JAMES HARDIE AND COY PTY LTD v TOMPSON v ANOR [1998] NSWCA 114
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JAMES HARDIE & COY PTY LTD v TOMPSON
SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL
PRIESTLEY, BEAZLEY JJA and ROLFE AJA
22-23 April, 5 May 1998
[1998] NSWCA 114
DAMAGES FOR PERSONAL INJURIES
The Dust Diseases Tribunal of New South Wales
Action for damages for personal injuries a single cause of action compensated by the
award of a single capital sum: hence payments made pursuant to s8(1)(a) of the Workers
Compensation (Dust Diseases) Act 1942 even where no claim for past or future economic
loss must be deducted: James Hardie & Coy Pty Ltd v Newton (1997) 42 NSWLR 729
followed.
Leave to Appeal
As the damages are by way of the award of a single capital sum, which constitutes a
"final decision" pursuant to s32 of the Dust Diseases Tribunal Act 1989, leave to appeal
is not required where the amount of the judgment exceeds $10,000 although the
component thereof which is attacked is less than $10,000: Dunn v Ross Lamb Motors &
Anor [1978] 1 NSWLR 26 distinguished.
Damages
In assessing the rate per hour for the award of Griffiths v Kerkemeyer damages his
Honour was not shown to be in error.
Priestley JA There were only a few live issues when this appeal came on for
hearing. They are all identified in the reasons of Rolfe AJA which I have had the
advantage of reading.
For the reasons he gives I agree that the first respondent did not need leave to
cross-appeal, and that extension of time to bring a cross-appeal should be
granted.
LT also agree that no error was shown by the first respondent to have been made
by the trial judge on the Griffiths v Kirkemeyer point. This seems to me to follow
inevitably once the facts are understood in the way Rolfe AJA has set them out,
with which I agree. The cross-appeal should therefore be dismissed.
Also, I agree with the reasons given by Rolfe AJA for deciding to make no
order for costs in favour of any of the parties to the proceedings.
Beazley JA I agree with Rolfe AJA.
Rolfe AJA
Introduction
The plaintiff/first respondent, Mr Bruce Stanley Charles Tompson, ("Mr
Tompson"), for whom Mr J T Rush of Senior Counsel and Mr R A Sorby of
Counsel appeared, was born on 15 November 1927. He left school in about 1940,
entered the workforce at the age of fourteen years in 1941, and engaged in
various manual occupations until becoming an employee of the second
defendant/appellant, James Hardie & Coy Pty Ltd, ("James Hardie"), for which
Mr C G Gee of Queen's Counsel and Mr D E Graham of Counsel appeared, in
1949, when he was aged twenty two years. He was employed by James Hardie
in premises adjacent to those on which the first defendant/second respondent,
Goodyear Australia Ltd, ("Goodyear"), for which Ms D G Stewart of Counsel
appeared, carried on its business.
2 UNREPORTED JUDGMENTS
He continued in his employment with James Hardie until about 1982, when he
retired. He married on 14 September 1980.
In September 1996 he developed symptoms, which were diagnosed as
mesothelioma by February 1997. He is suffering from that terminal illness and
his life expectancy was estimated, in August 1997, to be a "matter of months".
The Proceedings Before The Dust Diseases Tribunal of New South Wales
Mr Tompson brought proceedings against Goodyear and James Hardie in the
Dust Diseases Tribunal of New South Wales. They were heard by his Honour
Judge Armitage on 10, 11 and 12 November 1997, and, on 12 November 1997,
he delivered an ex tempore judgment. Before his Honour Mr Rush appeared for
Mr Tompson, Ms Stewart for Goodyear and Mr J A McIntyre of Counsel for
James Hardie. The liability of Goodyear and James Hardie for breaches of
common law and statutory duty was not in issue, and they agreed on the way in
which the damages, which, for all intents and purposes, are assessed as common
law damages, should be apportioned between them. His Honour found that Mr
Tompson was entitled to a judgment in the sum of $142,063. The component
parts thereof were $115,000 for general damages, $15,000 for general damages
for loss of expectation of life, $8,500 for damages based on Griffiths v
Kerkemeyer (1976-1997) 139 CLR 161, $2,250 for damages for loss of services,
$1,250 for interest on past general damages and $63 for interest on past Griffiths
v Kerkemeyer damages. The claim for Griffiths v Kerkemeyer was based on the
services Mrs Tompson rendered gratuitously to her husband.
James Hardie's Appeal
In November 1997 James Hardie filed a Notice of Appeal in which it asserted
that his Honour erred in failing to deduct from the award of damages the amount
of certain statutory weekly compensation paid and to be paid to Mr Tompson by
the Workers Compensation (Dust Diseases) Board pursuant to s8(1)(a) of the
Workers Compensation (Dust Diseases) Act 1942; in the awarding of damages
pursuant to Griffiths v Kerkemeyer and by way of general damages and damages
for loss of life expectancy; and as to costs.
On 8 April 1998 James Hardie abandoned all save the first ground of appeal.
Before the appeal was heard, it was agreed that conformably with this Court's
decision in James Hardie & Coy Pty Ltd v Newton (1997) 42 NSWLR 729, in
which judgment was delivered on 22 December 1997 ie some six weeks after his
Honour gave judgment, his Honour was in error in failing to deduct the amount
of such payments. Their amount was agreed between Mr Tompson and James
Hardie as $13,633.88 and, to that extent, it was agreed that the judgment should
be reduced. No application was made on behalf of Mr Tompson for leave to
re-argue that decision, nor was it submitted that it was wrong.
Before dealing further with the appeal it is necessary to note that on 3 April
1998 Mr Tompson made an application to his Honour by a Notice of Motion,
pursuant to s13(6) of the Dust Diseases Tribunal Act 1989, seeking to have him
reconsider the portions of his judgment that dealt with the applicable rate to
award for past Griffiths v Kerkemeyer. His Honour was requested to re-determine
that rate at $18 per hour in lieu of $12 per hour, which he found in his original
judgment. He declined the application, not because he thought it was without
merit, but because he considered that he was constrained to do so by the decision
of this Court in CSR Ltd & Anor v Bouwhuis (1991) 7 NSWCCR 223. Towards
the conclusion of his reasons he said:-
URJ JAMES HARDIE & COY PTY LTD v TOMPSON (Rolfe AJA) 3
"T am of the view, though reluctantly, that the principle of the rarity of the
circumstances in which applications for reconsideration should be granted under
s13(6), as referred to by the judgments from which I have quoted in Bouwhuis,
is of greater importance than the merits in this case because of the consideration
powerfully adumbrated by Mr Parker (with whom Ms Stewart, counsel for the
first defendant, associated herself in her submissions in this respect) to the effect
that there must be finality to litigation, and that it is not a sufficient justification
for reconsideration that an argument put at a hearing, which appeared at the time
to the trial Judge to be correct, now appears to that same person to be incorrect.
This is, I think, one such case. For that reason and that reason alone, although I
think the merits favour the plaintiff on this application, I think I should decline
it and I therefore dismiss the Notice of Motion."
That judgment was delivered on 3 April 1998. His Honour ordered each party
to pay his and its own costs. No appeal or application for leave to appeal has been
brought in respect of that decision. The only possible relevance of it to the
present appeal is on discretionary issues to which I shall refer, although, on
reflection, I do not think it is relevant to them. It cannot have any effect upon, nor
can it influence, the view this Court should take in relation to the matters of
substance argued on the appeal. They stem solely from the judgment of 12
November 1997.
On 8 April 1998 there was a directions hearing before the Registrar of this
Court at which James Hardie abandoned Grounds 6 to 16 of its Notice of Appeal
leaving the deductibility of the payments as the only issue. At that directions
hearing Goodyear advised that it would "probably not be pursuing its
cross-appeal", and those representing Mr Tompson advised that he would be
pursuing a cross-appeal on the Griffiths v Kerkemeyer damages. On the same day
notice was given that not only was there a dispute about the rate of $12 per hour,
but also that the duration his Honour allowed for future care was too short. This
latter point was not pursued on the hearing of the appeal.
Mr Tompson's Notice Of Cross-Appeal
When the appeal came on for hearing Mr Tompson applied to bring a
cross-appeal asserting that his Honour erred in:-
(a) applying the rate of $12 per hour in relation to the commercial cost of
services provided to him by his wife pursuant to the principles in Griffiths v
Kerkemeyer;
(b) failing to give reasons for applying that rate;
(c) failing to consider the evidence of Dial-An-Angel "being the only
evidence in relation to the commercial cost of services" so provided;
(d) failing to apply the rate of $18 per hour in relation to those services;
and
(e) discounting his award in relation to those damages and doing so by
the amount of 33.5%.
Two preliminary questions were raised in respect of this application. Firstly, it
was submitted that Mr Tompson required leave to cross-appeal pursuant to the
provisions of s32 of the Dust Diseases Tribunal Act. That section provides a right
of appeal to this Court by a party dissatisfied with a decision of the Tribunal, but
an appeal will lie only by leave if it is from an interlocutory decision, a decision
as to costs only, or an appeal from a "final decision" awarding an amount less
than $10,000. The Act does not define "final decision", but it defines "decision"
as including a "judgment, order and ruling". It was submitted on behalf of James
4 UNREPORTED JUDGMENTS
Hardie that this was an appeal from the award of damages in relation to the
Griffiths v Kerkemeyer claim, which did not exceed $10,000 and, accordingly,
leave was required. It was submitted on behalf of Mr Tompson that the relevant
figure to which regard had to be had was the total amount of the judgment, which
obviously exceeded $10,000. It was further submitted that the fact that one was
only looking to a component of that judgment, which in itself may not exceed
$10,000, was not the appropriate test.
In James Hardie & Coy Pty Ltd v Newton Handley JA said, p731:-
"Mr Newton had a single cause of action for damages for the personal injuries
he suffered as a result of contracting mesothelioma: Brunsden v Humphrey
(1884) 14 QBD 141 and Cartledge v E Jopling & Sons Ltd [1963] AC 758 at 780.
At common law, which applies without modification in this case, these damages
must be assessed once, and once only, by the award of a single capital sum to
compensate the plaintiff for all his losses, past, present and future."
Stein JA, with whom Cole JA agreed, approached the matter on the basis that
the issue was whether collateral benefits were deductible from common law
damages: p734. His Honour said, on the same page, that if the respondent in that
case had been making a claim for economic loss, the pension payments would
have been deductible.
In my opinion, the relevant words of s32 direct attention to the "final
decision". In this case that was his Honour's judgment for Mr Tompson which
was for an amount in excess of that for which leave to appeal is required. Once
that is established the fact that only a component of that judgment is attacked
does not, in my opinion, mean that leave to appeal is required. The legislature has
shown, as I will demonstrate, that it is well able to accommodate the position
when it wishes to make an appeal on the component parts of a decision subject
to leave.
It was submitted on behalf of James Hardie that the decision of this Court in
Dunn v Ross Lamb Motors & Anor [1978] 1 NSWLR 26 required the Court to
look at the individual components, which were in issue on the appeal, to
determine the amount involved. That is undoubtedly so having regard to the
terms of the legislation there under consideration. In that case the Court was
concerned with s130 of the District Court Act 1973, which provided that an
appeal lay to the Supreme Court:-
"Where the application or appeal involves directly or indirectly any claim,
demand or question to or respecting any property or any civil right amounting to
or of the value of.."
At the relevant time leave was not required if the amount so involved was
$3,000 or upwards, but otherwise it was.
In that case the plaintiff had been awarded $10,562.46, which the trial Judge
had reduced by twenty five per cent, ie $2,640.61, for contributory negligence.
The matter sought to be put in issue on the appeal was the amount of contributory
negligence. Reynolds JA, with whom Moffitt P and Hope JA agreed, noted that
the appeal did not seek a new trial on all or any issues, but was "only against the
finding of contributory negligence".
His Honour stated that if the wording of the District Court Act had followed
35 of the Judiciary Act 1903, there would be no doubt about the competency of
the appeal, because it would be in respect of a judgment given or pronounced in
respect of a matter at issue amounting to $3,000. He referred to Moller v Roy
(1975) 132 CLR 622 at p624, and continued, p28:- "The framers of the District
Court Act 1973 were not faced with the same problem, and have not chosen to
URJ JAMES HARDIE & COY PTY LTD v TOMPSON (Rolfe AJA) 5
relate the test for appeals as of right to the amount of the judgment below. It is
the appeal that must involve directly or indirectly the claim, demand or question
to or respecting any property or any civil right amounting to or of the value of
$3,000 or upwards. This appeal as constituted plainly does not involve such a
matter, and leave is required." (His Honour's emphasis.)
That statement, in my respectful opinion, points up the difference between the
two statutory provisions and, having regard to the amount for which his Honour
ordered judgment in the present case, there is an appeal as of right,
notwithstanding that only a component of that judgment, which concerns an
amount which does not exceed $10,000, is involved.
The second objection is that the cross-appeal is out of time. So much was not
in issue and the question was whether leave should be granted to extend the time.
James Hardie submitted that leave should not be granted essentially because it
had been required to contest the review proceedings before Armitage J on 3 April
1998 and, notwithstanding that it was successful in its opposition to the orders Mr
Tompson then sought, it was not awarded its costs. Rather his Honour ordered
that each party pay his and its own costs. In these circumstances it was submitted
that not only had Mr Tompson availed himself of a potentially available remedy
in which he had failed, but that James Hardie had been put to the expense of
successfully opposing that. In this way it was submitted James Hardie suffered
prejudice, such that the time should not be extended. On the other hand from the
time of filing its Notice of Appeal until 8 April 1998 James Hardie had had in
issue the appropriateness of the Griffiths v Kerkemeyer award. In those
circumstances it was reasonable to anticipate, at least until 8 April 1998, that that
would be an issue on the appeal, although if James Hardie had not been
successful in contesting his Honour's findings that would not have meant, of
itself, that Mr Tompson would have had that part of the judgment reconsidered,
in the absence of a formal application on his part. This is a matter which I think
can be taken into account in considering any assertion of prejudice.
So far as that matter of asserted prejudice is concerned it could, in my opinion,
have been sought to have been overcome by seeking leave to appeal against his
Honour's decision not to award James Hardie, which was undoubtedly the
successful party on the review application, its costs. No such application was
made and, in the circumstances, it cannot be said that James Hardie has suffered
any prejudice. Even if I be wrong in this view, I am of the opinion that the
relevant prejudice, for present purposes, is a prejudice relating to the way in
which the party complaining of it has conducted the litigation, or is prejudiced in
meeting the claim being propounded. In the absence of prejudice of that type, and
having regard to the particular circumstances of this case, I would be prepared to
extend to Mr Tompson the time for filing the Notice of Cross-Appeal.
The Court decided that it would hear argument on the two preliminary points
and the substance of the appeal and give its decision on all matters at the one
time. I would propose that the objection to Mr Tompson's cross-appeal on the
ground that leave is required be rejected, and that Mr Tompson be granted an
extension of time to bring the cross-appeal.
The Substance Of Mr Tompson's Cross-Appeal
Before turning to the precise complaints raised by the cross-appeal to which I
have referred, I should record that this matter was heard at first instance as one
of extreme urgency because of the critical medical condition of Mr Tompson. His
Honour gave an ex tempore judgment and, we were informed from the Bar table
6 UNREPORTED JUDGMENTS
without objection, that he indicated to the parties during the hearing that he
proposed to do so. The judgment ran to some twenty five pages dealing with the
various heads of damage. It is obvious that his Honour relied upon the
submissions made to him on the evidence and, in effect, "argued out" with
counsel during submissions the appropriate orders to make. This, if I may say so
with respect, was a very sensible course to take having regard to the exigencies
of the situation. It also meant, in my opinion, that it was incumbent upon counsel
to afford his Honour every assistance, which, from the submissions which have
been transcribed and form part of the appeal book, they did. However, in
considering any criticism of his Honour's reasons, it is appropriate to do so
against this background, although if those reasons demonstrate appellable error
or errors, the fact that the proceedings were dealt with in this way is not a reason
why any error should not be corrected.
The decision in Griffiths v Kerkemeyer established that in general the value of
gratuitously rendered services should be calculated by reference to their standard
or market costs, the justification for the allowing of such compensation being the
need for the provision of the services by reason of the defendant's negligence. In
Van Gervan v Fenton (1991-1992) 175 CLR 327 (a decision of all Justices of the
High Court) the question was revisited. Whilst the propositions that generally
speaking the value of the services should be assessed by reference to standard or
market costs, and that the services must be required to fulfil a need were repeated,
there was a division among the Court as to the regard to be had to services, which
a person, and particularly a wife, would have rendered to the injured party in any
event. As I understand it Mason CJ, Toohey and McHugh JJ in their joint
judgment, and Gaudron J in her separate judgment concluded that it was
inappropriate to have regard to that. Brennan J, and Deane and Dawson JJ in their
joint judgment, allowed exceptions in limited circumstances. It was also
acknowledged that the award of such damages is not a precise exercise.
In the present case his Honour was called on to assess the level at which Mr
Tompson should be compensated, having regard to standard and market costs, for
the fulfilment of the need created by the wrongful conduct of Goodyear and
James Hardie. Put shortly the issues were whether he approached that task having
regard to the evidence of the standard or market costs in the context of fulfilling
the need. So far as the future was concerned the fulfilment of the need demanded
that he should have regard to the vicissitudes, both favourable and adverse, in the
context of a terminal illness which would shortly end Mr Tompson's life. There
could be no doubt on the evidence that Mrs Tompson will continue to render
services until Mr Tompson's death, subject to her not experiencing an adverse
vicissitude such as injury or ill health, nor that as Mr Tompson becomes more ill
there will be greater demands on her and also the need for more professional
help. His Honour was acutely aware that in this latter regard he must be careful
against allowing "overlapping" or "double dipping".
There was, accordingly, committed to his Honour the discretionary task of
assessing damages conformably with the principles to which I have referred and
the way in which the case was presented to him. It is only if it appears that he
has not applied the applicable principles, or has reached a manifestly
unreasonable decision from which the proper inference is that he did not apply
the proper principles, that appellable error will be demonstrated.
URJ JAMES HARDIE & COY PTY LTD v TOMPSON (Rolfe AJA) 7
The Trial Judge's Approach
His Honour commenced to deal with this head of damage at red appeal book,
("RAB"), p40. He said:-
"The plaintiffs claim under this head is that for a short period of time, for three
weeks or so following his surgery on the date abovementioned, he was cared for
intensively by his wife, and that since then until the present time, he has received
care from her, principally in the form of cooking for him in a more energetic and
enterprising way in the way described above, and providing psychological
support as well as attending to him when he wakes at night, and that this process
will continue in a greatly increased way until his death.
Without recording the submissions of counsel in relation to these issues, which
are recorded on the transcript, and which were respectively to the effect that I
should award somewhat above and below what I propose to award, the damages
I propose in relation to the services of the plaintiff's wife pursuant to the
principles in Griffiths v Kerkemeyer, are as follows.."
The rate per hour his Honour applied was $12 and in respect of each figure he
"rounded out", the amount. The first amount was for three weeks' care following
surgery at four hours a day for seven days, which, calculated on a strictly
mathematical basis, came to $1,008. His Honour allowed $1,000. There can be
no complaint about this.
The second period was for fourteen weeks for two hours per day after the
initial period, which has already been undertaken, and which, on a strictly
mathematical basis, came to $2,352. His Honour rounded this out to $1,500.
The third and fourth periods related to future care. The first is for four hours
per day for twelve weeks, which calculated mathematically is $4,032 and which
his Honour rounded to $3,000. The second is for eight hours per day for eight
weeks, which calculated mathematically comes $5,376 and for which he allowed
$3,000.
His Honour, accordingly, reduced the second amount by approximately thirty
four per cent; the third amount by approximately twenty five per cent; and the
fourth amount by approximately forty five per cent. Mr Tompson has submitted
there should have been no such deduction or, if there was, it should not have been
to that extent.
His Honour was satisfied that Mr Tompson had received care from his wife and
that the amount of the care would "greatly increase". He also allowed for the
contingency for which counsel on behalf of James Hardie contended that Mr
Tompson would require the care of professional carers in the future. He
continued:-
"The rounding out process which I have engaged in above, it will be observed,
has resulted in the plaintiff receiving somewhat less than the total calculation
according to the figures I have set out above. The reason I have engaged in this
rounding out process is that I must reflect the contingency that an increasing
proportion of the plaintiffs care, which proportion is impossible to calculate with
precision, will be afforded by professional carers as the plaintiff becomes more
and more infirm, and as the process of caring for him day by day becomes more
and more difficult for his wife to undertake alone. I have therefore, I hope, done
justice to the defendants' submissions that the plaintiffs wife will not care for
him alone and without assistance for the entirety of the time until he dies, despite
her and the plaintiff's best intentions in this respect. I have also taken into account
in the rounding out process the fact that as Mr McIntyre submits, some of the
activities which the plaintiff's wife will ordinarily undertake are not particularly
8 UNREPORTED JUDGMENTS
personal, nor involving day by day intimate contact with the plaintiff (for
example such matters as shopping and making beds and the like) and it may well
be that as was put to her, the plaintiffs wife will more readily seek the assistance
of others with these matters in the future."
This passage, in my respectful opinion, makes clear that that to which his
Honour was directing his attention was the compensable need the defendants had
created.
Towards the end of his reasons on this aspect his Honour said, RAB44:-
"The customary charge in the community, Mr McIntyre submits, is to be found
in the report of Dial-An-Angel signed by Dena Blackman, both annexed to the
particulars pursuant to Pt33 r8(a) filed in this case and exhibited in the plaintiffs
case, where the figure of $12 an hour is referred to. This figure indeed forms the
basis of my calculations in relation to the plaintiffs award of Griffiths v
Kerkemeyer damages in respect of his wife's gratuitous services as set out
above."
The report of Ms Blackman, which was admitted without objection,
commences at RAB16 and is dated 3 November 1994. It is not a report in respect
of Mr Tompson, but of another client of his solicitors. I do not say this critically,
but to explain the date. At RAB21 it stated that the live-out (visiting) domestic
assistance, on an "as required" basis, was $50 minimum charge for three hours
and $12 net for each additional hour. Accordingly for the first three hours the
amount would be $16.66 per hour, but if the shift was of eight hours it would be
$50 plus $60 ie $110 or $13.75 per hour. On the following page it stated that there
was a $2.50 per hour loading to those rates if personal care was rendered in
conjunction with domestic assistance. A question would arise whether that
loading was justified, but, if it was it would increase the rate per hour for an eight
hour shift to $16.25. This may well be the reason why Mr Rush, in his
submissions to his Honour, adopted primarily the figure of $16 as the proper
hourly rate. However, I have been unable to find anything in the submissions
which drew his Honour's attention to the loading. I can well understand that if his
Honour was referred only to the first figures the evidence of the commercial rate
would not justify a figure of $16 per hour.
The figure for which Mr Tompson contended on appeal was $18 per hour,
although if the Court is of the view that a lesser figure should be awarded it was
not suggested that the Court should not give effect to that view. I have not been
able to find any submission in which Mr Rush contended to his Honour that $18
was the correct hourly rate. Rather the final submissions ranged, on the basis of
the Dial-An-Angel report, from $12 to $16 per hour, with Mr Rush contending
for $16.
The submissions on this aspect are to be found in the black appeal book,
("BAB"). The first issue was whether such damages could be awarded at all in
this claim. That is no longer in issue. Nextly Mr Rush's submissions considered
the periods for which such care would be required. There was no dispute before
us that his Honour allowed the appropriate periods. Reference was made to the
evidence of Dr Gianoutsos, which established that Mrs Tompson's role would
increase, to which his Honour responded that he had to take into account the
likelihood, as Dr Gianoutsos put it, that the District Nursing Service would assist
and balanced that against that increase "in order to prevent double recovery". Mr
Rush responded:-
"Yes, your Honour, we would submit that your Honour should do that."
(BAB131)
URJ JAMES HARDIE & COY PTY LTD v TOMPSON (Rolfe AJA) 9
Thus his Honour was entitled to approach the matter on this basis.
His Honour sought assistance in carrying out that exercise and it is clear from
the transcript that he discussed with counsel the matters concerning him. At
BAB136 Mr Rush said that the appropriate award depended "on the individual
circumstances of any given case...", which must obviously be correct. His
Honour then started to work through the figures with Mr Rush in detail. In answer
to a question from his Honour, Mr Rush said that the mathematics was "very
much dependent on where your Honour sees it going": BAB139 line G, and, later
on that page Mr Rush submitted that $21 per hour came from the Dial-An-Angel
report, although when Mr McIntyre questioned that Mr Rush seems to have
withdrawn the suggestion, saying it was probably referable to a gardener. Mr
McIntyre was then contending for $12 per hour.
At BAB140 his Honour directed attention to $50 for the first three hours and
$12 for each additional hour and Mr Rush pointed out that $50 for the first three
hours was in excess of $18 per hour, whereupon Mr McIntyre said:-
"Perhaps whilst my friend is doing that, I could just observe, in Luntz, the
authorities would suggest - it states that you cannot look at a minimum rate
because the person providing it is there, there is no minimum charge and one
looks at the actual hourly rate that could be charged, and that also in Luntz, at the
top of p216, the allowance should be based on a shorter period of time with a
meal charge, that would seem to suggest that one looks at the hourly rate not the
minimum.."
His Honour said:-
"Yes. So, that it takes it back to $12 an hour does it not?"
with which Mr McIntyre agreed and to which Mr Rush responded that Mr
Tompson was contending the appropriate rate was "of the order of $16 per hour,
having regard to the date of this document and the range of figures that are set
out in it".
Mr McIntyre said he would not be agreeing with $16 per hour, but contending
for $12 per hour, whereupon Mr Rush said "we contend that $16 an hour, having
regard to the rate would be an appropriate rate for your Honour to award".
His Honour said:-
"T am a bit of the view that $12 might be more appropriate, frankly, if that is
the evidence and the defendant wants me to adhere to it, I find it hard to see how
Ican make some sort of judicial assumption or take judicial knowledge of the fact
that things have gone up since 1994, they might not have in relation to a certain
area - probably have but I do not know about it."
At this stage it is quite clear that Mr Rush was contending for $16 per hour
having regard to two factors, namely that the report was dated 1994 and the range
of figures set out in it.
His Honour was obviously aware that there could have been an increase, but
he considered that there was no evidence to that effect. I should note that the
submissions do not contain any reference to the additional $2.50 per hour and,
particularly at BAB143, Mr Rush's submissions were based upon $16 per hour
or $12 per hour.
Counsel returned to their submissions on this aspect at BAB151 and his
Honour then went through the figures, worked out the precise mathematical
figures and discounted them. Mr Rush opposed the discount, but his Honour took
the view that he should allow a discount and a rate of $12 per hour.
10 UNREPORTED JUDGMENTS
There was some suggestion that Mr MclIntyre's submission based on what
appeared in Luntz may have led his Honour to a misapprehension. I am not
satisfied that if his Honour was under any misapprehension that was carried into
his reasons and, in any event, Mr Rush had ample opportunity, if he thought that
there may have been some basis for a misunderstanding, to remedy it.
His Honour discounted the second figure from $2,352 to $1,500. He did so in
the light of an express submission by Mr McIntyre, BAB152, "that there has been
no specific need created by this disability yet, which requires other than simple
emotional support which one would expect from friends or family whether they
are present or not". The submission was cast in the light of need and the
requirement for his Honour to exercise his discretion. No submission was put by
Mr Rush that in considering need there was no evidence to support the
submission or to invalidate the view to which his Honour came.
His Honour's reasons have to be considered in the light of the detailed
submissions the parties put to him and of his exposing, during the submissions,
the reasoning processes he intended to adopt. If those reasoning processes were
appellably wrong and that error infected his judgment then the way in which the
case was conducted would not, necessarily, preclude this Court's interfering.
However, I think it is clear from a reading of the transcript that his Honour had
a clear understanding of the issues and, in particular, that he appreciated that the
range of figures being submitted to him was from $12 per hour to $16 per hour.
Thave also noted that there was no submission put to his Honour of the additional
$2.50 per hour.
Conclusions
In their submissions Counsel accepted that the Dial-An-Angel report provided
the starting point for determining the rate to be awarded. This is obviously
correct. Thereafter, and consistently with the relevant principles, his Honour was
obliged to find the market cost for services, on the basis of the evidence and the
submissions made to him, and the amount by reference to that cost and hourly
needs that Mr Tompson needed by way of compensation for the injury the
defendants caused him. This included an assessment of the amount of time that
would be required towards the end of his life, so far as Mrs Tompson was
concerned, when more specialised help would be necessary. His Honour directed
himself to all these issues.
No criticism was directed at the first minor discount his Honour made.
Significant criticism was directed to the second, not on the basis, necessarily, that
there was a discount, but because of the amount of the discount. However, in my
opinion, his Honour was entitled to take into account the matters to which I have
just referred and to accept, at least to the extent he did, Mr MclIntyre's
submission. I am not in any way satisfied that the exercise of his discretion in
awarding damages is shown to have been infected with discernible error of
principle or failure to have regard to the evidence, or to be so unreasonable as to
be the product of error, which cannot be ascertained.
The third and fourth elements can, in my opinion, be treated essentially in the
same way, although I think there are other stronger reasons for supporting the
discounts so far as they are concerned. Firstly, one must have regard to the
vicissitudes, which apply not only to Mr Tompson, but also to Mrs Tompson. In
having regard to them it is necessary to bear in mind that they apply both
favourably and adversely, but in the present context they also apply to Mrs
URJ JAMES HARDIE & COY PTY LTD v TOMPSON (Rolfe AJA) 11
Tompson, who through injury or illness may become unable, in the future, to give
Mr Tompson the assistance she is now providing. That is something to which his
Honour was entitled to have regard.
The awarding of damages is essentially a discretionary exercise. Before this
Court will interfere with an award of damages it must be satisfied that it is either
so large or so small that it falls respectively above or below what is regarded as
the appropriate range. The consideration of a range in dealing with damages is an
acknowledgment that different minds will bring to bear upon the facts and
circumstances a different assessment of the proper amount required to fairly and
justly compensate a plaintiff, without being over generous or unduly niggardly to
him or her in approaching that task. The award of damages is, of necessity, in the
circumstances of the present case one on which minds can justifiably differ.
However, before this Court interferes with an award made by a specialist tribunal
after a detailed consideration of the evidentiary material, it must be satisfied that
there has been a failure to properly address the relevant principles, or that the
result is so unreasonable that it should not be allowed to stand.
My review of his Honour's reasons does not lead me to the conclusion that he
fell into appellable, or indeed, any error. In my opinion the cross-appeal should
be dismissed.
Costs
Submissions, both oral and written, in relation to costs were inordinately
lengthy. Before dealing with them, to the extent to which I think it is necessary,
I should note what I understand to be the result of the proceedings. Firstly, James
Hardie, as appellant, has been successful in the appeal to the extent that it pursued
the one matter and, indeed, it had to be successful on that issue in this Court.
Equally it has been successful in resisting Mr Tompson's cross-appeal which, I
should have noted earlier, was supported by Goodyear. On the other hand James
Hardie abandoned many of its grounds of appeal on 8 April 1988. Uninstructed
by the attitude of the parties I would have formulated orders to give effect to these
various results as between James Hardie and Mr Tompson. However, the last
written submissions of those parties acquit me of the necessity to deal with all
those problems. Mr Gee submitted:-
"Tf the Court of Appeal is minded to find for the Appellant on the cross-appeal,
the appropriate order is that there be no order as to the costs of the cross-appeal
or of the appeal. (That way, the first respondent is not out of pocket for the
appellant's costs, but nor is the appellant out of pocket in respect of costs because
it effectively gets a 'set off' as between the portion of the first respondent's costs
it will likely be ordered to pay in respect of the appeal and the costs the first
respondent would otherwise be ordered to pay to the appellant in respect of the
cross-appeal)." (Mr Gee's emphasis.)
Mr Rush submitted:-
Scenario B-
2.2.1 Cross-appellant has right to appeal - leave to appeal out of time is granted
- cross-appellant loses appeal -
2.2.2 Each party pay own costs on basis of partial success."
Each written submission is addressing what has happened. There is, as I see it,
no difference in substance between the submissions. I propose, therefore, that as
between James Hardie and Mr Tompson the order for costs be that each party pay
its and his own costs of the appeal and the cross-appeal.
12 UNREPORTED JUDGMENTS
The only question remaining is the costs as between James Hardie and
Goodyear. Although Goodyear played no part in the appeal, in the sense of
directing any submissions to the Court on the substantive orders, it submitted that
its costs of that cross-appeal be borne by James Hardie on an indemnity basis
because, it was submitted, the appeal was not initiated by it; it consented to the
application for expedition, it consented to the orders sought on that application;
it prepared an application for the filing out of time of a cross-appeal, a supporting
affidavit and a proposed cross-appeal which was then not pursued; and it was
unaware that James Hardie proposed to change its posture from that adopted
originally. The submissions on behalf of Goodyear contained a number of
assertions, which I have no reason not to accept as such, but which are not the
subject of evidence. This was pointed out to Ms Stewart on the hearing of the
appeal. Although I have read all the submissions with care and sought to analyse
the position for which Ms Stewart contended, it seems to me that the position
adopted by Goodyear on the appeal really did not require it to take any active part
in the appeal. In the end I am not satisfied that Goodyear is entitled to its costs,
it not having been successful in any aspect of the appeal. On the other hand I do
not see any reason why Goodyear should contribute towards the costs of James
Hardie, which has, in effect, given up such rights to costs it may have against Mr
Tompson. In the result I am of the view that Goodyear should pay its own costs
of the appeal.
1. The appellant's appeal in relation to Ground 1 of its Notice of Appeal
filed on 20 November 1997 be allowed.
2. The judgment of the Dust Diseases Tribunal of New South Wales dated
12 November 1997 be set aside and in lieu thereof judgment be entered
for the first respondent in the sum of $128,429.12.
3. The first respondent be granted leave to file a cross-appeal out of time.
4. The first respondent's cross-appeal be dismissed.
5. No order as to the costs of any party.
Counsel for the appellant: C Gee QC/D Graham
Solicitors for the appellant: Allen Allen & Hemsley
Counsel for the first respondent: J T Rush QC/R Sorby
Solicitors for the first respondent: Turner Freeman
Counsel for the second respondent: D G Stewart
Solicitors for the second respondent: Hunt & Hunt