18 July 2003

High Court Decision: Changes to Negligence Laws Already Under Way

“Calls on the Federal Government to introduce national laws following the recent High Court decision awarding damages for an unsuccessful sterilisation miss the point,” the Minister for Revenue and Assistant Treasurer, Senator Helen Coonan said today.

Senator Coonan said the Commonwealth has no constitutional power in relation to the law of negligence, so changes need to be made by State and Territory Governments. Where the Commonwealth has power, steps have been taken to amend the Trade Practices Act to underpin State and Territory reforms.

“The Federal Government has been working with States and Territories for nearly eighteen months now, to bring the laws of negligence back into balance with public expectations and opinion,” Senator Coonan said.

“This work, initiated by the Commonwealth, has led to agreement for significant and long-term changes to the rules applying in cases involving negligence – including claims against doctors”.

“There is now a blue-print for reform and the Commonwealth has called on the State and Territory Governments to progress these changes to the law as quickly and consistently as possible.”

They include:

  • changing the standard of care applied to medical practitioners in assessing whether a doctor has been negligent;
  • reducing limitation periods in which a claim for negligence can be commenced;
  • caps on various heads of damage and thresholds under which claims cannot be brought.

“These initiatives are changing the medical indemnity landscape but it will take time for the changes to take effect and for cases already in train to be dealt with,” Senator Coonan said.

“With the leadership of the Commonwealth on this issue, we have been able to engage all States and Territories and substantial change is occurring.”

“Clearly, other aspects of the recent High Court decision may give rise to broader public policy issues and there will be an opportunity to discuss these with State and Territory ministers at the next meeting on insurance issues in Adelaide on 6 August,” Senator Coonan said.