Assessment of Damages
37 In assessing damages in this case the court was required to look to the future of a person with a life expectancy in the order of 60 years. That exercise had to be engaged in so as to compensate the appellant for future economic loss and medical expenses and to determine general damages. Judge Delaney referred to the judgment of Heydon JA in State of New South Wales v Jane Moss at paras 53 and following. That judgment contains a thorough overview of how a plaintiff's entitlement to damages for loss of earning capacity should be undertaken by reference to future economic or financial loss and refers to many authorities on the topic.
38 Judge Delaney found that the appellant suffered a loss of earning capacity which led to future economic loss and that she would, as a result of the accident, incur medical expenses in the future. These conclusion were not challenged. But Mr Bridge SC, who appeared for the respondent, emphasised the paucity of evidence to assist in any calculation of damages.
39 In Graham v Baker (1961) 106 CLR 340 at 347 Dixon CJ, Kitto and Taylor JJ said:
"….an injured plaintiff recovers not merely because his earning capacity has been diminished but because the diminution of his earning capacity is or may be productive of financial loss."
40 In Paff v Speed (1961) 105 CLR 549 at 558-9 Fullagar explained the distinction between "special damages" and "general damages", the former awarded in respect of monetary loss actually suffered and expenditure actually incurred. His Honour said, at 559:
" 'General damages' on the other hand, are, of their very nature, incapable of mathematical calculation, and (although the expression is apt to be misleading) commonly very much 'at large'. They are at large in the sense that a jury has, in serious cases, a wide discretion in assessing them. Also general damages may be assessed not with reference to any limited period, but with reference to an indefinite future. Damages may be awarded for 'pain and suffering', and such damages are assessable for past, present and future pain suffering. But here calculation is obviously impossible, and damages for pain and suffering should clearly be regarded as 'general' and not 'special' damages. In fact, the question of general damages is generally, I think, put to the jury under three heads (1) 'economic loss', (2) loss of 'amenities' or 'enjoyment of life', and (3) pain and suffering.
'Economic loss' may include expenditure (for, eg medical expenses) which it is shown that the plaintiff will probably incur in the future as a result of his injuries. But the major item of a claim under this head is usually put as 'loss of wages' or 'loss of income'. It would be more accurately described as 'loss of earning capacity' … Actual loss of wages or loss of income will have been already taken into account in assessing special damages, and what the plaintiff must receive in respect of the future is compensation for total or partial incapacity to earn income. The whole system on which general damages are awarded is open to criticism, but the direction to a jury to award a lump sum under each of the three heads is too well established to be now challenged, and the awarding of periodical payments subject to review is, of course, quite impracticable.
The usual method of proving damages under the first head is by calling evidence to show what the plaintiff could probably have earned during the rest of his life if he had not been injured and what, if anything, he is now capable of earning."
41 It is no doubt correct to say that, in reflecting in damages the myriad of possibilities that would have directed the appellant's life if she had not been injured and that might now direct it in consequence of her disabilities, there is an element which is more guess work than estimation. In Jones v Schiffmann (1971) 124 CLR 303 at 308 Menzies J noted that in Chaplin v Hicks [1911] 2 KB 786, where the jury awarded the plaintiff £100 damages for the loss of a chance to win a prize, the Court of Appeal, in refusing to disturb this verdict, said that, had the jury chosen to award 1 shilling, that verdict would not have been disturbed either. This both demonstrates that the exercise is imprecise and indeterminate and also that the parameters are wide. It is no easy task for an appellant to challenge the award at first instance of such damages as insufficient. In Foster v Tyne and Wear County Council [1986] 1 All ER 567 at 570 Lloyd LJ said:
"The very fact that the approach must necessarily be so speculative means, of course, that the occasions on which this court will feel justified in interfering with a judge's assessment will be few and far between, for there is no established range or standard against which to measure the judge's award."
42 As Professor Luntz says in Assessment for Damages for Personal Injury and Death, 4th ed (2002) at 5.3.4, when speaking of young children, "it is in fact impossible to make an accurate individual assessment, since it can never be known what the future would have held for this plaintiff but for the injury."
43 On the principles expounded in Griffiths v Kerkemeyer (1977) 139 CLR 161 the appellant was entitled to be awarded damages representing the value of services rendered for her by her mother. The trial Judge found that such services had been rendered but made no finding about the length of the period in which or for how long on a daily basis they were rendered. Both the evidence and the submissions recorded were perfunctory. However, the trial Judge had material from the medical reports to which I have referred which suggested that the mother's services to the appellant came in the form of her being there to help when required day in day out and 24 hours a day. The particulars stipulated hours and rates. The rates were derived from material provided in a letter dated 31 July 2000 by the Macquarie Nursing Service. The total cost of care claim accorded with that body's calculation. It was admitted without objection as part of Exhibit A, the plaintiff's medical reports. It was open to the trial Judge to conclude that the amount as claimed should be awarded. The passages that I have quoted suggest to me that this was the course his Honour adopted. If he did so, that conclusion could not, in my opinion, be challenged by the respondent. In the result this meant that for pain and suffering and loss of amenities or enjoyment in life the appellant was left with a verdict of just under $67,000.
44 In my opinion, such an award does not give sufficient weight to the fact that this young woman was left by the accident with a lifelong condition of neurogenic bladder and bowel to be evacuated daily in the way she had described, with an inability to take part in the sort of outdoor activities that she enjoyed in the way she had previously done and with an enduring sleep problem. She had to carry an impairment, albeit mild, of gait and lower limb function and suffer a substantial impact on her self confidence, especially in a sexual context. It is likely she will experience occasional urinary tract infections and there is a possibility of her developing more severe infection. She may well have ongoing episodes of bowel or bladder incontinence and will have continuing difficulty with her left ankle and her balance and coordination. The appellant claimed that the amount for general damages, omitting any amount for past care should be increased to a sum between $150,000 and $200,000. In my opinion, this is outside the range. I would assess general damages additional to any allowance for past care at $125,000 and divide the interest on the basis of 50 per cent for past and 50 per cent for future general damages. She should be awarded $18,043.48 for past care. Interest should be allowed on that up to the end of the period for which it is claimed, 2 June 2000, at a rate of one half of 10 per cent. From that date up to the date of judgment at first instance interest should be allowed at 10 per cent (compare Schedule J to the Supreme Court Rules 1970).
45 With due respect the amount awarded for future medical expenses of $1,000 is on its face unrelated to the future medical expenses likely to be incurred by the appellant as the result of the accident. The items referred to in the evidence were:
· four visits annually to a general practitioner,
· two visits annually for two years to a urologist and thereafter once every two years, assuming no complications,
· one visit a year to a spinal rehabilitation specialist,
· two visits a year for two years for urodynamics studies,
· one visit every two years from May 2000 for ultrasound studies of kidney and bladder,
· antibiotics for urinary tract infections with the possibility of more severe infections and renal impairment,
· self catheterisation for life,
· gloves and lubricants,
· nuclear cystograms and glumerolo filtration rate estimations once every two years,
· psychiatric therapy,
· treatment for ankle, and
· a special pillow at a cost of $50 every two or three years,
this over an expected life span of about 60 years.