New Directions in Compensability for Psychiatric Injuries: Tame v New South Wales; Annetts v Australian Stations Pty Ltd. [2002] HCA 35; (2002) 191 ALR 449

The landmark judgments of the High Court in Tame v New South Wales; Annetts v Australian Stations Pty Ltd appear to be on the brink of being overtaken by legislative attempts to reform tort law by reducing the capacity for major calls upon insurance funds. This article reviews the common law and policy ramifications of the High Court decisions, in so doing examining the latest policy-maker and legislative responses to the insurance crisis in relation to “nervous shock” litigation requirements for compensability. It calls for a moratorium in legislative and policy-maker responses to the High Court decisions to enable an informed evaluation of the pressures placed upon insurers by what is likely to be only a moderate increase in the incidence of successful actions by plaintiffs in psychiatric injury litigation.