Ecob t/as Black Swan Coffee Lounge v Wentworth-Shields [2002] ACTCA 2
[2002] ACTCA 2
At a glance
Source factsCourt
Court of Appeal (ACT)
Decision date
2002-04-18
Before
Miles CJ, Ryan JJ, Crispin P, Gray J
Source
Original judgment source is linked above.
Judgment (46 paragraphs)
1. I have read in draft form a copy of the judgment of Crispin P and Gray J and gratefully adopt their Honours' summary of the facts and of the Master's judgment. However I differ in my conclusion about the correctness of the Master's approach to the assessment of the present value of the respondent's future loss of earning capacity. In my view, that approach has resulted in an excessive award of damages.
2. I agree that it was appropriate to regard the assessment as requiring the award of damages for future loss of earning capacity to include some sort of "buffer" against a possible loss which fell short of a probability. As I understand it, the term "buffer" has been used sometimes in recent years to describe a component in the injured plaintiff's damages which is awarded in order to compensate the plaintiff for economic loss which has not yet occurred and is not likely to occur, but which emerges as a real possibility in foreseeable circumstances established by the evidence. For instance, a person in steady employment who sustains a permanent physical disability, which in no way affects his or her capacity to continue in that employment, may not be able to show, on the probabilities, any past or present loss of earnings, nor any future loss of earnings except in the event of possible but unlikely circumstances which themselves have essentially nothing to do with the physical disability. In that event, the award may contain a component to compensate the person against the unlikely eventuality. The quantum of the component will depend, inter alia, upon the incidence of possibility. In the case of a "self-employed" person, or a person whose earnings derive from carrying on business, it may be very difficult to estimate whether the incidence of possibility is relatively high or low.