Richards v Gray [2013] NSWCA 402

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Richards v Gray [2013] NSWCA 402 Hearing dates: 29-30 April 2013 Decision date: 02 December 2013 Before: Bathurst CJ at [1], Beazley P at [162], McColl JA at [163], Basten JA at [164], Meagher JA at [241] Decision: 1. Appeal allowed in part. 2. Set aside order (1) entered on 16 December 2011 and, in place thereof, give judgment for the plaintiff in the sum of $11,424,000. 3. Each party file and serve within 14 days his or her primary submissions with respect to appropriate orders as to the costs of the trial and the costs of the appeal, such submissions not to exceed 10 pages. 4. If there have been offers of compromise relied upon by the parties, the submissions should be accompanied by an affidavit annexing the relevant material. 5. Each party should have a further period of 14 days to reply to the principal submissions of the other party, such replies not to exceed 5 pages. [Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.] Catchwords: DAMAGES - award - measure of damages - personal injuries - negligence causing incapacity to manage own affairs - cost of fund management - whether certain amounts should be taken into account for the calculation of fund management costs. DAMAGES - cost of fund management - principles in Todorovic v Waller (1981) 150 CLR 402 - whether an allowance should also be made in respect of managing the sum awarded for fund management costs. DAMAGES - cost of fund management - whether an allowance should also be made in respect of managing income earned by the fund during the existence of the fund. DAMAGES - cost of fund management - whether fund management fees should be allowed at rates charged by a private trustee or at the rates of the relevant public trustee. Legislation Cited: Civil Liability Act 2002 (NSW), s 5D Civil Procedure Act 2005, ss 77, 79 Corporations Act 2001 (Cth), ss 601RAA, 601RAC, 601RAE, 601TAA, 601TAB, 601TBA, 601TBB, 601TBE, 601TDC, 601TDD; Pt 1.1A; Ch 5D, Div 4 Corporations Regulations 2001 (Cth), r 5D.1.04, Sch 8AA, Sch 8AC Mental Health Act 2007 Motor Accidents Compensation Act 1999, s 127 Motor Vehicles (Third Party Insurance) Amendment Act 1984 NSW Trustee and Guardian Act 2009, ss 38, 41, 111, 115 NSW Trustee and Guardian Regulation 2008, cll 37, 38; Pt 4 Protected Estates Act 1983 Trustee Companies Act 1964, s 18 Cases Cited: Bacha v Pettersen (Supreme Court of New South Wales, 20 September 1994, unreported) Best v Greengrass [2012] WADC 44 Brindall v McDonald (Court of Appeal, 11 March 1985, unreported) Buckman v M & K Napier Constructions Pty Ltd [2005] NSWSC 546 Campbell v Nangle (1985) 40 SASR 161 Commonwealth v Blackwell [1987] HCA 44; (1987) 163 CLR 428 Dasreef Pty Ltd v Hawchar [2011] HCA 21; (2011) 243 CLR 588 GDR v EKR [2012] NSWSC 1543 Gell v Gell [2005] NSWSC 566; 63 NSWLR 547 Government Insurance Office of New South Wales v Rosniak (1992) 27 NSWLR 665 Griffiths v Kerkemeyer (1977) 139 CLR 161 Haywood v Collaroy Services Beach Club Limited [2006] NSWSC 566 Lewis v Bundrock [2008] QSC 189; [2009] 1 Qd R 524 Morris v Zanki (1997) 18 WAR 260 Nominal Defendant v Gardikiotis [1996] HCA 53; (1996) 186 CLR 49 Pennant Hills Restaurants Pty Ltd v Barrell Insurances Pty Ltd [1981] HCA 3; (1981) 145 CLR 625 Rosniak v Government Insurance Office (1997) 41 NSWLR 608 Rottenbury v Rottenbury [2007] NSWSC 215 Tchadovitch v Tchadovitch [2010] NSWCA 316; (2010) 79 NSWLR 491 Todorovic v Waller [1981] HCA 72; (1981) 150 CLR 402 Treonne Wholesale Meats v Shaheen (1988) 12 NSWLR 522 Wells v Wells [1999] 1 AC 345 Willett v Futcher [2005] HCA 47; (2005) 221 CLR 627 Texts Cited: Luntz, Assessment of Damages for Personal Injury and Death (4th ed, 2002, Ch 2, sec 7) Category: Principal judgment Parties: Corey Richards (Appellant / Cross Respondent) Rhiannon Gray by her Tutor Kathleen Anne Gray (Respondent / Cross Appellant) Representation: Counsel: P J Deakin QC, B A P Kelleher, K James (Appellant / Cross Respondent) Dr A S Morrison SC, I J McGillicuddy (Respondent / Cross Appellant) Solicitors: T L Lawyers (Appellant / Cross Respondent) Beilby Poulden Costello (Respondent / Cross Appellant) File Number(s): 2012/9520 Publication restriction: No Decision under appeal Jurisdiction: 9111 Citation: Gray v Richards [2011] NSWSC 877 Gray v Richards (No 2) [2011] NSWSC 1502 Gray v Richards (No 3) [2012] NSWSC 344 Before: McCallum J File Number(s): 2009/338685