URBAN TRANSIT AUTHORITY OF NEW SOUTH WALES v SEITIS [1995] NSWCA 478
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URBAN TRANSIT AUTHORITY OF NEW SOUTH WALES v SEITIS
SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL
KirBy P, HANDLEY and POWELL JJA
2 May 1995, 17 May 1995
[1995] NSWCA 478
DAMAGES — personal injuries — disabled passenger injured alighting from bus —
suffers from cerebral palsy — had secured full-time employment with
Commonwealth — employment lost challenges to allowances for past wage loss,
domestic assistance, future need for wheelchair and general damages — challenge to
discount of 25 per cent for vicissitudes — held: All challenges dismissed except that
discount for vicissitudes should be increased from 25 per cent to 40 per cent.
HUMAN RIGHTS — equal employment opportunity — disabled worker — cerebral
palsy impact of injuries on employment and life — proper approach to calculation of
damages — discount for vicissitudes increased from 25 per cent to 40 per cent
otherwise substantial judgment confirmed vulnerability of plaintiff considered.
DAMAGES — personal injuries — passenger descending from motor omnibus
caught in door and dragged by bus — right foot run over by bus wheel — passenger
suffers from cerebral palsy from birth — injuries sustained terminate employment as
clerk with Commonwealth — devastating effects on personal and employment life of
injured passenger — whether would have ceased work in any case following
subsequent pregnancy — whether allocations for domestic assistance justified by the
evidence and reasonable — whether allocation for advanced need for wheelchair
warranted — whether allowance of $100,000 for general damages shown to be wrong
— whether discount for vicissitudes of 25 percent in computing future loss of
economic capacity erroneous — held: (allowing appeal in part): (Kirby P; Handley
JA and Powell JA concurring): (1) The challenges to the allowances made for loss of
wages in the past, domestic assistance, advanced possible need for use of a wheelchair
and general damages were not sustained; (2) The discount for vicissitudes of 25
percent allowed by the trial judge was wrong and a higher discount of 40 per cent
should be allocated to take into account the added vicissitudes that the plaintiff faced
by reason of her vulnerability and the special nature of her employment as disclosed
by the evidence; (3) Accordingly, total judgment reduced from $1,090,000 to
$1,029,443; (4) Appellant to secure only one-fifth of its costs of the appeal.
HUMAN RIGHTS — equal opportunity — disability — cerebral palsy — worker
employed in permanent clerical position — working at "the margin" of
employability — serious injuries — loss of employment — proper approach to
calculation of damages — relevance of constitutional condition — effect of
supervening pregnancy — whether would have ceased work — held: Judgment
confirmed but allocation for future loss of economic capacity discounted for
vicissitudes increased from 25 per cent to 40 per cent.
Disability Discrimination Act 1992 (Cth), s5.
Equal Employment Opportunity (Commonwealth Authorities) Act 1987.
Public Service Act 1922 (Cth), s33(3).
Kirby P The Court has before it a defendant's appeal in a personal injuries
damages action. The Urban Transit Authority of New South Wales (the appellant)
complains that a judgment entered by Grove J in the Common Law Division of
2 UNREPORTED JUDGMENTS
the Supreme Court in favour of Ms Maria Seitis (the respondent) is appealably
excessive. His Honour entered judgment in the sum of $1,089,903. The judgment
was made up of the following components:
Out of pocket expenses (including taxi fares) 14,643
Past economic loss 125,000
Interest on past economic loss 7,980
Fox v Wood component 20,478
Future economic loss 302,302
Future domestic assistance 500,000
Accelerated wheelchair need 10,000
General damages 100,000
Interest on past general damages 9,500
Total 1,089,903
The appellant challenges the components for past economic loss; future
economic loss; domestic assistance; the allowance for an accelerated need of a
wheelchair and general damages. The appellant also challenges, but only
consequentially, the allowances made for interest on past economic loss and
general damages.
The appellant also complains that the overall judgment entered was, apart from
its component parts, plainly excessive. It suggests that Grove J erred in allowing
a discount for vicissitudes of 25 per cent in calculating future economic loss. This
represented only 10 per cent greater ian the conventional discount of 15 per cent
provided for vicissitudes. According to the appellant, in the particular
circumstances of this case, the discount for vicissitudes should have been
substantially higher. The failure to provide a more substantial discount was
suggested as one reason to explain the excessive estimate of future economic
loss. Instead, the appellant urged that a discount of no less than 50 percent was
required by the evidence in the case.
RELEVANT PRINCIPLES
Liability is not in issue at the trial. The case was, as I shall show, an unusual
one in many ways. The Court must approach the appeal bearing in mind a
number of principles which govern the resolution of such contests. Without
exhausting the applicable principles, the following, at least, must be mentioned:
1. The Court will not disturb a judgment entered for damages for personal
injuries unless it is convinced that the primary judge erred in the allowance made
either generally or in respect of particular heads of claim. The appellate court is
required to bear in mind the quasi discretionary nature of ie assessment of
damages. Of their nature, damages assessments are not susceptible to normative
treatment. Upon the evaluation of disabilities and the prognosis of their impact
in the future, minds will invariably differ. The judge of trial has many advantages
in considering the whole of the evidence and seeing the witnesses. The appellate
court will not tinker with the judge's assessment. In an appeaL even one
extending to a review of factual findings, the appellate court will only disturb the
judge's orders for established error. See Moran v McMahon (1985) 3 NSWLR
700 (CA), 723;
URJ URBAN TRANSIT AUTHORITY OF NEW SOUTH WALES v SEITIS (Kirby P) 3
2. The appellate court will also keep in mind the rules which restrain
disturbance of the findings of the primary judge where those findings are, or may
be, affected by the judge's estimate of the credit or reliability of witnesses. The
appellate court is obliged, by repeated authority of the High Court of Australia,
to defer to the primary judge's assessment of credit. It may only disturb findings
which rest upon conclusions as to credit, and the acceptability of that particular
evidence, if it is clear that the primary judge has misused the advantage of
conducting the trial or has reached conclusions which are palpably erroneous or
contradicted by incontrovertible evidence. See eg Abalos v Australian Postal
Commission (1990) 171 CLR 167, 179;
3. The foregoing rule of deference also extends to the assessment by a trial
judge of conflicting evidence of medical experts. See Ahmedi v Ahmedi (1991)
23 NSWLR 288 (CA), 299. Where there is such a conflict, the appellate court
will defer to the conclusions of the primary judge unless the established
exceptions, allowed by law, are made out, authorising the appellate court to
substitute its own, different, opinion;
4. Because a claimant for damages for personal injuries cannot return to the
court if, in the eventualities, the judgment proves to be inadequate by later events,
provision must be made in {he assessment of damages for the range of future
eventualities which the court considers to be open in the evidence. The court
adjusts its prediction of the future in the light of its assessments of the
probabilities of future events occurring. No court has the gift of prophecy. But to
prevent injustices from occurring, the court must make allowances for damages
which are sustained by the evidence concerning likely future events, viewed on
the basis of the evidence available to the date of the trial. See Malec v JC Hutton
Pty Ltd (1990) 169 CLR 638, 639; Medlin v State Government Insurance
Commission (1995) 69 ALJR 118 (HC); and 5. Because the injuries in the instant
case occurred as long ago as 1984, the respondent's damages fell to be calculated
in accordance with the common law. They were not controlled by-the several
caps and limitations imposed by the Motor Accidents Act 1988.
A DISABLED WORKER FINDS EMPLOYMENT AND IS INJURED
The respondent was a child of a family of Greek migrants. The family came
to Australia in 1963. The respondent was born in this country in 1964. When
born, it was discovered that she suffered from a condition of cerebral palsy. This
manifested itself in various disabilities including quadriparesis and dysarthria.
These conditions caused the respondent to walk with an awkward gait, to have
considerable difficulty in speaking clearly and to appear on superficial external
observance to be a person who was intellectually disabled.
During her childhood, the respondent was given to epileptic attacks but these
settled over time. As a child, it took the respondent much time to learn the skill
of walking independently. By reason of her cerebral palsy, she was prone to lose
her balance and to fall over. Before the subject accident, the respondent's
disabilities were worse on the left side. Her right hand was dominant. Her right
side was stronger. Her right hand provided her with her main manual capacities.
At first the respondent was educated in various "Spastic Centres". She left
school without a School Certificate. She commenced work at a sheltered
workshop. However, despite her physical disabilities and severe speech
impediments, the respondent was a bright young woman. Grove J found her to be
alert, intelligent and astute. The medical evidence supported these findings. They
4 UNREPORTED JUDGMENTS
have not been challenged in the appeal. Grove J also found that the respondent
was an honest witness. This finding controls the approach of this Court to some
of the challenges of the appellant.
The frustrations of being a young woman of superior intelligence engaged in
the repetitive work of a sheltered workshop ultimately caused the respondent to
undertake a course of studies at the Sydney TAFE. To her great credit, the
respondent completed a course in typing, word processing and book- keeping.
She did this in December 1982. She was unemployed until May 1983. However,
she then secured employment as a clerical assistant grade 1 in the Federal
Department of Health, Housing and Community Services. Her work involved her
in a number of duties, namely collecting papers, mainly from medical
practitioners; delivering papers to a mail room; amalgamating reports with files;
delivering messages and some filing.
The respondent's achievement in securing remunerative employment is one
which commands admiration. The evidence suggested that she required
supervision, but this was to be expected in a young employee with the duties
described. When engaged, the respondent was at first appointed on probation.
She was considered the most severely disabled person to have been employed in
the Federal Public Service. There seems little doubt that her engagement had
been promoted by the Equal Employment Opportunity Unit of the Public Service
Board's Sydney Regional Office. Grove J accepted that the respondent
represented the "margin" of employability. Nonetheless, she must have worked
with a fair degree of satisfaction to her supervisors because, shortly before the
subject accident, she was confirmed as a permanent employee of the Public
Service of the Commonwealth. As found by Grove J:
'This was a major turning point in her life. She had made friends at work. She
was accepted by them as one of the group and she accompanied them upon
excursions, entertainments and other activities engaged in by her unhandicapped
friends. She went to bars, parties, clubs and the like. Her work made her happy
and quite obviously this was because her feelings of fulfilment derived from the
acceptance that her co-workers offered to her."
It was this time that disaster struck. On 30 May 1984 at about 5.30pm the
respondent was travelling to her home on a motor omnibus operated by the
appellant. She was in the process of alighting from the bus at her bus stop in
Alexandria when the door of the bus closed on her hand. The bus moved off. The
respondent was dragged more than 3 metres before the bus slowed and the driver
released the door. The consequence was that the respondent fell free from the bus
but her right foot was caught by the rear wheel of the bus. She suffered a crush
fracture. She was taken to the Royal South Sydney Hospital. It was there found
that she had suffered the following injuries:
1. A significant crush fracture to the soft tissue, bone and joint structures of the
right foot with soft tissue scarring and joint damage;
2. Deep penetrating wounds to both the web spaces between the third and
fourth and fifth toes of the right foot;
3. Fracture and dislocation of the metatarso phalangeal joint of the right third
toe;
4. Fracture involving the distal phalanx of the fourth toe; and
5. Shock, stress and anxiety.
There was no real dispute about these injuries. Nor, as I have said, did the
appellant dispute its liability to the respondent. The case has involved the
working out of the consequences of the injury for the disabilities suffered by the
URJ URBAN TRANSIT AUTHORITY OF NEW SOUTH WALES v SEITIS (Kirby P) 5
respondent, distinguishing, to the extent proper, the difficulties she suffers in life
from her congenital condition of cerebral palsy and the added disabilities
occasioned by the serious accident caused by the circumstances rendering the
appellant liable.
THE DISABILITIES SUPERIMPOSED ON CEREBRAL PALSY
The respondent did not return to work. In her injured state, she was looked
after by her mother. When her parents travelled to Greece, the respondent went
with them. Grove J considered that she had little option but to do this. The
appellant suggested that this merely showed her vulnerability and lack of
independence attributable to her cerebral palsy.
On 1 September 1986, the respondent was advised by her employer that there
was no position suited to her restricted ability. It was decided that it was
impossible to place her. On 1 May 1989 the respondent was retired from the
Federal Public Service. She did not appeal against that decision as she was
entitled, in law, to do. She let it stand.
In about May 1992 the respondent commenced an association with her partner,
Mr Paul Connor. Subsequently she gave birth to a child, Sarah, in April 1993. Mr
Connor is a carpet layer. According to the evidence, he was earning between
$500 and $600 per week nett at the time of the trial. He acknowledged that he
was the father of the child. But he had no plans to marry the respondent and she
expressed doubts as to the probable duration of their relationship. Oral evidence
was given at the trial by the respondent, by her mother, by Mrs Jodie Willoughby,
who described her pre-injury abilities and by Mr Alan Brown concerning her
employment duties. Oral evidence was given by a number of medical and
rehabilitation specialists including Drs Selby-Brown (orthopaedic), Metcalfe
(psychiatrist), Tahmindjis (general practitioner), Giuffrida (psychiatrist), Mr
Weatherley (employment consultant), Dr Yeo (rehabilitation) and Dr Middleton.
A large number of reports were provided on behalf of the respondent. Tendered
on her behalf was a newspaper article stating that she was the first person with
cerebral palsy ever to be employed by the Federal department which engaged her.
For the appellant, a number of medical reports were tendered including those
from Sir Keith Jones (orthopaedic) and Associate Professor Richard Jones
(rehabilitation). In addition to other medical reports, the appellant showed three
segments of video film concerning the movement abilities of the respondent.
Those films were also shown to this Court. They were apparently designed to
indicate that the walking stick which the-respondent acquired after the subject
accident was rarely used by her to bear weight. My own impression from viewing
the video films was that they showed that the respondent relied on the walking
stick from time to time. Certainly, she was seen on a number of occasions to use
various means to steady her gait. This included continuous holding onto a
balustrade, supporting herself against a wall and holding the hand of her
companion (apparently Mr Connor) as she walked down a sloping street.
The disabilities of the appellant recounted in the evidence were as follows:
1. Persistent pain in the right foot;
2. Swelling in the right foot;
3. Tenderness in the right foot;
4. The development of post-traumatic arthritis at the site of the fractures in the
right foot;
6 UNREPORTED JUDGMENTS
5. A requirement to rely more on ie left foot than had previously been the case.
As a consequence of her cerebral palsy, the left foot was her "bad" foot. It
remained unstable and occasioned a sense of instability in the appellant's
capacity to walk and move about;
6. A requirement to reverse her pre-accident position in which her right foot
was dominant and to develop a capacity of relying upon the left foot because it
had not been injured in the subject accident;
7. The gait was affected with a loss of balance and mobility as a consequence
of the foregoing;
8. The respondent was also unable to walk without a stick in her "good" (ie
right) hand. This necessity limited her ability to carry out bi-manual activity;
9. The respondent complained of a limited endurance in walking and standing,
pushing or carrying objects, including an inability to carry heavy objects or
dangerous objects, such as hot fluids or dishes;
10. The respondent also complained of inability to carry, bathe or manage her
daughter;
11. She complained of an inability to climb or descend stairs and gross
impairment of her capacity to cook and carry out normal housekeeping duties;
and
12. In addition to the foregoing, the respondent complained of serious and
prolonged depression, a reduction in her residual prospects of marriage and a fear
of public transport as well as a general loss of self-confidence.
THE PRIMARY JUDGE'S CONCLUSIONS
Grove J described the respondent's family background, her cerebral palsy and
her intelligence, her studies and her employment, the accident and its profound
effects on her life. He recounted the lay evidence concerning the respondent's
pre-accident capacity to walk independently. He accepted that evidence but
acknowledged that the respondent was more vulnerable than was a person
without her handicap. Commenting on the video films which were shown, Grove
J found that they displayed a greater range of ability than the respondent has
demonstrated in Court. However, he was not convinced that the respondent was
feigning disability. He had no doubt that, whereas the respondent did not always
place weight on the walking stick she carried, she did need it:
"T am abundantly satisfied... that she needs the stick in the sense that it
provides balance and confidence and although she uses it for weight-bearing only
sometimes it is always there as a precaution against imbalance or the need to
weight-bear.
I am satisfied that there has been a considerable deterioration in the plaintiff's
ability subsequent to the accident. I consider the continuing physical effects of
the injuries are contributors to this deterioration but that magnification is likely
to have followed because gross stresses have been affecting her. Until recently
the most prominent stress was sourced in the loss of her job which, to the
plaintiff; was more than an agreeable occupation. It represented the achievement
of her life's goal - a life among and acceptance by the wider community rather
than confinement in a disadvantaged class. It was evident from the visible upset
of the plaintiff that present stresses would include major apprehensions as to how
she is going to care for her daughter in the future. I accept that the plaintiff has
a real perception of symptoms in direct association with her injuries. It does not
matter from the point of view of damages whether these are organically or
psychiatrically based. To a large extent the latter are playing a part."
URJ URBAN TRANSIT AUTHORITY OF NEW SOUTH WALES v SEITIS (Kirby P) 7
Grove J accepted the diagnosis of clinical depression which, in the
circumstances, was scarcely surprising. He also accepted a diagnosis of traumatic
stress reaction. He did not accept the appellant's submission that the respondent
could resume work. Specifically, he rejected the applicant's contention that the
respondent's pregnancy would have terminated her employment in any event. He
awarded her economic loss to the date of the trial upon the basis of the income
scales applicable to her employment, subject to allowance for the period of
maternity leave.
So far as future loss of economic capacity was concerned, Grove J considered
that it was likely that, had the respondent not been injured, she would have
remained in employment, using all of her determination to do so. He noted that
the present capitalisation of her wage loss as a public servant in the grade which
she enjoyed at the time of injury came to $403,070, given her life expectancy. He
discounted this sum by 25 per cent "for adverse vicissitudes". This produced a
sum of $302,302 for damages under this head.
Grove J then provided for domestic assistance. He found that the respondent
would need such assistance in the future. He concluded that she would probably
have had such a need for assistance in any event by reason of her congenital
condition. He declined to regard the birth of her child as "adverse
circumstances". He set out the claims of the respondent for domestic assistance
at cost. These came to a total claim of $1,075,269. He determined that this sum
should be discounted by about 50 per cent and rounded to $500,000. That was the
amount which he provided for domestic assistance. He declined to make
allowance for additional costs of building a suitable home. But he did award a
sum of $10,000 for a chance that the respondent would need a wheelchair at a
time in the future, earlier than might have been the case had she not been injured.
He awarded $100,000 for general damages. He provided for interest both on past
economic loss and on the past component, ie half, of the general damages. In this
way, Grove J came to the judgment which is the subject of this appeal.
DURATION OF WAGE LOSS
It is convenient to deal first with the appellant's argument that the respondent's
pregnancy would effectively have terminated her employment with the
Commonwealth, had she not been injured. In my view there is no substance in
this claim and Grove J rightly dismissed it.
Behind the argument is the suggestion that, because the respondent suffered
the congenital condition of cerebral palsy, the advent of a child would have
provided her with the feeling of self-worth and value which employment had
provided in her work for the Commonwealth. I consider that this view of the
inherent likelihood of the case is not only a mistaken view of female and disabled
employment generally in today's society. It also seriously mistakes the
motivation of the respondent as demonstrated by the evidence.
It is quite beside the point to speculate whether, had the respondent not been
injured in the subject accident, she would have been in the position at home
where, apparently by accident, she became pregnant. I shall assume that the
pregnancy would have supervened in any event. But even upon that assumption,
I consider that it is completely unrealistic to assume, accident apart, that the
respondent would have retired upon the birth of her child. This is now not only
uncommon in the general employment of women. It would be completely out of
harmony with the evidence of this young woman's exceptional effort. By her own
endeavours, she had secured training to obtain work and the sense of self-worth
and purpose that comes with it. She enjoyed her work for exactly the reasons
8 UNREPORTED JUDGMENTS
which Grove J explained. This was not, as it developed, a special job, however
it originated. It was an ordinary job amidst ordinary workers without handicaps
and disabilities. Having attained this life, and fulfilled the goal of securing it, it
seems scarcely likely that the respondent would, on becoming pregnant, have
given it away forever. To make that suggestion is to fly in the face of the
evidence, accepted by Grove J, concerning the motivation and personality of the
respondent. The high probability is that, had the respondent become pregnant,
she would have given birth to the child and, after due time, left the child in the
care of her mother who, on the evidence, seems now to be taking a large part in
her upbringing. This is not at all an unusual circumstance. I consider that Grove
J was right to assume that this is what would have occurred in this case.
It is true that the respondent gave evidence that she had a general desire to have
two children. But neither is it unusual in the Australian community for mothers
of two and more children to return to work. The prospects of the respondent's
retiring voluntarily to look after her children are small. In these circumstances,
Grove J approached this first argument of the appellant correctly. I see no error
in the approach which his Honour took. I consider this argument of the appellant
to be without merit.
ALLOWANCE FOR DOMESTIC ASSISTANCE
The appellant's contention was that the basic need for domestic assistance was
to be explained by reference to the basic condition of cerebral palsy. This was not
caused by the subject injuries. The appellant should not be responsible for their
consequences nor for the assistance necessary to overcome them. The appellant
was not liable to provide assistance as a consequence of a disabled woman with
cerebral palsy falling pregnant and giving birth to an infant who placed heavy
demands upon her. The appellant challenged ie provision of any allowance for
domestic assistance. Alternatively, it disputed Grove J's quantification.
Grove J approached the calculation of this entitlement with the following
findings in mind:
"T am satisfied that the plaintiff needs the quantity of assistance along the lines
described by Dr Yeo and Dr Middleton. Professor Jones on analysis, is not in
dissent in principle although he holds different quantitative views. I note in
passing his comment that... 'the continuing impairments and disabilities have a
causal relationship with the alleged incident' and I reiterate my acceptance of his
description of the fluctuant nature of the symptoms of cerebral palsy.
An overview of the evidence including my assessment of the plaintiff and
witnesses as well as the expert opinion leads me to these conclusions. The
plaintiff does have a need for domestic assistance. It would be reasonable to fulfil
that need at cost."
Dr Yeo's evidence explained {he need for such assistance in these terms:
"T... believe that if this lady weren't a cerebral palsy lady she wouldn't require
four hours of attendant care a day. My argument for consideration of that
prescription is that here is a lady who clearly on the clinical history coped
incredibly well with her cerebral palsy. I therefore feel that it is only right for me
as a doctor to see that change of lifestyle which has occurred since her injury as
being due to the injury....
Q:... What do you say has to be done for that four hours a day?
A: It's domestic assistance, which means that she would have difficulty with
bending and stairs and reaching up and vacuuming and cleaning under the bed
and repetitive domestic assistance that would - she could manage, but she would
manage with undue difficulty... I think what we are trying to do is to provide this
URJ URBAN TRANSIT AUTHORITY OF NEW SOUTH WALES v SEITIS (Kirby P) 9
lady with a physical ability to cope with what she coped with before she had her
accident and my prescription is an attempt to do that.
Q: Would this be fair: it's an attempt to rebuild her lifestyle to a desirable level,
as distinct from what she needs. You don't suggest she needs four hours a day?
A: No. I suggest she needs four hours a day to approach the physical state and
mental stability that she had prior to her accident.
Q: I put to you the injury added nothing to the disability flowing from the
cerebral palsy insofar as the care of a child is concerned?
A: No. Her injury added to her loss of what balance she had and therefore an
apprehension about her ability to mobilise both in an anticipated way and in an
unanticipated way, as we visualised on the third video...
Q: In terms of how you assess that need, she would have had that need
pre-accident?
A: My interpretation is that she would have had some needs if she were living
on her own. She now has additional needs.
Q. What handyman tasks that she could do before can she now not do because
of the injuries in this accident?
A: Well, she certainly shouldn't be encouraged to reach up and do something
that involves her not maintaining balance with one hand or the other.... What has
- impressed me, without having the detail that I believe you quite reasonably ask
of me - what impressed me was the fact that in a clinical history that for a long
time she was coping extremely well when she really didn't need to cope. She was
persistent in her approach to employment and her activities and she appeared to
be coping as best she could, with the family helping around the house. Now, all
that changed dramatically following the accident and the patient claimed to me
that she was now extremely restricted in what she could do,- both in employment
and in and around the house.
Q: Your assessment is based on acceptance of her history?
A: Yes.
Q: She couldn't have carried a baby in her pre-accident state, could she?
A: Well, I remember asking her that - if she felt she could - and she gave me
the impression that she would have had some abilities in that regard, better of
course than a complete quadriplegic could, and I believe that we would have to
be guided really by her history now as to whether she felt she could have carried
a baby without the need of a nanny before and now she can't. I believe now she
can't."
It was this assessment which led Dr Yeo to his conclusion:
"Tn view of [her] difficulties, I am now of the opinion that she requires a live-in
nanny" until the child reaches the age of eight years as well as an additional two
hours per day domestic assistance to that prescribed in my previous report...
between Sarah Jane's age of eight years up to the age of fourteen years. "
Professor Jones (who I remind myself was retained for the appellant) noted the
respondent's pre-accident independence "in personal care and most activities of
daily living" and that she did not need a walking stick at that time. He went on.
in his report:
"Whilst independent in personal care, there are considerable limitations in her
ability to undertake chores about the house, some of which she is no longer
capable of performing without assistance or modifications architecturally in her
home. I would accept she has the discomfort of which she claims in her right foot
and that she now needs to use a stick in her right hand, which has precluded her
10 UNREPORTED JUDGMENTS
from bimanual activities such as carrying boiling water. The would also be a
marked reduction in her capacity to undertake domestic chores such as
vacuuming, sweeping, hanging out the clothes and cleaning the bathroom.
Activities involved with the care of her child however could be better managed
were she to have a child's bath at the height of a chair, and cooking could be
better accomplished in a similar arrangement where she could sit at a stove and
at a bench These aspects of her domestic rehabilitation ought to be considered.
The factual basis to establish the respondent's disabilities around the house and
in caring for her child was laid by the evidence of the respondent's mother and
Mr Connor and also by her own evidence which the judge accepted as truthful.
In short, this demonstrated that a woman, who was already significantly
handicapped but able to cope with a high degree of independence, was, by the
injuries and disabilities she sustained, pushed into a position of marked
dependence on others. It is true that pre-accident, her mother used to meet her at
the bus on most days. But this was explained as more by the mother's choice than
by the respondent's needs. The respondent was entitled to damages for the impact
of the accident upon her. That impact included a significant reduction in her
bimanual capacity, an increase in her instability, a marked diminution in her
mobility and depression.
The appellant objected to such a large allocation for domestic assistance for
such apparently minor orthopaedic injuries. But the injuries were by no means
minor in their impact on this highly vulnerable person. Nor can the consequences
of depression and psychological injury be overlooked. The appellant asserted that
the cost consequences of the respondent's motherhood shall fall "upon the father
of the child, not the appellant'. So it should. But the cost consequences of
restoring the respondent to an essential capacity to look after her child, as she
would have been able to do had she not been injured, is the responsibility in law
of the appellant.
I confess that my initial impression was that the allowance of $500,000 for
domestic assistance appeared excessive. At first impression, it seemed a sum so
great that it appeared to stray into providing the respondent with assistance really
attributable to her constitutional condition rather than her compensible injuries.
Cf Donnelly v Joyce [1974] 1 QB 454 (CA), 460. The allocation must be brought
back to the tortfeasor's wrong. See Davies v Borough of Tenby 119741 2 Lloyds
LR 469 (CA), 479. However, it is important to note that Grove J based his
calculation upon the hourly rate for domestic assistance authorised by the lay and
medical evidence which he accepted. Those sums, together with an amount for
workers' compensation premiums which she would be obliged to pay, came to an
aggregate sum of $1,075,269. His Honour proceeded to consider reduction
suitable to take into account contingencies presented by the evidence. These
included deductions for the likelihood that the respondent would have manifested
her constitutional disabilities more profoundly later in life, and would have done
so had she been uninjured. They also included allowance for the portion
attributable to the needs of the child, as distinct from those of the respondent
which could properly be laid at the door of the appellant. See Burnicle v Cutelli
[1982] 2 NSWLR 26 (CA), 37; Government Insurance Office of New South
Wales v Planas and Anor [1984] 2 NSWLR 671 (CA), 672. He went on:
"A reduction of the plaintiff's claim by 45 per cent to take account of the
considerations which I have adumbrated produces $591,398. Fifty percent
reduction produces $537,635. I do not suggest that these arithmetical exercises
URJ URBAN TRANSIT AUTHORITY OF NEW SOUTH WALES v SEITIS (Kirby P) 14
reflect the likelihood of division between tort and non-tort induced need.
Separation into such is in reality impossible. The probability of significant tort-
induced loss has been demonstrated and I have performed those exercises to
fortify my ultimate judgment that it would do justice between the parties in all the
circumstances if I were to award the plaintiff $500,000 for these elements of
loss."
I agree with the submission for the respondent that much depended, in the
calculation of this item of the damages, upon the view which Grove J took of the
respondent and her witnesses. Much turned on the differential assessment of the
respondent's pre-accident condition, capabilities and motivation and those
revealed by the evidence after the injuries were sustained. I would not myself
have awarded a component as large as $500,000 for this element of the loss. In
part, this would be by reason of my own estimate of the likely demand that would
have been made, had the respondent been uninjured, upon her mother, the child's
father and other members of the family. It is important to keep steadily in mind
the need to limit the appellant's liability to the obligation to supplement the
already greatly diminished capacity of a person suffering from cerebral palsy. But
in the end, taking into account the substantial discount which Grove J has already
allowed and acknowledging the imponderables inherent in the kind of calculation
upon which his Honour was embarked in this unique case, I do not believe that
it can be said that the allocation made for domestic assistance has been shown to
be wrong. Cf Government Insurance Office of New South Wales v Cox (1976) 50
ALJR 559 (HC), 561. Accordingly, the appellant's challenge to this head of
damage must be rejected.
ALLOWANCE FOR WHEELCHAIR
The appellant contested the allowance of $10,000 which Grove J provided for
the possibility that the respondent would have an accelerated need for a
wheelchair because of her loss of mobility and stability. This allowance was
made in the course of his Honour's rejection of various other special claims,
including for a spa pool, modification of the respondent's house and provision of
handyman services. Turning to the wheelchair, his Honour said:
"The evidence included discussion of the plaintiff becoming dependent on a
wheelchair for mobility in the future or finding it more convenient to use one for
locomotion... [The] claim [for] damages of $33,500 [was made]. If the plaintiff
does come to need or reasonably wish to use a wheelchair the need or wish will
derive from the deterioration of the status of her spasticity and the contribution
of the accident would be no more than to accelerate the stage of that occurrence.
The evidence does not go beyond establishment of the possibility of the
happening On that basis only chance is involved and I consider this should attract
compensation of only part of the claim and I award S10,000 on this head of
damage."
The appellant contended that this allowance was a mistake. The respondent
herself had indicated, by her evidence, a marked disinclination ever to use a
wheelchair. The evidence of the experts, it was said, did not sustain the chance
for which the provision was allocated.
So far as the respondent's evidence is concerned, Grove J was not bound to
accept that it represented any more than her strong preference for mobility,
awkward and fluctuating though it was. He was entitled to form his own view on
the utility of, and eventual need for, a wheelchair, so long as it was grounded in
the evidence. In my view, there was evidence to support the view that loss of
mobility could ultimately require an accelerated need for use of a wheelchair.
12 UNREPORTED JUDGMENTS
Insofar as the subject accident had contributed to that loss, the provision of some
allowance in the respondent's judgment was proper. Dr Yeo, the rehabilitation
specialist, for example, said:
"Q: She has no present need for a wheelchair?
A: No.
Q: Therefore she has no need for wheelchair access?
A: The prescription for wheelchair access is based on the recommendation that
there is no steps. Wheelchair access implies that the house should be free of stairs
for her safety and that modifications should be made for a bathroom, so that with
her gait, as the court has previously indicated, there would be a railing and so on
to assist her.
Q: She had that problem pre-accident because of her spasticity?
A: Yes."
But Dr Middleton, also a specialist in rehabilitation medicine, gave this
evidence:
"Q: This plaintiff has no present need for a wheelchair, does she?
A: Well, it depends what she is aiming to do. If she were aiming to be in a
situation where she was covering large distances in area in terms of mobilising,
there would be some advantages not probably so much to her using a wheelchair,
but one of those electrified mobility aids such as a Gopher. I guess, for example,
the sort of situation that might be useful for that would be if she wants to go on
long shopping expeditions or those sorts of things...
Q: You would be unable to distinguish between her requirements as a spastic
for a wheelchair and her condition post-accident, would you not? In other words,
any requirement that you say she might have for a Gopher or for a wheelchair is
relevant and dependent really upon the fact that she is a spastic?
A: No, it is dependent on the combination of that and the effects of the accident
injuries.
Q: What is the additional component of the accident injury which makes it
necessary to have what she did not have before?
A: The main component is pain and resulting alteration in her walking pattern
and her walking endurance - walking and stepping.
In her written report, Dr Middleton explained how the injury to the
respondent's previously dominant limb, the need to retrain her walking and the
consequential alteration in her gait could cause arthritic changes which might
advance the need for assistance:
"Tn the longer, (sic) should the degenerative arthritic changes in her right foot
progress further, she may be expected to be subject to increasing pain and
disability in her right foot and, as a result, I would expect that in coming years
she would be likely to come to require alternative forms of mobility, such as use
of a wheelchair or electric gopher or similar device."
As Grove J accepted the evidence of the respondent and her medical witnesses,
it is unsurprising that he provided for the real chance that the need for a
wheelchair would be advanced beyond that which would have faced the
respondent, uninjured. The objection to this component of the damages must also
be rejected.
GENERAL DAMAGES
The appellant urged that the allowance of $100,000 for general damages was
excessive. It argued that the respondent had made a good recovery from her
injuries, had little current need for medical assistance and whilst losing her
URJ URBAN TRANSIT AUTHORITY OF NEW SOUTH WALES v SEITIS (Kirby P) 13
employment had been distressing, her post-injury life had been largely explained
by ha absence in Greece, her failure to pursue other forms of employment and her
supervening maternity.
I find none of these arguments convincing. The case is a very unusual one. It
is one in which I think this Court does well to defer to the advantages which the
primary judge had in viewing the whole of the evidence and forming an
assessment of the impact of this accident on the vulnerable life of the respondent.
Viewed in that light, I see no error in the award of general damages which calls
for intervention of this Court.
DEDUCTION FOR VICISSITUDES
This brings me to the final item upon which the Court indicated to the parties
that it held some concern. I refer to the discount provided by Grove J in the
calculation of future economic loss for the vicissitudes of life which would have
confronted the respondent had she not been injured. The conventional discount
for the vicissitudes in an ordinary case is 15 percent. Although, as the Court has
often said, this discount is not immutable, it is the one which is ordinarily
applied. By allowing a discount of 25 percent, Grove J added 10 per cent for the
additional vicissitudes which the respondent faced. With respect to his Honour,
and with hesitation, I have come to the view that this additional factor of 10 per
cent was inadequate.
The respondent had, it is true, secured employment with the Commonwealth.
She had every motivation to remain in that employment and I do not doubt that
she would have striven to do so. She was described by Sir Keith Jones (retained
for the appellant) as very intelligent and very determined. Allowance must be
made for that factor. Likewise, as the respondent submitted, allowance must be
made for the legal obligations which are now imposed upon the Commonwealth,
as an employer, to provide equal opportunity for persons with disabilities such as
the respondent manifested. See eg Public Service Act 1922 (Cth), s33(3);
Disability Discrimination Act 1992 (Cth), s5f; Equal Employment Opportunity
(Commonwealth Authorities) Act 1987 (Cth). Arbitrary termination of the
respondent's employment would have been susceptible to various sanctions,
including political action and media attention. These are further considerations
which probably meant that, whatever her difficulties, given ordinary work effort,
the respondent would have been retained in employment with the
Commonwealth for an indefinite time, so long as she wished. She was, after all,
confirmed as a permanent employee. The probation report on her, immediately
prior to the accident, was favourable.
On the other hand, there was a range of considerations which would need to
be taken into account in estimating the respondent's future employment
prospects, when compared to those of the average employee. She undoubtedly
suffered a severe physical handicap which made her susceptible to injuries of the
kind which occurred in this case. Thus, if an incident of a similar kind had
occurred in non-compensable circumstances, at home or in a private setting, the
respondent might recover nothing.
The range of her employment functions was strictly limited. She was unable
to use the telephone because of her speech impediment. She was described as a
slow worker needing constant supervision. To some extent a special job was
found for her. She continued to need, and to receive, considerable family support
prior to the accident. The Commonwealth was not able to produce wage records
of a comparable employee. I get the impression that, whilst her employment was
a real and not an artificial one, it was significantly adapted to her capacities which
14 UNREPORTED JUDGMENTS
were severely limited. Adverse non-compensable events and significant changes
in her life could have affected her inclination to continue with her work. She was
found by Grove J to be the "margin". In this sense, it would not have taken a great
deal to push her from employability into unemployability. Whilst her motivation
was high, and her achievements close to heroic, the realities are that chance
events of life were significantly more likely in her case to push her from the
"margin", than in the case of the average employee.
Although there is not an exact parallel in the deduction of more than 50 per
cent for domestic assistance, some of the same conditions deriving from the
congenital vulnerability of the respondent and her dependence on others, must be
taken into account. Making full allowance for the intelligence of the respondent
and her high motivation to remain in employment as well as the inhibitions on the
Commonwealth to terminate that employment, I have concluded that a 25 per
cent discount for future contingencies was inadequate. The marginal increase in
the risk of vicissitudes disturbing- the respondent's employment was greater than
10 percent. In my view a discount of no less than 40 percent was required.
In making the allowance for the discount for vicissitudes, the Court is not
concerned in moral judgments. It is not concerned to determine what should
happen. Its sole function is to endeavour to make proper allowance on the
probabilities of what would have happened, had the respondent not been injured.
Approaching the matter in this way, I am of the view that Grove J did not provide
sufficiently for the risks that the respondent, for extraneous personal or other
reasons, might not have been able, or willing, to maintain her employment for the
full working life for which provision was allowed. Not the least of the risks that
had to be taken into account was that, with advancing years, the condition of
cerebral palsy would have deteriorated, obliging the respondent to either cease
work altogether or to cut down on her employment activities. Those probabilities
(in the opinion of some of the medical practitioners) were not adequately
reflected in the discount of the provision for future economic loss. An appropriate
way to reflect them is by increasing the deduction for vicissitudes.
TOTAL DAMAGES
The appellant invited the Court to look at the entire damages and to conclude,
viewing the aggregate sum as a whole, that the amount awarded was excessive.
Cf Walton v Powles [1967] 3 All ER 721 (CA), 723; Faulkner and Anor v
Keffalinos (1971) 45 ALJR 80 (CA), 84. Whilst I agree that it is appropriate,
having added the component parts, to consider the entire sum (See eg Kovac v
Kovac [1982] 1 NSWLR 656 (CA), in this special if not unique case, I do not
believe that much assistance is derived by the Court from a reflection on the
amount of the total judgment. The case cannot be compared, even in the general
way permitted, to other like cases. There are no other cases in my experience that
are similar to this. Therefore, the only safe approach to the judgment is to ensure
that the component parts are as accurate as can be provided and then to aggregate
them. For the reasons which I have now stated, no error has been shown in any
of the component amounts allowed by Grove J except for that provided for future
economic loss. In my opinion, that component should be reduced by reference to
the higher discount which I consider to be appropriate The capitalisation of the
full amount claimed for future economic loss was $403,070. Discounting that
sum by 40 percent the allowance which should be made under that head is
$241,842. That sum should be substituted for the allowance of $302,302 allowed
by Grove J. All other components should be confirmed.
URJ URBAN TRANSIT AUTHORITY OF NEW SOUTH WALES v SEITIS (Powell JA) 15
The result is that the total judgment to which the respondent is entitled is
$1,029,443.
ORDERS
In providing for costs, it is appropriate to take into account the fact that the
5 appellant has failed on all but one of the many items of challenge which it has
raised against the judgment of Grove J. In my opinion, the appellant should have
only one-fifth of its costs of the appeal.
Originally the respondent, as cross-appellant, filed a cross-appeal. However,
when the appeal was called, the cross-appeal was abandoned.
10 = The orders which I propose are:
1. Appeal allowed;
2. Cross-appeal dismissed with costs;
3. Set aside the judgment of Grove J;
4. In lieu thereof, order that judgment be entered in favour of the respondent
15 (plaintiff) in the sum of $1,029,443;
5. Confirm the costs order at trial;
6. Order that the substituted judgment take effect from 22 December 1993; and
7. Order that the respondent pay one-fifth of the appellant's costs of the appeal.
Handley JA I agree with the orders proposed by Kirby P, and I agree generally
with his reasons.
Powell JA I agree with Kirby P.
Appeal allowed;
Cross-appeal dismissed with costs;
Set aside the judgment of Grove J;
In lieu thereof, order that judgment be entered in favour of the
respondent (plaintiff) in the sum of $1,029,443;
Confirm the costs order at trial;
Order that the substituted judgment take effect from 22 December 1993;
and
7. Order that the respondent pay one-fifth of the appellant's costs of the
appeal.
RYN
aun
35 Counsel for the appellant: GB Hall QC / PR Sternberg
Solicitors for the appellant: Gordon and Johnstone
Counsel for the respondent: MDA Maurice QC / GJL Scragg
40 Solicitors for the respondent: James Papas and Associates