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NESTLE AUSTRALIA LTD v McDOUGALL
SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL
MASON P, POWELL and BEAZLEY JJA
20 April 1998, 24 June 1998
[1998] NSWCA 158
Damages — Personal injury — Deduction for vicissitudes from award for past
economic loss or general damages — Where pre-existing medical condition — Usual
deduction for contingencies — Whether other discount figure should be applied —
Positive and adverse contingencies — Whether vicissitude of non-tortious injury
should be taken into account
Practice and procedure — Pleadings and particulars — Failure to particularise —
Purpose of particulars — Where evidence to support claim — Absence of prejudice
— Supreme Court Rules Pt33 r8A.
This is an appeal from an award of damages made by Badgery-Parker J in favour of the
respondent for personal injuries sustained on 10 April 1987. Four principal issues arose on
the appeal:
(i) whether the trial judge should have made a deduction for vicissitudes from the
amount awarded for past economic loss. There was also a challenge to the award of
economic loss for the period to September/October 1991;
(ii) whether such deduction should also have been made from the award for general
damages;
(iii) whether his Honour wrongly excluded the potentiality of non-tortious work-related
injuries from the assessment of the percentage deduction made for vicissitudes; and (iv)
whether the trial judge erred in permitting any claim for future out-of-pocket expenses
when such claims, although notified in a general sense, had not been particularised.
HELD, dismissing the appeal:
(1) In an award of damages for future economic loss, account must be taken of the
vicissitudes which may affect a particular plaintiff's earning capacity. Account must be
taken of both positive and adverse contingencies in assessing the appropriate award of
damages, including the possibility of future non-tortious injury, as well as the possible
development or deterioration of any pre-existing injury or condition.
Bresatz v Przibilla (1962) 108 CLR 541; Teubner v Humble (1963) 108 CLR 491;
Wynn v NSW Insurance Ministerial Corporation (1995) 184 CLR 485 followed.
(2) Whether the usual deduction of 15% for contingencies or some other discount
should be applied depends upon the particular circumstances of the individual. The trial
judge's deduction of 25% for vicissitudes was within an appropriate discretionary range,
given the respondent's particular circumstances.
Wynn v NSW Insurance Ministerial Corporation (1995) 184 CLR 485; Moran v
McMahon (1985) 3 NSWLR 700; Hobell v Leonard (unreported, NSWCA, 29 May
1990); Burnicle v Cutelli [1982] 2 NSWLR 26 followed; Commercial Union Assurance
Company of Australia Ltd v Pelosi (unreported, NSWCA, 2 February 1996); Government
Insurance Office of NSW v Wojnar (unreported, NSWCA, 15 December 1988); Urban
Transit Authority of New South Wales v Seitis (unreported, NSWCA, 17 May 1995); New
South Wales Insurance Ministerial Corporation v Sprengnagel (unreported, NSWCA, 28
March 1995) considered.
(3) While there is no particular rule or principle that there should be a deduction for
vicissitudes in respect of past economic loss or general damages, if events have
materialised between the date of injury and date of assessment these should be taken into
2 UNREPORTED JUDGMENTS
account in the assessment of other heads of damage. As the trial judge clearly had in mind
the respondent's pre-existing medical condition, the submission that the trial judge erred
in failing to make any deduction for vicissitudes from the amount awarded for past
economic loss and general damages rejected.
Malec v J C Hutton Pty Ltd (1990) 169 CLR 638; Koeck v Persic (1996) Aust Torts
Reports 81-386 followed; Hall v Tarlinton (1978) 19 ALR 501; Barber v Meadwell (1980)
32 ALR 162; Struthers v Harris [1983] WAR 123 considered.
(4) Given the evidence, no appealable error has been shown in the trial judge's
assessment of the respondent's residual earning capacity.
(5) There was no error in the trial judge taking into account the whole of the past wage
loss claimed by the respondent in respect of the period from the date of the accident to
September/October 1991.
(6) The purpose of particulars is to assist in having a fair trial, by an opposing party
being made aware, by the provision of particulars, of the nature of the case to be met.
However, the mere fact that a claim is not particularised does not, of itself, prevent such
a claim being made if there is evidence to support it. In the absence of any prejudice to
the appellant being asserted, the trial judge did not err in allowing the claim for future
out-of-pocket expenses.
R v Associated Northern Collieries (1910) 11 CLR 738 Bailey v Federal Commissioner
of Taxation (1977) 136 CLR 214; Dare v Pulham (1982) 148 CLR 658 followed;
Chakravarti v Advertiser Newspapers Ltd (unreported, High Court of Australia, 20 May
1998); Sims v Wran [1984] 1 NSWLR 317; Turner v Dalgety & Co Ltd (1952) 69 WN
(NSW) 228; Emmerton v University of Sydney [1970] 2 NSWR 633; Esso Petroleum Co
Ltd v Southport Corporation [1956] AC 218; Saunders v Jones (1877) 7 Ch D 435;
Philipps v Philipps (1878) 4 QBD 127; Lachaume v Broughton (1903) 3 SR (NSW) 475;
Perestrello E Companhia Limitada v United Paint Co Ltd [1969] 1 WLR 570; Domsala v
Barr [1969] 1 WLR 630 considered.
Mason P I agree with Beazley JA.
Powell JA I agree with Beazley JA.
Beazley JA This is a defendant's appeal from the award of damages made by
Badgery-Parker J in favour of the plaintiff/respondent for personal injuries
sustained on 10 April 1987. The trial was heard in June 1996.
Four principal issues arose on the appeal:
(i) whether the trial judge should have made a deduction for vicissitudes from
the amount awarded for past economic loss. There was also a challenge to the
award of economic loss for the period to September/October 1991;
(ii) whether such deduction should also have been made from the award for
general damages;
(iii) whether his Honour wrongly excluded the potentiality of non-tortious
work-related injuries from the assessment of the percentage deduction made for
vicissitudes. See Wynn v NSW Insurance Ministerial Corporation (1995) 184
CLR 485; and
(iv) whether his Honour erred in permitting any claim for future out-of-pocket
expenses when such claims, although notified in a general sense, had not been
particularised.
Deduction for Vicissitudes
It is convenient in the first instance to deal with the matter of principle raised
by the third issue.
URJ NESTLE AUSTRALIA LTD v McDOUGALL (Beazley JA) 3
It is well established that, in an award of damages for future economic loss,
account must be taken of the contingencies or vicissitudes or the "various
possibilities" which may affect a particular plaintiff's earning capacity: see
Bresatz v Przibilla (1962) 108 CLR 541 at 544; Teubner v Humble (1963) 108
CLR 491 at 508-509.
Contingencies may be positive or adverse and account has to be taken of both
in assessing the appropriate award of damages. Luntz in Assessment of Damages
for Personal Injury and Death 3"! Edition 1990 at 288, identifies sickness,
accident, unemployment and industrial disputes as the four major adverse
contingencies which expose employees to loss of income. The possibility of
future non-tortious injury (but not tortious injury), as well as the possible
development or deterioration of any pre-existing injury or condition, are other
adverse contingencies to which regard must be had: see Wynn at 499. The reason
for not taking into account the possibility of tortious injury in determining the
appropriate deduction to be made for vicissitudes was explained in Wynn, at
498-499:
"That possibility must be disregarded because, in the event of further injury,
damages would be assessed, as in this case, by allowing for any pre-condition
resulting in or having the possibility of resulting in impaired earning capacity.
Only by disregarding the possibility of further tortious injury does the law ensure
full compensation."
It is accepted that the "usual deduction" for contingencies is 15%. This
percentage was accepted by the High Court as "the practice" in New South
Wales, "subject to adjustment up or down to take account of the plaintiff's
particular circumstances": see Wynn at 498. See also Moran v McMahon (1985)
3 NSWLR 700 at 713-714; Burnicle v Cutelli [1982] 2 NSWLR 26 at 30; Hobell
v Leonard (unreported, New South Wales Court of Appeal, 29 May 1990);
Commercial Union Assurance Company of Australia Ltd v Pelosi (unreported,
New South Wales Court of Appeal, 2 February 1996). See also Government
Insurance Office of NSW v Wojnar (unreported, New South Wales Court of
Appeal, 15 December 1988) at 13 where Kirby P stated:
"A conventional discount of 15%... is allowed in many cases, although this
Court has been at pains to say that there is no warrant for inflexibility in fixing
the appropriate deduction. The eventualities which people, individually, are
likely to face in their lives necessarily vary enormously. They are particular to
each injured claimant."
A survey of the authorities reveals that discounts of up to 40% have been
applied for vicissitudes. Urban Transit Authority of New South Wales v Seitis
(unreported, New South Wales Court of Appeal, 17 May 1995) was one such
case, where this Court increased the discount for vicissitudes from 25% to 40%
where the plaintiff had cerebral palsy. It should be noted, however, that a 40%
discount has been described as "high": New South Wales Insurance Ministerial
Corporation v Sprengnagel (unreported, New South Wales Court of Appeal, 28
March 1995) per Priestley JA at 8. I make reference to these authorities, not to
seek any comparison with this case, but to emphasise the fundamental notion that
whether the usual discount or some other discount should be applied depends
upon the particular circumstances of the individual.
Trial Judge's Approach to Vicissitudes
In dealing with the percentage deduction to be made in respect of vicissitudes
in this case the trial judge stated:
4 UNREPORTED JUDGMENTS
"The question then is to what extent [the award for future economic loss]
should be discounted for vicissitudes. It is clear on the whole of the medical
evidence that before the accident the plaintiff suffered a condition of his spine
capable of producing significant disability, even disability as great as that which
he has in fact experienced, in the event that he was subjected to trauma. In a small
degree, his past history of pain in the neck and thoracic spine demonstrates his
vulnerability. His employment as a truck driver, had the injury in April 1987 not
occurred, would have provided ample opportunity for the sort of trauma which
could have rendered his spine symptomatic; but had that occurred he would have
been entitled to compensation for the consequences and I therefore leave that out
of account in determining the extent to which his assessed loss ought to be
discounted. However, his energetic lifestyle, involving as it did participation in
many vigorous sporting activities also provided ample opportunities for the
occurrence of trauma of a sort capable of precipitating symptoms and disability.
Taking all of these things into account it appears to me that it is appropriate to
discount the present value of his future loss of earnings by 25%."
Counsel for the appellant submitted that this passage revealed two errors in his
Honour's approach. First, it was submitted that the reference to "compensation"
for a work related injury was a reference to tortious injury (and, therefore, by
inference excluded an injury compensable by workers' compensation only)
contrary to the principle in Wynn. Secondly, that his Honour failed to include a
number of relevant lifestyle matters which should have impacted on the
percentage deduction to make in this case.
It is correct to say that this passage in his Honour's judgment, in so far as it
deals with the possibility of future work related injury, does not distinguish
between tortious and non-tortious injury. The language used by his Honour is
wide enough to encompass both and there is no specific indication in the
judgment as a whole to assist in determining his Honour's meaning. If the
passage was intended to deal only with tortious work-related injury, it is an
accurate statement of the law. If it intended to deal with work-related injury
which is not tortious in nature but which only gives rise to workers'
compensation, it is not. Likewise if it refers to both types of injury, it is not an
accurate statement of the law. If the passage is intended to refer only to tortious
injury, his Honour either omitted to deal with non-tortious work related injury as
part of the relevant contingencies which required consideration, or left the matter
unexpressed, or treated it as falling within the "usual contingencies" of which
account is taken. As it is not possible to determine whether there is in fact
appealable error in this part of his Honour's judgment, the preferable approach to
this ground of appeal is to consider the overall deduction for vicissitudes which
his Honour made to ascertain whether that was so low, given all the relevant
circumstances of this case, as to itself demonstrate error. This leads logically to
the second challenge made to the percentage deduction which his Honour
applied.
Neither party challenged the trial judge's finding that the respondent, who was
employed as a truck driver at the time of the accident, had a pre-existing spinal
condition which of itself was "capable of producing significant disability, even
disability as great as that which he has in fact experienced, in the event that he
was subjected to trauma" (emphasis added). This finding was significant and
would in the normal course result in a greater than usual deduction for
contingencies.
URJ NESTLE AUSTRALIA LTD v McDOUGALL (Beazley JA) 5
Counsel for the appellant submitted that there were other matters which his
Honour failed to take into account which were relevant to the assessment of the
deduction for
vicissitudes. He submitted that the fact that the respondent suffered "ongoing
conditions of pleurisy, bronchitis and pneumonia which would in all likelihood
have had some impact on his ability to perform full time work" had not been
taken into account. With respect to this submission I am unsure how a person
continues to have ongoing conditions of pleurisy and pneumonia. However,
bronchitis was a relevant consideration - but one in respect of which there was
no evidence which would require his Honour to deal with it outside the notion of
the usual vicissitude of sickness: see Luntz at 288.
I am of the opinion, therefore, that the only question which truly arises on this
issue is whether a 25% deduction for vicissitudes was too low, given the matters
which were relevant to the assessment. Those matters were the respondent's
pre-existing back condition; his energetic sporting life and his general health. The
trial judge, in dealing with his pre-existing back condition found that it could
have brought the respondent to the same condition as had the accident if he was
subjected to trauma. The trauma to which he might be subjected which was
relevant to this question could have arisen from any circumstance including
non-tortious work related trauma. Also relevant to the assessment was the
evidence of Dr Carey, the respondent's treating orthopaedic specialist was, that
the respondent's pre-existing back condition did not put him in any particularly
vulnerable category.
I can see no reason why it should be assumed that the trial judge, who is an
experienced judge, failed to take these matters into account. The deduction of
25% for vicissitudes was a substantial increase on the usual deduction. There
were no other significant factors, which, in my opinion, should have led to an
increase in the deduction to be allowed. A deduction of 25% was, on the
evidence, within an appropriate discretionary range, given the respondent's
particular circumstances. Accordingly, I am of the opinion that the percentage
deduction allowed by his Honour ought not be disturbed.
Should a Deduction for Vicissitudes have been made from the Awards for
Past Economic Loss and General Damages?
The appellant submitted that the trial judge erred in failing to make any
deduction for vicissitudes from the amount awarded for past economic loss and
general damages.
There is no particular rule or principle that there should be a deduction for
vicissitudes in respect of past economic loss or general damages. However, as
Miles CJ said in Koeck v Persic (1996) Aust Torts Reports 81-386 at 63,359:
"No authority was cited on the question whether allowance for vicissitudes or
contingencies should be made in components of an award of personal injury
damages other than for future loss of earning capacity. Logic would suggest that
such a course would be appropriate, although in practice it is probably done
intuitively. It has, as far as I am aware, never been suggested that 15 percent
should be deducted from the component of future pain and suffering because of
ordinary vicissitudes. Logic also suggests that regard should be had also to past
vicissitudes if there is an appreciable time between the injury and the hearing, as
there almost always is. The submission was made, and experience suggests that,
in practice, awards for pain and suffering, whether past or future, and awards for
6 UNREPORTED JUDGMENTS
loss of earning capacity, both past and future, are commonly discounted for
contingencies which arise on the evidence in a particular case or which are
applicable to a particular plaintiff."
However, if events have materialised between the date of injury and the date
of assessment, 'facts should be preferred to prophesies" and taken into account
in the assessment of other heads of damage: see Luntz p36. Conformably with
this principle, examples can be found where a trial judge has taken into account
factors which related to a plaintiff's pre-accident employment, such as strikes or
redundancies. Thus in Hall v Tarlinton (1978) 19 ALR 501, the trial judge made
a deduction to take into account the possibilities that the opportunities of working
overtime may be reduced, or that the plaintiff may be retrenched and so on. The
Full Court agreed with the trial judge that it would be impossible to be precise
about this matter, and concluded that they could not be satisfied that the trial
judge was wrong in his conclusions on the issue. In Barber v Meadwell (1980)
32 ALR 162, the trial judge made a deduction to take into account periods of
unemployment. The Court was not able to say that the trial judge was wrong in
this approach. In Struthers v Harris [1983] WAR 123, the trial judge discounted
the pre-trial loss of earning capacity by 15%. The Court found that this was
excessive, saying at 125:
"There is nothing in his 'previous work history' as opposed to the general
vicissitudes of life so-called which would as a probability support the conclusion
that had he not been injured he would not have been in that employment as at the
date of the assessment. If some discounting is called for it would, in our opinion,
be less than 15 per cent."
In Malec v J C Hutton Pty Ltd (1990) 169 CLR 638 at 645, Deane, Gaudron
and McHugh JJ stated that damages for pain and suffering (as well as the Griffiths
v Kerkemeyer damages awarded in that case) had to be reduced "to take account
of the chance that factors, unconnected with the defendant's negligence, might
have brought about the onset of a similar [pre-existing] neurotic condition ".
Their Honours drew no distinction between past and future losses. Luntz adopts
this view and states at 131 that "the same approach [to the reduction for
vicissitudes in respect of future economic loss] should apply to all heads of
damages, not only loss of earning capacity."
The question whether a deduction should be made from heads of damage other
than future economic loss was also considered by Miles CJ in Koeck v Persic.
His Honour stated at 63,360-63,361:
"... I think that Luntz's view is consistent with the authorities and is to be
accepted....However, the question whether a reduction for contingencies is
inadequate or excessive in a particular case, is one that should be approached
with considerable caution by an appeal court. The decision of the trial judge on
the issue of contingencies is essentially an exercise in value judgment or in
nature, *quasi discretionary": see Moran v McMahon, per Priestley JA at Aust
Torts Reports 69.586; NSWLR 723. It is an assessment of the impact of
hypothetical events which may occur in the future or may have occurred in the
past or both. The trial judge must base the prediction on the facts as found. In that
sense the prediction is an inference, but it is not an inference of fact. It is an
inference from facts. Hence whilst the finding as to the plaintiff's capacity to earn
immediately before the injury is a finding of fact, any finding as to what the
plaintiff was likely to have earned, if not so injured, either in the past between the
date of injury and hearing, and in the future after the date hearing, is a prediction
and not a finding of fact. Hence, in my view, this Court as a court of appeal is not
URJ NESTLE AUSTRALIA LTD v McDOUGALL (Beazley JA) 7
in a position like that in Warren v Coombes (1979) 142 CLR 531 where it was
said that the appellate court is as able to draw inferences from primary facts as
is the trial judge. Rather the position is like that in Gronow v Gronow (1979) 144
CLR 513 where the primary decision being one essentially of discretion, the
appellate court will not substitute its own view for that of the trial judge except
in the well established categories of demonstrable error of fact or law or manifest
unreasonableness or injustice."
I agree with his Honour's remarks.
There is no suggestion that the appellant made any particular submission at
trial that a deduction for vicissitudes should be made from the awards for past
economic loss or general damages. Given that his Honour clearly had in mind the
respondent's pre-existing medical condition I do not consider that this Court
should infer that the trial judge did not make the "intuitive" assessment to which
Miles CJ referred and which I consider is an accurate reflection of the manner in
which trial judges usually approach their tasks in this regard. I would reject this
ground of appeal.
Future Economic Loss: Basis of Calculation
The appellant further submitted that his Honour erred in the assessment of the
respondent's residual earning capacity in assessing it at $100 per week. It was
submitted that the respondent's pre-trial earnings in his job as a fork lift driver at
an orchard represented his true earning capacity upon which the calculation of
future economic loss should have been based.
Ido not consider that the appellant has demonstrated any error in his Honour's
approach on the issue. The respondent's employer at the orchard, Mr Plunkett,
gave evidence that he had given the respondent a job in circumstances where the
respondent, whom he already knew, had approached him "out of the blue" for
employment and suggested to him that there was a WorkCover Incentives
Scheme for Employers (WISE), which would pay some of his wages. Mr
Plunkett gave evidence that the respondent "does have problems from time to
time" with his work and that he is instructed to let the employer know if that is
the case and "somebody else will take over his job". He said the respondent had
required some time off work since taking up the employment at the orchard. Mr
Plunkett said that he would consider continuing to employ the respondent at the
expiration of the scheme but that "because of the situation we have to have
somebody that is reliable during the season and we have to have somebody we
know can do the job.... it is unlikely we will be able to offer him work after that."
He also gave the following evidence:
"Q. If the protection that you have under the WISE scheme, in so far as any
fresh injury is concerned, is withdrawn, would that have any effect upon your
decision whether you would employ him or not?
A. Yes, if that is withdrawn we would not take the risk."
Given this evidence, I am of the opinion that no appealable error has been
shown and that his Honour's assessment of the respondent's residual earning
capacity should not be disturbed.
Past Economic Loss: Claim for the Period from Date of Accident to
September/October 1991
It was argued that the trial judge also erred by taking into account the whole
of the past wage loss claimed by the respondent in respect of the period from the
date of the accident to September/October 1991, in circumstances where there
8 UNREPORTED JUDGMENTS
was no evidence to support that loss. Counsel for the appellant submitted that the
only evidence in respect of the period was that the respondent "did his usual
work". This submission derived from the respondent's evidence in chief, where
he had responded affirmatively to the question "I think you continued your truck
driving...?". Counsel for the appellant also submitted that the "schedule of trips"
which was tendered in the respondent's case revealed that the respondent had
been doing regular long hauls from Shepparton to Sydney and return. Further, in
cross examination the respondent had given the following evidence:
"Q. And thereafter, you would agree would you not, that you did all of your
normal driving work?
A. Yes, I imagine so if that's what... "
The respondent was also cross-examined on the contents of the schedule of
trips, in respect of which he gave this evidence:
"Q. If anything, I put it to you, that the frequency of those trips was more
frequent than was usually the case?
A. If the work's there, you have got to do it.
Q. Do you agree with what I'm putting to you?
A. How do you mean?
Q. That during that period if anything your (sic) were doing more trips that you
usually, did even before this accident?
A. I don't know.
Q. Well, an average of five a fortnight is about ten a month, is it not?
A. Yes.
Q. And an average of 12 is a bit more than ten a month?
A. Mmm I suppose so, yeah. Might have been some weekend work.
Q. But you're asking his Honour to accept, Mr McDougall, that shortly prior
to you going off in September 1991, you were doing less than you had previously
been driving because of problems in your back. It just can't be right, can it?
A. I don't think I said I was doing less. I said my back was getting sorer.
Q. Do you agree with me then that you were not in fact doing any less driving
jobs before you went off, and what you ask his Honour to accept is that you went
off because of the back pain that you were experiencing in doing the work that
you were performing; is that a correct statement?
A. Sorry? Can you repeat that.
Q. What you are saying to his Honour is, it is not that I was driving less than
Thad been before the accident, but that I was having increasing pain whilst doing
that driving work; that's what you are saying is it?
A. I think so, yes."
Counsel for the appellant also relied upon the history which the respondent
gave to the doctors was to the effect that he had continued with his usual work
until September/October 1991, and the respondent's employer's evidence that up
until the respondent went off work in September/October 1991 he "had been
doing the normal driving duties".
If this was the only evidence on this issue, the appellant's point would be good.
However, there was other evidence which did support the respondent's claim for
this period. The respondent gave evidence that prior to the accident he averaged
about 5 trips per fortnight or 120 trips per year. His schedule of trips revealed that
in the post accident period to September 1991 he averaged 100 trips per year.
During the course of his cross-examination he gave this evidence:
"Q. Well, how long before you ceased in 1991, do you say you first started to
do something less than your usual driving trips?
URJ NESTLE AUSTRALIA LTD v McDOUGALL (Beazley JA) 9
A. I couldn't tell you for sure. I was taking trips off. Every now and again I
would ring them up and tell them they will have to put another driver in the truck.
I wouldn't get a doctor's certificate. I would just take a trip off."
There was also a schedule of comparable employees handed to the trial judge
as part of the respondent's "Schedule of Damages". No objection was taken to
that part of the schedule by counsel for the appellant. That schedule supported a
conclusion that the respondent was earning less than those comparable
employees during that period. There was also the history recorded by Dr Voss, a
specialist physician retained by the appellant to provide a medico-legal report in
the matter, that the respondent "recalls missing out on some trips, but did not
'record it as sick leave', but 'just took a trip off.'"
His Honour was entitled to take the whole of the evidence into account,
including that part which supported the claim for the period to October 1991. In
my opinion no error has been shown in his Honour's assessment of economic loss
in this regard.
Claim for Future Out-of-Pocket Expenses
In the respondent's statement of claim, filed in September 1992, it was alleged
that the plaintiff's treatment was continuing and that particulars of past and future
out-of-pocket expenses would be provided in due course.
On 2 February 1996, the respondent filed an amended statement under Pt33 of
the Supreme Court Rules. Pt33, r8A provides, in respect of claims for damages
for personal injuries, that a plaintiff may not file a notice to set proceedings down
for trial:
"... [U]nless the party has served on all other parties who have an address for
service in the proceedings a statement seeing out -
(a) particulars of injuries received;
(b) particulars of continuing disabilities;
(c) details of out-of-pocket expenses; and
(d) where any claim is made in respect of loss of income -
(i) the name and address of each employer during the 12 months preceding the
accident together with details of the periods of employment, capacity in which
employed and net earnings during each period of employment;
(ii) the name and address of each employer since the accident together with
details of the periods of employment, capacity in which employed and net
earnings;
(iii) the amount claimed in respect of loss of income to the date of the
statement by comparison between what the plaintiff has earned since the accident
and what he [or she] would have earned but for the accident, setting out, in
respect of what the plaintiff would have earned but for the accident, particulars
thereof including where appropriate, particulars of the earnings of comparable
employees and the identity of those employees or, where appropriate, particulars
of payment which the plaintiff would have received under a relevant award or
industrial agreement and the description of that award or industrial agreement;
(iv) particulars of any alleged loss of earning capacity and future economic
loss;
(v) where self employed, such additional particulars as will achieve full
disclosure of the basis of the claim for loss of income; and
(vi) particulars of any claim in respect of services of a domestic nature or
services relating to nursing or attendance,
together with -
10 UNREPORTED JUDGMENTS
(e) copies or originals of all documents available to the plaintiff in support of
a claim for special damage and economic loss, whether past, present or
continuing, including -
(i) hospital, medical and similar accounts (f) copies or originals of all hospital
and medical reports available at the time of serving the statement upon which the
plaintiff intends to rely at the trial."
It will be seen that r8A, whilst not expressly requiring a claim for future
out-of-pocket expenses to be particularised, envisages that if such a claim is
made, it will be supported by relevant documentary material. The respondent's
amended Pt33 statement provided particulars of on-going disabilities. However,
the only particularisation of out-of-pocket expenses was in these terms:
"The workers compensation insurer for the Plaintiff's employer has advised
that it has paid medical and other expenses of $52,426.65. In addition, the
plaintiff has incurred expenses which have not been reimbursed. Particulars of
these latter expenses and his expected future expenses are not presently
available."
There is no indication in the appeal book as to what documentation was
provided in support of any of the respondent's claim for out-of-pocket expenses
as required by r8A(2)(f).
On the third and last day of the hearing, after the respondent had completed his
evidence, the respondent's counsel handed up a document entitled "Plaintiff's
Schedule of Damages". Relevantly, this included a claim for future out-of-pocket
expenses in excess of $200,000. The specific claims were:
"FUTURE OUT-OF-POCKET EXPENSES
(life expectancy of 42 years according to Australian life tables
Medical Consultations
-Dr Zelwer, psychiatrist at $160.00 weekly
(160.0 x 1255.2) 200,832.00
-Mr Zaitzev, physiotherapist at $49.40 weekly
(49.40 x 1255.2) 62,007.00
-Mr Goegan, masseur at $11.50 weekly
(11.50 x 1255.2) 14,435.00
-Dr McKellar (variable)
-Dr Carey (variable)
Medication
-Digesic for pain at $13.10 weekly
(13.10 x 1255.2) 16,443.00
-Ecotrin for pain and anti-inflammation
(6.65 x 1255.2) 8,347.00
-Prozac for depression
(16.80 x 1255.2) 21,087.00
-Pepcidine for ulcers
(variable)"
At trial, the appellant's counsel objected to this claim, no specific notice
having been given of it. Counsel for the respondent sought to maintain the claim
by categorising it as "an ambit claim", whatever that might mean. His Honour
URJ NESTLE AUSTRALIA LTD v McDOUGALL (Beazley JA) 11
allowed the claim to be made and awarded a total sum of $75,000 On the appeal,
counsel for the appellant submitted that the claim should not have been allowed.
He did not seek to make out any case of prejudice. Rather, he submitted:
"Particulars are required in order to identify the nature and extent of the case
against which the defendant is called upon to answer. Without particulars of these
items it ought not to have been allowed at all."
A complaint of this nature has drawn some judicial sympathy. In Esso
Petroleum Co Ltd v Southport Corporation [1956] AC 218, Lord Radcliffe said
at 241:
"Proper use of [particulars] shortens the hearing and reduces costs. But if an
appellate court is to treat reliance upon them as pedantry or mere formalism, I do
not see what part they have to play in our trial system."
This comment emphasises the important part which particulars play in the
adversarial trial system. Their proper function has been the subject of frequent
judicial comment, the essence of which is that the purpose of particulars is to
assist the having of a fair trial, by an opposing party being made aware, by the
provision of particulars, of the nature of the case to be met. In R v Associated
Northern Collieries (1910) 11 CLR 738, Isaacs J described the function of
particulars in these terms at 740-741:
"T take the fundamental principle to be that the opposite party shall always be
fairly appraised of the nature of the case he [or she] is called upon to meet, shall
be placed in possession of its broad outlines and the constitutive facts which are
said to raise his [or her] legal liability. He [or she] is to receive sufficient
information to ensure a fair trial and to guard against what the law terms
"surprise":
but he [or shed is not entitled to be told the mode by which the case is to be
proved against him [or her]."
Gibbs J in Bailey v Federal Commissioner of Taxation (1977) 136 CLR 214
said at 219:
"Particulars fulfil an important function in the conduct of litigation. They
define the issues to be tried and enable the parties to know what evidence it will
be necessary to have available and to avoid taking up time with questions that are
not in dispute. On the one hand they prevent the injustice that may occur when
a party is taken by surprise; on the other they save expense by keeping the
conduct of the case within due bounds."
Hunt J in Sims v Wran [1984] 1 NSWLR 317 said at 321, that the question is
not whether one party has adequate knowledge of the actual facts, but "it is a
question of whether he [or she] has adequate knowledge of what the other party
alleges are the facts, for that is the case which he [or she; must meet'. See also
Turner v Dalgety & Co Ltd (1952) 69 WN (NSW) 228 at 229; Emmerton v
University of Sydney [1970] 2 NSWR 633 at 635; Bailey v Federal
Commissioner of Taxation at 219, 220, 221; Sims v Wran at 321 per Hunt J;
Saunders v Jones (1877) 7 Ch D 435 at 451; Dare v Pulham (1982) 148 CLR 658;
Philipps v Philipps (1878) 4 QBD 127 at 139; Lachaume v Broughton (1903) 3
SR (NSW) 475; Perestrello E Companhia Limitada v United Paint Co Ltd [1969]
1 WLR 570; Domsala v Barr [1969] 1 WLR 630.
Gaudron and Gummow JJ, of the High Court, said more recently in
Chakravarti v Advertiser Newspapers Ltd (unreported, High Court of Australia,
20 May 1998) at 25:
12 UNREPORTED JUDGMENTS
"Doubtless, the pressures on court time and the cost of litigation ordinarily
require that, at trial, a party be held to the particulars or those parts of the
pleadings which specify the case to be made if departure would occasion delay
or disadvantage the other side."
However, the mere fact that a claim is not particularised does not, of itself,
prevent such a claim being made if there is evidence to support it. Thus, in Dare
v Pulham, the High Court (Murphy, Wilson, Brennan, Deane and Dawson JJ) said
at 664:
"Pleadings and particulars have a number of functions: they furnish a
statement of the case sufficiently clear to allow the other party a fair opportunity
to meet it (Gould and Birbeck and Bacon v Mount Oxide Mines Ltd (In liq)
[(1916) 22 CLR 490 at 517]); they define the issues for decision in the litigation
and thereby enable the relevance and admissibility of evidence to be determined
at the trial (Miller v Cameron [(1936) 54 CLR 572 at 576-577]); and they give
a defendant an understanding of a plaintiff's claim in aid of the defendant's right
to make a payment into court. Apart from cases where the parties choose to
disregard the pleadings and to fight the case on issues chosen at the trial, the relief
which may be granted to a party must be founded on the pleadings (Gould and
Birbeck and Bacon [(1916) 22 CLR at 517, 518]; Sri Mahant Govind Rao v Sita
Ram Kesho [(1898) LR 25 Ind App 195 at 207]). But where there is no departure
during the trial from the pleaded cause of action, a disconformity between the
evidence and particulars earlier furnished will not disentitle a party to a verdict
based upon the evidence. Particulars may be amended after the evidence in a trial
has closed (Mummery v Irvings Pty Ltd [(1956) 96 CLR 99 at 111, 112, 127]),
though a failure to amend particulars to accord precisely with the facts which
have emerged in the course of evidence does not necessarily preclude a plaintiff
from seeking a verdict on the cause of action alleged in reliance upon the facts
actually established by the evidence (Leotta v Public Transport Commission
(NSW) [(1976) 9 ALR 437 at 446; 50 ALJR 666 at 668])."
The Court continued at 665:
"In the event that evidence, admitted without objection, tends to establish a
claim for damages higher than the claim made in the particulars, the defendant
is placed in no stronger position to avoid an assessment based upon that evidence
than he would be if a verdict was returned on facts not alleged in particulars but
admitted without objection at the trial to establish the cause of action pleaded."
It must be always borne in mind, however, that the overriding principle is that
of fairness.
Turning to the particular circumstances of this case, there was, in fact, no
evidence to support the lavish claim for ongoing psychiatric expenses, save that
it was known from the medical evidence that the respondent saw a Dr Zelwer on
two occasions, and that Dr Zelwer was of the opinion he would need long term
treatment for his depression in the form of medication (prozac) as well as an
unspecified form of "long time support". There was no evidence as to whether
prozac could only be prescribed by a psychiatrist or whether it could be
prescribed by a general practitioner. In any event, there was no evidence that the
respondent had had or was having any form of psychiatric assistance other than
for the two consultations with Dr Zelwer.
-There was evidence, however, of the frequency and cost of physiotherapy
treatment from 1991 to the date of trial. This averaged three visits per month at
a cost of $25 per visit. In addition there was evidence of the frequency and cost
of remedial massage which the respondent had had up to the date of trial. There
URJ NESTLE AUSTRALIA LTD v McDOUGALL (Beazley JA) 13
was also evidence of the cost the respondent had expended on medication in the
eighteen months prior to trial. This was an average of between $800 - $900 per
annum or about $15.60 - $17.50 per week.
The trial judge was satisfied of the respondent's need for future physiotherapy
and/or remedial massage. His Honour was also satisfied he would need analgesia
for back pain. His Honour made an arbitrary allowance for those items in a sum
of $50,000. He did not accept the extensive claim for psychiatric treatment and
depressive medication. Rather, he found:
"IT am satisfied that he will need treatment from time to time with
anti-depressant medication and, to monitor that, attendance on medical
practitioners including a psychiatrist on occasions."
His Honour also found that he would need to attend upon his medical
practitioner for his back from time to time. His Honour awarded $25,000 "for
those aspects of his ongoing and future treatment".
The future, of course, can only be predicted from knowledge from the past or
present. In the present case, the respondent's past and continuing treatment was
particularised to the appellant, even if only in a general sense. Having regard to
the evidence which was available of past and continuing treatment, the award of
$75,000 was sound. Indeed, counsel for the appellant did not contest the amount
awarded. He contested the award of any amount, given the absence of any
pre-trial particularisation of the claim.
Whilst no criticism can or should be directed to a party in the position of the
appellant for objecting, at trial, to this claim being made in the way it was, I do
not consider his Honour erred in allowing it. The appellant was in possession of
the medical evidence prior to the trial, from which it was obvious that the
respondent was having treatment and medication in respect of which the claim
for future expenses was made. It was also aware of the amount claimed for past
medical treatment. It is not clear whether the appellant had ever been provided
with a breakdown of these costs. However, if it was not, there was no evidence
that it had sought any particularisation of it. More significantly, the appellant
advanced no case of prejudice either before the trial judge or on appeal in support
of this ground of appeal. There was no suggestion, for example, that it had been
deprived of an opportunity to properly assess the damages in the matter so as to
make a payment into court, or that it could not assess the veracity of the amounts
claimed or the basis upon which they were claimed. Its stance was based on what
it perceived was a matter of principle. If a claim was not particularised, it should
not be allowed.
A trial judge has a wide discretion in the conduct of a trial, that discretion
being governed by the overriding principle that to the extent that our system of
law allows, all parties to the litigation be treated fairly. In the absence of any
prejudice to the appellant being asserted, his Honour did not err in allowing the
claim for future out-of-pocket expenses.
In my opinion, the appeal should be dismissed with costs.
Appeal dismissed with costs.
Counsel for the appellant: P J Deakin QC
Solicitors for the appellant: John Joseph Mannix
Counsel for the respondent: C O'Connor QC/M F Fletcher
14 UNREPORTED JUDGMENTS
Solicitors for the respondent: Taylor & Scott
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