and
"I am not satisfied that the appellant is likely to seek work of any type, or that he had shown any interest in seeking work of any type for some years before the 1993 accident." (emphasis added)
33 In Malec, Deane, Gaudron and McHugh JJ stated at 643:
"If the law is to take account of future hypothetical events in assessing damages, it can only do so in terms of the degree of probability of those events occurring. The probability may be very high - 99.9 per cent - or very low - 0.1 per cent. But unless the chance is so low as to be regarded as speculative - say less than 1 per cent - or so high as to be practically certain - say over 99 per cent - the court will take that chance into account in assessing the damages … Thus, the court assesses the degree of probability that an event would have occurred, or might occur, and adjusts its award of damages to reflect the degree of probability. The adjustment may increase or decrease the amount of damages otherwise to be awarded."
34 In Medlin Deane, Dawson, Toohey and Gaudron JJ stated at 6:
"For the purposes of the law of negligence, the question of whether the requisite causal connexion exists between a particular breach of duty and particular loss or damage is essentially one of fact to be resolved, on the probabilities, as a matter of commonsense and experience. And that remains so in a case such as the present where the question of the existence of the requisite causal connexion is complicated by the intervention of some act or decision of the plaintiff or a third party which constitutes a more immediate cause of loss or damage … The ultimate question must, however, always be whether, notwithstanding the intervention of subsequent decision, the defendant's wrongful act or omission is, as between the plaintiff and the defendant and as a matter of common sense and experience, properly to be seen as having caused the relevant loss or damage."
35 McHugh J stated at 18:
"Damages can be awarded for loss of earning capacity, however, only to the extent that that loss produces or might produce financial loss. …
In Mann v Ellburn the Full Court of South Australia preferred an approach that compensates the plaintiff to the extent that the loss of earning capacity has resulted in a loss of probable earnings and the loss of a chance to exploit any residual capacity that would probably not have been exploited even if the accident had not occurred. I see nothing wrong with that approach in most cases. It gives effect to the fundamental principle underlying the assessment of damages that a person is only compensated for what he or she has actually lost. But, as the judgments of the Supreme Court in this case show, it is an approach that can mislead a court in a case where the plaintiff continues in employment. It is always necessary to bear in mind as Bright J said in Mann that 'one first of all determines that there has been a loss of capacity, and then having regard to the establishment facts of the past and the probabilities of the future one determines that flow from the loss of capacity'."
36 I consider that the trial judge did not properly apply the test enunciated in Medlin and Malec relating to economic loss. Admittedly, the appellant had a poor work record. Indeed, it was almost non-existent. However, her Honour failed to assess the possibility that at some time in the next thirty five years or so his incapacitating pain would have lessened and his psychiatric condition would be sufficiently controlled to permit him to work and that he would have been sufficiently motivated to seek work. I also consider that her Honour's opinion as to the appellant's motivation was influenced by her focus on the vocational testing of the appellant's physical capacity, the results of which were not consistent with her Honour's findings in relation to non-economic loss, and, which I have already said, failed to take into account the impact of the appellant's psychological state on his physical rehabilitation.
37 I shall consider below what result should flow from her Honour's errors in relation to non-economic loss.