It seems to me that as to the lost income, her estimate is twice as high as it should be, and it seems to me that taking into account taxation rates and Mr Lyons' share of the business the approximate loss, and I admit that this can be no more than an estimate, should be $500 per week net.
39 As I have noted, the appellant attacks the judge's calculation on the ground that he has misread or misapplied the figures in Ms Evans' report: the appellant says that the judge has discounted by half Ms Evans' figure of $1,000 per week to arrive at a figure of $500 per week without appreciating that Ms Evans' figure of $1,000 was before tax and that a further deduction of 40% to allow for tax should have been made, producing a net figure of $300 per week which his Honour should then have factored into the calculation.
40 The respondent submits, however, that it is clear enough from the final paragraph in the passage from the judgment quoted above that the judge was fully conscious that the figure for future economic loss which he was awarding was required to be an after-tax figure and that he took into account the relevant taxation rates referred to by Ms Evans in arriving at a figure which he expressly referred to as "net". The respondent further submits that it is erroneous to read the judge's reasoning as starting with Ms Evans' figure of $1,000 per week and discounting it by half: his Honour really put to one side Ms Evans' figures entirely and had regard to all of the other facts and circumstances in the case in arriving at an estimate of $500 net per week for future economic loss.
41 The difficulty with this last submission is that, if it is correct, then there is nothing at all in the judgment which shows that this is what the judge did, nor is there anything which indicates the facts and circumstances to which he had regard in arriving at his estimation of loss. It is true that assessment of future economic loss "does sometimes of necessity involve what is guesswork rather than estimation": per Menzies J in Jones v Schiffmann (1971) 124 CLR 303, at 308; Commonwealth v Amann Aviation Pty Ltd (1991) 174 CLR 64, at 83. Sometimes there is little or no evidence which would assist in defining the parameters within which future economic loss might conceivably lie. In such cases the judge, if satisfied that substantial future loss will be suffered, must simply do his or her best to arrive at a figure which is, of necessity, the product of pure speculation: see the review of authorities made by Heydon JA in State of New South Wales v Moss (2000) 54 NSWLR 536, at 551-559.
42 But the judge must explain in the judgment what it is that he or she is doing. If the judge founds estimation of economic loss, including such guesswork as is required, on a basis of fact and circumstance established by the evidence the judge must disclose in the judgment what that evidence is and how it has been used. If the judge is not able to rely on any helpful evidence and must resort to speculation, again the judge must disclose that that is what he or she is doing. Failure to disclose the reasoning process in this way in a judgment is, in itself, appellable error: Pettitt v Dunkley [1971] 1 NSWLR 376, at 388; Public Service Board (NSW) v Osmond (1986) 159 CLR 656, at 666; Mifsud v Campbell (1991) 21 NSWLR 725 at 718F, 729C-E.
43 In the circumstances of this case, therefore, acceptance of the respondent's submission that the judge entirely disregarded Ms Evans' figures in estimating future economic loss inevitably requires a conclusion that the judge fell into appellable error in failing to disclose by what process he arrived at the award which he made.
44 In fairness to the judge, I do not think that he fell into this error. As I have noted, he said that he thought that Ms Evans' figures provided "an indication" of the respondent's loss. His Honour's reference to Ms Evans' figure (of $1,000 per week) as being "twice as high as it should be" just before he arrived at a figure which is half of Ms Evans' gross figure strongly suggests that the only process of estimation in which his Honour engaged was founded entirely upon Ms Evans' figure of $1,000 per week. Although the judge then refers to "taxation rates" he does not explain how he took them into account in arriving at the sum of $500 net per week. If he had discounted Ms Evans' figure of $1,000 per week by half and then applied the taxation rate even at the lower end of the scale referred to by Ms Evans in her report, he would have arrived at a figure significantly less than $500 net per week. It seems to me, therefore, that despite his Honour's reference to taxation rates his Honour has, in the end, simply taken Ms Evans' gross figure of $1,000 per week and halved it, without making any adjustment for tax. This is clearly erroneous and cannot stand. Alternatively, if his Honour has employed Ms Evans' gross figure of $1,000 per week in some other way in order to arrive at $500 per week then he has given no explanation for what he has done so that the award, likewise, cannot stand.
45 The parties have joined in requesting this Court, if it concludes that the judge was in error, to arrive at its own calculation of future economic loss, rather than remit the proceedings to the District Court. In accordance with that request, I estimate the respondent's future economic loss as follows.
46 As the judge did, I begin with Ms Evans' figures - there is no other commencement point suggested by the evidence or by the parties in their submissions. After deducting the cost of another employee in the business, as Ms Evans' erroneously failed to do, one arrives at a loss figure of $500 per week before tax. One must then deduct provision for tax, which the parties agree should be assessed at the rate of 40%, leaving an amount of $300 per week net, or 60% of the figure which his Honour used to calculate loss over fifteen years with a 15% reduction for the vicissitudes of life. The result is a sum of $141,525.
47 However, this calculation assumes that the respondent will be able to continue working in his asphalting business at the level at which he presently does until his retirement. His disabilities presently enable him to spend thirty hours per week on site doing light manual work and to perform other non-manual work at home. He is now forty-six and there is substantial likelihood that, as he gets older, his continuing disabilities resulting from the motor vehicle accident will increasingly prevent him from working in his business at the same level. If this occurs, he will either have to engage additional labour, with consequent reduction in profit, or he will have to reduce the amount of work which he accepts. In my opinion, he should receive compensation for the substantial chance that this loss will occur. I would provide a cushion of an additional $50,000 in this regard.
48 The total amount which I would award for the respondent's future economic loss is, therefore, $141,525 plus $50,000, a total of $191,525.
Ground 4 of the Appeal - domestic assistance
49 His Honour allowed in favour of the respondent one and a half hours of unpaid domestic assistance per day, a total of ten and a half hours per week, for a further ten years. The threshold required by s.72(2) Motor Accidents Act 1988 (NSW) was, therefore, crossed and his Honour awarded $75,870 in damages under this heading. The appellant submits that the evidence does not support a finding that domestic assistance of six hours or more per week would be required so that this head of damages should be deleted entirely.
50 The respondent and his wife gave evidence that before the accident the respondent used to look after the children while she was working. He would help with cooking the evening meal, he would bathe the children, help with vacuuming and clean the bathroom. Since the accident, the children bathe themselves and the older boy helps the respondent with the younger boy as much as he can. The respondent's wife now generally prepares the evening meal before she goes to work, or else the respondent buys take-away food for himself and the children. The respondent can no longer clean the bathroom or help with the vacuuming.
51 The judge did not explain how he reached the conclusion that the respondent's remaining household tasks, for which he would require assistance, namely cleaning the bathroom and helping with vacuuming, could consume one and a half hours per day or ten and a half hours per week. The respondent and his wife gave no evidence as to how long these tasks would take or why they would have to be performed every day of the week.
52 In the absence of evidence to the contrary, common experience would indicate that the tasks of vacuuming a house and cleaning a bathroom do not occupy one and a half hours per day, seven days a week. In my opinion, the judge's conclusion as to the amount of assistance required is not supported by any evidence. Moreover, I do not think that there is any evidence which establishes that the respondent requires unpaid assistance for any domestic task for a minimum of six hours per week, so that the threshold required by s.72(2)(a) of the Motor Accidents Act has not been crossed. Accordingly, this head of damages should be wholly disallowed.
Ground 5 of the Appeal - gardening and maintenance assistance
53 His Honour allowed three hours paid assistance per week at the rate of $25 per hour for the rest of the respondent's life expectancy of thirty-four years, producing a total amount of $64,942.50. The assistance was in respect of gardening and maintenance which the respondent himself can no longer do. The appellant submits that, on the evidence, this award is excessive.
54 It is undisputed that before the accident the respondent regularly mowed the lawns and maintained the garden. Indeed, he said that gardening was a pleasure to him and he spent up to three hours per week in this activity. Likewise, it is undisputed that as a result of the accident the respondent can no longer do the lawn mowing or any heavy work in the garden. He can now only do the watering and other light task. He engages a person to mow the lawn and to carry out gardening maintenance which he cannot do himself, at the rate of $25 per fortnight. There is no evidence that other substantial maintenance work to the respondent's home is required on a regular basis. Indeed, the evidence suggests that the respondent's home is in good order and that the only maintenance work required will be repainting from time to time and such other repairs as will be occasioned by normal wear and tear over the years.
55 In my opinion, the appellant is correct in saying that the evidence does not support a finding that the respondent will require paid assistance for gardening and maintenance at the rate of three hours per week. The cost of employing someone to do gardening at the same level as the respondent himself did for his own pleasure or as a hobby does not justify an award of damages under Griffith v Kerkemeyer: Geaghan v D'Aubert [2002] NSWCA 260 at paras 57-66. There is no evidence that maintenance other than gardening requires three hours a week. It follows that the judge's award of $64,942.50 for paid assistance with gardening and home maintenance should be set aside.
56 As I have noted, the parties join in requesting this Court to substitute its own assessment for any award of damages set aside. I would calculate damages in respect of paid assistance for gardening and home maintenance as follows.
57 I accept, as does the appellant, that the respondent should be compensated for the cost of $25 per fortnight which he is presently incurring for lawn mowing and garden maintenance, for the period of his life expectancy, i.e. thirty-four years. This produces a sum of $10,824 with which the respondent does not disagree. The appellant submits that a further sum of $10,000 should be allowed to provide for other maintenance requirements which the respondent cannot perform.
58 In my opinion, this amount is inadequate. Experience shows that substantial repairs and maintenance will, on occasion, be required to a home such as the respondent's over a period of some thirty-four years. But for his disabilities, it could reasonably have been expected that the respondent himself would have carried out much of this work since, as the evidence shows, he carried out substantial renovations to his previous home. In my view, a sum of $20,000 should be provided to cover the cost of this additional maintenance work which, but for his injuries, the respondent would not have had to incur. The total award for paid assistance in respect of gardening and maintenance should, therefore, be $30,824.
Orders
59 In accordance with the conclusions I have reached, the respondent's award of damages should be calculated as follows: Non-economic loss 139,000.00 (no variation)
Past out-of-pocket expenses 35,265.80 (no variation)
Future medical expenses 5,000.00 (no variation)
Past economic loss 60,000.00 (no variation)
Past domestic assistance 42,356.00 (no variation)
Future domestic assistance Nil (varied)
Gardening and house maintenance 30,824.00 (varied)
Future loss of earning capacity 191,525.00 (varied)
503,970.80
Less payments made 72,254.00
$ 431,716.80