[2025] SASC 102
Applicant: KAZIMIR KOWALSKI In Person
Hearing Date/s: 12/07/2024
File No/s: SCCIV-11-501
B
SUPREME COURT OF SOUTH AUSTRALIA
(Civil: Application)
DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply
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ATTORNEY-GENERAL (SA) v KOWALSKI
[2025] SASC 102
Judgment of the Honourable Justice Stein
18 June 2025
PROCEDURE - STATE AND TERRITORY COURTS: JURISDICTION,
POWERS AND GENERALLY - VEXATIOUS LITIGANTS, PROCEEDINGS
AND RELATED MATTERS
ESTOPPEL - ESTOPPEL BY JUDGMENT - JUDGMENT OR JUDICIAL
DETERMINATION - CONCLUSIVENESS OF JUDGMENT - FINALITY
PROCEDURE - STATE AND TERRITORY COURTS: JURISDICTION,
POWERS AND GENERALLY - INHERENT AND GENERAL STATUTORY
POWERS - TO PREVENT ABUSE OF PROCESS
INDUSTRIAL LAW - SOUTH AUSTRALIA - APPEALS AND REFERENCES -
FINALITY OF DECISIONS - DECISIONS OF THE SOUTH AUSTRALIAN
EMPLOYMENT TRIBUNAL AND ITS PREDECESSORS
Application for permission by a vexatious litigant under s 39(1)(a) of the Supreme Court Act 1935
(SA) to seek redemption of liabilities under ss 42 or 42A of the Workers Rehabilitation and
Compensation Act 1986 (SA).
Held (dismissing the application) that:
1. the proposed application has no prospect of success;
2. if instituted, the application would re-agitate matters already conclusively determined against
the applicant since the occurrence of relevant events in 1998;
3. the significant passage of time between the relevant events and the application is an additional
reason to refuse permission;
4. the application is an abuse of process;
5. any in principle permission to apply to set aside the decision of the Full Bench of the Workers
Compensation Tribunal (SA) in Kowalski v Mitsubishi Motors Australia Ltd [2002] SAWCT
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76 lacks utility and is therefore revoked and, to the extent necessary, the application for
permission (FDN 366) is dismissed.
Supreme Court Act 1935 (SA) s 39; Workers Rehabilitation and Compensation Act 1986 (SA) ss 42,
42A, 88H, 89A, 97, 114, 119; Uniform Civil Rules 2020 (SA) r 186.1, referred to.
Josephson v Walker (1914) 18 CLR 691; Workers Rehabilitation and Compensation Corporation v
JR Engineering Services Pty Ltd (1995) 180 LSJS 276; Hill v Workers Rehabilitation and
Compensation Corporation [1997] SASC 6178; Elekwachi v Russell (Supreme Court of South
Australia, Williams J, 27 February 1998, Judgment No. 6558); Kowalski v Mitsubishi Motors
Australia Ltd [2001] SAWCT 93; Kowalski v Mitsubishi Motors Australia Ltd [2002] SAWCT 76;
Kowalski v Mitsubishi Motors Australia Ltd [2003] SAWCT 48; Kowalski v Trustee, Mitsubishi
Motors Australia Ltd Staff Superannuation Fund Pty Ltd [2002] FCA 1153; Kowalski v Trustee,
Mitsubishi Motors Australia Ltd Staff Superannuation Fund Pty Ltd [2003] FCAFC 18; Mitsubishi
Motors Australia Ltd v Kowalski [2005] SASC 154; Kowalski v Mitsubishi Motors Australia Ltd
[2005] SASC 433; Kowalski v Chief Executive Workcover Corporation (Ex Parte) [2005] SASC
481; Kowalski v Davison [2006] SASC 123; Attorney-General v Kowalski [2014] SASC 1; Kowalski
v MMAL Staff Superannuation Fund Pty Ltd (No 3) [2009] FCA 53; Soden v Kowalski [2011] FCA
318; Kowalski v Mitsubishi Motors Aust Staff Superannuation Fund Pty Ltd [2017] SADC 57;
Kowalski v Mitsubishi Motors Australia Staff Superannuation Fund Pty Ltd [2018] SASCFC 44;
Mitsubishi Motors Australia Ltd v Kowalski [2019] SASCFC 95; Kowalski v Sim [2019] SASCFC
96, discussed.
Kowalski v Mitsubishi Motors Australia Staff Superannuation Fund Pty Ltd [2006] SASC 159,
considered.
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ATTORNEY-GENERAL (SA) v KOWALSKI
[2025] SASC 102
Civil: Application (FDN 950)
1 STEIN J: Since Mr Kowalski was declared a vexatious litigant over 10 years ago,
he has filed a plethora of interlocutory applications seeking permission to
commence litigation in various forms. Many of those interlocutory applications
have related to historical claims by Mr Kowalski against Mitsubishi Motors
Australia Ltd (“MMAL”)1 alleging entitlements said to arise from various work-
related injuries. Mr Kowalski has also repeatedly applied to the Court to correct
prior decisions. Mr Kowalski’s interlocutory application (FDN 950) the subject
of this decision is yet another attempt to obtain permission to re-litigate issues
previously decided adversely to Mr Kowalski.
2 In this interlocutory application, Mr Kowalski sought permission to seek
redemption of liabilities despite various decisions which preclude that outcome.
He attempted to elevate observations in a ruling made by Blue J to findings of fact.
He sought to challenge the correctness of findings of fact, observations or
conclusions in a number of prior decisions on the basis of contentions which have
been previously addressed and determined against him. Those contentions
included arguments based on the circumstances in which Mr Kowalski entered into
a settlement agreement in October 1998, the construction of that agreement,
arguments arising from purported consequences flowing from an assertion that
MMAL had rejected his heart attack claim in 1998 and arguments based on the
interpretation of legislation and various authorities. I address those arguments
below.
3 For the reasons below, I have determined to dismiss the application.
The application for redemption Mr Kowalski seeks to commence has no prospect
of success; if instituted, the application would give rise to re-agitation of matters
already conclusively determined against Mr Kowalski and the relevant events
occurred in 1998. All of these reasons individually, and in combination, warrant
the dismissal of Mr Kowalski’s interlocutory application.
Interlocutory application
4 Mr Kowalski’s interlocutory application (FDN 950) seeks permission under
s 39(1)(a) of the Supreme Court Act 1935 (SA) to apply for a redemption under
ss 42 or 42A of the Workers Rehabilitation and Compensation Act 1986 (SA)
(“Act”) of MMAL and ReturnToWorkSA (“RTWSA”) “statutory liabilities to
Mr Kowalski”. The application is said to be made “in view of the facts found in
paragraphs 45 and 46 of Blue J’s ruling” 372 settled 5 April 2024.
1 Justice Blue’s rulings refer to Mitsubishi Australia Pty Ltd as “Mitsubishi”, thus there are references to
the same entity as Mitsubishi or MMAL in this judgment.
2 Mr Kowalski refers to ruling 37S but the quote in question is contained in ruling 37, also dated the same
day.
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[2025] SASC 102 Stein J
2
5 In this ruling, Blue J stated:
Mr Kowalski refers to my ruling dated 19 dated 26 May 2021 in which I concluded that
there was no redemption under sections 42 or 42A of Mitsubishi’s liabilities to it.
He contends that he is therefore entitled to apply for a redemption.
Leaving aside the Full Court’s holding about the validity and effect of the Heads of
Agreement in precluding claims, if Mr Kowalski wishes to institute a proceeding seeking
redemption, he would need to make an interlocutory application under section 39 of the
Supreme Court Act for permission to do so. This matter cannot be raised on an application
to correct my ruling 27.
6 In order to place Mr Kowalski’s assertions in context to assess how they
relate to issues which have been raised and addressed in the past, I have reviewed
the reasons for judgment in a number of first instance and Full Court decisions of
this Court and the Workers Compensation Tribunal (“Tribunal”). The decisions
to which I refer below are relevant to this application but are by no means an
exhaustive recitation of all proceedings or permission applications instituted by
Mr Kowalski.3
Background
7 Mr Kowalski was employed by MMAL in 1964.
8 Mr Kowalski made various claims against MMAL arising out of an asserted
eye injury in December 1986, a right middle finger injury in May 1988, a back
injury in May 1989 and emotional distress in August 1991.
9 Mr Kowalski received periodic payments from the Mitsubishi
Superannuation Fund (“Fund”) for total temporary disablement between April
1992 and February 1994.
10 In March 1994, MMAL wrote to Mr Kowalski stating his contract of
employment was frustrated and was at an end.
11 In 1994, a Review Officer rejected Mr Kowalski’s claim of entitlement to
compensation in relation to emotional distress. Mr Kowalski successfully
appealed the determination. MMAL then obtained leave to appeal and the Full
Court of the Supreme Court set aside the decision. The matter was remitted to the
Workers Compensation Appeal Tribunal which found the grounds of appeal could
not be sustained.
12 Mr Kowalski made claims in relation to a heart attack he suffered in
December 1997 which Mr Kowalski claimed was the result of stress caused by
ongoing litigation with MMAL. He also made a claim for bilateral carpal tunnel
3 I have not included reference to all decisions involving MMAL nor to any of the many matters involving
legal representatives.
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[2025] SASC 102 Stein J
3
syndrome in December 2003. These two injuries postdated the cessation of
Mr Kowalski’s employment with MMAL.
13 I address the background to the heart attack claim in greater detail below.
14 Mr Kowalski issued an action seeking damages in the District Court against
MMAL in relation to his 1989 back injury. Mr Kowalski was unsuccessful.
15 In October 1998, the parties engaged in a formal mediation.
16 Justice Bleby4 in a judgment in 2005 described the disputes in existence
between the parties at the time of the mediation in the following terms.
The purpose of the parties participating in a formal mediation was to attempt to resolve the
outstanding issues between the parties and come to an agreement whereby all disputes
would be settled and brought to a close.
The issues which were to be the subject of the mediation in October 1998 included the eye
injury, the right middle finger injury, the back injury, the emotional distress and the heart
attack. Also included were any matters relating to the termination of Mr Kowalski’s
employment at Mitsubishi, any outstanding sick leave and any superannuation and
superannuation ill health benefits payable to Mr Kowalski.
At the time of the mediation there were numerous proceedings which were at the time
unresolved.
The first matter which was outstanding at the time of the mediation was notification of an
alleged industrial dispute in the Australian Industrial Relations Commission (No.20498 of
1994) brought on Mr Kowalski’s behalf by the Automotive, Foods, Metals and Engineering
Union in relation to the cessation of Mr Kowalski’s employment as a result of alleged
frustration of contract. The hearing was adjourned pending the determination of
Mr Kowalski’s claims for compensation. A notice of discontinuance was lodged on
9 November 1998 following the mediated settlement.
The second outstanding matter was a continuation of the estoppel dispute following on
from the decision of the Full Court (decision No.18 above). Doyle CJ with Matheson and
Olsson JJ concurring determined that the matter should be remitted to a Review Officer for
further consideration of Mr Kowalski’s estoppel argument and this had not occurred at the
time of the mediation and in fact never occurred. The plaintiff submits that Mr Kowalski
was highly unlikely to have been successful in any event given the comments made by
Doyle CJ regarding the inherent factual difficulties Mr Kowalski faced.
Another matter which was outstanding was an appeal by Mr Kowalski from the decision
of Judge McCusker (decision No.13) relating to the setting aside of consent orders made
as a consequence of the failed 1992 settlement. The plaintiff submits that this proceeding
was also highly unlikely to be successful.
Also outstanding was a Notice of Dispute lodged by Mr Kowalski in the Tribunal
(Action No.748 of 1997) by which Mr Kowalski sought the payment of interest and leave
4 Mitsubishi Motors Australia Ltd v Kowalski [2005] SASC 154 at [132]-[148]. These proceedings sought
a vexatious litigant declaration against Mr Kowalski.
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[2025] SASC 102 Stein J
4
entitlements. This action was dismissed by consent by Gilchrist DPJ on 28 October 1998
following the mediated settlement.
Another Notice of Dispute lodged by Mr Kowalski in the Tribunal which was outstanding
at the time of the mediation (Action No.3673 of 1997) was a claim for income maintenance
payments in relation to the 2% loss of function of the right middle finger. Mitsubishi had
determined to reject the claim for income maintenance and the plaintiff still maintains that
it was highly unlikely to be successful given the low level of disability. This action was
also dismissed on 28 October 1998 by consent following the mediated settlement.
A further outstanding matter was an action brought by Mr Kowalski in the Industrial
Relations Court of South Australia (Action No.548 of 1997) by which Mr Kowalski sought
payment for sick leave. The action had been dismissed by Magistrate Gun (see decision
No.21). However Mr Kowalski appealed against that decision and the appeal had not been
dealt with at the time of the mediation. The plaintiff submits that the appeal had little
prospect of success.
There were a further three Notices of Dispute lodged by Mr Kowalski in the Workers
Compensation Tribunal which had not been resolved at the time of the mediation. These
were another claim for income maintenance in relation to the right middle finger injury
(Action 4174 of 1998), a claim relating to an alleged failure by WorkCover to comply with
a s 107B application to disclose documents (Action 4961 of 1998) and a claim alleging a
left leg disability related to the 1989 back injury (Action 4529 of 1998). Following the
mediation, these claims were dismissed by consent on 28 October 1998. Mr Kowalski
attempted to revive them via a s 88H application lodged on 9 January 2001 but all of the
claims were eventually dismissed by the Full Bench on 19 August 2002 (see decision
No.30).
Also outstanding at the time of the mediation was a s 97 application (Action 4163 of 1998)
lodged by Mr Kowalski in the Tribunal seeking an expedited decision in relation to
compensation for his heart attack. This application led to further litigation following the
mediated settlement (see decisions No.23, 25, 27 and 30).
The final outstanding matter at the time of the mediation was an action in the Federal Court
of Australia (Action No.SG100 of 1997) in which Mr Kowalski alleged unfair dismissal
and sought an extension of time in which to issue proceedings pursuant to s 170EA of the
Industrial Relations Act 1988. The application was dismissed by von Doussa J on
16 October 1998 on the basis that the Federal Court had no jurisdiction to deal with it.
At the time of the mediation it was unclear whether Mr Kowalski would pursue the matter
in the Australian Industrial Relations Commission.
The plaintiff submits that although it viewed the outstanding litigation as having very little
merit, all of the issues raised by Mr Kowalski therein were open to negotiation and were
intended to be encompassed by the mediated settlement.
The plaintiff claims that it did not accept, at the time of the mediation, that it had any
outstanding liability to the defendant in relation to work-related injuries except as follows:
1. $3,000.00 damages payable in respect of the eye injury;
2. $289.60 for non-economic loss resulting from a 2% loss of function of the right
middle finger;
3. $122.00 for medical expenses (Mr Wicks);
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[2025] SASC 102 Stein J
5
4. $33.00 for medical expenses (Dr Hughes);
5. $657 WCT costs order 20 December 1996 ; and
6. $613 WCAT allocatur for costs 1 August 1997.
There was also an amount of $350 in dispute for a report by Dr Moss which Mitsubishi
claimed it had reimbursed to Mr Kowalski. This was later accepted by the District Court in
decision No.29. However, Mr Kowlaski denied having received the amount. The plaintiff
claims that, although it maintained that the $350 had been paid already, the settlement was
intended to cover this amount.
Importantly, the plaintiff denied it had any liability pursuant to the Compensation Act to
pay the defendant weekly income maintenance and thus never sought to redeem any such
liability via the mediated settlement or indeed at all.
The plaintiff claims that at the time of the mediation, the defendant owed it $63,882.28
(of which $24,154.67 was taxed and owing) pursuant to the various costs orders made
against him. The plaintiff claims that the defendant owed a further $9,118.45 which had
been paid to his solicitors as part of the failed settlement in 1992, and which should have
been, but was not, reimbursed to Mitsubishi.
The mediation occurred on 26 October 1998 and was presided over by an experienced and
well-respected Queen’s Counsel. Ms Layton QC and Mr R Bönig represented Mitsubishi
at the mediation. Two employees from Mitsubishi’s human resources department were
also present. Mr Kowalski attended in person and was accompanied by his accountant,
Mr P Bennett and a lay representative, Ms P Dean of Disability Action Inc. Mitsubishi had
offered to pay for legal representation for Mr Kowalski. However no lawyer attended on
his behalf. Mitsubishi subsequently agreed to pay Mr Bennett’s costs of attending the
mediation.
17 At the mediation, settlement was reached.
18 On 27 October 1998, MMAL and Mr and Mrs Kowalski executed a
document entitled “Heads of Agreement”. I will refer to the 27 October 1998
executed Heads of Agreement as the “Heads of Agreement”.
19 Issues previously raised by Mr Kowalski concerning prior versions of the
Heads of Agreement have been addressed in a number of decisions. I refer to those
documents and decisions below.
20 The terms of the Heads of Agreement were set out in the Full Court decision
in Kowalski v Mitsubishi Motors Australia Staff Superannuation Fund Pty Ltd5 as
follows:6
5 [2018] SASCFC 44.
6 [2018] SASCFC 44 at [24].
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[2025] SASC 102 Stein J
6
Heads of Agreement dated 27 October 1998
HEADS OF AGREEMENT
WHEREAS:
1. Kazimir Kowalski (“Kowalski”) of 26 Nalimba Street Hallett Cove in the State of
South Australia and Mitsubishi Motors Australia Limited (MMAL) of Sherriffs
Road Lonsdale in the said state have on the 26th day of October 1998 entered into a
mediation.
2. Kowalski and MMAL have entered the mediation with the intent of trying to resolve
all issues both current and future in dispute between them.
3. Kowalski and MMAL have reached an agreement in relation to the resolution of all
issues and wish to record the terms of settlement.
THE PARTIES HAVE AGREED THAT:
1. Kowalski on behalf of himself and his dependants hereby agrees to accept the sum
of $200,000 in full and final settlement of any entitlements he may have to
superannuation, sick leave, compensation and damages arising out of or in the course
of his employment with MMAL. In particular, the said sum to be paid with a denial
of liability, includes payment in full and final settlement of:
1.1 Any injuries or disabilities in respect of an eye injury in December 1986, a
middle finger injury in May 1988, a back and or left leg injury in May 1989,
stress or mental breakdown in August 1991 and a heart attack in December
1997
1.2 Any outstanding sick leave
1.3 Any matters related to the termination of his employment with MMAL
1.4 Any superannuation payable by the MMAL Staff Superannuation Fund.
2. The said sun of $200,000 is to be paid to Kowalski as follows:
2.1 The sum of $64,691.43 to be paid from the Superannuation Fund by way of
an ill health benefit being the entitlement with respect to the period from
7 March 1970 to the date of cessation of his employment
2.2 The sum of $125,308.57 to be paid by MMAL as an ex gratia payment as
compensation for permanent disability impairing his future earning capacity
arising from the injuries and disabilities mentioned above
2.3 The sum of $10,000 to be paid by MMAL in consideration of Kowalski
forgoing any claims or future claims in any way arising from his employment
3. In consideration of the matters set out in paragraphs 1 and 2 above, MMAL agrees
3.1 To forgo recovery of legal costs which are owed by Kowalski and agrees not
to seek repayment from Kowalski of monies previously paid by MMAL or the
Superannuation Fund including the monies paid to R J Cole & Partners with
respect to Action 185 of 1992 in the Industrial Court
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[2025] SASC 102 Stein J
7
3.2 To comply with any Court orders for discovery and or subpoenas for witnesses
in relation to any action taken by Kowalski against R J Cole & Partners
3.3 To maintain confidentiality in respect of all matters arising in the course of
the mediation and of the terms of this agreement
3.4 To prepare and execute all documents necessary to bring into effect this
agreement and to make such personal attendances as necessary at any
Tribunal, Court or Commission.
4. In consideration of the matters set out in paragraphs 1 and 2 above, Kowalski and
his dependants agree:
4.1 Not to institute any legal proceedings and or legal complaints with any Court,
Tribunal or body in respect of the matters set out in paragraph 1 hereof nor to
join MMAL as a defendant in the Action against R J Cole & Partners and
Dowd.
4.2 To maintain confidentiality in respect of all matters arising in the course of
the mediation and of the terms of this agreement
4.3 To discontinue all actions and proceedings currently subsisting between
Kowalski and MMAL
4.4 To execute all documents necessary to bring into effect this agreement and to
make such personal attendances required at any Court, Tribunal or
Commission
4.5 That any amounts payable to the Australian Taxation Office from the sum of
$200,000 are to be borne by Kowalski.
5. The parties agree that payment of the sums in paragraphs 1 and 2 will be made in the
following manner:
5.1 Fountain & Bönig are to make arrangements for all matters requiring personal
attendance by the parties to achieve discontinuance of those proceedings to be
called on and the parties shall thereupon attend and effect discontinuance of
those proceedings
5.2 As to the matters which do not require personal attendance, Fountain and
Bönig will prepare the necessary documentation for discontinuance or consent
orders
5.3 Upon satisfaction of 5.1 above, Kowalski shall sign all documents prepared
pursuant to clause 5.2 above whereupon bank cheques for the total sum of
$200,000 are to be handed to Kowalski (less any taxation that must be
deducted by the Superannuation Fund).
5.4 It is the intention of the parties that the terms of this agreement be given effect
to as quickly as possible and within 14 days of the date of this agreement save
where beyond the control of the parties because of the need to attend
personally at any Court Tribunal or Commissioner.
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[2025] SASC 102 Stein J
8
21 After the Heads of Agreement were executed, various orders were made by
consent dismissing Mr Kowalski’s various actions. On 3 November 1998,
Conciliation Officer Richer dismissed by consent Mr Kowalski’s application
relating to his heart attack.
22 In November 1999, Mr Kowalski filed an application in the Tribunal under
s 88H of the Act to set aside the consent determinations dismissing his heart
attack/depression claims. Mr Kowalski alleged that MMAL had not acted in good
faith before entering into the Heads of Agreement and the consent determinations
were obtained by fraud, misrepresentation and unconscionable conduct and parts
of the Heads of Agreement were rendered void by s 119 of the Act as purporting
to exclude, modify or restrict the operation of the Act.
23 Justice Bleby later described that application as entailing Mr Kowalski
seeking declarations that selected parts only of the Heads of Agreement were null
and void as that would have left Mr Kowalski free to pursue his compensation
claim in relation to the heart attack as well as to pursue a claim for relief in relation
to the termination of his employment.7
24 MMAL raised a question whether the Tribunal had jurisdiction to address
Mr Kowalski’s application. In February 2000, Deputy President McCouaig held
the Tribunal had jurisdiction to determine whether the consent determinations
should be set aside. MMAL appealed to the Full Bench and Mr Kowalski filed a
cross-appeal. On 15 August 2000, the Full Bench of the Tribunal dismissed
MMAL’s appeal, holding the Tribunal had jurisdiction to hear the application to
set aside the consent determinations. However, it concluded the Tribunal did not
have jurisdiction to make orders or declarations in relation to the Heads of
Agreement. The Full Bench dismissed Mr Kowalski’s cross-appeal.
25 In August 2001, following the Full Bench decision, Deputy President
McCouaig delivered reasons for judgment on Mr Kowalski’s application to set
aside the consent determinations. Mr Kowalski’s grounds for setting aside the
consent determinations included that the determination of Conciliation Officer
Richer on 3 November 1998 was obtained by MMAL’s fraud, misrepresentation
and unconscionable conduct. Mr Kowalski also sought an order setting aside,
revoking, or declaring a nullity the determination of Conciliation Officer Richer
on the grounds that MMAL had already made a determination to reject
Mr Kowalski’s heart attack claims, or alternatively, the settlement reached by the
parties on 27 October 1998 constituted a determination by MMAL of the heart
attack claims, with the effect that the prior determination by MMAL overtook
Conciliation Officer Richer’s jurisdiction. Mr Kowalski also sought an order
declaring void specific parts of the Heads of Agreement, in particular, paragraphs
1.1 and 2.3, on the basis they were contrary to the Act.
7 Mitsubishi Motors Australia Ltd v Kowalski [2005] SASC 154 at [152].
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[2025] SASC 102 Stein J
9
26 Deputy President McCouaig dismissed Mr Kowalski’s application.
27 The Deputy President found there was no evidence MMAL engaged in fraud,
misrepresentation, unconscionable conduct or bad faith and held the Heads of
Agreement did not purport to exclude, modify or restrict the operation of the Act
within the meaning of s 119. The findings made by Deputy President McCouaig
included:
• Rejection of Mr Kowalski’s assertion he was disadvantaged by not having
access to a particular medical report.
• A conclusion that the promotion by Mr Kowalski of the importance of that
report was not prompted by a belief that he had been deceived when he settled
with MMAL but rather that it might provide a means of re-agitating the
settlement or reviving his heart attack claim.
28 The argument that the settlement amounted to, or included a redemption of,
MMAL’s liability for weekly payments pursuant to s 42 of the Act was rejected
on the basis that the settlement did not effect, and did not purport to effect, a
redemption of asserted liabilities for weekly payments pursuant to the Act or
otherwise.
29 In 2005, Bleby J described Mr Kowalski’s attitude to the decision of the
Deputy President in the following terms.8
Mr Kowalski was obviously unwilling to accept the findings of McCouaig DP that his
claims against Mitsubishi were effectively finalised, in accordance with the requirements
of the Compensation Act, via the 1998 mediated settlement. Indeed Mr Kowalski has
continued to maintain his arguments relating to ss 42, 119 of the Compensation Act and to
the Workers Compensation Tribunal Rules to this day.
30 Mr Kowalski filed a notice of appeal from Deputy President McCouaig’s
decision.
31 In February 2002,9 the Full Bench of the Tribunal heard Mr Kowalski’s
appeal against the Deputy President’s decision along with a number of other
matters relating to nine separate claims which were ongoing at that time. One such
application was to set aside other consent orders made following the Heads of
Agreement including the consent orders in relation to Mr Kowalski’s back injury.
That matter raised similar arguments to those mounted in the attack on Conciliation
Officer Richer’s consent orders.
32 On 19 August 2002,10 the Full Bench dismissed all of Mr Kowalski’s appeals,
including against the Deputy President’s decision, and dismissed all the other
applications and notices of dispute. Among other things, President Jennings
8 Mitsubishi Motors Australia Ltd v Kowalski [2005] SASC 154 at [179].
9 See Kowalski v Mitsubishi Motors Australia Ltd [2002] SAWCT 76.
10 Kowalski v Mitsubishi Motors Australia Ltd [2002] SAWCT 76.
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10
agreed the findings of the Deputy President were open to him on the evidence.
Deputy President McCusker concluded the attempts to set aside the consent orders
must fail; there was no substance to the challenges and the attempt to revive the
heart attack claim was an attempt to circumvent the settlement of the claims and
Conciliation Officer Richer’s orders and constituted an abuse of process.
33 In 2003,11 Deputy President McCouaig struck out Mr Kowalski’s application
made in March 2003 for an expedited decision in respect of claims for re-
instatement and back payment of weekly payments. The Deputy President held
the claims for compensation were finalised by the Heads of Agreement in October
1998 and Mr Kowalski was seeking, impermissibly, to re-litigate the validity of
the Heads of Agreement which had been conclusively determined by the Full
Bench in August 2002. Costs were ordered on an indemnity basis, with Deputy
President McCouaig stating that Mr Kowalski’s pursuit of further claims was:12
well beyond the action of a reasonable litigant. It is, in my view, the action of someone
who will simply not accept the decision of the final referee…
[Mr Kowalski] should, in his own interest, accept that his entitlements to compensation
arising from his employment ...are finished.
34 In addition to the proceedings referred to above, Mr Kowalski instituted a
significant number of other actions in the Tribunal, the District Court and the
Federal Court. In the Federal Court, Mansfield J referred to any rights
Mr Kowalski may have had against MMAL at common law as having no prospect
of success in the face of the Heads of Agreement. On appeal, the Full Court of the
Federal Court13 observed that viewing the Heads of Agreement as simply involving
a diminution of Mr Kowalski’s statutory rights was a misunderstanding and the
Heads of Agreement provided a complete defence.
Vexatious litigant proceedings 2005 (first Supreme Court vexatious litigant
proceedings)
35 In Mitsubishi Motors Australia Ltd v Kowalski,14 Bleby J considered an
application by MMAL to have Mr Kowalski declared vexatious pursuant to s 39
of the Supreme Court Act.
36 Justice Bleby addressed a number of matters raised by Mr Kowalski as
justifying the proceedings he had commenced and which Mr Kowalski claimed
provided a defence to the vexatious litigant declaration proceedings. His Honour
stated as follows:15
In the proceedings before Deputy President McCouaig …the defendant had argued that the
heads of agreement entered into by the parties amounted to or included a redemption of the
11 See Kowalski v Mitsubishi Motors Australia Ltd [2003] SAWCT 48.
12 Kowalski v Mitsubishi Motors Australia Ltd [2003] SAWCT 48 [15]-[17].
13 See discussion in Mitsubishi Motors Australia Ltd v Kowalski [2005] SASC 154 at [270]-[272].
14 [2005] SASC 154.
15 Mitsubishi Motors Australia Ltd v Kowalski [2005] SASC 154 at [282]-[284], [286] (emphasis added).
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plaintiff’s liability in respect of weekly payments pursuant to s 42 of the Compensation
Act; that the plaintiff had failed to comply with the requirements of s 42 and that the
purported redemption was therefore null and void. In response, the Deputy President found
that the settlement did not effect and did not purport to effect a redemption of the plaintiff’s
asserted liabilities in respect of weekly payments pursuant to the Act or otherwise: see
para.[119]. The defendant subsequently and in these proceedings sought to use that
finding to demonstrate that there was an unfulfilled liability on the part of the plaintiff
to redeem the plaintiff’s liability to make weekly payments of compensation to the
defendant.
The defendant’s argument is misconceived. It does not follow from the fact that there
has been no redemption under s 42 that there remains a liability on the part of the
plaintiff to redeem. The heads of agreement recorded the plaintiff’s denial of any
liability to the defendant for weekly payments and agreed, for consideration
expressed in the agreement, that the defendant’s claim for weekly payments should
be dismissed, as it was. The defendant’s subsequent claims for redemption have been
dismissed by the Tribunal and cannot now be resurrected. It would appear that the
dismissal was entirely justified.
The defendant has claimed and continues to claim that the plaintiff’s liability to him under
the Compensation Act cannot be reduced because of the ex gratia payment identified in the
heads of agreement and which he received at the time. He seeks to argue that the plaintiff
has not paid him the compensation to which he was entitled because the plaintiff included
those amounts in the ex gratia payment. By virtue of s 114 of the Compensation Act that
payment is to be ignored. That argument has been rejected in the Tribunal and cannot now
be revived. In any event, it has no substance. The plaintiff’s liability for compensation at
the time of the heads of agreement was more than satisfied by the payment of $10,000
identified in clause 2.3 of the heads of agreement. It would appear that the settlement and
subsequent dismissal of the various claims have satisfied any liability for weekly payments
and that there has never been any liability to redeem.
…
The defendant argues that the heads of agreement are invalid because they were entered
into without the consent of the WorkCover Corporation. The agreement was therefore a
contract to avoid the Act and was void and of no effect by virtue of s 119 of the
Compensation Act. This was an argument put to and rejected by Deputy President
McCouaig in decision No.25 above, although at the time it was put in support of declaring
only parts of the agreement null and void, as it appeared that the defendant wished to retain
all the benefits that he had gained under the agreement but not to be bound by its
restrictions. The Deputy President found that the heads of agreement did not constitute a
contract which purported to exclude, modify or restrict the operation of the Compensation
Act. That finding was upheld by the Full Bench of the Tribunal on appeal. That decision is
final and, with respect, was plainly correct. There never has been any substance in this
argument of the defendant.
(My emphasis)
37 After referring to the history of proceedings, including those which I have set
out above, Bleby J observed:
Despite these findings, the defendant has continued to argue in various forums that parts of
the Heads of Agreement are invalid and should be set aside. He is unwilling to accept that
his arguments have been found, on numerous occasions, to be misguided and wrong and
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so he pursues them relentlessly. The defendant also continues to assume that he is
automatically and without question entitled to certain rights, for example to income
maintenance, when this assumption is incorrect.
38 On 19 April 2005, after reviewing 45 prior sets of proceedings, Bleby J made
an order prohibiting Mr Kowalski from instituting proceedings against MMAL,
related corporations or employees or agents without leave of the Court.
39 Justice Bleby’s conclusion included the following:16
The plaintiff has succeeded in demonstrating that the defendant has persistently instituted
vexatious proceedings. There is no indication that the defendant has ceased doing so.
Indeed, the fact that he has continued to do so since these proceedings were instituted and
the manner in which he conducted his case in this Court would suggest that he has every
intention of continuing to institute such proceedings until someone recognizes the validity
of what now must be described as hopeless claims.
40 Mr Kowalski appealed Bleby J’s decision. In November 2005,17 the Full
Court dismissed Mr Kowalski’s appeal against Bleby J’s orders.
41 On 16 September 2005, Mr Kowalski sought judicial review against the
Chief Executive Officer of the WorkCover Corporation of South Australia
(“WorkCover”), seeking an order to compel her to determine whether the Heads
of Agreement purported to exclude, modify, or restrict the operation of the Act.
Leave was refused to issue the summons in the judicial review proceedings.
On 19 December 2005, 18 Duggan J dismissed Mr Kowalski’s appeal against the
order of the Master refusing leave to issue the proposed summons in the judicial
review proceedings. This was on the basis the Chief Executive Officer had no duty
to give consideration to the Heads of Agreement and an order could not advance
any right or action Mr Kowalski wished to pursue. In April 2006,19 the Full Court
dismissed Mr Kowalski’s appeal against Duggan J’s dismissal of his appeal,
holding that WorkCover had no obligation to consider whether the Heads of
Agreement was void under s 119 of the Act. The Full Court concluded the
proposed proceedings raised a claim that was clearly untenable, and the claim was
frivolous and vexatious.
42 In 2006, Mr Kowalski was granted leave to institute proceedings in the
District Court against the Fund claiming entitlement to total and permanent
disability benefits. That grant of leave was set aside by Doyle CJ in June 2006.20
16 Mitsubishi Motors Australia Ltd v Kowalski [2005] SASC 154 at [294].
17 Kowalski v Mitsubishi Motors Australia Ltd [2005] SASC 433.
18 Kowalski v Chief Executive Workcover Corporation (Ex Parte) [2005] SASC 481.
19 Kowalski v Davison [2006] SASC 123.
20 Kowalski v Mitsubishi Motors Australia Staff Superannuation Fund Pty Ltd [2006] SASC 159.
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Vexatious litigant proceedings 2012 (second Supreme Court vexatious litigant
proceedings)
43 In Attorney-General v Kowalski,21 Blue J addressed an application by the
Attorney-General seeking a declaration that Mr Kowalski had persistently
instituted vexatious proceedings and orders prohibiting Mr Kowalski from
instituting future proceedings without the permission of the Court. Justice Blue
made orders prohibiting Mr Kowalski from instituting future proceedings without
permission and staying existing proceedings other than specified proceedings
which Blue J found were not vexatious.22
44 In order to address the application by the Attorney-General, Blue J engaged
in a detailed review of proceedings in which Mr Kowalski had been engaged and
canvassed the background to some of the disputes.
45 Justice Blue concluded that Mr Kowalski had instituted 63 vexatious
proceedings in 12 years. In many of those cases, Mr Kowalski instituted appeals
from the first instance decisions and, in several, sought to relitigate issues already
conclusively determined against him. Justice Blue observed that after
Mr Kowalski was met with binding decisions, he continued to litigate the same or
related issues time and time again against those parties in circumstances which
rendered the litigation vexatious. Justice Blue concluded the pursuit of the
litigation had become an obsession and compulsion and he concluded that
Mr Kowalski had persistently instituted vexatious proceedings.
Workers Compensation legislation – relevant provisions
46 In the first Supreme Court vexatious proceedings litigation, Bleby J described
the relevant provisions of the legislation as follows.23
Because most, but not all, of the proceedings said to be vexatious were proceedings in the
Workers Compensation Tribunal, it is necessary to refer briefly to the position of the
plaintiff under that Act and to some of the relevant provisions of the Act in order to
understand the nature of those proceedings.
The plaintiff was at all material times an exempt employer under the Compensation Act.
This meant that it was entitled, by virtue of s 63 of the Compensation Act, to exercise
certain powers and discretions which would otherwise be exercised by the WorkCover
Corporation of South Australia, the body appointed under the Act to administer the workers
compensation scheme. Among the powers and discretions which it could exercise were the
establishment of rehabilitation programs and rehabilitation and return to work plans for
injured employees, the making of determinations concerning entitlement to weekly
payments of compensation, discontinuance of weekly payments and review of weekly
payments, the assessment of a lump sum by way of compensation for loss of future earning
capacity, the assessment of a lump sum for non-economic loss by reference to the table
contained in schedule 3 of the Act and determination of a claim for compensation.
However, by s 63(3aa) an exempt employer must notify the WorkCover Corporation of its
21 [2014] SASC 1.
22 Justice Blue attached to his reasons a table which identified the various proceedings and summarised
his conclusions about them.
23 Mitsubishi Motors Australia Ltd v Kowalski [2005] SASC 154 at [36]-[43].
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intention to make an assessment for a lump sum in respect of loss of future earning capacity,
and must not proceed to make the assessment except with the Corporation’s consent.
By s 106A, a payment by an employer to a worker does not constitute an admission of
liability or estop a subsequent denial of liability.
As in the case of a decision of the WorkCover Corporation, most decisions of an exempt
employer of the type to which I have referred are what the Compensation Act describes in
s 89A as “reviewable decisions”. A person with a direct interest in a reviewable decision
may lodge a notice of dispute with the Registrar of the Tribunal. This requires the decision
to be reconsidered by the compensating authority which may then vary or confirm the
decision. If the claimant is still dissatisfied the dispute must be referred for conciliation:
s 91A and Part 6A, Division 4. If conciliation fails the conciliator must refer the dispute to
the Tribunal for arbitration or for judicial determination: s 92D. For the purpose of making
a judicial determination, the Tribunal will usually be constituted of a single presidential
member, but the President may direct that a particular dispute should be referred directly
to a Full Bench of the Tribunal: s 94A.
Section 95 provides that a party (other than the compensating authority) is entitled, subject
to Part 6A of the Act and to limits prescribed by regulation, to an award against the
compensating authority for the party’s reasonable costs of resolution of the dispute by the
Tribunal. However, s 95(3) provides:
“(3) If the Tribunal is of the opinion that a party acted unreasonably, frivolously or
vexatiously in bringing or in relation to the conduct of proceedings, the Tribunal may
–
(a) decline to make an award of costs in favour of the party and may further (if it
thinks fit) make an award of costs against the party; or
(b) reduce the amount of the award to which the party would otherwise have been
entitled.”
Part 6B of the Act confers a special jurisdiction on the Tribunal where a worker believes
that there has been undue delay in deciding a claim or other matter affecting the worker.
The worker may then apply to the Tribunal for expedited determination of the matter: s 97.
Section 97B relevantly provides:
“(1) On an application for expedited determination of a matter, the Tribunal may –
(a) give directions the Tribunal considers necessary to expedite the
determination of the matter; or
(b) decide the matter itself.
…
(3) If the Tribunal decides a claim under this section, the decision –
(a) is to be treated as a decision of the relevant compensation authority; and
(b) is a reviewable decision.”
It is not necessary, for present purposes, to refer to the various sections governing the
procedures of the Tribunal. They are referred to in some detail in the judgment of Duggan J
in the decision of the Full Court to which reference has already been made: Mitsubishi
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Motors Australia Ltd v Kowalski [2004] SASC 302. It is merely necessary to note that an
appeal lies, but only on a question of law, against a decision of the Tribunal constituted of
a single presidential member to a Full Bench of the Tribunal (s 86), and that the Tribunal
constituted of a presidential member or a conciliation and arbitration officer to whom the
President has delegated the power may amend or set aside a judgment or order of the
Tribunal by consent of the parties, in order to correct an error or “if the interests of justice
require that the judgment or order be amended or set aside”: s 88H.
A Full Bench of the Tribunal may state a case on the question of law for the opinion of the
Supreme Court (s 86A), but there is no other right of appeal. Section 88I provides:
“No proceeding, judgment or decision of the Tribunal can be challenged, appealed against,
reviewed, quashed or called in question except –
(a) as provided in this Act; or
(b) in proceedings before the Full Supreme Court founded on an alleged excess or want
of jurisdiction.”
Because they are matters on which the defendant relies by way of defence, it is also
necessary to set out the provisions of s 114 and s 119 of the Compensation Act:
“114 - Certain payments not to affect benefits under this Act
Compensation provided to a person under this Act shall not be reduced or otherwise
affected by –
(a) an ex gratia payment; or
(b) an accident insurance payment; or
(c) a payment or benefit of a class prescribed by regulation for the purposes of this
section.
119 - Contract to avoid Act
(1) Any agreement or arrangement entered into without the consent of the Corporation
that purports to exclude, modify or restrict the operation of this Act is to that extent
void and of no effect.
(2) Any purported waiver of a right conferred by or under this Act is void and of no
effect.
(3) Any person –
(a) who enters into any agreement or arrangement with intent either directly or
indirectly to defeat, evade or prevent the operation of this Act; or
(b) who attempts to induce a person to waive a right or benefit conferred by or
under this Act,
is guilty of an offence.”
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47 In the second Supreme Court vexatious litigant proceedings decision, Blue J
explained that three types of primary compensation could be payable,24 being:
• weekly payments during incapacity where compensable disability resulted in
incapacity for work;
• compensation for medical, hospital or other treatment where the
compensable disability resulted in such expenses;
• where the compensable disability was or became a permanent disability
payment, compensation for non-economic loss by way of a lump sum
determined as a percentage of a prescribed sum depending on the nature and
degree of the disability.
48 His Honour referred to relevant provisions, summarising them as follows.
49 Under s 42 of the Act in force up to 24 May 1995, WorkCover or an exempt
employer25 was empowered, but not obliged, upon application to commute a
liability to make weekly payments to a liability to pay a lump sum. That lump sum
represented the capital value of the liability to make weekly payments. This related
to permanent incapacity. The capital payment could not exceed the prescribed
sum.
50 Under s 42 as in force between 24 May 1995 and 30 June 2008, a liability to
pay expenses or to make weekly payments or, from 17 August 1995, a capital
payment for loss of further earning capacity, could, by agreement between
WorkCover or an exempt employer and the worker, be redeemed by a capital
payment to the worker. There were various pre-conditions to the making of an
agreement for redemption, including that a medical expert had certified the extent
of the incapacity resulting from the compensable disability could be determined
with reasonable confidence and the worker had received competent professional
and financial advice.
51 Under s 42A of the Act as in force between 1 July 1993 and 1 July 2008,
WorkCover, or an exempt employer, was empowered to assess a worker’s loss of
future earning capacity as a capital loss in lieu of future weekly payments.
This could only be done if the worker had been incapacitated for work as a result
of a compensable disability for more than two years. This power did not require
agreement of the worker. An exempt employer could not exercise the power
without WorkCover’s consent. From 3 December 1992, an employer was
exempted from all liability independent of the Act in respect of compensable
disability arising employment.
52 Justice Blue said that it followed that, after 25 May 1995, s 42 provided for
agreements by workers for redemption by a capital sum of weekly payments and/or
24 Attorney-General v Kowalski [2014] SASC 1 [143]-[145].
25 MMAL was at all relevant times an exempt employer.
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medical expense entitlements, assuming the pre-conditions to entering into such
agreements were met.
2015 grant of permission to institute proceedings
53 In 2015,26 Blue J granted Mr Kowalski permission to institute proceedings in
the District Court against the trustee of the Fund. Justice Blue was satisfied that
Mr Kowalski had a tenable claim against the Fund and/or AMP Superannuation
and permission to institute the proposed actions should be granted.
Summary judgment application 2015
54 Following the permission granted by Blue J, Mr Kowalski commenced
proceedings in terms reflecting the permission granted. The respondents sought
summary judgment, as did Mr Kowalski. The District Court Judge dismissed
Mr Kowalski’s application and allowed the respondent’s application for summary
judgment.27
55 During the summary judgment application, Mr Kowalski submitted that:
• a person could not legally waive or contract out of their statutory rights to
worker’s compensation benefits;
• the Heads of Agreement was non est factum;
• the morning after Mr Kowalski received from the mediator a three page heads
of agreement in typed script with Mr Walsh’s handwriting, he was presented
with the document entitled “Heads of Agreement” which he did not read and
which he signed relying on representations made by counsel representing
MMAL;
• the counsel fabricated the document and obtained the signatures of he and his
wife unconscionably and by fraud;
• Mr Kowalski acted in good faith during the mediation;
• Mr Kowalski applied for a TPD benefit and MMAL did not act in good faith;
• the settlement was an ex gratia payment and a gift, not a TPD benefit;
• the Heads of Agreement was void;
• the Heads of Agreement was fabricated;
26 Justice Blue’s various rulings on permission applications were not published.
27 Kowalski v Mitsubishi Motors Aust Staff Superannuation Fund Pty Ltd [2017] SADC 57.
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• any version of the heads of agreement was void and of no effect and not
binding because WorkCover’s consent was not obtained contrary to s 119 of
the Act;
• there was no power to make an ex gratia payment as compensation and no-
one could contract out of statutory entitlements.28
56 Judge Muecke made findings which included the following:29
I do not believe the plaintiff when he told me that in the morning of 27 October 1998 senior
and junior counsel acting for Mitsubishi Motors presented to him a fabricated Heads of
Agreement and told him to sign it. I do not believe him when he told me that he then signed
it without reading it, and that he relied on Mitsubishi’s senior and junior counsel. I find
that when the plaintiff told me these things, he was being deliberately untruthful.
For what he told me to be the truth, or anywhere near the truth, it cannot explain what the
plaintiff refers to as the 2nd version of the Heads of Agreement. This is the one that came
before me for the very first time on 12 February 2016 when I admitted the plaintiff’s
10th affidavit as Exhibit P13. In his 10th affidavit, sworn on 8 February 2016, the plaintiff
swore: “Recently I discovered a copy of the facsimile that Mr S Walsh QC had faxed to me
on 26 October 1998 at 19.05 PM. … I also discovered a copy of a second version of a HoA
that was provided to me on 27 October 1998”. He referred in his affidavit to a number of
amendments that had been made in the second version to that which was provided to him
on 26 October 1998. The plaintiff attached the second version to his affidavit as Exhibit
KK-2. I have earlier referred to this. The plaintiff does not swear in his 10th affidavit as to
when he “discovered a copy of a second version of the” Heads of Agreement that was
provided to him on 27 October 1998, nor does he swear whether or not he read it on
27 October 1998.
I am satisfied and find that the plaintiff was, on the morning of 27 October 1998, provided
with the second version of the Heads of Agreement which I find was an engrossment, with
amendments, of the first version he had been sent by Mr Walsh the evening before. I am
satisfied and find that the plaintiff read the second version and that he was well aware of
the amendments to it. I find that they were then the subject of discussion between he and
the representatives of Mitsubishi Motors. I am satisfied of that because it makes common
sense, and because of the changes that were made to the second version before the final
version was produced.
I am satisfied and find that the plaintiff was at that time aware that the sum of $125,000
odd which was to be paid by MMAL had been changed from the draft version he had
received the evening before to an ex gratia payment as compensation. I am satisfied and
find that he knew that, and that he knew or assumed that there was a reason for it. It was
either because the preamble to paragraph 1 of the first version had been amended by the
addition (in Mr Walsh’s handwriting) of the sentence: “Such sum is agreed to be paid with
a denial of liability”, or he thought, or it was explained to him, that the agreement could be
effected more quickly with that change. Whatever the reason, if there was one, I am
satisfied and find that the plaintiff understood and agreed to this change.
Further, I am satisfied and find that it was partly because the plaintiff wished it that the
proposed new paragraphs 2.4 and 2.5 were deleted and the sum in paragraph 2.2 was
28 Kowalski v Mitsubishi Motors Aust Staff Superannuation Fund Pty Ltd [2017] SADC 57 at [153]-[157].
29 Kowalski v Mitsubishi Motors Aust Staff Superannuation Fund Pty Ltd [2017] SADC 57 at [170]-[178].
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restored to the sum that was in the initial draft of the Heads of Agreement that he received
by facsimile transmission the evening before.
Further still, I am satisfied and find that it was at least consistent with the plaintiff’s wishes
that new paragraph 5.4 was included in the second version of the Heads of Agreement as I
am satisfied and find that the plaintiff wished that the agreement be given effect to as
quickly as possible.
I am satisfied and find that after the second version of the Heads of Agreement was
discussed and agreed, the final Heads of Agreement was engrossed and was signed by the
parties including the plaintiff’s wife. I am satisfied and find that before the plaintiff signed
the final agreement he read it and satisfied himself that it was in the form that he had agreed
to and that he would be prepared to sign and be bound by its terms. This included an
understanding and intention by him that the Superannuation Fund be bound by the terms
of the agreement. I find that he signed it on that basis.
On these findings I reject the plaintiff’s non est factum claim that his signature to the Heads
of Agreement was obtained by fraud or by mistake, or that it is or would be unconscionable
to allow it to stand as a valid and binding agreement.
My conclusion is that the Heads of Agreement dated 27 October 1998 is a valid and binding
agreement and that it is the agreement that was reached between the parties to it and was
executed by them on 27 October 1998. I reject the plaintiff’s submissions regarding the
fact that there is no “Deed of Release” or that the agreement offends special laws that apply
to Heads of Agreement.
57 Judge Muecke referred to other decisions in which courts had considered the
Heads of Agreement including Mitsubishi Motors Australia Ltd v Kowalski,30
Kowalski v MMAL Staff Superannuation Fund Pty Ltd (No 3),31 and Soden v
Kowalski.32
58 Judge Muecke rejected the suggestion the Heads of Agreement was void
because the consent of WorkCover had not been obtained. Judge Muecke adopted
the views of Deputy President McCouaig in Kowalski v Mitsubishi Motors
Australia Ltd33 and Debelle J in Workers Rehabilitation and Compensation
Corporation v JR Engineering Services Pty Ltd,34 in relation to the operation of
s 119 of the Act.
59 Judge Muecke considered the provision in the Heads of Agreement that
Mr Kowalski be paid an ex gratia payment of about $125,000 did not in its terms
attempt to modify, exclude or restrict the operation of the Act. Even if he had
come to the conclusion that the paragraph offended s 119, his Honour considered
that would make it void only to the extent it did not purport to exclude, modify, or
restrict the operation of the Act. The provisions of the Heads of Agreement
30 [2005] SASC 154 at [273]-[274].
31 [2009] FCA 53 at [67]-[68].
32 [2011] FCA 318 at [3]-[8].
33 [2001] SAWCT 93 at [111]-[115].
34 (1995) 180 LSJS 276 at 290.
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including the agreement not to institute any legal proceedings in relation to
superannuation would not offend s 119 and would be binding.
Full Court 2018 decision on appeal against summary judgment
60 Mr Kowalski unsuccessfully appealed against the grant of summary
judgment in favour of the respondents.35
61 The Full Court considered the Heads of Agreement in addressing the appeal.
62 The Court observed that there were three versions of the heads of agreement,
firstly, a version of 26 October 1998 initialled in principle, a version described as
the 27 October 1998 re-engrossed in principle heads of agreement and finally the
executed Heads of Agreement.
63 One of the issues for the Full Court was whether the respondents could rely
on the executed Heads of Agreement if the Fund was not a party to it.
64 Justice Nicholson observed that Mr Kowalski had repeatedly and erroneously
sought to elevate statements made by Blue J to the status of findings of fact and
binding determinations of law.
65 Justice Nicholson referred to a number of findings of fact made by Blue J and
continued as follows:36
It is apparent from the judgment that the Judge paid close attention to the evidence and
engaged in a detailed reasoning process in arriving at a number of findings of fact which
included the following.37
(i) A three page document titled “HEADS OF AGREEMENT”, partly in type script and
partly in the handwriting of the mediator, was initialled by some of the persons
present at the mediation some time on 26 October 1998. I will refer to this document
as the “26 October 1998 initialled in principle Heads of Agreement”.
(ii) Whilst the parties initialled this document which the appellant described before the
Judge as “the first version of the Heads of Agreement”, the Judge was unable to find
“upon what precise basis they did so” but considered it most likely that the persons
who initialled the draft did so to indicate their “in principle” agreement to the
principal terms of it.
(iii) The appellant understood at material times, both prior to and during the mediation
on 26 October 1998, that all issues in dispute between him and MMAL and any part
of MMAL, including the Fund, “were to be and were subject of” the mediation.
(iv) The appellant understood at the mediation that one of the persons there, a
Mr Breugem,38 was representing both MMAL and the Fund39 and the appellant knew,
35 Kowalski v Mitsubishi Motors Australia Staff Superannuation Fund Pty Ltd [2018] SASCFC 44.
36 Kowalski v Mitsubishi Motors Australia Staff Superannuation Fund Pty Ltd [2018] SASCFC 44 at [36].
37 In what follows I have not used the language of the Judge when referring to the three versions of the
Heads of Agreement dealt with at the mediation. I have incorporated instead my definitional terms.
38 Mr Breugem was a director of the first respondent between 11 April 1996 and 14 March 2003.
39 As earlier noted, the first respondent was at all material times a wholly owned subsidiary of MMAL.
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at the time of the mediation, that MMAL was prepared to direct the trustee of the
Fund pursuant to the trust deed.
(v) The appellant intended that the 26 October 1998 initialled in principle Heads of
Agreement reflected an in principle settlement of all issues between the appellant
and MMAL including any superannuation payable by the Fund. The appellant
understood, when he read this document on 26 October 1998, that it recorded his
agreement to accept the sum of $200,000 in full and final settlement of any
entitlements he may have to sick leave, compensation, damages and superannuation
including any entitlement with respect to any total and permanent disability.
These matters were clearly and unambiguously reflected in the 26 October 1998
initialled in principle Heads of Agreement, the 27 October 1998 re-engrossed in
principle Heads of Agreement40 prepared the next day and the Executed Heads of
Agreement.
(vi) It was anticipated by the parties at the mediation on 26 October 1998 that the
26 October 1998 initialled in principle Heads of Agreement would be engrossed for
signing or for further consideration and then for final signing the next day, that is,
27 October 1998.
(vii) On 27 October 1998, a re-engrossment of the 26 October 1998 initialled in principle
Heads of Agreement was presented at the mediation. This document incorporated
not only the previous handwriting of the mediator but some other changes
(the 27 October 1998 re-engrossed in principle Heads of Agreement).
(viii) On the morning of 27 October 1998, the appellant and representatives of MMAL
discussed the 27 October 1998 re-engrossed in principle Heads of Agreement and
agreed to it, subject to a number of changes.
(ix) After the appellant and representatives of MMAL agreed to the changes, the third
and final version (that is, the Executed Heads of Agreement) was engrossed and
executed by everyone present, including by the appellant and the appellant’s wife.
This is the document, the full terms of which have been set out earlier in paragraph
[24] of these reasons.
(x) The Executed Heads of Agreement is the document which has been the subject of
litigation between the parties during the years subsequent to 27 October 1998 and it
is the document the parties agreed to and executed on 27 October 1998, “each
understanding what they were agreeing to and agreeing to be bound by”.
(xi) The appellant understood that the $200,000 referred to in the Executed Heads of
Agreement included a sum to be paid from the Fund which was in settlement of all
claims he had or may have in respect of superannuation. The appellant agreed in
consideration of such sum not to institute any legal proceedings in respect of any
superannuation which may be payable by the Fund.
(xii) The appellant intended that the Fund be bound by the agreement in which he had
entered with MMAL. In this context, the appellant understood that Mr Breugem was
at the mediation representing the Fund as well as MMAL.
(Citations omitted)
40 See (vii) below.
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66 Justice Nicholson considered the executed Heads of Agreement disclosed a
clear joint intention between Mr Kowalski and MMAL that the following was to
apply:41
(i) The effect of the Executed Heads of Agreement was to finally and fully settle or
resolve any entitlements the appellant may have had to “superannuation, sick leave,
compensation and damages arising out of or in the course of [the appellant’s]
employment with MMAL” (see recitals 1, 2 and 3 and paragraph 1 of the Executed
Heads of Agreement).
(ii) The sum of $200,000 to be paid on account of the foregoing was to include payment
in full and final settlement of any injuries or disabilities in respect of the injuries
expressly identified in paragraph 1.1 of the Executed Heads of Agreement.
(iii) The sum of $200,000 to be paid to the appellant included payment in full and final
settlement of any matters related to the termination of his employment with MMAL
and any superannuation payable by the Fund (paragraphs 1.3 and 1.4 of the Executed
Heads of Agreement).
(iv) Of the sum of $200,000 to be paid to the appellant, the sum of $64,691.43 was to be
paid by the Fund by way of an ill health benefit and the sum of $125,308.57 was to
be paid by MMAL as an ex gratia payment as compensation for permanent disability
(paragraphs 2.1. and 2.2 of the Executed Heads of Agreement).
(v) In consideration of the matters set out in paragraphs 1 and 2 of the Executed Heads
of Agreement (and in particular those identified in the immediately preceding
subparagraphs of these reasons) the appellant for himself and his dependants agreed
not to institute any legal proceedings and or legal complaints with any Court,
Tribunal or body in respect of those matters (paragraph 4.1 of the Executed Heads
of Agreement).
67 Justice Nicholson considered that on the evidence before the Judge it was
open to make the findings his Honour made and indeed those findings were
inevitable. The findings were consistent and with, and plainly evident from, the
terms of the executed Heads of Agreement and nothing in the evidence served to
contradict any of the findings. It was clearly contemplated by the parties and the
expressed common intention was the payment of $200,000 would extinguish
Mr Kowalski’s rights, if any, against the Fund.
68 Justice Nicholson concluded that the Fund was entitled to rely upon and
enforce the terms of the executed Heads of Agreement, notwithstanding it was not
a party, and the Heads of Agreement released the Fund from future liability.
The effect of the executed Heads of Agreement was to terminate any entitlements
as against the Fund and Mr Kowalski could not resurrect these entitlements by
making further claims.
69 Justice Nicholson said there was no basis in the evidence to suggest fraud or
undue influence or that Mr Kowalski did not have full knowledge of relevant
41 Kowalski v Mitsubishi Motors Australia Staff Superannuation Fund Pty Ltd [2018] SASCFC 44 at [68]
(Nicholson J).
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matters including the basis upon which the release and covenant not to sue was
given by him.
70 Justice Nicholson observed that the executed Heads of Agreement had
previously been considered judicially, albeit adversely to Mr Kowalski.42 Against
the background referred to in the judgment, Nicholson J observed that
Mr Kowalski’s contention for the first time that the executed Heads of Agreement
was non est factum (not his deed) had to be treated with considerable reserve.
71 Justice Nicholson went on describe Mr Kowalski’s complaints based on
differences between the text of the initialled in principle heads of agreement of
26 October 1998 and the executed Heads of Agreement. In particular, the former
described the $200,000 settlement sum as compensation for permanent disability
impairing future earning capacity as opposed to the description in the executed
Heads of Agreement of an ex gratia payment as compensation for permanent
disability impairing future earning capacity. Mr Kowalski maintained the
amendments were made without his knowledge and consent and prior to him
signing the executed Heads of Agreement. However, Nicholson J observed that
the Judge was satisfied that Mr Kowalski was aware of the differences and had
concocted his account of how it came about that the issue of non est factum was
raised for the first time at such a late stage. Further, Nicholson J pointed out that
Mr Kowalski had never intimated he would reimburse the sum of $200,000.
Justice Nicholson continued to say that irrespective of the Judge’s findings,
Mr Kowalski had not adduced any evidence that he was, at the time, a person under
a disability. There was nothing in the material before the Court that would raise
the possibility Mr Kowalski suffered a relevant disability which was sufficient to
render fanciful the availability of the defence of non est factum. Further, the
document signed was not radically different. The evidence did not support any
wider attack on the enforceability of the executed Heads of Agreement.
The document was available, Mr Kowalski read it and signed it and became bound
by its terms.
72 Justice Nicholson understood that Mr Kowalski’s case was that he could
“live with” the 26 October 1998 initialled in principle heads of agreement subject
to it being read down to conform to any relevant statutory requirements and, as
such, had made no attack on that document. Justice Nicholson thought that
position seemed to have been adopted by Mr Kowalski because it would allow the
$200,000 settlement to remain in place yet allow Mr Kowalski to pursue such
entitlements as MMAL could not contract out of by reason of ss 42 and 119 of the
Act.
73 Mr Kowalski also asserted that the Heads of Agreement was void and of no
effect on the basis of s 119 of the Act. Justice Nicholson referred to Deputy
42 Kowalski v Mitsubishi Motors Australia Ltd [2001] SAWCT 93; Kowalski v Trustee, Mitsubishi Motors
Australia Ltd Staff Superannuation Fund Pty Ltd [2002] FCA 1153 ; Kowalski v Trustee, Mitsubishi
Motors Australia Ltd Staff Superannuation Fund Pty Ltd [2003] FCAFC 18; Kowalski v MMAL Staff
Superannuation Fund Pty Ltd (No 3) [2009] FCA 53 and Soden v Kowalski [2011] FCA 318.
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President McCouaig’s decision in Kowalski v Mitsubishi Motors Australia Ltd43
and the consideration of s 119 by Debelle J in Workers Rehabilitation and
Compensation Corporation v JR Engineering Services Pty Ltd & Ors.44 Justice
Nicholson observed that if s 119 was engaged, it would not necessarily render the
agreement as a whole invalid. In the present case, the Act was not engaged by
Mr Kowalski’s claim which was against the Fund. Whether or not s 119 might
operate to restrict reliance by MMAL raised different questions but Nicholson J
observed that such an argument had previously failed.
74 Chief Justice Kourakis agreed with the decision of Nicholson J and added
some brief reasons.45 On the issue of s 119 of the Act, the Chief Justice emphasised
that cl 5 of the executed Heads of Agreement did not purport to exclude or modify
the operation of the Act but contemplated the resolution of proceedings by
discontinuance or consent order. The resolution of proceedings in accordance with
dispute resolution procedures of the Act did not contravene s 119 of the Act.
75 Justice Hinton agreed with the decisions of Kourakis CJ and Nicholson J.
2018 permission to apply to SAET to set aside Tribunal decisions
76 On 13 February 2018, Blue J granted Mr Kowalski permission to bring
applications in the South Australian Employment Tribunal (“SAET”) pursuant to
s 88H of the Act to set aside decisions of the Tribunal. The first of those decisions
was the decision of Deputy President McCouaig which rejected Mr Kowalski’s
assertions of fraud, misrepresentation and unconscionable conduct in drawing up
the Heads of Agreement. The second decision was the decision of the Full Bench
of the Tribunal which addressed an appeal by Mr Kowalski against the decision of
Deputy President McCouaig. The third was the decision in which Deputy
President McCouaig struck out, as an abuse of process, Mr Kowalski’s application
to expedite determination of his heart attack claim which he had purported to bring
in 2003.
2019 Full Court decision overturning permission
77 On appeal, the Full Court, comprised of Kourakis CJ, Peek and Parker JJ,
allowed the appeal and overturned Blue J’s order giving permission.46
78 The Full Court set out in its judgment the background to the grant of
permission by Blue J. This included the following:47
In April 1998, Mr Kowalski claimed compensation from his employer, Mitsubishi Motors
Australia Limited (MMAL) for a heart attack suffered in late December 1997.
On 27 October 1998, Mr Kowalski, his wife and MMAL executed an agreement, entitled
Heads of Agreement (HoA), resolving Mr Kowalski’s heart attack, and other, claims after
43 [2001] SAWCT 93.
44 (1995) 180 LSJS 276 at 290.
45 [2018] SASCFC 44 [1] (Kourakis CJ).
46 Mitsubishi Motors Australia Ltd v Kowalski [2019] SASCFC 95.
47 Mitsubishi Motors Australia Ltd v Kowalski [2019] SASCFC 95 at [3]-[4].
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a mediation conducted by Mr Stephen Walsh QC. At that time, MMAL, which was an
exempt employer, had not determined to accept or reject the heart attack claim, prompting
Mr Kowalski to bring an application in the SAWCT for an order expediting that
determination. In accordance with the terms of the HoA, Mr Kowalski’s expedition
application was brought on before a conciliation officer who made a consent determination
(the consent determination) rejecting his heart attack claim.
In 1999, Mr Kowalski unsuccessfully brought the first of several proceedings in the
SAWCT to set aside the consent determination. The impugned decisions are those which
dismissed Mr Kowalski’s applications to have the consent determination set aside.
They are:
(a) The decision of McCouaig DP in August 2001 dismissing Mr Kowalski’s
application of November 1999 to have the consent determination set aside pursuant
to s 88H of the WRCA (the first setting aside decision); 48
(b) The decision of the Full Bench in August 2002 dismissing an appeal against the first
setting aside decision (the Full Bench decision);49 and
(c) The striking out by McCouaig DP on 7 May 2003, as an abuse of process, a second
application by Mr Kowalski to expedite the determination of his heart attack claim
which he had purported to make again by correspondence in February 2003.50
79 In referring to the mediation of Mr Kowalski’s claims, the Full Court reasons
stated as follows:51
From 1989 Mr Kowalski prosecuted many claims for compensation against MMAL in
multiple proceedings. As at late 1998 there were some 15 actions before various courts,
tribunals or review officers for a range of injuries.52
On 26 December 1997, Mr Kowalski suffered a myocardial infarction which he attributed
to the continuing stress of those proceedings. On 22 April 1998, he lodged a claim for
compensation against MMAL alleging the ‘aggravation, acceleration, exacerbation,
deterioration of a pre-existing heart disease and depression, heart attack (myocardial
infarction)’.53 On 3 August 1998, Mr Kowalski lodged a claim for ‘disfigurement, travel
expenses, rehabilitation service, scarring, medical costs and hospital costs’ said to have
resulted from his heart attack and surgery. On 13 October 1998, Mr Kowalski lodged a
further claim for compensation to ‘“clarify” his earlier claims’.54
MMAL had not determined those claims when the matter was submitted for mediation.
The mediation commenced on 26 October 1998 and continued on 27 October 1998. On
the second day, MMAL and Mr Kowalski executed the final version of the HoA which we
set out below.
80 The reasons continued to state that after execution of the final version of the
Heads of Agreement, consent orders were entered noting the parties had entered
48 Kowalski v Mitsubishi Motors Australia Ltd [2001] SAWCT 93.
49 Kowalski v Mitsubishi Motors Australia Ltd [2002] SAWCT 76.
50 Kowalski v Mitsubishi Motors Australia Ltd [2003] SAWCT 48.
51 Mitsubishi Motors Australia Ltd v Kowalski [2019] SASCFC 95 at [12]-[14].
52 Kowalski v Mitsubishi Motors Australia Ltd [2001] SAWCT 93 at [2].
53 Kowalski v Mitsubishi Motors Australia Ltd [2001] SAWCT 93 at [3].
54 Kowalski v Mitsubishi Motors Australia Ltd [2001] SAWCT 93 at [5]-[6].
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into an agreement resolving all matters in dispute. On that basis, by consent, a
determination was made dismissing Mr Kowalski’s claim for aggravation,
acceleration, exacerbation, and deterioration of a pre-existing coronary heart
disease and depression and heart attack.
81 The Full Court addressed the Heads of Agreement as follows:55
There were several iterations of the HoA. The first iteration was partly in typed script and
partly in the handwriting of Mr Walsh QC. It was initialled by persons present at the
mediation on 26 October 1998. On 27 October 1998, the first iteration was re-engrossed
and presented at the resumed mediation. The re-engrossed document incorporated the
previous handwritten notes and other changes. On the morning of 27 October 1998,
Mr Kowalski and MMAL’s representatives discussed the re-engrossed HoA. A number of
additional changes were agreed. The third and final version of the HoA was then engrossed
and executed by everyone present, including Mr Kowalski and his wife (the executed
HoA).
...
The material differences between the executed HoA and the earlier iterations were:
• the words ‘income maintenance and medical expenses’ which had appeared after the
word compensation, in clause 1 were deleted in the executed HoA; and
• in the executed HoA the words ‘as an ex gratia payment’ were inserted between the
word ‘MMAL’ and the words ‘as compensation’ in clause 2.2 of the earlier
iterations.
82 The Full Court then referred to Mr Kowalski’s unsuccessful attempts in prior
proceedings to set aside the consent determinations. I have described those
proceedings above. The decisions referred to by the Full Court included the
decision of Deputy President McCouaig, which rejected allegations of fraud,
misrepresentation and unconscionable conduct in the drawing up and execution of
the Heads of Agreement, and the unsuccessful appeal from that decision.
83 Mr Kowalski’s application for permission to file applications to set aside the
consent decisions was based on assertions that he had recently discovered a
document relating to the mediation, being a copy of a facsimile from Mr Walsh
QC dated 26 October 1998 containing the 26 October iteration of the heads of
agreement. Mr Kowalski asserted the Heads of Agreement was executed non est
factum because he was not made aware of the changes between the 26 October
iteration and the executed Heads of Agreement and MMAL’s legal representation
did not draw attention to the changes made. Mr Kowalski contended that if the
26 October iteration had been before the Deputy President and the Full Bench, they
would have reached different conclusions on the application of s 119 of the Act.
55 Mitsubishi Motors Australia Ltd v Kowalski [2019] SASCFC 95 at [19]-[21].
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84 The Full Court then said:56
It is appropriate to immediately note a fundamental paradox inherent in that contention.
Mr Kowalski’s contention is that, because he was not told by MMAL’s solicitors or the
mediator that the text of the executed HoA saved it from invalidity and therefore precluded
him from taking the $200,000.00 and pursuing claims for additional awards, it was non est
factum. The practical effect of Mr Kowalski’s submission is that he would not have
resolved his dispute with MMAL pursuant to the executed HoA if he had known that the
changes in the text precluded him from later contending that the very agreement he was
purporting to make was void by reason of inconsistency with s 119 of the WRCA. We do
not suggest that Mr Kowalski did in fact intend to take the settlement only to then breach
the agreement and pursue his claims for compensation. Indeed, even though his intentions
are irrelevant for present purposes, it is much more likely that he only later came to regret
his decision to settle. The point we are making is that to allow the plea of non est factum
to vitiate Mr Kowalski’s agreement retrospectively imputes to him that very stratagem.
It is difficult to conceive of a less meritorious deployment of the doctrine.
85 The Full Court explained that Mr Kowalski instituted the proceedings
following Blue J’s permission on the grounds that MMAL and its legal
representatives altered the Heads of Agreement between 26 and 27 October 1998
such that the executed Heads of Agreement was non est factum and the earlier
iteration and/or the executed Heads of Agreement contravened s 119 of the Act.
86 The Full Court concluded it was not arguable that it was inconsistent with
s 119 of the Act to agree to compromise a claim under the Act by consent.
Section 119 prohibits agreements which abrogate, modify, or waive the rights the
Act confers or prohibits proceedings to enforce those rights. If Mr Kowalski, after
executing the Heads of Agreement, had not consented to the dismissal of his
expedited claim, the executed Heads of Agreement may not have precluded him
from prosecuting it even if he was in breach by doing so. However, the Full Court
stated that Mr Kowalski did consent to the dismissal of his heart attack claim and
the consent determination was made pursuant to the Act. Any application to set
aside the consent determination had to take into account the circumstance that
Mr Kowalski consented to it pursuant to an agreement for which he received
substantial consideration. The Full Court also concluded it was not arguable that
the executed Heads of Agreement was non est factum and concluded the
proceedings were, by their very nature and purpose, designed to re-litigate the issue
previously decided adversely to Mr Kowalski.
87 In reaching its conclusions, the Full Court referred to findings made by Judge
Muecke in Kowalski v Mitsubishi Motors Australia Staff Superannuation Fund Pty
Ltd which were referred to the Full Court in the appeal against that decision.57
88 The Full Court said the proposed proceedings were doomed to fail because
Mr Kowalski did not put forward any material on his application for s 39
permission which would satisfy the elements of a non est factum plea, namely an
operative disability and a substantial, if not radical, difference in the nature and
56 Mitsubishi Motors Australia Ltd v Kowalski [2019] SASCFC 95 at [28].
57 [2018] SASCFC 44 at [36].
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character of the document. Justice Blue did not identify any other legal foundation
for any obligation to explain or warn Mr Kowalski about the possible legal
consequence the changes in text might make, making it more difficult for him to
set aside the very agreement which he had made voluntarily as being contrary to
s 119. There was no finding of any misrepresentation and it was not reasonably
arguable that there was any other circumstance which vitiated the Heads of
Agreement. Any differences in text were immaterial. The changes in text were
purely matters of form that could not affect the question whether as a matter of
substance the executed Heads of Agreement was inconsistent with s 119. Despite
using the words “ex gratia”, the sum of $125,308.57 was plainly payable pursuant
to a contractual obligation. It was equally plain it was being paid in exchange for
the dismissal of Mr Kowalski’s workers compensation proceedings. The relevant
question was whether the agreement was valid insofar as it bound Mr Kowalski to
consent to the dismissal of his existing claims. The Full Court concluded it was
and the plea of non est factum was bound to fail. Further, the adverse decision in
the Fund proceedings demonstrated the futility in Mr Kowalski’s arguments that
the executed Heads of Agreement was non est factum.
89 The Full Court then turned to consider s 119 of the Act. The Full Court
concluded that paragraph 4.3 of the executed Heads of Agreement was not
inconsistent with s 119 of the Act. It was a compromise of the dispute between
MMAL and Mr Kowalski over the statutory rights created by the Act. It was
premised on the existence of those rights and did not exclude or modify the
operation of the Act. The Full Court considered the Act contemplated the
determination of disputes by orders of the kind made in the consent determination
whether or not a collateral payment was less or more than may have been awarded
if the compromise was not reached. The Full Court distinguished agreements
which resolved disputed claims of existing injuries and consequential statutory
entitlements from agreements which precluded a worker from bringing claims for
future injuries and impairments should they eventuate.
90 The Full Court continued as follows:58
In the reasons for making orders against Mr Kowalski,59 Blue J expressed the distinction
differently. Blue J accepted that an agreement as to past entitlements under the WRCA
may be consistent with s 119 of the WRCA, but held that an agreement to preclude any
future entitlement on an existing or new claim would not be. On that reasoning the executed
HoA was valid, and the consent determination properly made, as to any past income
maintenance entitlement but not as to future payments or redemption or other lump sums.
The delineation drawn by Blue J breaks down in cases in which there is a dispute as to
whether there is any compensable injury at all. The consent determination in this case
dismissed Mr Kowalski’s claim that his heart attack arose out of, or in the course of his
employment. It is a necessary implication of the consent dismissal that Mr Kowalski had
no compensable claim at all for his heart attack. There is no reason why MMAL and
58 Mitsubishi Motors Australia Ltd v Kowalski [2019] SASCFC 95 at [70].
59 Attorney-General v Kowalski [2014] SASC 1 at [1062]-[1089].
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Mr Kowalski should be precluded from so agreeing. On that agreement there could be no
claim for future payments.
91 It was thus not reasonably arguable the compromise contravened s 119.
92 The Full Court said the very purpose of the s 39 permission was to set aside
decisions made adversely to Mr Kowalski so the underlying controversy could be
re-litigated. Their Honours observed that judicial orders are final and binding save
for an appeal allowed by statute or review for illegality and the Court’s limited
powers to set aside decisions are exceptional, to guard against fraud. The Full
Court pointed out that the principle of finality remains an important consideration.
93 The Full Court concluded that the permission application was not based on
factual events or changes in the law discovered or made after the decisions were
handed down but based on contentions of fact and law which ought to have been
raised in the hearings that Mr Kowalski was seeking to have set aside. The very
mischief a vexatious litigant declaration is calculated to address is the re-agitation
of matters using arguments not made in earlier proceedings. The Full Court said
the ultimate purpose of the application was to re-litigate the non est factum issue
and whether the consent determination should be set aside so that Mr Kowalski
could prosecute his heart attack claim, a right which he had compromised for a
substantial sum by signing the Heads of Agreement.
94 The Full Court also referred to the delay being a weighty reason to refuse
permission. This was in circumstances where the application for permission was
made nearly two decades after the consent determination and over a decade after
Bleby J had held that the underlying proceedings had no reasonable foundation.
The interests of justice and finality principle demanded that permission be refused.
Further, Mr Kowalski should not have been given permission without ensuring he
did not enjoy a windfall gain in the form of the $200,000 received on execution of
the Heads of Agreement.
95 For all those reasons, the appeal against the grant of permission was allowed.
96 I turn now to address a series of rulings delivered by Blue J in relation to
further applications by Mr Kowalski for permission and applications made to Blue
J to correct his rulings concerning issues arising from the Heads of Agreement
and/or the consent determination and/or questions arising in relation to claims to
entitlement to redemptions.
Ruling 6 dated 15 May 2019 and settled on 17 May 2019
97 In ruling 6, Blue J addressed Mr Kowalski’s interlocutory application
FDN 516 for permission to apply to enforce a judgment against the Fund arising
out of the reasons for judgment of the Full Court on the appeal against Judge
Muecke’s grant of summary judgment.
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98 Justice Blue stated that Mr Kowalski had referred to paragraph 36(5) of the
reasons for judgment of Nicholson J, contending that it amounted to a finding by
the Full Court that he was entitled to a total permanent disability benefit. The same
argument was put in support of an application for permission to continue
proceedings against the Fund for a total and permanent disability benefit. Justice
Blue found the arguments advanced on both applications were not tenable and
dismissed Mr Kowalski’s application.
Ruling 16 dated 24 February 2021 settled 5 March 2021
99 This ruling addressed Mr Kowalski’s interlocutory application for
permission to apply to the Full Court to correct, vary or set aside the judgment of
the Full Court on appeal against Blue J’s order granting permission to
Mr Kowalski to bring an application in the SAET to set aside decisions in the
Tribunal.
100 Mr Kowalski contended the statement by the Full Court in its reasons that,
at the time the Heads of Agreement were executed, MMAL, which was an exempt
employer, had not determined to accept or reject his heart attack claim was
erroneous. Mr Kowalski sought permission to apply to the Full Court to set aside
the judgment on the ground of that error.
101 Mr Kowalski relied on a WorkCover electronic data interchange (“EDI”)
report dated 5 May 1999 as evidence MMAL had rejected his claim for
compensation in respect of his heart attack.
102 In the appeal to the Full Court, Mr Kowalski had filed documents called
“Respondent’s Reply to MMAL’s Incomplete Chronology” and “Respondent’s
Addendum to His Reply to MMAL’s Incomplete Chronology”. In each of those
documents, Mr Kowalski had recorded an assertion that MMAL had rejected his
heart attack claim on 5 May 1998.
103 Mr Kowalski’s contentions included that MMAL committed a fraud by
including the heart attack claim in the Heads of Agreement.
104 Justice Blue concluded Mr Kowalski did not have reasonable prospects of
persuading the Full Court to set aside or vary its judgment by reason of MMAL’s
EDI report to WorkCover. This was for reasons including that MMAL was
required to communicate the determination of the acceptance or rejection of the
claim which it did not do. On the contrary, after May 1998, MMAL told
Mr Kowalski it could not yet determine the claim. Secondly, if MMAL had
rejected Mr Kowalski’s claim, he would have been entitled to pursue it in the
Tribunal. There was no reason therefore why the heart attack claim could not be
the subject of the Heads of Agreement.
105 Justice Blue considered the basis on which the Full Court held that
permission should not have been granted was not affected by any of the contentions
Mr Kowalski sought to make. It was also incumbent on Mr Kowalski to have
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advanced the contentions at the hearing of the appeal and to articulate the relevance
of the asserted rejection of the claim to the issues on appeal.
106 Justice Blue also pointed out that the Full Court held that MMAL could enter
into an agreement to resolve all outstanding claims, or potential claims, without
complying with the obligations in ss 42 and 42A of the Act.
107 Justice Blue dismissed the application.
Ruling 19 dated 25 May 2021 settled on 26 May 2021
108 This ruling addressed interlocutory application FDN 580 filed on
3 December 2019 in which Mr Kowalski sought permission to apply to the SAET
to review assessments by MMAL in respect of his claims which were the subject
of cls 1.1 to 1.4 of the Heads of Agreement.
109 Justice Blue observed that s 42A(1) of the Act, as at October 1998, enabled
assessment of a worker’s loss of future earning capacity as a capital loss if the
worker had suffered a compensable disability that resulted in incapacity for work
for more than two years. Section 42A(9)(a) provided that an assessment under
s 42A was reviewable and s 89A identified decisions that were reviewable. Justice
Blue assumed, without deciding, that the transitional provisions of the repealing
Act preserved an ability to seek review of a decision made before the Act was
repealed.
110 Clause 2 of the Heads of Agreement provided that approximately $125,000
of the $200,000 was paid as an ex gratia payment as compensation for permanent
disability impairing future earning capacity. Justice Blue considered this was not
an assessed capital loss, it was simply an ex gratia payment with a denial of
liability. Clause 2 provided that $10,000 was paid in consideration of
Mr Kowalski foregoing any claims or future claims in any way arising from his
employment. Justice Blue said that, as expressed, the clause would preclude
Mr Kowalski from making a claim under s 42A of the Act, recognising that the
section merely conferred power but did not oblige WorkCover to make an
assessment. It was clearly not an assessment by MMAL of a capital loss.
The balance of $65,000 was expressed to be paid by the Fund as an ill health
benefit and clearly was not an assessment by MMAL under s 42A.
111 Justice Blue then continued to observe that, in other proceedings,
Mr Kowalski had contended the Heads of Agreement were in breach of s 119 of
the Act because MMAL did not follow the procedures referred to in ss 42 and 42A
of the Act. Mr Kowalski again advanced that same contention. That contention
necessarily accepted, as was manifestly the case, that MMAL did not make any
assessment under s 42A by, or at the time of, the Heads of Agreement. It followed
that the Tribunal or its successor would have no jurisdiction to entertain an
application by Mr Kowalski for review of a s 42A assessment because no such
assessment was ever made. Justice Blue therefore concluded Mr Kowalski’s
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proposed application had no reasonable prospect of success and he dismissed the
application.
Ruling 23 dated 12 January 2022 settled 17 January 2022
112 In this ruling, Blue J addressed Mr Kowalski’s application for permission to
apply to the Supreme Court pursuant to s 42 of the Act to set aside or revoke the
Heads of Agreement. Mr Kowalski contended he did not receive professional
advice about the consequence of MMAL’s redemption of its liabilities or financial
advice about the ex gratia payment which Mr Kowalski characterised as a
redemption.
113 Justice Blue said the Heads of Agreement were not, and did not purport to
be, a redemption of liability under s 42. There was no clause providing for a
redemption nor a clause providing for a payment of a lump sum in return for a
redemption.
114 The fact that prerequisites to a redemption under s 42 were not satisfied did
not give rise to a tenable claim the Heads of Agreement constituted a s 42
redemption agreement which should be set aside for non-compliance with the
prerequisites for a redemption agreement.
115 Accordingly, Blue J dismissed the application.
Ruling 24 dated 12 January 2022 settled 17 January 2022
116 Mr Kowalski applied by interlocutory application FDN 588 for permission
to lay criminal charges against two lawyers. He also sought a series of declarations
that a determination by Conciliation Officer Richer made in 1998 and six
determinations by Deputy President McCouaig made between 2001 and 2004 were
void for lack of jurisdiction or bias and/or error of law. He also sought a
declaration that MMAL provided misleading information to him.
117 The factual background set out by Blue J as follows related to Mr Kowalski’s
heart attack.
118 On 26 December 1997 Mr Kowalski suffered a heart attack. He gave to
MMAL on 7 April 1998 a Notice of Work Related Injury in relation to his heart
attack which was said to have been suffered while preparing submissions for
proceedings against MMAL.
119 In June 1998, MMAL’s solicitor wrote to Mr Kowalski’s expert requesting a
report addressing four questions in relation to Mr Kowalski’s claim for
compensation arising out of his heart attack.
120 On 20 July 1998 Mr Kowalski filed in the Tribunal an application for an
expedited decision in respect of his heart attack / depression claim.
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121 As arranged by MMAL’s solicitors, Mr Kowalski saw his psychiatrist in
August 1998 and his cardiologist in September 1998.
122 In September 1998 Mr Kowalski sent a facsimile to the Tribunal inviting a
conciliation officer to exercise powers to decide the matter as the compensating
authority in light of alleged delay. In September 1998, Mr Kowalski’s psychiatrist
sent a draft report to MMAL’s solicitor. Later in September, MMAL’s solicitor
wrote to Conciliation Officer Richer referring to Mr Kowalski’s facsimile, stating
that the medical opinions were not yet finalised and consequently MMAL did not
consider it appropriate for the matter to be decided at that time by a conciliation
officer.
123 On 25 September 1998, in a conversation between Conciliation Officer
Richer and MMAL’s solicitor, the solicitor told the conciliation officer he expected
MMAL would be able to determine Mr Kowalski’s heart injury / depression claim
by the end of October.
124 On 3 November 1998, Conciliation Officer Richer made a determination by
consent dismissing Mr Kowalski’s April 1998 heart injury / depression claim.
125 After reciting this background to the heart attack claim, Blue J referred to an
EDI report obtained by Mr Kowalski from WorkCover referring to the injury in
respect of which notice was given in April 1998. It contained a data field entitled
“WorkCover Received” against which appeared the entry “11/05/1998” and a data
field entitled “Determination” against which appeared the code “R” (rejected) and
a data field for status against which the entry was “closed”. On the basis of the
EDI report, Mr Kowalski contended before Blue J that MMAL rejected his heart
attack claim on 11 May 1998. For that reason, Mr Kowalski contended that the
solicitor misled him and the conciliation officer into believing MMAL had not yet
determined his heart attack claim. Further, Mr Kowalski asserted that Conciliation
Officer Richer had no jurisdiction to make the determination on 3 November 1998
because his heart attack claim had already been rejected by MMAL and therefore
Deputy President McCouaig had no jurisdiction to make determinations which
relied on the heart attack claim still being extant in November 1998.
126 Justice Blue considered the EDI report did not indicate that MMAL rejected
Mr Kowalski’s heart attack claim on 11 May 1998. It was consistent with the
claim having been rejected and its status changed to closed after November 1998.
Further, Blue J considered that all of the objective evidence indicated MMAL did
not reject the claim in May 1998 and was taking active steps after that date to
decide whether or not to accept the claim.
127 Accordingly, Blue J dismissed the application.
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34
Ruling 25 dated 12 January 2022 settled 17 January 2022
128 Mr Kowalski applied, by interlocutory application FDN 590, for permission
to continue, or prosecute, a claim in the SAET for redemption, or commutation, of
liability to make weekly payments pursuant to ss 42(1) and 42A of the Act in
respect of his finger injury.
129 Justice Blue said there were two fundamental obstacles to Mr Kowalski’s
application. The first was that the action was dismissed in October 1998 and there
was no action to prosecute. The second was that neither s 42 nor s 42A of the Act
in force in 1998 provided a worker with a right to redemption or commutation of
weekly payments of compensation. Section 42 merely provided that the worker
and WorkCover could enter into an agreement to redeem weekly payments of
compensation. It did not contain a provision under which a worker could compel
WorkCover to enter into such an agreement, rather, all it provided for was for a
worker to apply to the Tribunal for reference of the matter to a conciliation
conference. If no agreement was reached, s 42(9) provided a party could not be
compelled to agree to redemption of the liability. Section 42A merely provided
that where a worker suffered a compensable disability resulting in incapacity for
work for more than two years, WorkCover was empowered to assess the worker’s
loss of future earning capacity as a capital loss and there was nothing in s 42A that
compelled WorkCover to make such an assessment. Section 42A(9)(a) expressly
provided that a decision by WorkCover not to make this assessment was not
reviewable.
130 Accordingly, Mr Kowalski’s proposed claim in the Tribunal was not
reasonably arguable.
Ruling 26 dated 12 January 2022
131 Mr Kowalski applied by interlocutory application FDN 592 for permission
to continue to prosecute an application filed in the Tribunal in 2002 for an order
that, pursuant to s 42A(9) of the Act, the Tribunal make an assessment of MMAL’s
assessment made on 27 October 1998 in respect of the payment for permanent
disability impairing future earning capacity arising from the injuries mentioned in
the Heads of Agreement.
132 As set out above, where the worker suffered a compensable disability
resulting in incapacity for work for more than two years, s 42A empowered
WorkCover to assess the worker’s loss of future earning capacity as a capital loss.
Justice Blue observed that, as at 2002, s 42A(9) of the Act provided that a decision
of the Corporation to make or not to make an assessment was not reviewable.
MMAL did not make an assessment under s 42A of Mr Kowalski’s loss of future
earning capacity due to his finger injury as a capital loss for the same reasons
Blue J had given in relation to his redemption agreement under s 42.
For completeness, Blue J observed that Mr Kowalski had contended the Heads of
Agreement was in breach of s 119 but the Full Court had held that the Heads of
Agreement did not breach s 119. Mr Kowalski also contended the Heads of
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35
Agreement was fraudulent because his heart attack claim had been rejected by
MMAL without Mr Kowalski’s knowledge but Blue J said he had addressed that
contention in his reasons for ruling on Mr Kowalski’s application 44.60
Mr Kowalski also asserted the Heads of Agreement was fraudulent because
versions prior to the last executed version referred to compensation rather than an
ex gratia payment. However, Blue J pointed out the Full Court had rejected this
contention.
133 Mr Kowalski also contended that MMAL failed to calculate the payment to
him in relation to superannuation on a total and permanent disability basis. Justice
Blue observed the Full Court had effectively rejected this contention, holding that
Mr Kowalski was precluded by the Heads of Agreement from claiming
superannuation on that basis. Mr Kowalski’s application was therefore not
reasonably arguable and was dismissed.
Ruling 27 dated 12 January 2022 settled 17 January 2022
134 Mr Kowalski applied, by interlocutory application FDN 584, for permission
to apply to the Full Court to correct, vary or set aside the judgment in Kowalski v
Sim61 and Mitsubishi Motors Australia Ltd v Kowalski.62 He also applied, by
interlocutory application FDN 627, for permission to apply to the Full Court to set
aside or revoke the latter judgment pursuant to r 186.1 of the Uniform Civil Rules
2020. Rule 186.1 provides that if satisfied the interests of justice so require, the
Court may vary, or set aside, a judgment and/or re-open an action.
135 In the application, Mr Kowalski referred to the documents called “Reply to
MMAL’s incomplete chronology” and “Addendum to reply to MMAL’s
incomplete chronology” to which I have referred above. In those documents,
Mr Kowalski recorded that MMAL had reported to WorkCover on 5 May 1998
that it had rejected the respondent’s claim for compensation for his December heart
attack and January open heart surgery. Mr Kowalski thus contended that the Full
Court should have held that Conciliation Officer Richer had no jurisdiction to
make orders in October 1998 because MMAL had already rejected Mr Kowalski’s
joint heart attack-psychiatric claim in May 1998 and this lack of jurisdiction had
consequential effects on the subsequent proceedings in the Tribunal.
136 Justice Blue concluded that for the reasons given in his ruling in respect of
application 4463 it was not reasonably arguable that MMAL formally rejected
Mr Kowalski’s claim in May 1998.
137 Mr Kowalski also contended that the Full Court erred in finding that MMAL
had paid workers compensation to him, referring to paragraph 57 of the judgment
in which the Full Court said that despite the use of the phrase “ex gratia”,
the $125,308.57 was plainly payable pursuant to a contractual obligation and in
60 I understand application 44 was the subject of ruling 24.
61 [2019] SASCFC 96.
62 [2019] SASCFC 95.
63 I understand application 44 was addressed in ruling 24.
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[2025] SASC 102 Stein J
36
exchange for the dismissal of Mr Kowalski’s Tribunal proceedings. Mr Kowalski
asserted this was contrary to the true position under the Heads of Agreement,
relying on the ordinary meaning of the phrase “ex gratia”.
138 Justice Blue said in the context of the Heads of Agreement, the phrase
“ex gratia” denoted the payment was not made pursuant to an obligation to pay
workers compensation to Mr Kowalski under the Act and accounted for MMAL’s
continued denial of liability to pay workers compensation to Mr Kowalski, among
other matters. It was evident the Full Court was aware of the ordinary meaning of
the phrase “ex gratia” because it prefaced its reference to the words with, “despite
the use of the words ex gratia”. Justice Blue said that in stating that the sum was
payable pursuant to a contractual obligation, the Full Court was referring to the
fact that the Heads of Agreement imposed a contractual obligation on MMAL to
make the payment even though it contended it did not have an anterior legal
obligation to pay Mr Kowalski. In stating the sum was being paid in exchange for
the dismissal of Mr Kowalski’s Tribunal proceedings, the Full Court was referring
to the provisions of the Heads of Agreement which were expressed to be in
consideration of the payment of $200,000 of which the sum of approximately
$125,000 was a part. The Full Court was not stating that the sum of $125,308.57
was paid as workers compensation. Justice Blue also did not accept that the
judgment was inconsistent with the Full Court decision in Kowalski v Davison.64
139 Mr Kowalski also took the position that MMAL had no power to make an
ex gratia payment because that power was conferred by s 114 of the Act. Justice
Blue considered Mr Kowalski’s contention misconstrued the purpose and effect of
s 114 which did not confer a power on WorkCover. Rather, it was a substantive
provision providing that compensation payable under the Act was not affected by
an ex gratia payment. The Act did not confer a power to make an ex gratia payment
and an ex gratia payment was necessarily outside of the Act. Justice Blue
concluded there was no prospect the Full Court would set aside the judgment and
dismissed the applications.
Ruling 29 dated 19 October 2022 settled 27 October 2022
140 Mr Kowalski applied, by interlocutory application FDN 684, to correct Blue
J’s reasons for decision and to set aside or revoke orders in a number of rulings
including ruling 24. Mr Kowalski also applied, by FDN 710, for Justice Blue to
correct, modify or revoke ruling 24 that MMAL had not made a determination to
reject his heart attack claim.
141 For the purposes of the application, Blue J received a number of documents
and a series of exhibits including exhibits from previous trials in the District Court,
as well as evidence given in the District Court and transcript of a hearing before
Deputy President McCouaig in Tribunal proceedings.
64 [2006] SASC 123.
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[2025] SASC 102 Stein J
37
142 In particular, Mr Kowalski sought the setting aside of Blue J’s ruling 24 on
the basis that Blue J made a factual error in paragraph 18 of the ruling which
referred to the EDI report. Mr Kowalski also submitted that Conciliation Officer
Richer had no jurisdiction because his heart attack claim had already been rejected.
143 Justice Blue considered his ruling was correct at the time it was delivered
based on the material Mr Kowalski produced in support of his application.
However, Mr Kowalski had now produced additional pages of the EDI report
together with other evidence, including evidence given by the manager at
WorkCover, which referred to WorkCover’s system for storing data.
The additional evidence produced by Mr Kowalski indicated that information
contained in the EDI report was updated as at 11 May 1998, which was prima facie
evidence that MMAL had informed WorkCover on 11 May 1998 that it had
rejected Mr Kowalski’s claim.
144 Justice Blue then turned to consider the significance of the new evidence.
In so doing, his Honour addressed the EDI report and the chronology of relevant
events thereafter which included the following:
• a complaint from Mr Kowalski to MMAL on 17 May 1998 that his heart
attack claim had not been determined within the time required and requesting
that MMAL so do;
• MMAL’s solicitor writing to Dr Jagermann on 25 June 1998 requesting a
report addressing four questions;
• Dr Jagermann sending a report to MMAL’s solicitors on 3 July 1998, which
was favourable to Mr Kowalski’s claim;
• Mr Kowalski filing an application in the Tribunal on 20 July 1998 for an
expedited decision in respect of his heart attack claim;
• MMAL’s solicitors writing to the Registrar of the Tribunal on 5 August 1998
saying arrangements were being made for an independent medical
assessment of Mr Kowalski by a psychiatrist and a cardiologist;
• Mr Kowalski responding to that last correspondence to MMAL;
• MMAL’s solicitors requesting a report from psychiatrist, Professor
MacFarlane, on 25 August 1998 describing Mr Kowalski’s claim as
complex;
• Mr Kowalski seeing Professor MacFarlane on 26 August 1998;
• MMAL’s solicitors requesting a report from the cardiologist on 28 August
1998;
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[2025] SASC 102 Stein J
38
• Mr Kowalski seeing the cardiologist on 3 September 1998, with the
cardiologist posting a report to MMAL’s solicitors which was favourable to
Mr Kowalski’s claim;
• an individual on behalf of Mr Kowalski requesting from MMAL’s solicitors
a copy of the cardiologist’s report on 18 September 1998;
• Mr Kowalski inviting the conciliation officer to exercise his powers to decide
the matter himself on 19 September 1998;
• Professor MacFarlane sending a draft report agreeing with Dr Jagermann’s
diagnosis to MMAL’s solicitors on 21 September 1998;
• MMAL’s solicitors writing to the conciliation officer on 24 September 1998
to say it was not appropriate for the matter to be decided by a conciliation
officer given medical opinions had not yet been finalised;
• on 25 September 1998 Conciliation Officer Richer phoning MMAL’s
solicitors who told the conciliation officer it was expected MMAL would be
able to determine Mr Kowalski’s heart attack claim by the end of October
and he would not want it to drag on any longer;
• on 28 September, Mr Kowalski sending a facsimile to Conciliation Officer
Richer attaching a report by a different cardiologist which was favourable to
Mr Kowalski’s claim;
• on 2 October 1998, Conciliation Officer Richer telling Mr Kowalski he had
been told by MMAL’s solicitors it would make a determination by the end
of the month;
• Mr Kowalski sending a facsimile to the conciliation officer requesting
enforcement of an immediate determination of his claim by MMAL with a
letter sent by another individual on his behalf to similar effect on 12 October
1998;
• Mr Kowalski and MMAL’s solicitor appearing before Deputy President
Gilchrist on 28 October 1998 to say that the parties had resolved all of the
issues in dispute with Deputy President Gilchrist making orders finalising
proceedings other than the proceedings before Conciliation Officer Richer;
and
• Mr Kowalski and MMAL’s solicitor appearing before Conciliation Officer
Richer on 3 November 1998 who made a determination by consent
dismissing Mr Kowalski’s April 1998 heart attack claim.
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[2025] SASC 102 Stein J
39
145 Justice Blue then proceeded on the assumption that MMAL informed
WorkCover on 11 May 1998 that it had received a Notice of Injury from
Mr Kowalski and had rejected that claim. Justice Blue considered that it was not
only possible, but very likely, that MMAL’s information was incorrect for several
reasons. Firstly, it was inherently unlikely because the only information MMAL
had at that point was Dr Jagermann’s medical certificate and it had not obtained
any independent medical opinion to justify rejecting the claim. Further, MMAL
was required by the Act, as soon as practicable after determining a claim, to give
notice in writing to Mr Kowalski of its determination including the grounds on
which the claim was rejected and a statement of the rights to have it reviewed.
MMAL never provided this notice.
146 In the context of the proposed prosecution of the solicitors, Blue J observed
it would be necessary for Mr Kowalski to prove beyond reasonable doubt that not
only had MMAL informed WorkCover it had rejected the claim, which Blue J
assumed he would be able to do, but also that MMAL had in fact rejected the claim.
All the objective evidence, apart from the EDI report, indicated MMAL did not in
fact reject the claim in May 1998. All of the steps MMAL took after that appeared
to be taken solely to determine whether to accept or reject the claim. Even on the
hypothesis MMAL did reject the claim on 11 May 1998, MMAL’s subsequent
conduct was consistent only with it having rescinded the rejection and reopened
the claim.
147 Mr Kowalski failed to identify any concrete matter to satisfy Blue J that it
would have served MMAL’s best interests to reject the claim and pretend it had
not, rather than simply proceeding to determine the claim on its merits after
obtaining medical evidence.
148 Upon reconsidering the ruling in light of the additional evidence about the
EDI report, Blue J accepted he was incorrect in part of his ruling, not on the basis
of the evidence before him but in an objective sense. However, there was still a
lack of evidence to establish that in fact MMAL had rejected the claim.
149 Justice Blue then turned to Mr Kowalski’s application for a declaration that
Conciliation Officer Richer had no jurisdiction to make the consent determination
because his heart attack claim had already been rejected by MMAL. To obtain
such a declaration Mr Kowalski would have to establish not only that MMAL
informed WorkCover it rejected the claim but also that it had in fact rejected the
claim. Mr Kowalski failed to establish he had reasonable prospects of succeeding
on that point.
150 Justice Blue then continued to address another argument raised by
Mr Kowalski as to why MMAL had already rejected his heart attack claim before
November 1998. Justice Blue noted this argument was advanced by Mr Kowalski
but rejected by Deputy President McCouaig in 2001. Mr Kowalski contended that,
by virtue of the agreement reached at mediation or the Heads of Agreement,
MMAL had rejected his claim in respect of his heart attack in December 1997.
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[2025] SASC 102 Stein J
40
Hence, when the matter came before Conciliation Officer Richer, that claim could
not be dismissed because MMAL had already rejected it. The contention turned
on the construction of the Heads of Agreement.
151 Justice Blue observed that the Heads of Agreement did not expressly provide
that MMAL rejected the claim and he considered it was not implicit on its proper
construction that MMAL was rejecting the claim. The Heads of Agreement
provided for monies to be paid in settlement of any entitlements Mr Kowalski may
have and that included injuries for which MMAL had accepted it was liable,
including his eye and finger injuries. The mere fact MMAL was paying amounts
in settlement of entitlements did not indicate the claims were rejected. Justice Blue
did not consider it reasonably arguable that by entering into the Heads of
Agreement, MMAL rejected Mr Kowalski’s heart attack claim.
152 Justice Blue concluded the arguments raised by Mr Kowalski in relation to
Deputy President McCouaig’s lack of asserted jurisdiction to deal with the Heads
of Agreement had been addressed and rejected in Mitsubishi Motors Australia Ltd
v Kowalski.65 Justice Blue therefore dismissed Mr Kowalski’s application insofar
as it related to ruling 24.
Ruling 31 dated 30 November 2022 settled 12 December 2022
153 Mr Kowalski made an oral application to Blue J to correct his reasons for
decision and set aside his orders made in rulings 24 and 29. The rulings related to
Blue J’s reasons for decision that MMAL had not made a determination to reject
Mr Kowalski’s heart attack claim. After referring back to his conclusions in
rulings 24 and 29, Justice Blue turned to address two additional matters raised by
Mr Kowalski. The first was a decision in Elekwachi v Russell66 which Mr Kowalski
contended stood for the proposition that where WorkCover, or an exempt
employer, had already determined a claim, a review officer had no jurisdiction to
determine the claim under s 97 of the Act. Justice Blue accepted that proposition
and explained he proceeded on that premise in his ruling but he dismissed the
application because Mr Kowalski had not established a prima facie case that
MMAL had rejected his claim. The citation of Elekwachi v Russell made no
difference to the conclusion.
154 The second matter related to transcript of the hearing before Conciliation
Officer Richer on 3 November which Mr Kowalski had produced. That transcript
was said to evidence MMAL’s solicitor saying words to the effect that MMAL had
not determined Mr Kowalski’s claim in respect of his heart attack one way or
another Mr Kowalski contended the statement was false because MMAL had
determined to reject his claim in May or October 1998.
155 Justice Blue reiterated that he had declined permission previously because
Mr Kowalski had not adduced evidence giving rise to a prima facie case that the
65 [2019] SASCFC 95.
66 (Supreme Court of South Australia, Williams J, 27 February 1998, Judgment No. S6558).
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[2025] SASC 102 Stein J
41
statements were false. The production of the transcript of the hearing made no
difference to his conclusion.
156 Justice Blue continued to observe that even if Conciliation Officer Richer’s
determination were declared void and Mr Kowalski was permitted to prosecute a
claim in the Tribunal in respect of his heart attack, MMAL would rely on the Heads
of Agreement to prevent him from so doing. The Full Court decision precluded
claims and that decision bound the Tribunal as well as a single Judge of the
Supreme Court.
157 Justice Blue also addressed a number of decisions of the High Court to which
Mr Kowalski referred, including Josephson v Walker.67 Mr Kowalski asserted
those decisions meant relevant clauses of the Heads of Agreement were void for
offending s 119 of the Act. However, Blue J pointed out that those High Court
decisions related to different legislation.
158 Justice Blue dismissed Mr Kowalski’s application.
Ruling 31A dated 2 February 2023 settled 6 February 2023
159 In this ruling, Blue J addressed an application by Mr Kowalski for Blue J to
disqualify himself.
160 In addressing Mr Kowalski’s application, Blue J referred to the history of his
rulings and various judgments and issues addressed by the Full Court. During the
application, Mr Kowalski again argued that decisions in the High Court were
binding, that statutory rights could not be abrogated by contract and s 119 of the
Act precluded MMAL and Mr Kowalski contracting out of the Act. Justice Blue
again observed that in the cases to which Mr Kowalski referred, the High Court
did not determine that, as a matter of law, any legislation necessarily prevented
parties from contracting in different terms. The 2019 Full Court decision, which
was binding on a single judge or the Tribunal, specifically addressed the provisions
of the Act.
Ruling 32 dated 2 February 2023 settled on 6 February 2023
161 In this ruling Blue J addressed an application by Mr Kowalski to correct
reasons for decision and set aside orders made by Blue J in ruling 25. That ruling
addressed Mr Kowalski’s application for permission to continue a claim for
redemption of the liability to make weekly payments in respect of a finger injury
under s 42 of the Act. Justice Blue rejected Mr Kowalski’s contention that there
were errors in the factual background to the ruling. While accepting that s 42 of
the Act did not provide a worker with a right to redemption of weekly payments
of compensation, Mr Kowalski nonetheless contended that if his proceedings had
not been dismissed in October 1998, he could have asked for reference to a
conciliation conference. Justice Blue said that even assuming Mr Kowalski could
have sought such a reference (which he did not do at the time), it would make no
67 (1914) 18 CLR 691.
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[2025] SASC 102 Stein J
42
difference to Blue J’s ruling. The fact remained that the proceedings were
dismissed in October 1998 and therefore there were no extant proceedings to
prosecute. More than 20 years had elapsed and in the meantime the Act was
repealed. Justice Blue considered it absolutely clear that if MMAL were
compelled to attend a conciliation conference, it would not agree to any
redemption of the liability to pay the compensation claimed by Mr Kowalski.
There would therefore be no utility in Mr Kowalski continuing to prosecute the
proceedings even if they were still extant. Justice Blue referred to Mr Kowalski’s
further contentions based on asserted lack of jurisdiction and invalidity of the
Heads of Agreement as having been made and rejected in other applications and
that such contentions were irrelevant to ruling 25.
162 Justice Blue therefore dismissed the application.
Ruling 33 dated 9 May 2023 settled 9 May 2023
163 In ruling 33, Blue J addressed an oral application to correct reasons for
decision and set aside orders in ruling 19 and various applications made to Blue J
to disqualify himself. In order to address those applications, Blue J traversed a
number of contentions made by Mr Kowalski which, among other things, again
raised the Heads of Agreement and ss 40 and 42A of the Act.
164 Mr Kowalski referred to Hill v Workers Rehabilitation and Compensation
Corporation (“Hill”)68 as authority for the proposition the Supreme Court can grant
an order in the nature of mandamus requiring WorkCover or an exempt employer
to address a worker’s loss of future earning capacity as a capital loss, contending
that he should have been granted permission to commence judicial review
proceedings seeking an order compelling MMAL to assess his loss of future
earning capacity as a capital loss. Blue J rejected these contentions for reasons
including that Hill was distinguishable. Mr Kowalski also contended MMAL had
no power or discretion to pay an ex gratia payment because under s 114, an
ex gratia payment does not affect compensation, and it followed therefore that the
payment pursuant to the executed Heads of Agreement could not have been an
ex gratia payment. Justice Blue rejected that argument on the basis that s 114 did
not prohibit ex gratia payments but merely provided that such payments shall not
affect the compensation otherwise payable. Mr Kowalski also relied on an earlier
version of the Heads of Agreement which Blue J said was not tenable in light of
the Full Court decision.
165 Justice Blue pointed out that while Mr Kowalski applied for compensation in
the form of a redemption for permanent disability arising from his accepted
compensable finger injury, that did not establish that MMAL made a redemption
determination under either s 42 or s 42A in October 1998. The Heads of
Agreement did not purport to be a redemption agreement.
68 [1997] SASC 6178.
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[2025] SASC 102 Stein J
43
166 Justice Blue observed that he had previously addressed most of
Mr Kowalski’s contentions for why he was not precluded by the Heads of
Agreement from seeking compensation, including the s 42A argument.
Justice Blue reiterated that Mr Kowalski’s contention that Conciliation Officer
Richer had no jurisdiction because MMAL had already rejected his heart attack
claim was not reasonably arguable.
167 Justice Blue rejected Mr Kowalski’s contention that because statements made
by him in affidavits on applications for leave had not been challenged by the
Attorney-General, Justice Blue was bound to accept the position as stated in the
affidavits, observing that Mr Kowalski’s applications were ex parte and, further,
such a submission could not apply to arguments or assertions of law.
Ruling 37 dated 3 April 2024 settled on 5 April 2024
168 Mr Kowalski applied again to Blue J to correct his reasons for decision and
set aside orders in several rulings, including ruling 27. As set out above,
the application addressed in ruling 27 included an application for permission to
apply to the Full Court of the Supreme Court of South Australia to correct, vary or
set aside a judgment in Mitsubishi Motors Australia Ltd v Kowalski69 being the Full
Court decision overturning the grant of permission.
169 Mr Kowalski again contended that Conciliation Officer Richer had no
jurisdiction to make orders on 3 November 1998 because Mr Kowalski’s claim for
a heart attack had been determined by MMAL either on 11 May 1998, 26 or
27 October 1998.
170 Justice Blue stated that insofar as Mr Kowalski contended MMAL had
rejected his heart attack claim on 11 May 1998, Mr Kowalski did not advance any
new argument nor reason to reconsider rulings 24 and 27. Insofar as Mr Kowalski
contended MMAL had rejected his heart attack claim on 26 or 27 October 1998,
with one exception, Mr Kowalski did not advance any new argument nor reason
for Blue J to reconsider his conclusion in ruling 29 that the contention was not
reasonably arguable. The exception was that Mr Kowalski contended that the Full
Court itself found Mr Kowalski’s heart attack claim was determined on 27 October
1998. Justice Blue rejected the argument, observing that the Full Court was merely
reciting the terms of the Heads of Agreement and it manifestly did not find that
MMAL determined Mr Kowalski’s heart attack claim. His Honour concluded
Mr Kowalski’s position was not reasonably arguable.
171 Justice Blue reiterated that the Full Court adopted its own reason for
concluding that Mr Kowalski’s contentions were not reasonably arguable and it
was not reasonably arguable the Full Court would reconsider its decision.
69 [2019] SASCFC 95.
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[2025] SASC 102 Stein J
44
172 Justice Blue rejected Mr Kowalski’s contention that the Full Court ought to
have accepted Blue J’s reasons in his 2014 decision, saying that decision was not
binding on the Full Court and did not decide the ultimate issue.
173 Justice Blue concluded there was no prospect the Full Court would entertain
re-argument on Mr Kowalski’s contention that the Heads of Agreement breached
s 119 as the very decision made by the Full Court was that it did not breach s 119.
174 Justice Blue considered there was no prospect the Full Court would entertain
re-argument on Mr Kowalski’s contention that the Full Court erred in stating the
executed Heads of Agreement was not materially different to earlier versions.
While Mr Kowalski contended the finding was fraudulent, he did not establish any
basis for the contention.
175 Justice Blue said there was no prospect the Full Court would entertain re-
argument in respect of the construction of the Heads of Agreement, rejecting
Mr Kowalski’s contention the Full Court erred in stating that despite the use of the
words “ex gratia”, the sum of $125,308.57 was plainly payable pursuant to a
contractual obligation.
176 Justice Blue said there was no prospect the Full Court would entertain re-
argument on Mr Kowalski’s contention the payment of the ex gratia was irrelevant
as a result of s 114 of the Act.
177 Justice Blue rejected Mr Kowalski’s contention the Full Court failed to
follow the parol evidence rule. The Full Court construed the Heads of Agreement
without reference to evidence about discussions between the parties.
178 Mr Kowalski also referred to correspondence in the first half of the 1990s
with WorkCover or Ministers of the Crown in which WorkCover reviewed and
refused its consent to a compromise reached in 1992. Mr Kowalski contended this
demonstrated WorkCover’s consent to the Heads of Agreement was required in
1998. Justice Blue noted that Mr Kowalski did not advance the contention on the
original application and therefore, regardless of merit, he could not rely on it in an
application to correct the decision. Thus, if it had merit, Mr Kowalski would need
to make a fresh application. However, in any event, Blue J said the Full Court
addressed and answered a question of law as to the applicability of s 119 to the
Heads of Agreement and that question was incapable of being affected by the
earlier correspondence with WorkCover and/or ministers. Justice Blue then
continued as follows in paragraphs 44 and 45 of the ruling:
Mr Kowalski refers to my ruling dated 19 dated 26 May 2021 in which I concluded that
there was no redemption under sections 42 or 42A of Mitsubishi’s liabilities to it.
He contends that he is therefore entitled to apply for a redemption.
Leaving aside the Full Court’s holding about the validity and effect of the Heads of
Agreement in precluding claims, if Mr Kowalski wishes to institute a proceeding seeking
redemption, he would need to make an interlocutory application under section 39 of the
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45
Supreme Court Act for permission to do so. This matter cannot be raised on an application
to correct my ruling 27.
179 As set out above, Mr Kowalski’s present application is based on these
paragraphs.
Test for a grant of permission
180 The test for a grant of permission to bring proceedings was articulated by
Doyle CJ in Kowalski v Mitsubishi Motors Australia Staff Superannuation Fund
Pty Ltd70 as follows:
1. Firstly, does the claim on its face appear to be tenable as a matter of fact or
law or to have a possible chance of success?
2. Having regard to the circumstances, was there reason to think that the
proceedings, if instituted, would give rise to the re-agitation of matters
already decided between the parties, that is, would the proceedings be
vexatious? It is necessary to consider the relationship of the proposed
proceedings with other proceedings that caused the making of the order under
s 39.
3. It is not necessary to embark on a preliminary trial of the whole matter, but
it is not appropriate to accept assertions of fact without enquiry. It is
necessary to consider the relationship between the claim that is sought to be
made and other claims for permission.
Consideration of FDN 950
181 Mr Kowalski’s affidavit in support of his interlocutory application referred
to Blue J’s settled ruling and exhibited extracts from a number of documents
Mr Kowalski asserted supported his interlocutory application.
182 Firstly, he attached a WorkCover case law fact sheet which Mr Kowalski said
stood for the proposition that there is no provision in legislation for workers to
elect to abandon compensation rights. Mr Kowalski therefore asserted that the Full
Court of the Supreme Court of South Australia:
has illegally treated the Parliament of South Australia AND ME with the utmost contempt
and disrespect on the ground that it has perversely, illegally and fraudulently alleged that I
was legally entitled to abandon my workers compensation rights.
183 Mr Kowalski attached extracts of a fact sheet entitled “Both sides of the
fence” dated 27 October 2000, stating that MMAL had illegally failed to comply
with the fact sheet. Mr Kowalski repeated the assertion set out above.
70 [2006] SASC 159 at [25]-[27].
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184 Mr Kowalski attached four pages from Deputy President McCouaig’s
judgment in Kowalski v Mitsubishi Motors Australia Ltd71 which stated at
paragraph 119 that the 1998 “settlement did not effect, and did not purport to
effect, a redemption of [MMAL’s] asserted liabilities in respect of weekly
payments pursuant to the Act or otherwise”.
185 Mr Kowalski repeated the assertion set out above.
186 Mr Kowalski referred to the front page of Blue J’s settled ruling dated
23 January 2014 and stated he informed Blue J that in Josephson v Walker72 the
High Court of Australia found that a worker cannot waive statutory rights.
Mr Kowalski again repeated the assertion set out above.
187 Mr Kowalski attached page 20 of Judge Muecke’s reasons in Kowalski v
Mitsubishi Motors Aust Staff Superannuation Fund Pty Ltd73 again repeating the
assertion set out above.
188 Mr Kowalski also attached an email addressed to a number of recipients,
including the Chief Justice of the High Court of Australia dated 18 January 2022
which Mr Kowalski said clearly proved the Full Court of South Australia had
illegally treated the Parliament of South Australia and Mr Kowalski with “utmost
contempt and disrespect on the ground that it has perversely, illegally and
fraudulently alleged that I was legally entitled to abandon my workers
compensation rights”.
189 During the hearing, Mr Kowalski identified a large number of FDNs which
he requested I consider in addressing the application.74 Many of those FDNs were
described as submissions but in fact consisted of bundles of various emails sent to
Chambers and other recipients together with extracts of a considerable number of
different kinds of documents, from different sources, some of unclear provenance,
marked up with Mr Kowalski’s handwritten notations and/or underlining.
190 I have considered the documents to which Mr Kowalski referred.
Tenable argument
191 I do not set out separately below each and every one of the matters referred
to in the “submissions”. Compendiously, they are arguments which have been
raised and rejected in prior decisions and rulings.
192 During oral submissions, Mr Kowalski made a number of contentions which
I set out below to demonstrate the re-agitation, without basis, of assertions
previously made and rejected as lacking any tenable basis.
71 [2001] SAWCT 93.
72 (1914) 18 CLR 691.
73 [2017] SADC 57.
74 FDNs 516, 517, 518, 952, 953, 954, 955, 956, 957, 958, 959, 961, 962, 963, 964 and 965 and Blue J’s
ruling 37.
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• There was a redemption by MMAL, but MMAL did not comply with its
statutory obligations.
As set out above, Blue J rejected a contention to this effect in a number of his
rulings. It has no prospect of success. There is no basis for Mr Kowalski to
raise the argument again.
• The Full Bench of the Tribunal stated MMAL paid Mr Kowalski an ex gratia
payment of $125,000, but in the Heads of Agreement it had said
compensation under s 42 because the payment was for the loss of future
earning capacity for the injuries.
Mr Kowalski’s various contentions about the reference to “ex gratia” in the
Heads of Agreement were addressed and dismissed by the Full Court and
Blue J dismissed earlier applications on the basis that Mr Kowalski’s
arguments in relation to the “ex gratia” payment were and continue to be
untenable. The argument has no prospect of success. There is no basis for
Mr Kowalski to raise the assertion again.
• On 26 October 1998, the Heads of Agreement was initialled by Mr Walsh
KC, Mr Breugem and Mr Kowalski and then, on 27 October 1998, without
Mr Kowalski’s consent or knowledge, MMAL illegally altered paragraph 2.2
of the heads of agreement and included the words “ex gratia payment”.
As set out above, this contention has previously been rejected. It has no
prospect of success. There is no basis for Mr Kowalski to raise this assertion
again.
• The version of the heads of agreement settled on 26 October 1998 said the
sum was to be paid by MMAL as compensation for permanent disability
impairing future earning capacity arising from the injuries and disabilities
referred to.
As set out above, the contention about the various iterations of the heads of
agreement has previously been rejected. It has no prospect of success. There
is no basis for Mr Kowalski to raise the assertion again.
• Mr Kowalski’s wife was only a bystander, not a party to the mediation.
Mr Kowalski’s wife signed the Heads of Agreement. There is no basis for
the assertion. It makes no difference to any of the arguments Mr Kowalski
seeks to raise again which have no prospects of success.
• On 27 October 1998, MMAL forced Mr Kowalski’s wife to become a party
to the Heads of Agreement and deceived him into signing the Heads of
Agreement without fully explaining that MMAL had removed reference to
the fact he was accepting compensation and renamed it to an ex gratia
payment. Accordingly, that was an illegal attempt to avoid MMAL’s
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statutory and legal obligations under the Act. The Heads of Agreement were
therefore void.
As set out above, the contention that MMAL engaged in fraud or other
inappropriate conduct in relation to the execution of the Heads of Agreement,
including the change in wording of the executed Heads of Agreement and the
assertion the Heads of Agreement was void, has previously been rejected.
There is no basis for Mr Kowalski to raise these assertions again. Adding a
reference to Mr Kowalski’s wife makes no difference to that position.
The argument has no prospect of success.
• The decision of the Full Bench of the Tribunal in Kowalski v Mitsubishi
Motors Australia Ltd75 therefore had to be corrected and the orders set aside.
Mr Kowalski’s contentions leading to the assertion the decision must be set
aside have previously been rejected. The arguments have no prospect of
success. There remains no basis for Mr Kowalski to seek the setting aside of
the decision.
• Under s 114 of the Act, MMAL had no legal right to pay Mr Kowalski an
ex gratia payment. If it did, it did not affect any compensation he was entitled
to receive.
As set out above, this contention has previously been rejected. It has no
prospect of success. There is no basis for Mr Kowalski to raise the assertion
again.
• Mr Kowalski attached to his documents a WorkCover claim detail report
which recorded alongside a reference to Mr Kowalski’s heart attack claim
the notation “rejected”. Mr Kowalski marked up the document with a
handwritten statement “Note: Blue J falsely alleged that MMAL did not
reject [his] heart attack claim on 11 May 1998”.
The assertion that there was evidence that MMAL in fact rejected
Mr Kowalski’s heart attack claim was conclusively addressed and rejected
by Blue J as set out above. Without reiterating all of the reasoning, in
essence, Blue J concluded there was no evidence that MMAL had in fact
rejected the claim in May 1998 but further, and in any event, MMAL
thereafter through its conduct continued to address the heart attack claim in
a way which was inconsistent with MMAL having rejected that claim in May
1998.
There is no tenable basis for Mr Kowalski’s contention and makes no
difference to any of the arguments Mr Kowalski seeks to raise again which
75 [2002] SAWCT 76.
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have no prospects of success. There is no basis for Mr Kowalski to raise the
assertion again.
193 In the first Supreme Court vexatious litigant proceedings, as set out above,
Bleby J made the following observations:
The defendant subsequently and in these proceedings sought to use that finding to
demonstrate that there was an unfulfilled liability on the part of the plaintiff to redeem the
plaintiff’s liability to make weekly payments of compensation to the defendant.
The defendant’s argument is misconceived. It does not follow from the fact that there has
been no redemption under s 42 that there remains a liability on the part of the plaintiff to
redeem. The heads of agreement recorded the plaintiff’s denial of any liability to the
defendant for weekly payments and agreed, for consideration expressed in the agreement,
that the defendant’s claim for weekly payments should be dismissed, as it was.
The defendant’s subsequent claims for redemption have been dismissed … the dismissal
was entirely justified.
194 Justice Blue has addressed a range of arguments which have been made
previously by Mr Kowalski with the aim of obtaining permission for him to bring
proceedings seeking redemption. For the clear, comprehensive and compelling
reasons set out in the prior decisions to which I have referred above, including
Blue J’s rulings 16, 19, 23, 24, 26, 27 and 29, there is no tenable basis for the
proceedings Mr Kowalski seeks to institute in the SAET for redemptions pursuant
to ss 42 or 42A and any such proceedings would have no prospects of success.
Without comprehensively reiterating the prior conclusions, the key points are that:
• Neither ss 42 nor 42A of the Act, as in force in 1998, provided a right to
redemption.
• MMAL did not make any assessment under the provisions of the Act neither
before, nor at the time of, the Heads of Agreement being executed.
• The Heads of Agreement did not constitute a redemption.
• The absence of a redemption did not leave room for a liability to redeem.
• Mr Kowalski had not established that MMAL in fact rejected the heart attack
claim either in May or later in 1998. In any event, MMAL’s conduct after
May 1998 was consistent only with it continuing to address the heart attack
claim.
• The Heads of Agreement did not constitute a rejection of the heart attack
claim.
• MMAL did not engage in the alleged improper conduct.
• The heart attack claim proceedings were dismissed in November 1998 by
consent.
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• Conciliation Officer Richer had jurisdiction.
• The Heads of Agreement was not invalid.
• The Heads of Agreement preclude Mr Kowalski from prosecuting any
proceedings arising out of the heart attack claim (as well as the other matters
addressed in the Heads of Agreement).
195 Accordingly, any proceedings to seek redemption would not have any
prospect of success.
196 Mr Kowalski fundamentally misstates [45] and [46] of Blue J’s ruling 37.
It is manifestly not the case that statements made by Blue J in [45] and [46] are
findings of fact. In the Full Court, Nicholson J observed that Mr Kowalski has
frequently taken statements made and sought to elevate them to findings of fact.
Mr Kowalski has done so again. In the paragraphs in question, Blue J was doing
no more than observing that it is not possible for a judicial officer to reconsider a
ruling based on a matter which was not the subject of that ruling. Plainly, that is
because there would be nothing to correct. In such a case, the only avenue
available to an applicant as a matter of procedure would be to bring a new
application for permission. Justice Blue was not finding as a fact that there was a
basis to bring a permission application nor making any comment about the
potential success of any such application.
197 Further, Mr Kowalski’s application conveniently ignores the critical
introduction to paragraph 46, being the phrase “[l]eaving aside the Full Court’s
holding about the validity and effect of the Heads of Agreement in precluding
claims”. By this phrase, Blue J was acknowledging that the Full Court’s decision
concerning the Heads of Agreement would preclude any such claim. His Honour
was doing no more than pointing out, procedurally, why he could not address the
argument on an application to reconsider his prior ruling.
198 For the reasons I have set out above, there is no tenable basis for the
proceedings Mr Kowalski seeks permission to bring, nor for any of the arguments
he uses to justify the proposed proceedings. That conclusion itself is sufficient to
refuse the application for permission.
Re-agitation of matters already decided
199 Further, it is abundantly clear from the history of the proceedings and rulings,
which I have set out above, that Mr Kowalski’s current application seeks to re-
agitate issues which have been conclusively determined against him on repeated
occasions. This too, of itself, warrants refusal of the permission application.
200 Review of the decisions and rulings, to which I have referred above, clearly
demonstrates that Mr Kowalski has consistently and persistently sought to revisit
prior decisions. He has done so by a number of means, including by seeking to re-
frame the same or similar issues, periodically adding references to authorities or
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assertions of purported new facts said to support his position and requesting the
Court to revisit prior decisions.
201 It is now more than 26 years since the entry by Mr Kowalski into the Heads
of Agreement. The Heads of Agreement have been determined to be binding on
Mr Kowalski in multiple decisions which have addressed the contentions
Mr Kowalski has raised over time as each of his arguments have been rejected.
Mr Kowalski has exhausted all avenues to attack the Heads of Agreement and to
resuscitate past claims or bring new ones. Justice Bleby observed that
Mr Kowalski was unwilling to accept that his arguments have been found,
on numerous occasions, to be misguided and wrong. Regardless, he pursued them
relentlessly and the manner in which he conducted his case suggested he had every
intention of continuing to institute such proceedings until someone accepted the
validity of what were hopeless claims. Twenty years later, I repeat those
observations. Through the last two decades, Mr Kowalski has failed to accept that
he has exhausted all opportunities to call into question the Heads of Agreement,
to raise new arguments to allow him to set aside prior decisions, and to commence
proceedings to re-litigate compensation for the injuries which are the subject of the
Heads of Agreement.
202 Even if there were any merit in any of the arguments, which I emphasise there
is not, there would be no reason in the interests of justice to allow Mr Kowalski to
commence further proceedings in the circumstances I have chronicled above.
The doctrine of finality precludes it. Finality demands the refusal of permission.
203 There are good grounds on which to infer that MMAL and others have
incurred significant costs and deployed significant resources in addressing
unmeritorious actions and applications since 1998. Since being declared a
vexatious litigant, Mr Kowalski’s repeated, unmeritorious applications have
resulted in an unreasonable and disproportionate expenditure of publicly funded
resources of the Court, including the time spent by judicial officers and other staff
of the Courts Administration Authority, to the detriment of other litigants whose
matters await determination. The Court must, of course, always take great care to
ensure that a litigant declared vexatious is not precluded from seeking permission
to agitate proper, meritorious claims. However, it is inconsistent with the purpose
of a vexatious litigant declaration for permission applications to be used as a
vehicle to require the Court to address over and over the same or differently
articulated but fundamentally the same or similar arguments.
Delay
204 As set out above, the Full Court referred to delay being a weighty reason to
refuse permission. The same reason applies now with even greater force.
The application for permission is now made approximately two and a half decades
after the entry into the Heads of Agreement and the consent determination and two
decades after Bleby J’s judgment.
205 The application is therefore dismissed.
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Abuse of process
206 Taking into account the history of Mr Kowalski’s litigation over the time
since the entry into the Heads of Agreement in 1998 and all of the matters to which
I have referred above, interlocutory application FDN 950 constituted an abuse of
process which would have warranted striking it out without the need for the Court
to address it.
FDN 366
207 Mr Kowalski maintained that Blue J never dealt with FDN 366,
an interlocutory application dated 8 January 2016 in which Mr Kowalski sought
permission to file an application in the Tribunal pursuant to s 88H of the Act to set
aside the judgment of the Full Bench dated 19 August 2002 in Kowalski v
Mitsubishi Motors Australia Ltd76 dismissing an appeal by Mr Kowalski against a
judgment of Deputy President McCouaig.
208 Mr Kowalski asked for that application to be addressed.
209 I have located ruling 3 dated Thursday 20 April 2017, settled on 24 April
2017, in which Blue J addressed Mr Kowalski’s interlocutory application
FDN 366. In the ruling, Blue J referred to an affidavit in support of the application
for permission in which Mr Kowalski deposed to recently discovering a copy of a
facsimile from the mediator dated 26 October 1998 containing the 26 October
version of the Heads of Agreement. Mr Kowalski relied upon the reference to the
words “ex gratia” and the deletion of the reference to income maintenance and
medical expenses in clause 1 of the 27 October version of the Heads of Agreement.
Mr Kowalski contended the Heads of Agreement were executed non est factum
and that if the 26 October version had been before Deputy President McCouaig
and the Full Bench, they might have reached a different conclusion whether the
Heads of Agreement was in breach of s 119 of the Act.
210 In ruling 3, in 2017 Blue J was prepared in principle to give Mr Kowalski
permission to apply to set aside the decision of Deputy President McCouaig,
the Full Bench and the decision of Deputy President McCouaig which struck out
Mr Kowalski’s application to expedite determination of his heart attack claim in
2003. Mr Kowalski was directed that he would need to prepare a draft application
and supporting affidavit addressing particular matters. Justice Blue adjourned the
hearing of the application to enable Mr Kowalski to attend to those matters.
211 Mr Kowalski submitted that Blue J never finally determined FDN 366
because, on 20 April 2017, Blue J made an order that further consideration of the
FDN was adjourned to 1 May 2017 at 10:30 am and then, on 1 May 2017,
the hearing was cancelled. I have not been able to ascertain whether Mr Kowalski
in fact produced to the Court a draft application and affidavit in accordance with
Blue J’s reasons. However, from the orders on the file, it appears likely that
76 [2002] SAWCT 76.
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Mr Kowalski never filed the material which Blue J required to hear and determine
the application.
212 Whether or not Mr Kowalski did so, and in any event, the permission
application has been overtaken by subsequent decisions. The Full Court decision
in 201977 conclusively establishes why a permission application, in the terms which
Blue J had contemplated in 2017, would now lack any utility at all.
213 From my review of the file, it appears that Blue J only gave an in principle
indication, but never formally granted permission and accordingly nothing further
is required to address the issue. However, out of an abundance of caution and to
the extent necessary to ensure the question is clearly resolved, I revoke any
permission which may have been given on the basis that subsequent events have
rendered any such permission entirely futile.
214 Further, to the extent necessary to finalise that application, I dismiss the
application commenced by FDN 366.
Conclusions and orders
215 I dismiss application FDN 950 for permission to institute proceedings in the
SAET.
216 To the extent necessary, I revoke the in principle permission granted by
Blue J in ruling 3 addressing FDN 366 and I dismiss FDN 366.
77 Mitsubishi Motors Australia Ltd v Kowalski [2019] SASCFC 95.
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