Australian Telecommunications Commission & Ors v. Parsons, B. & Ors [1985] FCA 39
Federal Court of Australia
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34 CATCHWORDS
Damges ~ fatal injury - claims under Compensation (Fatal
Injuries) Act (N.T.) - de facto wife and two children -
loss of support, solatium, consortium, care and guidance
and household services - appropriateness of two stage (pre-
trial and post-trial) process of assessment of damages -
whether adequate allowance made for contingencies/vicissitudes
in assessment of pre-trial component of damages,.in particular,
prospect of wife marrying or entering into another de facto
relationship - whether damages for loss of consortium and
solatium recoverable by de facto wife - whether damages for
solatium and loss of care and guidance recoverable by child
where not actual child of deceased - quantum of damages.
Compensation (Fatal Injuries) Act (N.T.) ss.4(2), 7, 8, 10, 13
State Government Insurance Office (Qld.) v. Biemann
(1983) 49 A.L.R. 247 — con.
AUSTRALIAN TELECOMMUNICATIONS COMMISSION, DANNY O'BRIEN and
WALTER WILLIAM HALL v. BESSIE PARSONS, REUBEN JOSEPH PARSONS
and LESLIE MARK PARSONS by their next friend BESSIE PARSONS
No. NT 43 of 1983
Woodward, Neaves and Beaumont, JJ.
20 February 1985.
Sydney.
IN THE FEDERAL COURT OF AUSTRALIA
NORTHERN TERRITORY DISTRICT REGISTRY
GENERAL DIVISION
BETWEEN:
AND:
Judges making order:
Date order made:
Where made:
THE COURT ORDERS THAT:
ed
No. NE 45 of 1983
ON APPEAL from the Supreme Court of the
Northern Territory .
AUSTRALIAN TELECOMMUNICATIONS COMMISSION,
DANNY O'BRIEN and WALTER WILLIAM HALL
Appellants
BESSIE PARSONS, REUBEN JOSEPH PARSONS and
LESLIE MARK PARSONS by their next friend
BESSIE PARSONS
Respondents
ORDER
Woodward, Neaves and Beaumont, Jd.
20 February 1985.
Sydney.
1. The appeal be dismissed.
2. The appellants pay the respondents' costs of the
appeal.
IN THE FEDERAL COURT OF AUSTRALIA
NORTHERN TERRITORY DISTRICT REGISTRY
GENERAL DIVISION
ed
No. NI 43 of 1983
ON APPEAL from the Supreme Court of the
Northern Territory .
BETWEEN: AUSTRALIAN TELECOMMUNICATIONS COMMISSION,
DANNY O'BRIEN and WALTER WILLIAM HALL
Appellants
AND: BESSIE PARSONS, REUBEN JOSEPH PARSONS and
LESLIE MARK PARSONS by their next friend
BESSIE PARSONS
Respondents
CORAM
Woodward, Neaves and Beaumont, dd.
DATED: 20 February 1985.
REASONS FOR JUDGMENT
THE COURT: This is an appeal from a judgment of a single
judge of the Supreme Court of the Northern Territory
(Muirhead, J.) in claims made under the Compensation (Fatal
Injuries) Act (N.1.) ("the Act"). In the proceedings, the
learned judge awarded the first respondent damages in the
total sum of $181,000.00; the second respondent, an infant,
the sum of $16,500.00; and the third respondent, also an
infant,. the sum of $24,500.00 (see (1983) 28 N.T.R. 19).
The appellants, the defendants below, appeal against each of
these awards. A claim was also made by the first respondent
in the proceedings under the Law Reform (Miscellaneous
Provisions) Act (N.@.). This claim was dismissed by the
learned judge for want of title to sue. No appeal is
brought against this dismissal.
The claims made in the proceedings arise out of the
death of Mark Leslie Parsons on 15 March 1976. The deceased
died as a result of electrocution suffered in the course of
his employment with the first appellant. Liability was
admitted. The writ was not issued until 15 March 1982, six
years after the death of the deceased.
The first respondent and the deceased did not marry
put they had lived in a de facto relationship for about
three years prior to his death. The second respondent, born
on 17 dune 1968, is the natural son of the first respondent
by a previous association. The deceased stood in loco
parentis to the second respondent who lived with the family
and was accepted by the deceased as his child. The third
respondent, born shortly after the death of the deceased on
18 April 1976, is the son of the deceased and the first
respondent.
The action was brought under s.7(1) of the Act
which provides:
"Where the death of a person is caused by a
wrongful act, neglect or default and the act,
neglect or default is such that it would, if
death had not ensued, have entitled the
person injured to maintain an action and
recover damages in respect of the injury, the
person who would have been liable, if the
death had not ensued, is liable to an action
for damages notwithstanding the death of the
person injured ..."
By s.8(1) of the Act, not more than one action may
be brought against any one person in respect of a death. By
s.8(2), subject to 8-13, any auch action shall be brought by
and in the name of the personal representative of the
deceased person for the benefit of those members of the
deceased person's family who sustained damage by reason of
his death. In the present case, no application was made for
the grant of letters of administration of the deceased's
estate. In such a case, s.13(1) enables an action to be
brought by any one or more of the persons for whose benefit
an action may be brought. In that event, s.13(2) provides
that such action shall be for the benefit of the same
persons and subject to the same provisions, mutatis
mutandis, as if it were brought by the personal
representative of the deceased on behalf of those persons.
4.
A member of a deceased person's family is defined
py s.4(2)(c) of the Act to include a person to whom the
deceased stood, "immediately before his death, in loco
parentis. By s.4(3), as it stood at the relevant date, a
person who, although not legally married to the deceased,
was, immediately before the death of the deceased, living
with the deceased as wife, on a permanent and bona fide
domestic basis shall be treated as the wife of the deceased.
Damages are dealt with by s-10. Section 10(1)
provides that the Court may award to the parties
respectively for whose benefit the action is brought, such
damages as it may think proportioned to the injury resulting
from the death of the person injured. By s.10(2), the
amount of damages recovered under the section shall, after
deducting the costs not recovered from the defendant, be
divided amongst the persons for whose benefit the action is
brought in such shares as the Court determines. Section
10(3) identifies a number of heads of damages, to which
specific reference will be made later. By s.10(4), in
assessing damages in an action, no reduction shall be made
on account of (inter alia) the remarriage or prospects of
remarriage of the surviving spouse.
5.
The learned judge first considered damages for loss
of dependency. He proceeded by a two stage assessment and
awarded damages for loss of support in the total sum of
$198,000.00 as follows:
To the first respondent —-
to date of trial . $ 38,000
future 129,000
To the second respondent -
to date of trial 5,000
future 4,500
To the third respondent —
to date of trial 5,000
future 16,500
$198, 000
In connection with this aspect of the claim, his
Honour made the following findings of fact, none of which is
challenged in this appeal (28 N.@.R. at p.24). The first
respondent was born on a cattle station in the Territory on
1 July 1948. She is of part Aboriginal descent. She was
taken from her mother at the age of four and brought up in a
church home at Alice Springs until she was 15 years of age.
She then went interstate for a year and returned to Darwin.
At the age of 20 years she gave birth to the second
respondent as a result of a rather casual relationship. She
returned to Alice Springs where she worked as a cleaner.
She acquired a Housing Commission flat and she met the
deceased, of Evropean origin, in early 1973. He was working
as a truck driver at the time and he had a stable employment
history until his death. They lived together and shared
expenses. His relationship with the second respondent was
6.
good. They moved to Darwin in September 1974 and obtained
temporary accommodation, having applied for a Housing
Commission home. She obtained cleaning work of a temporary
nature at the Darwin Hospital. The cyclone in December 1974
disrupted their plans. The first respondent was temporarily
evacuated to Alice Springs but she and the second respondent
returned to Darwin in about May 1975. She did not work
again before the deceased's death, being supported by his
earnings. They lived in a Housing Commission caravan
erected on a block of land previously occupied by a house
destroyed in the cyclone. He paid the rent and supplied her
with housekeeping. The evidence did not permit the learned
judge to make precise findings as to the actual measure of
support at that time. They budgeted on a cash basis. The
deceased was a non-smoker but a moderate drinker. He owned
two motor vehicles during their association, but one was
"smashed" and at the time of his death they had no vehicle.
They lived from week to week enjoying simple pleasures. In
April 1976, shortly after the deceased's death, the first
respondent changed her surname by deed poll from Connors to
Parsons. She gave evidence that they planned to marry after
the child she was expecting was born in April 1976 and she
had informed others of this expectation. The learned judge
found her evidence on this aspect to be somewhat equivocal
T.
and he was not satisfied on the probabilities that marriage
would then have taken place. But his Honour thought that
this did not intrude upon the claim for loss of the benefits
of her dependency as he was satisfied that her relationship
with the deceased was reasonably stable.
The learned judge accepted the following facts"
agreed by the parties with respect to the economic loss
claimed (28 N.T.R. at p.25):
"1. The deceased commenced to work for
Telecom on 13 September 1975. At date of
death he was a temporary linesman.. On that
date his pay, clear of tax was $190. He had
performed his work in a satisfactory manner
and had this performance continued he would
probably have achieved permanent status in or
about the year 1978. By the date of trial (2
November 1983) if he had remained in
Telecom's employ he would probably have
achieved the status of lines serviceman, with
the possibility of having achieved the status
of lines supervisor grade l.
2. At date of trial the following wage
levels were current - all clear of tax:
Linesman $320
Lines serviceman $340
Lines supervisor $360
3 Since date of death 'wastage' from all
eauses from the position of linesman has been
about 2 per cent.
4. Between the date of death and the trial
date, assuming survival, continuing work with
Telecom and the probabilities referred to
above, the deceased's total earnings clear of
tax would have amounted to $90,000."
After referring to the evidence of Mr. Stratford, a
consulting actuary, to be dealt with later, his Honour made
the following further findings (28 N.T.R. at p-27):
"In this case, as I have said, I have very
little evidence of a family budget. It
appears that when their association commenced
the deceased contributed little, living with
the wife, in her flat and using her effects.
I can only find that once they came to Darwin
he regularly contributed towards the upkeep
of the wife and her son and that a measure of
support would have continued in the future.
He appears to have lived from day to day and
to have been in financial difficulties in
meeting commitments to those who financed the
purchase of a car -— itself for a time a
family asset which he did not possess at date
of death. The wife, when she worked, seems
to have pooled her earnings with those of the
deceased and there was evidence which
satisfies me that for some time she was
drawing a supporting mother's pension to
which she was not entitled and which in the
course of time it became necessary for her to
repay. In all the circumstances the best I
can do is to approach the matter on the basis
that 40% of his net earnings would have been
applied to his own support and personal
expenditure, a finding I have applied to the
past as well as the future."
It was common ground that the deceased's normal
retiring age would have been 65. The learned judge accepted
the evidence of Mr. Stratford that the present value of an
annuity commencing on the trial date of $1.00 per week net
loss on the joint lives of the deceased and the first
respondent was $924.00. His Honour then expressed his
conclusions as follows (28 N.?.R. at p.28):
9.
"Making allowance for the deceased's own
support, the loss to the dependants at date
of trial calculated on this basis is $54,000
(60% of $90,000). Only limited allowance for
contingencies such as unemployment, sickness
and the like should be made over this period
of almost eight years bearing in mind the
evidence of the low wastage experienced by
Telecom and the evidence that the deceased
was @ young man who appears to have had a
healthy existence. I allow $48,000 for
economic loss to date of trial. The youngest
child was born shortly after his father's
death but I see no point in differing the
allowance to the children over this period
when they would probably have been wholly
maintained by hin. On this aspect I
apportion $5000 to each of the children and
$38,000 to the wife.
As to the future, I consider justice will be
done if I work on the net salary of a lines
supervisor - $340. (His Honour plainl
intended to refer to a lines serviceman.
Again I intend to assess damages for the
family as a whole and make an apportionment I
consider reasonable. Applying Mr Stratford's
calculation that $924 is the appropriate
value of an annuity of $1 per week and using
round figures one reaches an initial
assessment of $314,000 which must be reduced
py 40% to allow for the deceased's own future
support and personal expenditure, including
of course proportionate share of household
expenses such as rent, food and clothing.
Reduced in this manner one arrives at a total
of $188,400, (60% of $314,000)."
But the learned judge thought that this sum should
be substantially reduced to take account of contingencies.
He said (28 N.T.R. at p.28):
"There must in my view be a more substantial
reduction for contingencies. I am not
persuaded the parties would have married and
one's experience dictates that of their
nature de facto relationships are still apt
to be more transitory than marriages. I do
10.
not overlook the link between partners that
children provide. Furthermore in the long
run the assessment must be a matter of
judgment; guided, but not based on actuarial
calculation. The parties may have had
further children. The plaintiff says they
planned a family of four but eventually her
dependency would probably have decreased
below the proportion of 60% which I have
allowed as appropriate for the family. To
calculate this actuarily seems to me to be a
useless exercise as the data is hypothetical.
I consider justice will be done, in
accordance with the dictates of the statute,
if I make a more substantial discount. I
allow $150,000 for the future economic loss
suffered by the family."
The learned judge considered it probable that the
deceased would have supported the two children until they
were 16 to 18 years of age. He apportioned $129, 000.00 to
the first respondent and $4,500.00 and $16,500.00 to the
second and third respondents respectively.
Whilst conceding that a two stage process of
assessment is conventional in personal injury litigation,
the appellants challenge its employment in a claim under
Lord Campbell's legislation except for the limited purpose
of the calculation of interest before judgment in those
jurisdictions where such interest may be claimed. (In the
Territory, interest cannot be awarded before judgment.) 'The
appellants not only question the adoption of the two stage
assessment process in point of principle. They also
challenge its application as being unfair in the particular
11-
circumstances of this case. They point to the delay. in the
institution of the proceedings; the absence of any legally
enforceable right to support against the deceased; the
relatively short period of employment of the deceased by the
first appellant; the unsatisfactory nature of the evidence
of actual support by the deceased;- and the real possibility
that the relationship between the first respondent and the
deceased would not have subsisted.
In our opinion, the learned judge was correct in
adopting a two stage method of assessment. The propriety of
such an approach has been assumed, if not squarely decided,
in a number of the authorities in this area, including at
least three decisions of the Supreme Court of the Northern
Territory handed down between 1979 and 1982 by Muirhead, Jd.,
Gallop, J. and Forster, C.J. respectively. It will be
sufficient to refer to only two decisions of the High Court.
In Jacobs v. Varley (1975) 9 A.L.R. 219, although the Court
was divided on the ultimate fate of the appeal, there was no
suggestion by any justice that the Fuil Court of the Supreme
Court of South Australia erred in adopting the two stage
method in a claim under Lord Campbell's legislation.
Although in dissent, Gibbs, J. (as he then was) said (with
the concurrence of Stephen, J.) (at pp.223-4):
12.
"In assessing damages in the present case it
is first necessary +o compensate the
dependants for the loss of the benefit which
they might reasonably have expected to derive
during the period from the date of death to
the date of trial ... The second period to be
considered in the making of an assessment is
that commencing with the date of the
judgment."
Of the majority who favoured dismissal of the
appeal, the reasoning of Mason, J. at least assumed that the
Full Court's technique was appropriate. His Honour's
analysis of the Full Court's assessment of loss, first, up
to the trial, and, then, after the trial, was consistent
only with his approval of such an approach (at pp.229; 231).
More recently, the question arose for consideration
in State Government Insurance Office (Q1d.) v. Biemann
(1983) 49 A.L.R. 247 in the context of a claim for interest
in an action under Lord Campbell's legislation. The trial
judge had awarded interest pursuant to s.72 of the Common
Law Practice Act, 1867 (Q1d.) both on the amount
representing loss of dependency to the date of trial and
that representing future loss of dependency. It was held by
the High Court that, on the true construction of s.72, the
discretion to award interest should be exercised in fatal
accident claims as in personal injury actions, so as to draw
a distinction between detrimental consequences suffered
before the date of trial and those suffered thereafter.
Accordingly, under s./72 and legislation indistinguishable
13.
from it, the trial judge should split an award into two
parts: one representing loss of dependency before trial,
the other representing loss of dependency after that date.
Interest (at half the current short term rate) should only
be awarded on the amount representing loss before trial.
In their joint judgment, Gibbs, C.J., Mason, Deane
and Dawson, JdJ., after discussing, in particular, the
decisions and reasoning in Ruby v. Marsh (1975) 132 C.L.R.
642 and Fire and All Risks Insurance Co. Limited v. Callinan
(1978) 140 C.L-R. 427, said (at p.252):
"Since Ruby v Marsh this court has had no
occasion to consider an award of interest on
a verdict in a fatal accident claim.
However, the House of Lords considered the
question in Cookson v_ Knowles ... It held
(1) that in a normal fatal accidents case,
the damages ought, as a general rule, to be
split into two parts: (a) the pecuniary loss
which it was estimated the dependants had
already sustained from the date of death up
to the date of trial, and (b) the pecuniary
loss which it was estimated they would
sustain from the trial onwards; (2) that the
interest on the pre-trial loss should be
awarded for a period between the date of
death and the date of trial at half the short
term interest rates current during that
period; and (3) that no interest should be
awarded on future loss. ...
Although in Cookson v Knowles Lord Fraser of
fullybelton said ... that s 79A (of the
Victorian legislation considered in Ruby v.-
Marsh) is in terms broadly similar to those
of the English legislation considered in that
case, s 794A @iffers from the English
legislation, as it does from s 72 of the
Queensland Act, in a number of respects ...
First, s 794 provides that the judge 'shall'
14.
award interest 'unless good cause is shown to
the contrary', and not that he 'may' do so.
Secondly, s 79A does not expressly permit the
giving of interest on part only of the amount
awarded. Thirdly - and this important ground
of distinction was pointed out in Cullen v
Trappell ... ~ s 79A contains, and s 2 does
not, an express prohibition on the allowance
of interest on that part of the damages which
is awarded as compensation for loss or damage
to be incurred or suffered after the date of
the award."
Their Honours proceeded to distinguish Ruby v.-
Marsh:
"The decision in Ruby v Marsh depended on the
particular words of s 79A and in particular
on the question whether the words of s
79A(3)(b) are concerned with a juristic
concept or a practical one. That question
does not arise in the present case, where, to
use the words of Thompson v_Faranio, the
effect of s 72 'was simply to leave the point
resting on principle', namely, the principle
expounded in relation to actions for personal
injuries in Fire and All Risks Insurance Co
Ltd v Callinan and in relation to fatal
accident claims in Cookson v_ Knowles. In
other words, the general discretion given to
a trial judge by s 72 to award interest
should be exercised in fatal accident claims
as well as in actions for personal injuries
so as to draw a distinction between
detrimental consequences suffered before the
date of the trial and those to be suffered
thereafter. Accordingly, in cases which
arise under s 72 of the Queensland Act, and
under such legislation of other States as is
indistinguishable from that section, it will
be appropriate for a trial judge (1) when he
is able to do so to split the award into two
parts, as did the trial judge in this case,
the first part reflecting loss of dependency
before .the trial and the second part
reflecting loss of dependency after that
date; and (2) to award interest only on the
15.
loss before the date of trial, making no
award of interest in respect of the loss to
be suffered after that date."
Although the matter of immediate concern in
Biemann's Case was the question of interest, the reasoning
of the Court is consistent with its approval of the two
stage method of assessment even where interest is not an
issue.
The appellants place much reliance upon the recent
decison of the House of Lords in Graham v. Dodds [1983] 1
W.L.R. 808. But, in ovr view, the case is of no assistance
here. The point there considered was whether, under the
English multiplier system, the relevant date in a clain
under Lord Campbell's legislation, is the date of death or
the date of trial. The House held that, whereas in the case
of personal injury if the plaintiff had survived to the date
of trial that was a know fact and accordingly the
multiplier appropriate to the length of his future working
life had to be selected as at that date, in the case of a
fatal accident there was uncertainty as to what might have
happened to the deceased after the date of his death had he
survived and, accordingly, the multiplier had to be selected
as at the date of death and the number of pre-trial years
for which special damages were awarded should then be
deducted from that multiplier.
16.
Although the decision in Graham v. Dodds clarified
some aspects of the reasoning in Cookson v. Knowles, supra
(see Yell, Assessing Damages in Fatal Accident Cases,
Litigation, (1983) Vol.3 No.1 at p.15), it is concerned only
with the multiplier/multiplicand system peculiar to the
United Kingdom. The decisions in Jacobs v. Varley and in
Biemann's Case are authoritative and must govern the general
position in this country even if not squarely decisive of
the question to be determined in this appeal (see also
Iuntz, Assessment of Damages, 2nd Fd. at pp.59-60).
Moreover, adoption of the two stage method of assessment is
consistent with the policy consideration that whilst the
assessment of damages must be referable to the date of
death, the Court. "is bound to use such facts as have come to
light since the date of death which are relevant to the
assessment, rather than speculations to which recourse would
have had to be made had the court been confined to such
facts as were known at the date of death. Further, the
court will award damages in money of-the day of the award,
not being deterred therefrom by the fact that in the
interval since the date of death the value of money may have
changed. See O'Brien v. McKean ..." (per Barwick, C.d.,
Ruby v. Marsh, supra, at p.647; see also Willis v. The
Commonwealth (1946) 73 C.L.R. 105 at p.109).
17.
As has been mentioned, the appellants also
criticise the application by the learned judge of the two
stage approach in the particular circumstances of this case.
Many of the criticisms are no more than attempts to
challenge the weight of the evidence. For example, his
Honour's findings that the deceased would probably have
continued to contribute 60% of his income to the support of
his family, and that he was unlikely to have separated from
the first respondent, were both challenged. fThere was,
however, ample evidence to support these findings. On the
other hand, the submission that allowance should be made for
the respondents' delay in the institution of proceedings
should, along with one or two other matters, be separately
dealt with.
In O'Brien v. McKean (1968) 118 C.L.R. 540,
Barwick, C.J., observed, obiter, that it was possible that a
plaintiff who delayed could obtain a substantial advantage
by his own dilatory conduct (at p.545). A similar reaction
was expressed by Lord Bridge in Graham v. Dodds, supra, (at
p-815). It is true that, in some cases, some advantage
could accrue in this way. It is equally true that a
plaintiff could be disadvantaged by the occurrence of
certain events which occur between the date of injury or
death and the date of trial. A plaintiff who delays the
commencement of proceedings, for sufficient reasons or
otherwise, runs a measure of risk accordingly (see Iuntz,
op. cit. at p.39).
18.
Whatever be the outcome of the taking of the risks
inherent in the delay, it cannot, as a matter of principle,
justify any departure from or modification of the two stage
method of assessment of damages. As has been said, that
method is rooted in the policy that courts prefer facts to
prophecies. That policy is fundamental and should not be
displaced by the introduction of a principle which attempts
to assess what is a reasonable time within which the
litigation ought to have been commenced. Any such
assessment would, in any event, raise its own difficulties.
For one thing, it is not easy to lay down objective criteria
for this purpose. For another, it is to be expected that
disputes would arise as to what should be regarded as a
sufficient explanation of delay which has occurred. If it
matters, it is not claimed in the present case that the
first respondent was in any personal sense blameworthy for
the delay which occurred. In our opinion, the learned judge
was not bound to take into account in reduction of the claim
the late institution of these proceedings.
The appellants next draw attention to the fact
that, in making allowance for contingencies when assessing
pre-trial damages, his Honour did not expressly refer to the
possibilities that the parties might have separated, or the
deceased might have died before the trial from some cause
other than that for which the appellants were responsible.
It seems unlikely that a judge as experienced as his Honour
19.
would have overlooked these factors, and he was not, obliged
to list all the contingencies which he had in mind in making
the reduction which he did. In any event, by adopting the
figures of actual earnings lost between death and trial
which were agreed between the parties, his Honour was not
using the money values of the date of trial for the earlier
years' figures. It would be reasonable to offset this
against the factors advanced by the appellants (cf. Jacka v.
Horsten (1980) 88 LSJS 419 at p.424, in the Full Court of
South Australia).
It is also suggested that the learned judge erred
by failing to take into account in reduction of the clain
for loss of dependency the circumstance that, unlike a legal
wife, the first respondent had no enforceable right of
support against the deceased. In our opinion, this is an
irrelevant consideration. The first respondent satisfied
the statutory definition of a de facto wife for the purposes
of the Act. The question of actual support, one of fact
only, was determined adversely to the appellants. No ground
for disturbing that finding within the established
principles has been demonstrated.
The appellants also attack the use made by the
learned judge of the actuarial evidence. It is submitted
that a multiplier of 1,080 should have been adopted as from
the date of death. But this submission depends for its
20.
acceptance upon the adoption of a single step assessment of
loss of dependency. Since, for reasons already given, a two
stage approach is required, the criticism urged by the
appellants cannot be sustained.
In coming to his conclusions, the learned judge
quite properly took into account, as contingencies, the
ordinary vicissitudes of life for which allowance should
properly be made. The appellants, however, say that the
learned judge erred in this respect by failing to take
account of the prospects of the first respondent's marrying
or entering into a further de facto relationship. They
rely, in this connection, upon a finding that the first
respondent engaged in a relationship with a soldier who
fathered a chila born to the first respondent shortly before
the trial of the action. The appellants submit that the
Supreme Court should have taken these circumstances into
account in reduction of the claim for loss of dependency.
It is true, as the appellants say, that the
requirement made by s.10(4)(h) of the Act that, in assessing
damages, no reduction shall be made on account of the
remarriage or prospects of remarriage of the surviving
spouse is not, in its literal terms, applicable to the
possibility that the first respondent may enter into another
de facto marriage. On the other hand, even if there were no
statutory exclusion of the consideration of that
21.
possibility, it does not follow that it was properly a
matter to be taken into account, even apart from the
construction of s.10(4)(h) to which reference will later be
made. In Wild v. Eves [1970] 2 N.S.W.R. 526, in an action
under Lord Campbell's legislation, the question arose
whether a widow's cohabitation with a man is a factor which
reduces her or the children's entitlement to damages. The
majority (Jacobs and Moffitt, JJ.A.), after referring to
Carroll v. Purcell (1962) 107 C.L.R. 73, said (at p.327):
"Thus the High Court stresses the
inevitability of the result of the spouse's
death being a revived capacity to remarry
with the implication of the consequent
dependency on the new husband. This is
distinguished from the factual result of a
spouse's death being a greater opportunity to
earn, an opportunity which is greater or
smaller by choice. When we apply this
distinction in the present case, we find that
death of a husband simply does not revive a
capacity as distinct from an opportunity to
cohabit with another man. That capacity
always existed. The case can be envisaged of
a continued dependency despite such
cohabitation. It is true that there is a far
greater opportunity for such cohabitation
without the sanction of matrimonial
proceedings or withdrawal of maintenance by a
husband. But to a lesser degree these
sanctions may exist in the case of a wife who
insists on working. The difference though
very large is one of degree, not of kind. In
short there is no revived capacity to cohabit
as there is a revived capacity to remarry,
and that test of capacity is the one which
has been laid down."
22.
It was held that the plaintiff's cohabitation with
a man was not a factor which reduced her entitlement to
damages except so far as it might be evidence from which an
inference could be drawn that the plaintiff would remarry.
A fortiori it did not reduce the entitlement of a child.
Manning, J. dissented. In his view, the possibility of a de
facto relationship could generally be ignored but, where it
had actually occurred by the trial and was continuing, it
should be taken into account.
It may well be that this aspect of the operation of
Lord Campbell's legislation has not yet been finally settled
in other jurisdictions (see Iuntz, op.cit. at p-451) but, in
any event, in our view, the provisions of s.10(4)(h), when
properly construed, require the court to ignore both the
possibility of a de facto relationship and the existence of
such relationship if it has already occurred. In our
opinion, s.10(4)(h) should be construed so as to extend not
only to legal marriages but to de facto marriages as well.
Any other interpretation would lead to a result which would
be both capricious and irrational (see Cooper Brookes
(Wollongong) Pty. Timited v. Federal Commissioner of
Taxation (1981) 147 C.L.R. 297 per Mason and Wilson, JJ. at
p-.321). Since the legislative scheme as a whole seeks to
elevate de facto marriages to the status of legal marriages,
it is permissible to imply into s.10(4)(h) a provision to
the same effect dealing with de facto relationships (see
23.
Cooper Brookes, supra, per Gibbs, C.J. at pp.305-7; per
Stephen, J. at pp-.312-3; per Mason and Wilson, JJ. at
pp.320-3). In the first place, the marriage of the survivor
of a de facto relationship covered by s.4(3)(c) of the Act
should be treated as a "remarriage" falling within
s.10(4)(h) (see Bennett v. Liddy (1979) 25 A.L.R. 340 at
p.352). It would be entirely anomalous if such a marriage
were to be disregarded but a fresh relationship of the type
contemplated by s.4(3)(c) had to be taken into account. In
our opinion, as a matter of law, the learned judge correctly
disregarded the liaison relied on by the appellants. In any
event, as a matter of fact, the appellants have failed to
establish any basis upon which an inference could reasonably
be drawn that the first respondent is likely to remarry or
engage in another permanent de facto relationship.
The appellants also attack the award made by the
learned judge to the first respondent in the sum of
$10,000.00 in respect of loss of consortium and solatiun.
By s.10(3) of that Act it is provided that:
"(3) Damages in an action may include -
eee
(c) if the deceased person is survived
py a wife or husband - damages for
loss or impairment of consortium of
husband and wife in the same manner
24.
as damages would be assessed in 2
claim in tort by a husband for
damages for loss or impairment of
- consortium;
(£) solatium."
It is suggested that, in the case of a de facto
relationship, these provisions can have no application since
the juristic source of these concepts is the legal relation
of husband and wife and nothing short of such a relationship
will suffice as a foundation for such a claim. It is
further submitted that any claim for consortium ended with
the death of the deceased. 'The appellants also argue that
damages can only be awarded under the Act for loss of
expectation of a pecuniary benefit, yet the respondents are
seeking to recover damages in respect of the destruction of
an incident which could not have conferred any material
penefit. In short, even if a loss was suffered, it fell
outside the statute.
In our opinion, the contentions now advanced on
behalf of the appellants should not be accepted. Given the
intention of the legislature to equate a de facto marriage
with a legal marriage in all relevant respects, it must
follow that s-10(3)(c) and (f) should be construed so as to
extend their operation to a person in the position of the
first respondent notwithstanding that no formal marriage
occurred. Any other result of the operation of these
25.
provisions would be capricious and irrational. Such a
literal result is thus to be avoided as a matter of the
proper construction of the statute (see Cooper Brookes,
supra). In our view, the jurisdiction of the Court to award
damages under these heads was established.
The appellants also criticise the quantum of the
award but any such appeal can only be entertained if the
trial judge has acted on a wrong principle of law or has
misapprehended the facts or has, for these or other reasons,
made a wholly erroneous estimate of the damage suffered (see
Hodges v. Frost (1984) 53 A.L-R. 373 at p.375 and the
authorities there cited). No such error has been
demonstrated in the award of $10,000.00 on this score. The
only allegation of error which has any substance at all is
that, by requiring damages for loss of consortium to be
assessed "in the same manner as damages would be assessed in
a claim in tort by a husband for damages for loss or
impairment of consortium" (s.10(3)(c)), the Act had limited
such damages to the period, if any, between injury and
death. It was argued that support for this approach may be
found in Sloan v. Kirby & Redman (1979) 20 SASR 263 at
pp.275-8. But in that case, White, J. was construing
legislation which assimilated a wife's position to that of a
husband in claims for loss of consortium arising from either
death or disablement. In the present case, the relevant
paragraph is concerned only with the claims arising from
26.
death, but with claims of either a wife or a husband. It
would be extraordinary if the only claims which could be
entertained were those relating to a possible period between
injury and death. fhe words "in the same manner", in the
passage cited above, must be read as relating to the nature
and extent of damages rather than to the period.
The learned judge also awarded the sum of $7,000.00
to the second respondent in respect of solatium and loss of
care and guidance. The latter head of damage is
specifically mentioned in s.10(4)(e)(ii). The appellants
suggest that solatium is not available because the second
respondent was not the actual child of the deceased. In our
opinion, the submission should be rejected. The Act treats
a child to whom the deceased stood in loco parentis as on an
equal footing to an actual child. The learned judge found,
on the facts, that the necessary relationship was
established so as to deem the second respondent to be the
child of the deceased. It follows that, as a matter of
construction of s.10(3) of the Act, his Honour had
jurisdiction to award damages under these heads. Any other
construction would give s.10(3) an operation which would be
absurd in the sense explained in Cooper Brookes, supra, and
should be rejected accordingly.
27-
Finally, the appellants submit that, because the
second respondent had resumed his relationship with his
actual father, the award of damages on this account was
excessive. The learned judge considered this aspect of the
claim with some care. There can be no suggestion that he
was not fully seized of the circumstances of the claim. In
our opinion, no basis for interfering with his assessment
has been made out.
We would dismiss the appeal with costs.
| certify that this and the ve preceding
pages are a true copy of the reasons for
judgment herein of the Court
" Ko
Ark —— . Associate
Dated 20 Gas
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