DAMAGES
133 The Court did not consider it necessary to hear from Ms Katzmann on the issue of damages. The challenge to the amount awarded can, I consider, be dealt with quite shortly.
134 It appears from the Short Minutes of Order of 22 October 2004 that the verdict was in the sum of $223,621. The ex tempore judgment of the 20 October 2004 left certain matters of calculation to be dealt with by the parties. Accordingly, some components were not precisely quantified in the judgment, however, this is of no consequence for the purpose of dealing with the challenges to the amount awarded.
135 Judge Rolfe accepted that the respondent suffered in the fall a major lateral ligament tear of the right ankle which, over time, required surgery on two occasions and has left her with significant impairments in respect of her family, social and working life. The injury, its treatment and consequences, his Honour accepted, has involved considerable pain and distress and continues to do so.
136 Judge Rolfe accepted that the use of crutches necessitated by the injury and the operative treatment thereafter, occasioned an injury to the respondent's right shoulder which further incapacitated her and caused continuing pain, impairment and distress and required treatment by, amongst other things, anaesthetic nerve blocks in the shoulder and neck.
137 An important feature of his Honour's judgment was the finding he made as follows:
"I regard the plaintiff as an honest and straightforward person. I do not think she was exaggerating."
138 The Judge thought the respondent's claimed restrictions supported by other witnesses and also by the restriction in the use of her right arm which he observed in a video showed by the appellant in support of its contention that the respondent was exaggerating her condition.
139 The activities depicted in the video, which showed the respondent engaging in Lions Club concerts, were, it was put to this Court, destructive of his Honour's finding and indicative of a greater capacity in the respondent than she was prepared to admit. Mr Campbell did not request this Court to view the video but relied upon the matters which emerged during cross-examination based upon it.
140 His Honour dealt with a similar submission at trial when he said:
"I interpolate here that one has to have regard to what was seen in the videos of the Lions Club concerts. It is true that the plaintiff was active in those concerts, but the point is, and this is my assessment of her, that she is a community minded and orientated person. She and her husband had been involved with those concerts for many years. She had put a lot of effort into those concerts and the fact that she may have enjoyed performing and appeared to be enjoying herself is a credit to her being able to push herself to that limit to give pleasure to other people, and no doubt it assisted her in the way in which she had been able to deal with the consequence of this accident."
141 The relevance of the Judge's comment that the respondent "is a community minded and orientated person" in this passage was challenged in the written submissions. However, it is a matter relevant to an assessment of the respondent whether she was, as she claimed, although not in these terms, a person "able to push herself to the limit to give pleasure to other people."
142 I should observe that in cross-examination the respondent also pointed out that her restrictions varied during the day and otherwise from time to time. There is ample evidence to support that contention.
143 Mr Barrie's evidence led the Judge to observe:
"He said that she was a very active participant in all of the concerts conducted by the Lions Club here in Taree prior to the accident and the diminishment in the amount of physical activity that she had after the accident was obvious to him. That is an independent piece of evidence but it is consistent with the way in which I have assessed the plaintiff myself."
144 In my view there is no proper basis for this Court to interfere with his Honour's finding as set out above and the issue of damages should be approached on that basis. (Abalos v Australian Postal Commission (1990) 171 CLR 167, Fox v Percy (2003) 197 ALR 201).
145 It is convenient to deal with a submission relating to his Honour's observation that "Dr White has said that there was a fracture of the outer part of the ankle." Dr White was the treating orthopaedic surgeon.
146 Dr White initially reported that "he understood" that there had been such a fracture. Where this understanding came from is not clear, nor is it clear whether there was a fracture. Dr White later reported that x-rays confirmed "a small avulsion fracture of the lateral malleolus". Mr Campbell dismissed this as "recapping", however, it suggests to me that the doctor may well have seen an x-ray or x-ray report to that effect. The matter was not pursued at trial no doubt because it was of little consequence whether there was a fracture or not. The significant injury on all the medical evidence was the ligamentous damage. The error, if it were one, is of no moment.
147 Mr Campbell challenged what he referred to as the Judge's "split the difference" approach, putting that it failed to apply a proper application of principle to the judicial task of assessing damages.
148 The issue arose in this way. Mr Crittle, and Mr Rich followed, sought to assist his Honour by submitting that particular percentages or amounts were the appropriate ones to award. Mr Campbell submitted that an examination of those figures, as they appeared from the addresses, and the judgment showed that the Judge had not applied an independent mind but had merely "split the difference" between the parties' submissions.
149 Before turning to the particular matters, I should make the observation that the circumstance that a sum awarded falls at or towards the middle of a range of figures put by experienced counsel by no means establishes that the Judge had not applied an independent mind. It is a feature of the forensic process that experienced counsel will seek to retain credibility by proposing realistic outcomes and that whether they are high or lower in the appropriate range will reflect the interests of their clients. It is thus anything but surprising that the result at which the Court arrives often lies at or about the middle of that range.
150 In dealing with the respondent's claim for non-economic loss in accordance with the Act Judge Rolfe noted that Mr Crittle suggested a finding of twenty seven per cent of a most extreme case and Mr Rich a finding of between thirty five per cent and forty per cent. His Honour's finding was thirty one per cent.
151 His Honour was dealing with a matter of assessment and judgment where there is no one correct answer. It is apparent that he considered the range proposed by Mr Rich somewhat higher than the facts supported and the figure proposed by Mr Crittle somewhat lower. He did not in fact engage in a mathematical splitting of the difference. That would produce a figure of 32.25 per cent. I am quite unconvinced that Judge Rolfe pursued an inappropriate approach to the determination of this finding.
152 A somewhat similar attack of a "Solomon like approach" was made upon the assessment of past economic loss. Mr Crittle had suggested $10,000, Mr Rich $10,000 plus $15,000. His Honour's finding was $15,000.
153 In a context in which, as Mr Campbell conceded in address, a broad brush approach was appropriate the Judge's finding of $15,000 involved much more than the submission suggests.
154 The respondent at the time of her injury and after worked for a doctor. At a time which it is unnecessary to specify the doctor moved his practice and that employment was no longer available to her.
155 Mr Crittle submitted that up to that time $10,000 was the appropriate figure but that there should be no further allowance up until the date of trial because the work would not have been available to her quite independently of her injury.
156 Mr Rich accepted $10,000 as the appropriate amount for the earlier period but submitted that but for her injury the respondent could have found more employment than she was in fact able to secure and should be compensated accordingly by an allowance of, he suggested, $15,000.
157 The Judge accepted Mr Rich's submission as to some loss but considered the figure of $15,000 too high and allowed $5,000. I can see no error in so approaching the matter. There was an issue to be resolved and the Judge resolved it.
158 Mr Campbell challenges the allowance of gratuitous services for six hours per week for a period before the trial and for a further period thereafter.
159 A report of Dr Davis tendered by the respondent supports such an allowance in terms. There is evidence in a report of Dr Tarrant tendered by the appellant that would support a different view, albeit it does not deal directly with the issue.
160 Dr Davis's report was not objected to on the ground of inadequacy (Makita (Australia) Pty Ltd v Sproules (2001) 52 NSWLR 705) that Mr Campbell now relies upon, or at all, and the doctor was not required for cross-examination.
161 In my view it was open on the evidence for the Judge to find as he did and I do not consider that he was wrong to do so.
162 Mr Campbell challenged Judge Rolfe's finding which he expressed as follows:
"I am comfortably satisfied, on the basis of her evidence and the evidence of the plaintiff's treating doctors, that the shoulder problem was a knock on effect and thereby caused by the original accident. It was a knock on effect as a result of the problems that the plaintiff had with the crutches."
163 Apart from submitting that "causation in relation to the shoulder problems wasn't particularly clear" Mr Campbell relied upon the fact that the respondent used Canadian crutches, which did not extend to the shoulder, rather than the more usual shoulder length crutches and the opinion of Dr Tarrant.
164 An MRI of 8 May 2002 was consistent with a full thickness tear of the anterior supraspinatus tendon.
165 Dr White expressed the view in a report of 16 October 2003 that the respondent's problem with her shoulder "due to her crutches" was an impingement syndrome "which I understand was due to the use of the crutches after her ankle injury". He also expressed the view that it had resolved and should not leave her with a permanent disability.
166 The respondent's evidence does not support resolution of the problem. Dr Davis in his report of 22 October 2003, which was not challenged by cross-examination, said:
"She also developed a tear of the right rotator cuff which can be related to the use of crutches, particularly around May of 2001, following post operative ankle infection and I believe that there is a nexus between the injury and the incident of 21 December 1999".
167 In a further report of 9 July 2004 Dr Davis expressed the view that the respondent had suffered a thirty five per cent permanent impairment of her right upper limb.
168 The contention that Canadian crutches, as opposed to ordinary crutches, would not cause "an impingement syndrome" or rotator cuff tear was never put to the respondent's witnesses or raised at the trial. It is certainly possible, indeed I think likely, that it could have been met by evidence had it been raised.
169 The respondent had given evidence:
"Q. And did you start, I think in about May 2001, to notice something about your arm?
A. Yes, it was while I was using the crutches, it just became sorer and sorer and --
Q. What did you notice?
HIS HONOUR: Q. Which arm was it?
A. It was my right arm.
RICH. Q. And whereabouts--
A. In my shoulder.
Q. And did the pain build up gradually or did it come on straightaway?
A. No, I felt oh my arm is sore, I'm not used to these crutches, but I had to use them, and a day or so later I'd think oh, I wish this would go away, I wish it would stop aching, paining. So the only time I wasn't using crutches is when I was sitting down or lying down.
Q. And I think you went and you were still suffering from infection at that stage, in your leg, is that right?
A. Yes.
Q. And you--
A. It was during the time that Dr Cook had said 'no weight on your foot at all' that the pain in my shoulder got very, very bad."
170 She then gave evidence as to the treatment she was given for her shoulder including anaesthetic nerve blocks and continued:
"Q. -- foot? Your right shoulder, how is your right shoulder now?
A. It's better than it was but nowhere near as good as it should be, or what it used to be, I can't do things I used to do but -".
171 Dr Tarrant, who examined the respondent for the appellant on 12 September 2003 reported in respect of the shoulder difficulty as follows:
"I accept that she had some shoulder pain although feel that she has an attritional rupture of her rotator cuff and her shoulder pain can't really be related to an injury that occurred almost 4 years ago whereby there was a 1½ year lag between injury and onset of shoulder symptoms."
172 Although Dr Tarrant refers to the respondent's use of Canadian crutches it would seem, so far as his report goes, that he did not consider whether the use of the crutches could or would have materially contributed to the attritional rupture to which he refers. It would not seem that he had a history of the onset of the pain such as referred to in the respondent's evidence.
173 In my view it was well open to the Judge to reach the conclusion he did in relation to the shoulder. I do not consider that he has been shown to be wrong in so doing.
174 Mr Campbell submitted that Judge Rolfe had fallen into error in that he did not deal with the issue of damages in accordance with the provisions of the Act.
175 Subject to what follows I reject that submission. A reading of the addresses and the judgment shows that Counsel and the Judge were very aware of the need to apply the then relatively new Act. It is not to the point that the Judge did not refer to every provision that might be relevant; he dealt with the issues raised by Counsel in their addresses.
176 Whilst dealing with future economic loss the Judge discussed with Counsel, both during address and in his judgment, the application of s 13 of the Act. That section provides:
" Future economic loss - claimant's prospects and adjustments
(1) A court cannot make an award of damages for future economic loss unless the claimant first satisfies the court that the assumptions about future earning capacity or other events on which the award is to be based accord with the claimant's most likely future circumstances but for the injury.
(2) When a court determines the amount of any such award of damages for future economic loss it is required to adjust the amount of damages for future economic loss that would have been sustained on those assumptions by reference to the percentage possibility that the events might have occurred but for the injury.
(3) If the court makes an award for future economic loss, it is required to state the assumptions on which the award was based and the relevant percentage by which damages were adjusted."
177 It is apparent that the Judge and Counsel had some difficulty with the provisions of the section. This is not surprising. In Parks v Penrith City Council [2004] NSWCA 201 at [2], Giles JA described the meaning and effect of the section as most obscure. Cripps AJA at [8] and McLellan AJA at [52] made remarks to similar effect
178 Mr Crittle submitted that the provision of a "cushion" was the appropriate way to deal with future economic loss. Such an approach has been held to be available without infringing s 13. (Parks at [5] and Kmart Australia v McCann [2004] NSWCA 283 at [62].)
179 In dealing with future economic loss the Judge and Counsel said:
"In terms of the plaintiff's claim for future economic loss, Mr Crittle submits that a cushion is the appropriate way to approach it. I agree with him. He suggests a figure of ten thousand dollars based on a loss of sixty dollars a week for four years, and applying the tables and discounting it by fifteen per cent. Mr Rich on the other hand, submits that an award should be made for a period of four to five years but in his submissions he is asking the Court to calculate that on the basis of a loss of two hundred and fifty dollars a week. It seems to me that the answer lies somewhere in between. I allow the plaintiff a hundred and twenty dollars a week for four years and I will ask the parties to do the calculation for me, using the tables and discounting that figure by fifteen per cent.
CRITTLE: Your Honour wants the vicissitudes incorporated in that?
HIS HONOUR: Yes. In coming to that conclusion I have had regard to the provisions of s 13 of the Act and I am just looking at s 13 subs 2 which talks about the Court referring to the percentage possibility of those events occurring but for the injury. Neither of you has particularly addressed that in those calculations that you have put before me. Do you know how I should deal with that Mr Crittle?
……….
HIS HONOUR: Yes, no just what I am saying is that under s 13 subs 2, it says:
(2) When a court determines the amount of any such award of damages for future economic loss it is required to adjust the amount of damages for future economic loss that would have been sustained on those assumptions by reference to the percentage possibility that the events might have occurred but for the injury.
What I am saying is neither you nor Mr Rich has addressed me on that.
CRITTLE: No. I must say your Honour, we had the same problem with a case last week and no-one was able to work out what they are getting at.
HIS HONOUR: Is there anything you can say to assist me on that?
RICH: Your Honour I don't know if I can nominate a percentage, except to say that in my submission it would be a very high percentage in view of her work history, her expressed attitude and background. I would have been suggesting that it was a ninety five per cent plus chance that she would have worked for at least that period of time.
HIS HONOUR: Yes. In coming to the conclusion that I have had (sic) I have assumed that there was at least a seventy per cent chance of the plaintiff being able to obtain work and I have borne that in mind in arriving at the dollar figure per week, with reference to which the plaintiff's loss is to be calculated in accordance with the judgment that I have made."
180 It is arguable that his Honour has stated his assumptions and allowed for vicissitudes as provided for in subs (2) and (3) (see Macarthur District Motor Cycle Sportsmen Inc v Ardizzone [2004] NSWCA 145 Hodgson JA at [5]).
181 On the other hand, a cushion arrived at by calculation of a weekly figure over a given period and discounted by fifteen per cent seems at odds with the concept of a cushion as discussed, for example, by Giles JA in Parks at [5].