29 (Hayne J).
20 Civil Law (Wrongs) Act 2002 (ACT) s 95; Civil Liability Act 2002 (NSW) ss 48–50; Personal
Injuries (Liabilities and Damages) Act 2003 (NT) ss 14–17; Civil Liability Act 2003 (Qld) ss 46,
47; Civil Liability Act 1936 (SA) ss 46, 48; Civil Liability Act 2002 (Tas) ss 4A, 7; Wrongs Act
1958 (Vic) s 14G; Civil Liability Act 2002 (WA) s 5L.
21 (1992) 175 CLR 479.
22 Robert B Harper, ‘The Application of Contributory Negligence Principles to the Doctor/Patient
Relationship’ (2001) 9 Torts Law Journal 1, 14.
23 Loane Skene, Law and Medical Practice (LexisNexis, 2008) 238; Bill Madden and Janine
McIllwraith, Australian Medical Liability (LexisNexis, 2008) 290.
24 Locher v Turner [1995] QCA 106; Kalokerinos v Burnett (Unreported, NSW Court of Appeal,
Kirby P, Clarke and Powell JJA, 30 January 1996) accepted in Tai v Hatzistravrou [1999] NSWCA
306.
25 Tai v Hatzistravrou [1999] NSWCA 306, [56].
26 Harper, above n 22, 16.
27 Young v Central Australian Aboriginal Congress Inc [2008] NTSC 47.
55
Journal of the Australasian Law Teachers Association
was reduced by 35 per cent).28 There are many examples where allegations of contributory
negligence have not been successful in medical negligence cases.29
There were few examples in medical negligence cases where contributory negligence was
successful before the civil liability reforms30 and there are still few successful cases since the
introduction of the reforms.31 So it can be suggested that introducing the same standard for both
the plaintiff and the defendant in the civil liability legislation has not resulted in an increase in
the success of the defence of contributory negligence. However, more data would be needed to
further that argument.
56
Defences in Medical Negligence
a professional who has been asked for advice.39 But the sections exclude professional services
that carry the risk of injury or death.40 Queensland and Tasmania have a specific provision
relating to the duty of a doctor to warn of risk.41 The section sets out the common law duty to
warn which includes their proactive and reactive duty.42 The proactive duty to warn means that
the doctor has to give the patient sufficient information to make an informed decision about
whether to accept treatment, taking into consideration all the material risks associated with
the treatment. The reactive duty to inform means the doctor needs to give the patient all the
information they need to make an informed decision about whether to agree to treatment based
on the patient’s requirements.
In many jurisdictions, there is no liability for the materialisation of an inherent risk (a risk of
something occurring that cannot be avoided by the exercise of reasonable care and skill).43 For
example, there would be no liability for the inherent risks involved in a medical procedure. But
this does not affect the duty to warn of the risks.44
The reversal of the onus of proof through the obvious risk sections has attempted to extend
the scope of the defence of voluntary assumption of risk. The plaintiff has to prove that they
were unaware of the risk. However, in relation to health professionals, this defence of volenti
does not really apply because consent to medical treatment does not amount to an assumption
of the risk. Even in the situation where a patient is told by a doctor that they are inexperienced,
the appropriate argument would be about the relevant standard of care and not about the defence
of volenti.
decide the appropriate standard of care in medical negligence cases, health professionals were
concerned about an increase in their liability in negligence. The peer acceptance defence has
been introduced and enacted by legislation in response to a recommendation in the Ipp Report.46
The Ipp Report recommended that the Bolam test47 be re-introduced with modifications with
regards to medical treatment. Under the Bolam test, a doctor would not be liable in negligence
as long as the doctor acted in accordance with a practice accepted at the time as proper practice
by a responsible body of medical opinion.48 The recommendation says ‘[a] medical practitioner
is not negligent if the treatment provided was in accordance with an opinion widely held by
a significant number of respected practitioners in the field, unless the court considers that the
opinion was irrational’. It has been held that, by consideration of the language in the sections,
39 Civil Liability Act 2002 (NSW) s 5H; Civil Liability Act 2003 (Qld) s 15; Civil Liability Act 2002
(WA) s 5O. More limited to health care in Civil Liability Act 1936 (SA) s 38; Wrongs Act 1958
(Vic) s 54.
40 Civil Liability Act 2002 (NSW) s 5H(2)(c); Civil Liability Act 2003 (Qld) s 15(2)(c); Civil Liability
Act 1936 (SA) s 38(2)(c); Civil Liability Act 2002 (Tas) s 17(2)(c); Civil Liability Act 2002 (WA) s
5O(2)(c).
41 Civil Liability Act 2002 (Qld) s 21; Civil Liability Act 2002 (Tas) s 21.
42 Rogers v Whitaker (1992) 175 CLR 479, 490; the Ipp Report, above n 2, [3.51]–[3.70].
43 Civil Liability Act 2002 (NSW) s 5I; Civil Liability Act 2003 (Qld) s 16; Civil Liability Act 1936
(SA) s 39; Civil Liability Act 2002 (WA) s 5P; Wrongs Act 1958 (Vic) s 55.
44 Civil Liability Act 2002 (NSW) s 5I(3); Civil Liability Act 2003 (Qld) s 16(3); Civil Liability Act
1936 (SA) s 39(3); Civil Liability Act 2002 (WA) s 5P(2); Wrongs Act 1958 (Vic) s 55(3).
45 (1992) 175 CLR 479.
46 The Ipp Report, above n 2, Recommendation 3.
47 That it cannot amount to negligence if what the defendant did complied with a practice regarded as
proper at the time by a responsible body of opinion within the profession: Bolam v Friern Barnet
Hospital Management Committee [1957] 1 WLR 582.
48 Ibid 586.
57
Journal of the Australasian Law Teachers Association
this is a defence and not an integer of breach49 and so must be specifically pleaded by the
defendant.50
There are differences in the language used in the peer acceptance defence in the different
jurisdictions. One difference is in terms of who is covered by the defence. Some jurisdictions
use the term ‘professionals’51 (which has been held to include chiropractic treatment).52 Western
Australia provides a definition for health professional.53 All jurisdictions use the terms ‘widely
accepted’, ‘peer’ and ‘competent’.54 Queensland and Victoria also include the terms ‘significant
number’ and ‘respected’.55 In terms of what is meant by widely accepted and competent, Madden
and McIllwraith comment that this arguably gives rise to a test within a test.56 The meaning of
‘widely accepted in Australia’ was considered in Vella v Permanent Mortgages Pty Ltd.57 There
can be conflicting expert evidence58 and an expert can be someone who is materially interested
in the proceedings.59
There are exceptions to the widely accepted defence, depending on the precise wording in
the legislation in the particular jurisdiction, including where it is irrational,60 unreasonable61 or
by Wednesbury62 unreasonableness (so unreasonable that no reasonable health professional in
the health professional’s position could have acted or omitted to do something in accordance
with that practice).63
The defence must be pleaded, and possibly the section specifically referred to, if a defendant
wishes to rely on it at trial.64 There have been cases where the peer acceptance defence would
have been successful but was not necessary because the plaintiff was not able to establish the
elements of the negligence action. For example, in Melchior v Sydney Adventist Hospital Ltd
the court found that while a duty of care was owed the content of the duty of care did not
include administering the drug as pleaded by the plaintiff. Therefore, there was no breach or
causation; however, if there had been an otherwise successful negligence action it would have
failed because of the peer acceptance defence.65
It is important to note that the peer acceptance defence applies only to treatment and not
advice.
58
Defences in Medical Negligence
D. Good Samaritans
Good Samaritans are people who give assistance to others in an emergency. There is a strongly
held view among health professionals that they have a chance of being sued if they provide
assistance in an emergency.66 This concern, however, has not resulted in cases being heard
by the courts.67 Indeed, there is protection for good Samaritans even though the Ipp Report
recommended against such protection.68 The Ipp Report declined to recommend a specific
section limiting the liability of good Samaritans.69 However, the civil liability legislation in all
jurisdictions has addressed the issue of liability of people who assist in an emergency.70
Generally, the protection in the legislation is for someone who offers assistance in a medical
emergency with no expectation of being paid and the person acts in good faith. In some
jurisdictions, there is also protection for medical practitioners.71 Further, in some jurisdictions
like Victoria and Tasmania, the protection extends to anyone who provides advice on how to
treat an injured person.72 For example, in New South Wales, a person who provides assistance,
in good faith and without expectation of payment or reward, is protected in an emergency when
someone has suffered injuries or appears to have suffered injuries.73 Other jurisdictions, such
as Queensland, have created protection for persons performing duties for entities to enhance
public safety, if it is in an emergency and the assistance is provided in good faith, but have
no specific provision for good Samaritans like in New South Wales.74 There are also specific
protections for health professionals giving assistance in an emergency. For example, medical
practitioners and nurses are protected in Queensland75 as well as ambulance officers in New
South Wales and Queensland.76
There is no protection for health professionals who render assistance in an emergency from
civil liability in certain circumstances. In South Australia and Western Australia, recklessness
is not protected.77 In Queensland, gross negligence is not protected and the services must be
performed without expectation of fee or reward.78 In all jurisdictions except Victoria, a good
66 Linda Cowley-Smith, ‘The Duty to Rescue Unveiled’ (1997) 4 Journal of Law and Medicine 352,
355.
67 Skene and Luntz, above n 1, 347.
68 Michael Eburn, ‘Liability of Volunteers and Good Samaritans: Making it Safe to Volunteer or
Restricting Claims for Damage?’ (2010) 7(2) Australian Civil Liability 14.
69 The Ipp Report, above n 2, [7.24].
70 Civil Law (Wrongs) Act 2002 (ACT) s 5; Civil Liability Act 2002 (NSW) ss 56–7; Personal
Injuries (Liabilities and Damages) Act 2003 (NT) s 8; Civil Liability Act 2003 (Qld) ss 26–7; Civil
Liability Act 1936 (SA) s 74; Civil Liability Act 2002 (Tas) ss 35A–35C; Civil Liability Act 2002
(WA) ss 5AB, 5AD; Wrongs Act 1958 (Vic) s 31B.
71 Civil Law (Wrongs) Act 2002 (ACT) s 5; Civil Liability Act 2002 (NSW) ss 55–8; Personal
Injuries (Liabilities and Damages) Act 2003 (NT) s 8; Law Reform Act 1995 (Qld) ss 15–6; Civil
Liability Act 1936 (SA) s 74; Civil Liability Act 2002 (Tas) ss 35A–35C; Civil Liability Act 2002
(WA) ss 5AB, 5AD; Wrongs Act 1958 (Vic) s 31A-31D.
72 Civil Law (Wrongs) Act 2002 (ACT) s 5; Civil Liability Act 2002 (NSW) ss 55–8; Personal
Injuries (Liabilities and Damages) Act 2003 (NT) s 8; Law Reform Act 1995 (Qld) ss 15–16; Civil
Liability Act 1936 (SA) s 74; Civil Liability Act 2002 (Tas) ss 35A–35C; Civil Liability Act 2002
(WA) ss 5AB, 5AD; Wrongs Act 1958 (Vic) ss 31A–31D.
73 Civil Liability Act 2002 (NSW) s 57.
74 Civil Liability Act 2003 (Qld) s 26. See also Civil Law (Wrongs) Act 2002 (ACT), ch 2, pt 2.1;
Civil Liability Act 2002 (NSW), pt 8; Personal Injuries (Liabilities and Damages) Act 2003 (NT),
pt 2, Div 1; Civil Liability Act 1936 (SA), pt 9, Div 11; Civil Liability Act 2002 (WA), pt 1D;
Wrongs Act 1958 (Vic), pt VIA.
75 Law Reform Act 1995 (Qld) s 16.
76 Health Services Act 1997 (NSW) s 67; Ambulance Service Act 1991 (Qld) ss 38, 39.
77 Civil Liability Act 1936 (SA) s 74; Civil Liability Act 2002 (WA), pt 1D.
78 Law Reform Act 1995 (Qld) s 16.
59
Journal of the Australasian Law Teachers Association
Samaritan is not protected if significantly impaired by alcohol or drugs.79 In New South Wales,
there is no protection if the person either intentionally or negligently caused the initial injuries.80
In New South Wales and Tasmania, there is no protection if the person claims to have training
they do not have.81
Another aspect to the issue of the civil liability of good Samaritans is the question whether
a health professional will be sued if they do not assist someone in an emergency. The answer is
that there is no duty to rescue in Australia.82 Of course, a doctor is subject to a professional code
of practice.83 However, one case which causes conflict with this general proposition is Lowns v
Woods,84 where a doctor was held liable even though the plaintiff was not his patient. It could
be argued that, since the case was decided by the Court in the era when the proximity test was
used, and the courts now use the multi-factorial approach, the case could be distinguished on
that basis.85
There have been no significant claims against health professionals for assisting in medical
emergencies both before and after the changes in civil liability legislation.86
E. Apologies
Legislation encourages apologies to be made, and thereby reduce the number of actions
commenced, by providing that they are made with no admission of legal liability. The Ipp
Report did not make recommendations about apologies. However, apologies are becoming
increasingly important in medical negligence cases, especially in the area of the disclosure
of adverse medical events. All jurisdictions in Australia have legislation which encourages
apologies or the reducing or waiving of fees payable for the service by making such actions not
an admission of liability.87 There are differences in the legislation in terms of how an apology
is defined and whether it is deemed not to be an admission of liability, or not admissible as an
admission of liability.88 The objective of the legislation is to reduce litigation. Many plaintiffs
want ‘recognition of their injury, an explanation and an apology’.89 The theory is that fewer
patients sue doctors if the doctors have apologised, and if apologies are not an admission of
liability then more doctors will make apologies.90
Recent amendments in Queensland in September 2010 have extended apology protections
to include implied admission of fault.91 In addition to the existing sections dealing with
‘expression of regret’, Queensland now has sections covering an apology. Apology is defined
as ‘an expression of sympathy or regret, or of a general sense of benevolence or compassion, in
connection with any matter, whether or not it admits or implies an admission of fault in relation
79 Civil Law (Wrongs) Act 2002 (ACT) s 8; Civil Liability Act 2002 (NSW) s 58(2); Personal Injuries
(Liabilities and Damages) Act 2003 (NT) s 8; Civil Liability Act 1936 (SA) s 74(4); Civil Liability
Act 2002 (Tas) s 35C; Civil Liability Act 2002 (WA) s 5AE.
80 Civil Liability Act 2002 (NSW) s 58.
81 Civil Liability Act 2002 (NSW) s 58(3); Civil Liability Act 2002 (Tas), 35C.
82 Sutherland Shire Council v Heyman (1985) 157 CLR 424.
83 In re F (Mental Patient: Sterilisation) [1990] 2 AC 1, 77.
84 (1996) Aust Torts Reports 81-376.
85 A separate issue is the appropriate standard of care in all the circumstances of the case: see Imbree
v McNeilly (2008) 236 CLR 510.
86 Eburn, above n 66, 17.
87 Civil Law (Wrongs) Act 2002 (ACT), pt 2.3; Civil Liability Act 2002 (NSW), pt 10; Personal
Injuries (Liabilities and Damages) Act 2003 (NT), pt 2, Div 2; Civil Liability Act 2003 (Qld), ch 4,
pt 1; Civil Liability Act 1936 (SA) s 75; Civil Liability Act 2002 (Tas) ss 6A–7; Wrongs Act 1958
(Vic) ss 14I, 14J; Civil Liability Act 2002 (WA) ss 5AF–5AH.
88 P Vines, ‘Apologies and Civil Liability in the UK: A View from Elsewhere’ (2008) 12 Edinburgh
Law Review 200, 202.
89 Skene and Luntz, above n 1, 362.
90 Vines, above n 85, 210.
91 Civil Liability Act 2003 (Qld) ss 72A–72D.
60
Defences in Medical Negligence
to the matter.’92 An apology ‘does not constitute an express or implied admission of fault or
liability by the person in relation to the matter.’93 These amendments make Queensland similar
to the other jurisdictions.
Considering the extent to which the tort law reforms have limited the liability of health
professionals, before the civil liability legislation was enacted in various jurisdictions,
expressions of regret and apologies could be used as evidence of an admission of fault, whereas
now they are not admissible. However, just because an apology is made does not necessarily
mean there will be liability found. The apology forms part of the evidence used to establish
the elements of an action.94 Therefore, making apologies not an admission of liability does not
necessarily have a significant impact once a matter goes to court. For health professionals, the
utility of an apology is in the period before proceedings are instituted. However, it has been
argued that apologies actually have the effect of alerting patients to the possibility of litigation.95
A. Thresholds
One of the largest components of damages awarded is for gratuitous care. The Ipp Report
recommended that there should be a threshold on this head of damages.96 Many jurisdictions
have imposed a threshold for the awarding of damages under this head.97 However, once the
threshold has been reached, an award can be made even if the services afterwards are less than
the threshold amount.98 The Australian Capital Territory does not have a threshold for gratuitous
care.99 Tasmania has abolished the right to damages for gratuitous care.100
For claims for personal injuries under the head of non-economic loss, plaintiffs must now
reach a threshold before an amount will be awarded under this head of damages. Included in
non-economic loss is pain and suffering, loss of amenities of life, loss of enjoyment of life and,
in some jurisdictions, disfigurement.101 The Ipp Report recommended the threshold be set at
61
Journal of the Australasian Law Teachers Association
15 per cent102 of a most extreme case and this has been adopted in New South Wales.103 Other
jurisdictions have adopted different approaches. For example, Victoria requires a ‘significant
injury’ which, in most cases, means 5 per cent degree of impairment for personal injury and
10 per cent for mental harm.104 Queensland does not have a threshold but has a sliding scale.105
South Australia has a sliding scale and a threshold of significant impairment.106 Tasmania and
Western Australia have an indexed threshold.107 Northern Territory has a 5 per cent impairment
threshold.108 The Australian Capital Territory has no threshold.
B. Caps
The Ipp Report recommended a cap of $250,000 on damages for non-economic loss.109
Queensland adopted this cap but, in 2010, made amendments so the cap is now indexed if the
injury arose from 1 July 2010.110 In the other jurisdictions, except in the Australian Capital
Territory, there is a cap for non-pecuniary general damages which is either indexed or higher
than recommended.111
The Ipp Report also recommended that loss of earning capacity be capped to twice the
average weekly earnings.112 In all jurisdictions, there are caps for the loss of earning capacity
which restrict the amount that may be awarded. Most jurisdictions have capped the loss of
earning capacity to three times the average weekly earnings.113 In South Australia, there is a
prescribed limit.114
The Ipp Report also recommended that all awards for future loss be discounted by 3 per
cent.115 Most jurisdictions have adopted a rate of 5 per cent.116 Tasmania and Western Australia
have higher rates.117 The Australian Capital Territory has continued with the common law.
C. Exemplary Damages
Exemplary damages can be awarded at common law to punish and deter certain behaviour by
defendants. This category of damages is usually awarded in circumstances where the defendant
displayed some conscious wrongdoing, demonstrating that the rights of the plaintiff have been
disregarded by the defendant. An example in a medical negligence case where exemplary
62
Defences in Medical Negligence
damages has been awarded is the Canadian case of Shoebridge v Thomas,118 where a surgeon
left an abdominal roll in the patient’s upper abdomen and took steps to conceal the mistake from
the patient for two months. Exemplary damages of $20,000 were awarded in that case.
In response to a recommendation in the Ipp Report,119 New South Wales, the Northern Territory
and Queensland have abolished the awarding of exemplary damages with some exceptions.120
This has, therefore, limited the liability of health professionals in those jurisdictions.
IV. CONCLUSION
A pattern can be seen to emerge from the various defences and statutory limits: legislation
has been passed with the purpose of limiting liability, but the interpretation adopted by the
courts has resulted in the same effect for actions in negligence as under the common law.
This result is understandable, considering the objectives of the Ipp Report were to re-state the
law of negligence and to limit liability. It could be argued that, by 2001, the High Court was
already moving towards ‘a greater orientation towards the defendant’.121 With the decision of
Sullivan v Moody,122 the High Court was already beginning to interpret the law of negligence in
a more restrictive manner by rejecting the proximity test and instead moving to a multi-factorial
approach which considered the relevant factors in the circumstances of the case which included
control and vulnerability, coherency of the law and policy arguments. Therefore, it could be
argued that the defences have not really changed. However, what has changed since 2001 are
the statutory limits on the amount of compensation.
While it is right to say that the civil liability reforms have impacted on the liability of health
professionals, it is not because of the successful use of defences, but rather the use of statutory
limits like thresholds and caps which limit the assessment of damages. This has had the impact
of reducing the quantum of damages awarded by the courts.
There have been some changes to medical negligence but, generally, courts have interpreted
the tort law reforms in compliance with common law where there is any ambiguity. In relation
to defences, while on the surface the legislation appears to place limits on the liability of
health professionals, in practice it appears to have not made much difference to the outcome of
whether there is a negligence action. The greatest impact has been on the quantum of damages.
Therefore, the result is that health professionals are held liable for negligence but the damages
are reduced because of statutory limits like thresholds and caps.
63