A worker who suffered a severe mental disorder, after being bullied and accused of theft and a violent act, has been granted leave to sue two non-profit organisations for damages.
In a 151-page decision, the Victorian County Court found the worker's quality of life had been significantly diminished and her earning capacity completely destroyed as a result of the incidents.
In 2004, the worker, then employed by Make-A-Wish Foundation, suffered severe anxiety and depression after a new CEO set unrealistic targets for her, bullied and intimidated her and humiliated her in front of colleagues about, for example, an untidy cupboard.
She subsequently attempted suicide, and then claimed workers' compensation for a psychological injury, which was accepted.
In January 2006, the worker began working for the Starlight Foundation of Australia Ltd after Make-A-Wish Foundation's insurer applied for a job on her behalf.
The Court heard her symptoms were under control at this time, but about six months later a Make-A-Wish representative sent an email to Starlight containing unfounded "scandalous and defamatory" comments about the worker overstepping boundaries, stealing towels and throwing a phone book at a colleague.
The allegations triggered "toxic" office gossip at Starlight, which exacerbated the worker's depression, and she eventually left her employment after she felt she was denied an opportunity to be heard regarding the claims.
She again contemplated suicide before seeking professional help, but has been unable to work since.
She sued Make-A-Wish and Starlight for damages, arguing her work with the two employers caused and aggravated her psychological injury.
She also argued that her return to work at Starlight "should probably not have occurred" as she was "probably unfit for work".
Make-A-Wish argued that the worker's injury couldn't be considered "severe", and that it wasn't responsible for any aggravation of it.
Starlight argued that any aggravation the worker suffered was no more than a temporary "spike", and that her current condition was "no worse" than it was before she started working for Starlight.
But Judge Jeanette Morrish found the worker suffered "a mental or behavioural disorder with symptoms of such severity that her quality of life has been significantly diminished and her level of suffering is ever-present and utterly disabling".
"It was the bullying, intimidation and harassment at Make-A-Wish that caused the [worker's] initial depression and anxiety," she said.
Starlight was not responsible for the initial trauma, but "the further acts of bullying, harassment and intimidation by Starlight employees against the [worker], contributed to a severe deterioration in [her] condition, ultimately resulting in a total destruction of her earning capacity".
Prior to working for Starlight she had not fully recovered, but had "some prospect of returning to meaningful work and of making a good recovery, provided she could be kept free from further acts of bullying, harassment or intimidation", Judge Morrish said.
She found the worker's "prospects for significant recovery are bleak", and granted her leave to sue the employers for pain and suffering and pecuniary loss damages.
