Pleadings and submissions
7In a statement of particulars filed on 22 January 2013 (the Original Particulars), Mr Parker furnished particulars of his claimed economic loss. The Original Particulars said that, at the time of his accident, he had been employed by Wish Designs as a fabric cutter since August 2004. The Original Particulars then said that, as a result of his injuries, he had had various periods away from work and had worked on restricted hours and duties. A claim was made in respect of his absences from work "at his pre-accident rate of pay, as varied and in line with comparable employees from the date of his accident ... and continuing". The Original Particulars said that he was presently employed by Gabriel Cutting Services and Excess Grades as a cutter and that he worked for those organisations on a contractual basis and had his own Australian Business Number.
8The Original Particulars made a claim at half average weekly earnings rates until retirement age at 67 years, as well as a claim for past and future loss of superannuation entitlements. No further particulars were given.
9An amended statement of particulars (the Amended Particulars) was filed on 4 November 2013, a week before the trial. The Amended Particulars alleged that, as a result of his injuries, Mr Parker has had various periods away from work and he has worked on restricted hours and duties. The Amended Particulars claimed in respect of his absences from work at his pre-accident rate of pay, as varied and in line with comparable employees from 30 November 2006 and continuing. The Amended Particulars said that from 30 August 2007, Mr Parker was certified fit for normal hours, with lifting restrictions. The Amended Particulars asserted that Mr Parker resigned from his employment with Wish Designs on 9 April 2008 as he was unable to continue performing the duties required of him.
10The Amended Particulars claimed damages for economic loss as follows:
8 weeks from 15 January 2007 to 10 March 2007 at $802.85 net per week: $6,422.80
20 weeks from 12 March 2007 to 30 July 2007, restricted to working 4 hours per day for 3 days per week, at $561.99 per week: $11,239.76
4 weeks from 30 July 2007 to 30 August 2007, restricted to 6 hours per day for 4 days per week, at $321.14 per week: $1,284.55
TOTAL: $18,947.11
Loss of superannuation to 30 August 2007: $2,084.18
11The Amended Particulars also claimed loss of future earnings and earning capacity at half average weekly earnings rates until retirement at age 67. The Amended Particulars said that from 14 April 2008, Mr Parker had commenced his own business and managed to earn amounts similar to his pre-injury earnings as he is able to work at his own pace and within his ability. The Amended Particulars claimed a diminution of his earning capacity on the open labour market due to the effect of his injuries as follows:
$400 per week for 602.8 weeks: $241,120.00
Reduced for vicissitudes by 15 percent: $204,952.00
Future loss of superannuation: $28,693.28
Wish Designs contends, before this Court, that that claim for loss of superannuation (just as in the Original Particulars) could only be consistent with Mr Parker's continuing to work as an employee, as opposed to working as an independent contractor.
12In the course of opening to the trial judge, senior counsel for Mr Parker said that, before 30 November 2006, Mr Parker was in good physical shape but, on that date and afterwards, he was not. Senior counsel said that his work with Wish Designs had dried up, perhaps mainly due to Wish Designs' business and that Mr Parker had then moved into subcontracting work, even though he was really unable to perform the full duties of his job. Senior counsel then said that Mr Parker had not filed any tax returns since 2007, but that what he had earned was capable of being established from his invoices. Senior counsel said that it was apparent that Mr Parker's earnings had substantially dropped, except in one financial year, since he had been unable to perform full work satisfactorily.
13The trial judge then embarked on the hearing of a motion by Mr Parker for an extension of time to commence the proceedings. That application was argued by junior counsel for Mr Parker. In response, counsel for Wish Designs complained about the absence of tax returns. Counsel for Wish Designs also said that there were "some issues in relation to workplace assessment" by which he said he meant an assessment of Mr Parker's ability to work and what jobs might reasonably be available in his skill capacity.
14Counsel for Wish Designs then raised the question of invoices that had been provided on behalf of Mr Parker, which he said appeared to be invoices given to people with whom Mr Parker contracted to perform work. He said that Wish Designs did not know whether that was the only income that Mr Parker had during the relevant period.
15Counsel then referred to the Amended Particulars and the allegation that, on 14 April 2008, Mr Parker had commenced his own business and had managed to earn amounts similar to the pre-injury earnings that he was able to earn, "at his own pace and within his own ability". Counsel said that he was puzzled by that because senior counsel for Mr Parker, in his opening, indicated that, after his employment with Wish Designs, when he was a contractor working in his own business, he was earning amounts that "started off high and then diminished during that period". Counsel for Wish Designs said that it did not seem, on the face of that, that there was a claim made for the period of employment since Mr Parker left work with Wish Designs. Counsel complained that Wish Designs had not been furnished with particulars of losses during that period.
16The trial judge then observed that there was no claim for diminution of earning capacity for the past, that is from August 2007 to the date of trial, but that there was a claim for the future of $400 per week. Counsel for Wish Designs said that there was a claim for the future, but that there did not seem to be a claim from 14 April 2008 to the date of trial. He said that he was unsure as to the way in which Mr Parker was advancing his case, but that, on the Amended Particulars, there did not appear to be a claim being advanced in relation to the period when he had been working as a contractor. The trial judge said that he would read the Amended Particulars as meaning that, although Mr Parker was not currently losing any money, he was likely to do so in the future, and the best figure that his representatives could put on that was $400 per week. Counsel for Wish Designs said that that was how he understood it, but that that was not consistent with the way in which senior counsel for Mr Parker had opened the case, having said that Mr Parker's income started high and then diminished over time.
17Senior counsel for Mr Parker then resumed the conduct of the case. The following exchange then occurred (emphasis added):
LIDDEN: There is only one matter that has arisen ... and that's about this [Amended Particulars] which was amended about a week ago and which, on one view of it, abandons for some reason without the plaintiff's instruction I would have thought, his claim which remains in the document a bit earlier on and was in the [Original Particulars] and on which I opened, which is that working as a subcontractor that at times he has earned less than he would have earned in direct employment with the defendant or anyone else providing similar work as a paid cutter. I am not abandoning that aspect of his claim and I will not be relying on the [Amended Particulars] to that extent. In fact, I won't be relying on it at all.
Now, I presume that the defendant prepared the case so as to meet a claim for the difference. The plaintiff's invoices were provided to the defendant in December of last year, I believe, and I intend to proceed with the case on that basis.
HIS HONOUR: Do you abandon the [Amended Particulars] and all the underlying and just rely on the generally unspecified claim in the [Original Particulars]?
LIDDEN: Yes, I do. I have said what it is: it is the difference between what he should have earned as a paid cutter and what he has actually managed to earn as a subcontractor.
HIS HONOUR: What about the future?
LIDDEN: For the future it's a general diminution of his earning capacity claim, as is pleaded. Your Honour will see that his income has varied from year to year depending, to some extent, on what work is available and to a large extent on what he is able to do. The insertion, by way of an argument in the [Amended Particulars], [is] a qualification of that diminution. It's no more than an argument. I just simply wish to say that he has got a diminution of his earning capacity and your Honour will sort it out in the traditional way.
HIS HONOUR: All right. Are you content with that, Mr Hatzistergos?
HATZISTERGOS: I am, subject to, at some point, if the plaintiff can actually provide some flesh to the particulars in the first paragraph of the statement of [particulars].
Wish Designs places reliance on the words emphasised as illustrating an inconsistency between the approach that Mr Parker asked the trial judge to apply to the assessment of past economic loss, on the one hand, and the approach that is now sought to be applied on appeal, on the other hand (see below at [46]).
18At the end of the trial, senior counsel for Mr Parker provided written submissions to the trial judge. The written submissions included a claim for past loss of superannuation and said that, if Mr Parker had been uninjured, he would have remained in paid employment and would have received superannuation amounting to $11,000. Wish Designs contends in the appeal that, just as in the Original Particulars and the Amended Particulars, such a claim for superannuation payments is consistent only with continuing employment and not with working as an independent contractor.
19In dealing with past wage loss, Mr Parker's submissions to the trial judge said that, at the time of the accident, Mr Parker was earning $61,496 gross per annum with a net amount of $45,805 per annum, or $880 per week. The submissions said that, as a result of changes in tax rates, Mr Parker would now have been receiving $940 per week without anything further. However, the submissions said, the average weekly earnings had increased from $1,204 gross per week to $1,550 gross per week, or by about 25 percent. Accordingly, it was said, if one were to increase Mr Parker's 2006 gross earnings of $61,496 by 25 percent to $76,870 per annum, he ought now be receiving $1,478 gross per week, or $1,130 net per week. The submissions said that an average of those figures would be $1,005 net per week and therefore proposed a figure of $1,000 net per week over the whole period, that is, from the date of onset of Mr Parker's disabilities to the date at which he left employment of Wish Designs.
20The submissions then said that, up to the time when Mr Parker left the employment of Wish Designs in 2008, his wage loss should be confined to the weekly payments. From 18 April 2008 to the date of the trial, being a period of 5.5 years, Mr Parker had been a self-employed subcontractor. The submissions said that, uninjured, Mr Parker ought to have earned $1,000 per week for the period of 52 weeks for 5.5 years, namely, $286,000 net. That calculation appears to proceed on the assumption that, but for his injury, Mr Parker would have continued as an employee, since it uses the income figure derived from his full-time employment by Wish Designs.
21However, the submissions said, Mr Parker's invoice books disclosed that, up to 22 August 2013, he had in fact earned $226,032. In the ten weeks between then and the date of trial, he should be assumed to have been working 2.5 days per week at $28 per hour, or $560 gross per week, being $5,600 for the period. Accordingly, the submissions said, the total gross earnings are therefore $226,032 plus $5,600 being $231,632. For the 5.5 years, or 286 weeks, that would give $809 gross per week. After taking 10 percent off for expenses such as tools, clothing and travel, the amount would be $720 gross or $650 net. Accordingly, the submissions claimed, the loss over the period was $350 per week for 5.5 years, totalling $100,100.
22Finally, in relation to future wage loss, Mr Parker's submissions said that, over the previous five years, Mr Parker had been able to earn, on average, about $650 net per week. He ought to be earning $1,130 net per week and was therefore losing about $500 net per week. Since he was then aged 50 years, and his working life expectancy was a further 17 years, the claim was for $500 per week for 602.8 weeks, less 15 per cent for vicissitudes, giving $256,190.
23The written submissions provided to the trial judge on behalf of Wish Designs did not address those calculations in terms. Wish Designs' submissions asserted that the requirements of rr 15.2-15.4 of the Uniform Civil Procedure Rules 2005 (NSW) (UCPR) (presumably intended as a reference to rr 15.12-15.14) had not been complied with in relation to the provision of particulars and that Wish Designs did not necessarily accept the records or accounts submitted by Mr Parker as being fully reflective of his earnings or capacity. Wish Designs' submissions asserted that it was clear that Mr Parker had contract work other than with Gabriel Cutting Services and Excess Grades after he left Wish Designs. Some of that was performed on Saturdays because, on the evidence of Mr Parker himself, he was busy with other work during the week. The submissions said that, if Mr Parker was experiencing difficulties, there was no explanation as to why he sought no treatment for his injury. The submissions concluded that only a modest allowance should be made for past economic loss to 1 September 2007 and that the Court could not be satisfied of any claim for the future.