Kelly
20 Kelly was 17 when her father died. She had obtained her HSC prior to his death and deferred university while she did a business course. She then decided not to go to university and drifted from job to job, working in hotels, and then for a year with the AMP as a clerk (black 116). In August 1993 she went to England returning in April 1994 (116). In 1997 she commenced a full-time science course at the University of New South Wales and worked one night a week and at weekends. After graduating with Honours she worked as a sleep technician on sleep apnoea research at the Prince of Wales Hospital (111, 118-9). She moved to Townsville in 2002 where she worked as technician on sleep apnoea research at the Mater Hospital and on research in neuroscience at the University (119). She started a part-time pharmacy degree at Townsville in 2004 (112, 120-1).
21 The Judge said that there was nothing in her oral evidence on 18 February 2004 which showed that she had a pathological grief reaction. Moreover at that stage the bulk of the medical evidence did not support such a finding.
22 On 19 February Mrs Dymock, a life long friend of Kelly's, and a former neighbour, gave evidence. She said that Kelly had been a happy-go-lucky and easygoing person who became withdrawn and very unhappy after her father's death. She also became bulimic and anorexic.
23 This evidence was outside the appellant's particulars and the hearing was adjourned until June to allow the respondent to meet the new case. On 22 June Kelly said in evidence that following the death of her father she began to eat more and induce vomiting after eating, and this continued for about four years. She did not tell her family but did tell Mrs Dymock. After four years her bulimic episodes tapered off and they stopped after five years. She said they stripped her of her confidence and she did not undertake further studies during that period.
24 The Judge accepted this evidence and found that the appellant suffered an abnormal grief reaction manifested by her bulimia. As a result she was unable to function normally and her tertiary studies were delayed. He was not satisfied that she continued to suffer from a demonstrable psychological condition after her bulimia ceased.
25 Dr Canaris and Professor Kennett referred to her personality changes after her father's death. Dr Canaris said that the appellant remained "an emotionally constricted woman who had changed substantially in her personality since the death of her father". He said this was common with individuals who had been traumatised or suffered from prolonged grief. The Judge considered that these changes did not establish that the appellant continued to suffer a demonstrable psychiatric condition.
26 The Judge assessed her general damages at $57,500 for the closed period. He made no award for out of pocket expenses and relying on s 151H he declined to make any award for economic loss.
27 Mr Gross submitted that the award for general damages was appellably inadequate because the Judge should not have limited his award to the closed period.
28 He also submitted that the Judge erred by not referring to Professor Kennett's evidence that the appellant continued to suffer from a psychiatric illness even after her bulimia had ceased, and by failing to give adequate reasons for rejecting it.
29 The Judge did not overlook this part of the Professor's evidence and referred to it at length (red 100-2, 105, 107). He rejected the Professor's evidence when he expressly declined to find that the appellant continued to suffer from a psychiatric illness (red 107).
30 He gave adequate reasons for doing so which included reference to the evidence of Dr Canaris to the contrary (105), the appellant's ability to cope with life demonstrated by her successful tertiary studies, and her evidence that her father's death had "simply" put her four or five years behind (107). The finding that damages should only be awarded for the closed period cannot be disturbed.
31 Mr Gross also submitted that damages can be awarded for a personality change caused by a recognisable psychiatric illness which persists after recovery from that illness.
32 The basic principle is that a person who has not suffered an obvious physical injury may only recover damages for exposure to or knowledge of a shocking event if it causes a recognisable psychiatric injury (Gifford v Strang Patrick Stevedoring Pty Ltd (2003) 214 CLR 269, 276, 203, 302, 304).
33 A personality change as such is not a recognisable psychiatric injury, and there was no evidence from any psychiatrist that it was. Indeed Mr Gross did not argue that it was.
34 Mr Gross was not able to cite authority in support of his submission, but nor was Mr Kelly able to cite authority against it.
35 In some circumstances damages consequent upon a compensable injury are recoverable although they would not be recoverable if there was no such injury. A familiar example is the recoverability of pure economic loss consequent upon physical injuries to person or property.
36 In my judgment a different rule applies in cases of psychiatric injury, although the decisions do not deal directly with the present question.
37 In Marinko v Masri [2000] Aust Torts Rep 64-201, 208-209 this Court affirmed the established principle that normal grief and anguish following the death of a loved one are not compensable, and held that they do not become compensable when the victim of nervous shock suffers additional and abnormal grief and anguish constituting a recognisable psychiatric illness.
38 In such a case there must be an apportionment between the compensable and non-compensable components although the difficulty of such an apportionment was recognised (above at 64-208).
39 The decision on this point was cited with approval by Mason P, writing for the Court, in Hunter Area Health Service v Marchlewski [2000] NSWCA 294 para [116]. Accordingly this submission must be rejected.
40 The Judge rejected the claim of this appellant for economic loss because the threshold in s 151H had not been met. For reasons already given he was in error, and the appellant is entitled to an appropriate award. No question of credibility arises and this Court can make the necessary assessment.
41 This presents a number of difficulties. The appellant had deferred starting her science course before her father died. Her intention had been to start the following year (black 107, 110, 126). She was not then thinking of studying pharmacy (126). She eventually commenced her four years course in 1997 graduating at the end of 2000. She did not commence her pharmacy course until 2004.
42 She said that her father's death had the effect of postponing her tertiary studies for five years (167). She said (112):
"I believe that that was my loss - I've lost a lot of years in my life of getting on and doing what I should be doing … It will take me another four or five years time to be where I actually want to be, whereas I believe had my father not died, I probably would have been a lot further along. I could be working now and maybe have … stayed home and spent some time with my child and then go back to my profession, whereas now I have to study and have my child go through that."
43 She lost five years because of her father's death but she lost other years for other reasons. There was a four year gap between her science degree and the start of her pharmacy course for which the defendant is not responsible.
44 The appellant's probable career path, had she not suffered psychiatric injury, is affected by a number of uncertainties. She did not think of taking pharmacy until some years after she graduated in science. If her father had not been killed would she have made that decision? And if so when? When she gave evidence in February and June 2004 she was only in the first year of a four year course, but her science degree demonstrates that she has the capacity to qualify. She had a son in October 2003 (120); and was not planning to have other children (120). Her partner worked as a fitness conditioner for a football club in Townsville (111) under a contract due to expire in 2006 (125). He intended to look after the child once the appellant could work as a pharmacist (112).
45 The appellant's plans involve a number of contingencies, the continuation of the relationship, no more children, no contract for her partner beyond 2007, and the successful completion of her pharmacy course in four years.
46 When she finished her science degree she was, as she said, only qualified for research (111), for which she was paid "probably just the same as a bar job" (118). To her the degree meant nothing (126). "It got me a piece of paper. It got me into pharmacy, maybe I will do something in pharmacy but that's it" (126). This evidence means that she has no direct claim for economic loss based on the delayed start to her science degree. Her claim must be based on the delayed start to her pharmacy course and the delay in the enhancement of her earning capacity when she qualifies.
47 The most favourable assumptions for her are that if she had not suffered psychiatric injury she would have begun her science course in 1991, graduated at the end of 1994, and commenced her pharmacy course four years later in 1999, qualifying at the end of 2002. On that basis she would have started to earn as a pharmacist in 2003 whereas, at best, she will only be able to do so in 2008. Thus her claim at the date of judgment in December 2004 was for 2003 and 2004 for past loss, and 2005 , 2006 and 2007 for future loss.
48 Her gross earnings in 2003 as a first year pharmacist under the Federal Award until 11 June would have been $16,447, and for the rest of the year $19,916. Her gross earnings in 2004 as a second year pharmacist until 11 June would have been $17,846, and for the rest of the year $21,626. Her gross earnings as an "experienced pharmacist" in 2005 until 21 July would have been $22,688 and for the balance of the year $19,603. The Court was not provided with the Award figures for 2006.
49 Thus her gross award earnings for 2003 would have been $36,363, for 2004 $39,472 and 2005 $42,290. The award increase for an experienced pharmacist on 21 July 2005 was 2 percent and a similar increase in July 2006 would have resulted in gross earnings for that year of $43,136, and for the following year of $46,693.
50 There is no evidence of the tax that would be deducted from earnings at this level but the appellant's written submissions at the trial were based on an average rate of tax of 35 percent and I will adopt this figure. On this basis the appellant's after tax earnings as a pharmacist for the 2003, 2004, 2005, 2006 and 2007 calendar years would have been $23,635, $25,656, $27,488, $28,038, and $30,350.
51 Instead of pursuing her pharmacy course between 1999 and 2001 as she may have done had she not suffered psychiatric injury the appellant was finishing her science course and in 2002 was back in the workforce.
52 The evidence includes the appellant's tax assessments for the 1992 to 1997 years. There was no documentary evidence of her later earnings. She said that in 1998 her hourly rate as a casual in a hotel bar was $18-19 an hour (118), the same rate she received as a medical technician (120). This represents gross earnings of $760 for a 40 hour week but there is no evidence that she was able to work 40 hours a week as a casual.
53 The 1996 year is the last year she worked for the whole year for which documentary evidence is available. Her net earnings after tax were $18,289 or $352 a week. On the basis of an hourly rate of $18 she was working on average 24 hours a week, and her average tax rate was 18 percent.
54 The Court may be permitted to know that wage inflation during the years from 1996 onwards has been at least 2 percent per annum. On the basis of annual increases of 2 percent the appellant's probable actual net earnings after tax had she continued to work as before would have been for 1997 $18,654, 1998 $19,027, 1999 $19,407, 2000 $19,795, 2001 $20,191, 2002 $20,595, 2003 $21,007 and 2004 $21,427. These can only be rough estimates.
55 The appellant said in cross-examination that in the year ended 30 June 2000 she earned $29,248 working for Sydney Ferries (120). In 2002 she and her partner moved to Townsville (119). There was no other evidence, except for the most general kind, about her earnings for the years from 1998 to 2003.
56 Her estimated probable earnings, had she remained in the workforce in 1999, would have been $19,407: para [54].
57 Her actual earnings in 2000 working for Sydney Ferries were $29,248. I will assume this was the net figure after tax as only that figure is relevant, and neither counsel attempted to establish that it was the gross salary. Her estimated actual earnings in the workforce during 2001 and 2002 were $20,191 and $20,595: para [54].
58 If the appellant had pursued her pharmacy course during the years 1998-2001 she could not have received those earnings. Had she done this she would probably have qualified in 2002 and received earnings as a pharmacist in the 2003-2007 years. She is not entitled to damages for these five years without bringing to account her actual and probable earnings for the corresponding five years. This provides the following basis for an assessment:
Lost earnings as pharmacist Actual earnings in notional year Difference
2003 - $23,535 1999 Year 1 - $19,407 $4,128
2004 - $25,656 2000 Year 2 - $29,248 No loss
2005 - $27,488 2001 Year 3 - $20,191 $7,297
2006 - $28,038 2002 Year 4 - $20,595 $7,443
2007 - $30,350 2003 First year pharmacist $23,535 $6,815
Total $25,683