Thiess Properties Pty Ltd v Montague Page [1980] FCA 124
Federal Court of Australia
Full text
Select any passage to save a personal note with optional tags.
CATCHWORDS
Negligence - damages for personal injury - appeal against
primary Judge's assessment - application of Cullen v.
Trappeli (1980) 54 A.L.J.R. 295 - claim that no evidence
of impairment of earning capacity - deficiency of evidence
to quantify wage loss said to preclude recovery - reliance
on Allan v. Loadsman (1975) 2 N.S.W.L.R. 789 - Yammine v.
Kalwy (1979) 2 N.S.W.L.R. 151 referred to - no other
question of principle involved ~- review, in the light of
Cullen v. Trapoell, assessment of damages made by trial
Judge.
THIESS PROPERTIES PTY. LIMITED v. MONTAGUE PAGE
No. NT G 32 of 1979
CORAM: FORSTER, McGREGOR, SHEPPARD JJ.
DATE: 2 September, 1980
DARWIN
IN THE FEDERAL COURT OF AUSTRALIA
THE NORTHERN TERRITORY
OF AUSTRALIA REGISTRY
»)
) No. NTG 32 of 1979
GENERAL DIVISION )
ON APPEAL FROM THE SUPREME COURT OF
THE NORTHERN TERRITORY OF AUSTRALIA
BETWEEN : THIESS PROPERTIES PTY.
LIMITED
Appellant
AND : MONTAGUE PAGE
Respondent
CORAM : Forster, McGregor and Sheppard JJ.
2 September, 1980.
FORSTER J.
In this matter I have had the advantage of
reading the Reasons for Judgment of McGregor J. and
Sheppard J. I find myself in agreement with Sheppard J.
and would dismiss the appeal with costs and dismiss the
cross-appeal with no order as to its costs.
There is, as it seems to me, a tendency to
give the calculations which a judge must make in order
to arrive at an assessment of damages a degree of
precision and prominence which no-one engaged in
assessing damages would claim. So many factors are
unknown and uncertain and whereas some may be estimated
with some precision others are not capable of any sort
of precise assessment. In the present case I am
inclined to think that his Honour's assessment of
damages to be attributed to pain and suffering and
loss of amenities of life was somewhat low and that
his assessment of future economic loss may have been
somewhat high, bearing in mind the respondent's residual
capacity and the effect of Cullen v. Trappell (1980) 54
A.L.J.R. 295. Taking all aspects of damages together,
I am quite unable to find that his Honour's assessment
as a whole was manifestly excessive or indeed excessive
at all.
I adopt with very great respect the words of
Barwick C.J. in Wilson v. Peisley (1976) 50 A.L.J.R.
207 at 209 -
"The setting aside of an award of
damages in a trial which has not been
irregular or unfair, and where there
is neither challenge to the findings
of fact made by the trial judge nor
any demonstrated misconception of the
evidence should, in my opinion, be a
most unusual event, to occur only in
circumstances where the disproportion
between injury and award of damages is
so great as to make the award quite
unreasonable, indeed outrageous, in the
circumstances, whether by being too
great or too small, and therefore of
itself a demonstration of error present
though otherwise undisclosed. The less
ponderable the elements of the damages
under consideration, the less likely will
there be a case for setting aside an
avard by a judge who has not overlooked
any significant fact at the end of a trial
not blemished by error or irregularity."
If his Honour made an error based upon the
residual capacity of the respondent, and I am not
satisfied that he did, it was an error of degree about
which there may easily be two opposite opinions. It
is hardly a manifest error. Even if it was such an error
it has, in my view, to be balanced by an under-assessment
with respect to pain, suffering and loss of amenities of
life.
IN THE FEDERAL COURT OF AUSTRALIA
THE NORTHERN TERRITORY No. NIG 32 of 1979
OF AUSTRALIA REGISTRY
eee
GENERAL DIVISION
On appeal from the decision of
His Honour Mr. Justice Muirhead
in the Supreme Court of the
Northern Territory of Australia
THIESS PROPERTIES PTY. LTD.
Appellant
MONTAGUE PAGE
Respondent
McGREGOR J. 2 September 1980
THIESS PROPERTIES PTY. LIMITED for convenience to be referred
to hereafter as the defendant, appeals against a decision
handed down on the 7 December 1979 in respect of a hearing
which had occupied some four days commencing on 7 November 1979.
The action was one in which MONTAGUE PAGE (Plaintiff
had claimed damages for personal injury suffered by him due to
the negligence of his employer, the Defendant, in respect of
certain events occurring on the 6 December 1976.
It is not necessary to refer to those facts since
a finding by the learned trial Judge in favour of the plaintiff
on that issue is not challenged in this appeal.
The plaintiff recovered damages in the sum of
$87,309.00 made up as follows:-
2.
Pain and suffering:and loss of
amenities (including allowance for
costs of future operative treatment) $15,000.00
Loss of earning capacity to date
of trial $27,000.00
Less compensation
payments received
(Exhibit P11) 14,691.00 12,309.00
Impairment of future earning
capacity 60,000.00
$37 , 309.00
Defendant has appealed on the ground that the
amount of the damages is manifestly excessive.
Initially the defendant sought to challenge the
judgmentcontending there was no evidence to support a finding
that the plaintiff would, if there had been no accident, have
remained in the Northern Territory for three years after the
date of ingury; and that therefore the component of damages of
$27,000.00 referred to above could not be justified. In
addition, in respect of the same amount and pursuant to an
amendment of the Notice of Appeal made immediately before
argument was entered upon, it was sought to argue that there
was no "relevant" evidence of the wage that could have been
earned in that period by the plaintiff after he was injured;
and therefore, so the argument ran, a further reason existed
as to why the learned trial Judge should not have found the
sum of $27,000.00 in respect of the component of pre-trial loss.
3.
Appellant relied on Allan v. Loadsman (1975) 2 N.S.W.L.R. 789
for the submission that if a party seeks to claim an economic
loss by reference to a differential, i.e. a contrast of pre-
injury earnings with post accident residual earning ability,
the party was bound to prove the differential; failing which
he could recover only a nominal sum for that aspect of his
claim. Appellant argued that respondent, though still with
a residual capacity, did not produce evidence as to what he
could earn before the trial (but after the injury). He
submitted that even though there was evidence of pre-injury
earnings, there was no evidence of a figure which quantified
or enabled the trial judge to quantify earnings which may have
been earned after the injury, i.e. on which the trial judge
could come to a finding on a differential. Inasmuch as
Allan v. Loadsman did give support, or was thought to have
given support to such a proposition, the proposition or
misunderstanding has been negated or corrected or not
followed in such cases as Baird v. Robert 1977 2 N.S.W.L.R. 389,
397 et seq., Kealley v. Jones 1979 1N.S.W.L.R. 723 at 7353-734
and Yammine v. Kalwy 1979 2 N.S.W.L.R. 151 at 155.
Insofar as there was a failure to present evidence which
could supply material to be used to quantify a loss, the
respondent, in my opinion, is not thereby disentitled from
recovery; or restricted to a nominal award.
It will be seen that these two grounds sought to
question the sum of $27,000.00 mentioned.
4,
Defendant also sought to challenge the amount awarded for
future economic loss. A further amendment, during the course
of the trial, was allowed to the defendant at the request of
his Counsel. This amendment, in effect, is designed to
attack the total quantum of the judgment as being unjustifiably
large according to applicable principles.
The actual amendment sought was framed in the words or
to the following effect -
"The amount awarded for past and future
economic loss is umreasonably excessive."
It will assist in a consideration of the amount
awarded as damages to set out the plaintiff's history up
to the date of the accident.
The plaintiff was born on the 26 November 1934.
He attended school at Port Lincoln reaching the standard
of Grade Vil. After that he worked on farms doing general.
farm labourer's work including fruit picking. For a period
of years he worked as a storeman and packer and conducted a
mixed business in Port Adelaide.
In 1974 he left this business, travelled to
Donnybrook in Western Australia and there worked fruit
picking for some months. Later he was employed by
Exmouth Shire Council installing concrete footpaths.
Other work he did with the Council involved driving a
tractor, carting water and operating heavy machinery in
levelling grounds. His average earnings with the Council
were approximately $160 per week gross. Also, in Perth,
he worked as a builder's labourer. For some time in Western
Australia he worked for the Forestry Department planting seedling
5.
In July 1976 he came to Darwin. His first
job was with the Defendant doing general labouring work
including the use of a jack hammer, carting timber, steel
and assisting with concrete work. In 1976 his average
gross wage was approximately $200 per week.
He was engaged on the reconstruction or repair
of a house which had been damaged in the cyclone when he
fell from a balcony receiving the injuries the subject
of this claim.
Findings by his Honour as to the injuries suffered
by plaintiff on 6 December 1976 were not the subject of
challenge here. These included a severe comminuted fracture
of the ulna bone in his left arm with deformity and fracture
of the head of the radius there. In the right forearm there
was a comminuted fracture of the lower part of the radius
close to the wrist.
The plaintiff was taken to Darwin Hospital.
He was operated on on the same day and there was carried out
a closed manipulation of the fracture of the right radius
and the fracture of the left ulna. The right arm below
the elbow was enclosed in plaster and, on the left side,
he was given what is described as a back slab. He remained
in Hospital and his limbs were repeatedly x-rayed so that
the position of the fractures could be observed. On the
21 December 1976 the left arm was the subject of a further
procedure viz. open reduction and internal fixation by
Rush pin, in which operation the head of the left radius
was excised. He then underwent physiotherapy and supportive
treatment. He was discharged from hospital on the
19 January 1977. His Honour noted there was one admission
to hospital for a further day in April 1977 when a minor
procedure was carried out.
His Honour made findings about the plaintiff's
disabilities which also were not challenged on appeal.
He said -
7.
"It was soon obvious there would
be serious disabilities.
Movement of the left elbow joint
is now severely restricted as is
movement of the lower right arm.
The disabilities apparent in
June 1977 are set out in
Mr. Mahajani's report (ex. P.2)
and the surgeon then predicted
pain and arthritis would be
involved. The elbow then had
and still has very limited range
of movement. Upon demonstration
in court he had little flexion
past the right angle and
extension was very limited. As
a result of the shattering of
the bone the plaintiff's left
arm remains in a permanently
flexed position and he has some
limitation of upward movement of
the shoulder. The disability is
gross, and the plaintiff is
unable to do many things with
that arm. Mr. Mahajani predicts
pain and progressive arthritis
which he believes may necessitate
operative treatment in the future.
He mentioned either arthroplasty
or arthrodesis.
8.
Mr. Gray, the orthopaedic
specialist called by the
defendant made a thorough
examination of the plaintiff
on 14 February, 1978 and again
on 2 November, 1979. He found
some limitation of abduction
in the left shoulder and some
creaking, left elbow movements
limited from 45° to 90°
associated with pain at extremes
of movement. In the right wrist
there was loss of about one
half of flexion and extension,
supination was limited by
about 25% and pronation by
about 50%. Movement of the
left elbow was more limited upon
the second consultation than
upon the first. Mr. Gray also
believes arthritis is already
established in both the left
elbow joint and the right
wrist. He does not envisage
dramatic deterioration but he
expressed the view that if
pain becomes a predominant
9.
feature, fusion of the right
wrist will eliminate pain and
fusion of the left elbow joint
will result in a more satisfactory
(but fixed) position of the left
arm being obtained. This could
increase the value of the arm
to the plaintiff."
His Honour expressed his conclusion as follows:-
"I find on the probabilities that
there will be some, but not gross,
arthritic development in the
joints adjacent to the fractures,
put I do not find that the present
very great limitation upon the
plaintiff's working capacity
will be materially increased,
If arthrodesis of the left elbow
is carried out, the arm's utility
may in fact be slightly increased.
For a man who has depended upon
his physical fitness to earn
his livelihood, the consequences
of this fall were drastic.
He is right handed, which is
fortunate, but as there is some
lack of strength and stiffness
and susceptibility to pain in
the right wrist, it cannot be
used to compensate for the more
limiting injury to the left arm.
10.
I agree that the plaintiff has
a capacity for light work, but
it would have to be work in a
very special field where hand
or arm agility is not required.
In view of his age I doubt
whether he could be expected
to work in the transport
industry and I have accepted
the evidence of the witness
Dennis Elliott who has described
what is required of men working
in courier services and the
like, Full time work in this
capacity would be beyond the
plaintiff; nor could one
confidently predict his capacity
to drive a cab, lift luggage
and the like.
The plaintiff worked in his
own business as a grocer for
some years. He clearly retains
an interest in this field of
work, Having viewed the films
of the plaintiff, introduced into
evidence, I am satisfied that
he is an active individual and
I believe he will probably find
a niche. I do not regard him
11.
as totally incapacilated bul
his capacity to earn comparatively
high wages in heavy and variable
work fields has been destroyed.
I have endeavoured to make
allowance for the pain and
discomfort (which continues and
will continue due to arthritis),
for the loss of amenities, the
loss of enjoyment of life and
the loss of the plaintiff's
ability to fully exploit his
interests including past
recreational interests such
as surfing and dancing. I take
into account the apprehension the
plaintiff experiences concerning
stumbling and I do not overlook
that domestically he cares not
only for himself, but for his
son who is mentally retarded.
He is not one who can sit back
in the home whilst others do
the domestic chores.....The
plaintiff is not in my view a lazy
man. I believe he maintains a
reasonable morale and as I have
said, I do not regard him as
either unemployable or totally
incapacitated for work."
12.
IL is necessary to say something about the first two
grounds of appeal. In my view, there was some evidence and
material from which an inference could be drawn supporting the
finding that the plaintiff would or might remain in the Northern
Territory for a period of some three years after the date of the
injury; in fact, even though an injured man unable to work, he
remained here until, on the uncontradicted evidence, soI am
informed, he left the Territory in November 1978. It is
reasonable inference that a person in such a condition remaining
so long would have had even more motive or reason to have continued
his stay for an even longer time and up to three years had he the
incentive of constant and highly remunerative work within his
capability.
Further, having regard to the uncontradicted evidence
of what the plaintiff did earn up to and including the date of
his injury, the similarly uncontradicted evidence of Mr. Gillian
as to how the base rate and average overtime of the person
described as "Mr. Average", being a typical builder's labourer
could have earned up to and including the end of 1979, there
is ample evidence from which his Honour might have concluded that
plaintiff might have continued to earn a net wage of approximately
$180 per week or $9,000.00 per year.
The learned trial Judge who saw the plaintiff in the
witness box and heard in detail the account of his work history,
stated that he was not a lazy man; that he found him to be a
straight forward person. He was entitled to assess damages on
the basis that the plaintiff would have continued in the Territory
for the period mentioned. In my opinion the amount in the judgment
attributed to the pre-trial loss of earning capacity was
justifiable,
13.
I turn now to the sum awarded for impairment
of future earning capacity, viz. $60,000, His Honour's
findings which bear more particularly on this aspect of the
decision,have been quoted.
His Honour made a finding to which earlier I
referred but which can be repeated -
"The plaintiff is not in my
view a lazy man. I believe
he maintains a reasonable morale
and as I have said, I do not
regard him as either
unemployable or totally
incapacitated for work."
Later he said :- (427)
"As to the future, the plaintiff
being a person who has worked
in many fields in many plaszes
it is not practicable to assess
general damages for loss of
future earning capacity with
any degree of precision. It
has been a substantial, but
not a total loss, and the plaintiff's
age does not assist him. Save for
his accident injuries, the plaintiff,
a slightly built man, appears in
good condition. One should assume
in my view that he would have
continued active work in some
employment requiring bodily
fitness for twenty years or
14,
thereabouts, but not in the
heavier type industries where
high wage rates reflect to some
extent the effort required, I
have evidence as to wage rates
for persons working in big
stores in Darwin and as to
employees working in the lighter
transport industry in delivery
work. These do not help me
greatly as it is doubtful whether
the plaintiff will ever work in
those fields. In this situation
it seems to me that the assessment
of general damages for the
plaintiff's future loss of
earning capacity must be a
Matter of judgment. In looking
to the future I examine damages
for loss of earning capacity
without regard for liability
to tax thereon."
Having regard to the decision in Cull@™ v. Trappell
(H.C. 1 May 1980) and in particular to the judgment of Gibbs J,
with whom Stephen, Mason and Wilson Jd agreed, I consider that
any lump sum awarded for future loss of earning capacity should
take into account the "notional" tax which would be derived from
investment of that sum.
15.
If Iwas to follow the course adopted by the learned
trial Judge, it may be that the sum he found to the extent
that it was arrived at without regard to income tax, was
an underprovision.
However, his Honour's judgment recognizes that
for the rest of his working life "twenty years or thereabouts"
che plaintiff would not always have continued -
",...ein the heavier type
industries where high wages
reflect to some extent the
effort required."
There were necessarily factors difficult of assessment in
the task with which the learned trial Judge has grappled,
viz, the length of time the plaintiff would have stayed
in the Northern Territory, where there is reason to infer
wages of persons in the building trade were higher than
elsewhere; the industry itself which is notoriously fluctuant,
and its condition in South Australia to which plaintiff might
have been expected to return. There was no evidence upon
the last mentioned matter.
The difficulty which a Court of Appeal has when
considering an award of damages where it could be said
that it is made up from elements which are to some extent
imponderable or "less ponderable" have been noticed in
Wilson v. Peasley (1976) 50 A.L.J.R. 206 at 209. Nevertheless
the majority judgment in Warren v. Coombs 23 A.L.R. 405
Gibbs ACJ, Jacobs and Murphy JJ indicates some of the
circumstances at least when an appeal court should interfere
with thedecisio of a judge at first instance.
16.
Their Honours said(P. 423) :-
" .,....we can see no justification
for holding that an appellate Court
which after having carefully
considered the judgment of the
trial Judge has decided that
he was wrong in drawing inferences
from established facts should
nevertheless uphold his erroneous
decision."
At the date of the judgment (7 December 1979) the plaintiff
born on 26 November 1934, was aged 45 years. Assuming he
had a working life allowing for vicissitudes of about twenty
years as the trial Judge found, it is possible to test the
value of $60,000. It would seem that to allow twenty years
anyway was to form a generous estimate of the plaintiff's
likely continuing capacity in the industry. However, in
evaluating the appropriateness of the sum awarded for the
loss suffered it has been usual to use the the 6% tables.
One way of taking account of the incidence of income tax
(as Cullen's case cited above indicates should be done) is
to use 5% tables, thus increasing the size of the capital
sum. This approach adopted by the learned trial Judge,
Sheppard J. in Yammine v. Kalwy
was upheld by the Court of Appeal of New South Wales
at 1979 2N.S.W.LeR. 151 at 156 and 159.
It appears that $60,000 invested at 5% would
produce in the order of $90.00 per week for the period mentioned
assuming drawn upon week by week and with the total sum exhausted
at the end of the period.
17.
These propositions do not intend to overlook
the fact that the plaintiff may prefer to invest this amount
or some of it in a business.
However, it might be used, in my opinion, it
was manifestly excessive for the plaintiff with his injuries,
age and remaining capabilities. Since it is my view that
the remaining components of the judgment separately considered
represented fair compensation individually, it follows that,
in my view, the appeal should be upheld on the ground that it
was such an unreasonable provision as to invite interference.
I consider that the case is one in which I
ought for myself find the appropriate figure. On a review
of all the evidence with due regard to the arguments of Counsel,
and precision being impossible, I find this to be $50,000.00.
The appellant has, therefore, succeeded on a
ground not taken in the Notice of Appeal and only added by
amendment after the difficulties facing his client with the
Notice of Appeal as filed were realised. The defendant has
failed to make out the grounds which were the subject of the
appeal initially. In the circumstances my view is that each
side should pay its own costs of the appeal.
1s.
The Order I would propose is that -
1. Appeal be upheld.
2. Amount of the judgment is varied
by reducing it to $77,309.00
3. Each party to pay its own costs
of the appeal.
Per Y thet this and tho wy
fF --G"Z% Pages are a trua cay fr
ssors for Judsment hareia cf bis. oe -ur
rr. Juceca MeGregor.
j
i
|
Vo hea~
| ihe u A Le, dade
Assoct
|
el
~
ate
er.
IN THE FEDERAL COURT OF AUSTRALIA
NORTHERN TERRITORY DISTRICT REGISTRY ) No. NT G 32 of 1979
GENERAL DIVISION
On appeal from the Supreme Court of
the Northern Territory of Australia
THIESS PROPERTIES PTY. LIMITED
Appellant
MONTAGUE PAGE
Respondent
CORAM: Forster, McGregor and Sheppard JJ.
SHEPPARD J. 2 September 1980
REASONS FOR JUDGMENT
The appellant (the defendant in the action) appeals
against the gudgment of Muirhead J. by which the
respondent (the plaintiff in the action) was awarded
487,309 for damages for personal injuries. The appellant
was the respondent's employer. The respondent alleged
that he was injured in the course of his employment as the
result of the appellant's negligence. No appeal is
brought against the finding of negligence. The appeal
relates only to tne amount of damages found by his Honour.
The amount of the judgment was made up as follows:
Damages for loss of earning capacity to
date of judgment (7 December 1979 $27,000
Less: Worker's compensation payments 14,691 12,309
Damages for impairment of future
earning capacity 60,000
Damages for pain and suffering and loss
of amenities of life (including allowance
for cost of future operative treatment) 15,000
$87 , 309
The appellant challenges the amounts awarded for loss
of earning capacity to date of judgment and impairment of
future earning capacity.
Originally the grounds of appeal did not include a
ground that the amount of damages was in all the circun-
stances excessive. The appeal was based upon the failure
of the respondent to lead evidence as to what he might be
expected to earn in vocations which are within his capacity
and ability, it being agreed that he has not suffered a
total destruction of his earning capacity but that he is
fit for some restricted forms of work. The appellant
relied upon the decision of the Court of Appeal of New
South Wales in Allan v. Loadsman (1975) 2 N.S.W.L.R.789.
Additionally, the appellant challenged two findings of the
learned trial judge namely, that the respondent, had he
not been injured, would have remained working in the Northern
Territory for three years after the accident and that the
respondent, but for his injuries, would have continued to
work for about 20 years after the date of judgment. It was
said there was no evidence as to the period of time the
respondent would have continued to work,
2.
Vhen the hearing of the appeal commenced an
application was made to amend the grounds of appeal.
In one respect the application was only formal and resulted
in it. being clearer than it was from the original notice
of aopeal that the appellant intended to rely on Allan v.
Loadsman. The second respect in which it was sought to
amend the notice of appeal was to enable the appellant to
rely upon the decision of the High Court in Cullen v.
Trappell (1980) 54 A.L.J.R. 295, that decision having
been given after the judgment of the learned trial judge.
Counsel for the respondent sought, as a condition of any
leave given the appellant to amend its grounds of appeal,
that the respondent be given leave to cross appeal upon the
ground that the amount of damages awarded by his Honour
was inadequate. We decided to allow the amendments
sought by the appellant and at that stage decided against
allowing the respondent to cross appeal out of time. It
is to be observed that the appellant had still not up to
that point of time raised the usual ground of appeal that
the amount of damages was excessive, But subsequently,
after there had occurred a general discussion about the
real effect of the decision in Allan v. Loadsman, counsel
for the appellant applied further to amend the grounds of
appeal by adding a ground to the effect that the amount
awarded for past and future economic loss was "unreasonably
excessive", We decided to allow that amendment but, as a
3.
condition of allowing it, permitted the respondent to
cross appeal out of time on the ground that the amount
awarded was menifestly inadequate.
In the ucshot the appellant attacked the findings of
fact made by his Honour as to the length of time the
respondent would have continued to work in the Territory
and as to how long he would, but for his injuries, have
continued to work in the future. He maintained his
submission based upon Allan v. Loadsman. He claimed that
the damages were in any event excessive, and, of course,
said that this was partly so because his Honour had
assessed damages upon the basis of Atlas Tiles Limited v.
Briers (1978) 52 A.L.J.R. 707.
Before proceeding to deal with the various submissions
that were made it 1s necessary to set out some of the facts
of the matter. The respondent was born on 26 November,
1934, The injury in respect of which he sued occurred
on 6 December, 1976, the respondent then being 42 years of
age. His Honour's judgment is dated 7 December, 1979, the
respondent then being 45 years old. It is to be observed
that there is a period of almost exactly three years
between the date of the ingury and the date of the judgment
appealed from.
The respondent attended school in South Australia.
He did not reach Intermediate standard. He is not
equipped with any trade or other gualification. He has
had a variety of jobs. At one stage he ran a mixed
business in Adelaide. Apart from that his jobs have
usually been of the labouring kind. He came to Darwin
in July 1976 and obtained employment with the appellant.
He did general labouring work and at the time of his
injury was employed in restoring houses damaged by the
cyclone.
As a result of the accident he suffered fractures
of bones in both forearms. The most serious injuries were
to his left forearm. There was a severe comminuted
fracture of the ulna close to the elbow with deformity
andj fracture of the head of the radius. In his right arn
the respondent suffered a comminuted fracture of the lower
part of the radius close to the right wrist. The
respondent is right handed. The consequences of these
injuries are set out in that part of his Honour's judgment
quoted by McGregor J. I do not repeat them.
It is common ground that the respondent is no longer
fit for the work of a builder's labourer nor for any other
heavy labouring work, His condition had stabilised about
a year before the action was heard, It was agreed by the
doctors that his earning capacity was not destroyed, although
severely impaired. But difficulty was obviously experienced
by both doctors who were called as well as by lay witnesses
experienced in various forms of work in pin-pointing what
sort of work was really available to the respondent.
These witnesses comprised a trade union official, a store
manéger and a representative of the appellant. The
difficulties arise whether the respondent seeks work
in Darwin or elsewhere. He is probably fit for some
classes of driving jobs so long as they do not involve
him, as well, in carrying parcels or other articles
which are at all heavy. He could also work in a shop
and himself contemplates that he might operate a gift
shop in Adelaide.
The respondent did not give evidence as to the
length of time he might have remained in Darwin had
he not been ingured. In fact he remained for about
two years after the accident but his doing so may be
explicable upon the basis that Darwin was the place
where he underwent treatment for his injuries.
The evidence discloses that he was earning sums
of the order of $240 to $250 per week in the period
of three months prior to his injury. After tax the
sum is of the order of $180 to $185 per week.
Although his Honour does not say so in his judgment
it would appear that he reached his figure of $27,000
for pre-trial loss of earning capacity by assuming a
weekly loss of $180 or a little more for the entirety
of the period of three years which is involved.
It is firstly claimed by the appellant that this
conclusion was not open to his Honour because there
was no evidence of what the respondent, when his
condition stabilised about two years véfore the
trial, could have earned in employment which was
within his capacity. There is no evidence as to
what his earnings in such forms of work might have
been except some evidence of what was earned by shop
assistants,
The appellant's submission is based, as has been
said, on Allan v. Loadsman. It is made not only in
respect of the amount assessed for pre-trial loss of
earning capacity, but also in respect of the claim
made by the respondent for future loss of earning
capacity. It will be convenient to dispose of the
submission now. What I am about to say applies equally
to both claims.
To some Allan v. Loadsman appeared to lay down
a principle that where, in the case of a partially
incapacitated plaintiff, there was no evidence of
what he was able to earn in employment within his
capacity, there could be no recovery because the
extent of the plaintiff's loss could not be quantified.
If that were the ratio of the decision, I would myself
have substantial hesitation in following it, if only for
the reason that I would not have though such a matter
could be the subject of any principle of law. The
question in all cases must be whether a plaintiff has
7.
established those matters upon which his entitlement
to recover dependS. I do not need to develop the matter
further, however, because the view I have just expressed
is plainly the prevailing view of the Court of Appeal.
In Yammine v. Kalwy (1979) 2 N.S.W.L.R.151 Reynolds,J.A.
dealt with a submission similar to the one here made that
there was no evidence of what the respondent plaintiff
might be able to earn in his injured state so that there
was no material upon which the judge could quantify any
loss of capacity. Nominal damages only were said to
be recoverable. His Honour said (p.155):
" This submission has its origin in some
statements in this Court made in a case of
Allan v. Loadsman. This 1s aot the first
occasion that observations of particular
relevance in that decision have been relied
upon in support of a very wide principle of
the kind now pressed. They have consistently
been rejected, and Allan v, Loadsman should
not be regardec as authority for sucn an all-
embracing principle.
Of course, in seeking to quantify his
damages, a plaintiff could be well advised to
offer such evidence in many cases, and likewise
a defendant, in seeking to cut down the damage,
might similarly be well advised to tender such
evidence; neither, in tne absence of such
evidence, could complain, to the same effect,
at any quantification arrived at. This,however,
is far from asserting that 1n the absence of
such evidence only nominal damages is appropriate,
In Kealley v. Jones ((1979)1 N.S.W.L.R.723 at
732, et seg.j the President dealt with this
matter in terms with which I express respectful
agreement. In my opinion, where a plaintiff has
suffered a significantly disabling injury which
obviously affects the range and nature of the
work he can, therefore, perform, a tribunal of
fact can, without svecific evidence as to what
other persons with that kind of disability can
"earn, make a judgment and assessment
on a percentage basis or otherwise, of
the value of the lost capacity. Allan
v. Loadsman should not be understood as
Geciding otherwise."
Hope, J.A. agreed with what Reynolds, J.A. had
said (p.156). I would add my respectful agreement
with it also. I would also indicate respectful agree-
ment with what was seid by Mahoney, J.A. (pp.156-158).
t is to be observed that Mehoney, J.A. wrote the
principal judgment in Allan v. Loadsman.
It follows from what I have said that Allan v.
Loadsman does not have in New South Wales the significance
contended for by counsel for the appellant. For the
reasons given by Reynolds, J.A. in Yammine v. Kalwy it
ought not to have that significance anywhere else, The
submission based upon Allan v. Loadsman is one which I
would therefore reject.
It remains to consider whether the award of $27,000
for pre-trial loss of earning capacity was in the cir-
cumstances excessive, Evidence was given that earnings
in the Northern Territory have substantially increased
since December 1976. Persons employed as builders'
labourers, as was the respondent, could at the date of trial
earn with overtime almost $400 per week before deduction of
income tax. Tne respondent did work overtime as a
matter of regularity. His Honour's approach was to
take the equivalent, or thereabouts, of what the
respondent was earning at tne date of his injury and to
progect that for three years. It was suggested that
that left out a number of factors. The respondent
may not have remained in Darwin for the three years
selected by his Honour and might have returned to
lesser paid employment in one of the southern states.
He may not have worked the overtime which was referred
to, He might have been affected by downturns in the
pbuilding industry particularly if he had left Darwin,»
where the building industry seems to have been buoyant
throughout the periodjand his Honour's calculations
aid not allow for the fact that in the latter part of
the period the respondent had some capacity to earn money
in restricted forms of work. Against that last matter
it must be mentioned that the appellant paid the
respondent worker's compensation up to about the time_
of the trial. In my opinion his Honour by taking the
respondent's earning rate in the period of three months
prior to judgment allowed for such discounts as ought to
have been made for the reasons relied upon by the
appellant. I do not regard the amount as excessive
and I would not be disposed to disturb that part of the
award of damages. On this approach has Honour's finding
that the respondent, had he not been injured, would have
remained in the Northern Territory for three years is
not critical, but it is my view that it was a finding
whicn it was open to him, on the evidence, to make.
A consideration of the amount awarded for post-
judgment loss of earning capacity is made difficult
by the fact that the decision of the High Court in
Cullen v. Trappell was given after his Honour's judgment.
His Honour, correctly, bearing in mind the date he
decided the matter, left income tax out of account. We
must see that it is taken into account, but along the lines
proposed by Gibbs J. in Cullen v. Trappell 54 A.L.J.R.at.p.300.
In other words, although we must deal in net figures we
must make some allowance for the fact that income tax
will be paid, at least notionally, on the return derived
from any investments into which the judgment moneys are
put. Upon the basis of the evidence in the present
case we could do no more, in order to make that allowance,
than to have recourse to the 5 per cent tables rather
than to tables providing for a higher rate of interest,
But it was his Honour's view that the case was not
one which readily lent itself to assessment by rererence
to any tables, I agree with this view. Nevertheless,
it is not unhelpful to have regard to the tables to
ascertain what sort of weekly sum particular capital sums
would yield.
His Honour thought that the respondent had
a working life left to him of 20 years. Clearly he was
entitled so to conclude. . It would be at the end of
that period that the respondent would reach what is
accepted in the community as a conventional retiring age.
11.
If one assumed en interest rate of 5 per cent per annum,
}~60,0CO would purchase now an annuity of }90 per week or
a little more for that period. Upon the basis of
Mr, Gilliants evidence plainly accepted by his Honour
a builder's labourer employed in the Northern Territory
at the date of trial would then have been earning with
some overtime almost S40C per week. The average weekly
earnings in the community were then in excess of 3200, If
one takes the view that the respondent would not have
remained in Darwin but returned to less well paid employ-
ment in the south, one would think it not unlikely that
he would have continued to earn a gross weekly figure of
the order of 300, say a net figure of just over 4200.
The effect of the injuries he has suffered is severe. He
is likely to have long periods when he will be out of
work and he will plainly, when he has work, be in worx which
is less well paid. In those circumstances I do not con-
sider that an allowance of {$90 per week for the balance
of the respondent's working life could be regarded as
excessive,
But there is one other factor so far left out of
account. It is his Honour's award of £15,000 for pain,
suffering and loss of amenities of life. It includes
an allowance for the cost of future operative treatment.
In my opinion the figure is too low, 4 more appropriate
figure would have been $25,000.
As in most cases the process of assessment of
12.
damages will be approached in different ways by different
judges. Because of the decision in Cullen v. Trappell
it has been necessary to carry out something of a re-
assessment of the claim here. If that exercise had been
done without regard to the learned primary judge's reasons
for judgment the result achieved may have been, to a
degree, different. But the award must be looked at as
a whole. I am satisfied that if I had had to perform
the task unaided by the judgment appealed from I would
have reached a figure little different from that decided
upon by his Honour. In all the circumstances I think
that the award represents reasonable compensation to the
respondent and ought not to be disturbed. I would
dismiss the appeal and the cross appeal. The appellant
should pay the costs of the appeal. The time occupied
in the argument on the cross appeal was minimal. I
would make no order as to the costs of the cross appeal.
| certify that this andthe (A preceding
pages are a true copy of the reasons for
judgment herein of The Honourable
Mr Justice Sheppard. S| oe In
7 Associate
Dated
13.
Related laws
No related documents linked yet.
You've got 21 of 22 free Acts left this visit. Sign up anytime for Facts, Related, and study briefs too.