Damages
89 In 1987 Mr Ferreira emigrated to Australia. From 1988 to 1997 he was employed as a pizza maker. Part of the time during this period he was employed on a part-time basis. In 1997 Mr Ferriera's wife commenced full-time studies and he stayed at home to look after the family. This continued until October 2000 save for a period of five months when Mr Ferriera was employed by a pizzeria. In October 2000 Mr Ferriera commenced employment as a chef. He was not able to work after Martin's death. He attempted working part-time in March 2002 but was unable to do so. He made a further attempt in October 2004. By the time of the trial (December 2004) he was working part-time.
90 Garling DCJ accepted that Mr Ferreira's mental state was improving and that it would continue to improve; nevertheless at the time of the trial he found that Mr Ferreira was "extremely depressed". He had "obviously [been] deeply affected by what has happened …". The judge accepted that Mr Ferreira's working capacity had been diminished.
91 The judge said, when assessing economic loss, that he would take into account the fact that Mr Ferreira did not have a good work history in the past, and "it was the sort of history which may have resulted in him deciding from time to time not to continue to work but to either look after his children or do something like that".
92 The judge also found that Mr Ferreira had "some sort of back injury which may certainly in the future have some effect on his ability to work". His Honour said that the evidence in question was vague. He said:
"… there is little evidence to the contrary other than he has simply suffered a total loss of income, but on the other hand I do have to discount it because of his work history."
93 The evidence as to Mr Ferreira's back injury was indeed vague. Mr Ferreira told his psychiatrist, Dr Dinnen that he obtained a disability support pension in April 2002 "as a result of a chronic back condition". He told Dr Dinnen that he had "three discs in his back". It is not clear, however, from Mr Ferreira's evidence whether he was given a disability pension only because of his back or partly because of his back and partly because of his mental condition. The evidence does not go further than this. The judge said that Mr Ferreira "does have some sort of a back injury which may certainly in the future have some effect on his ability to work" but did not say expressly that he would make allowance for the back injury in his assessment of economic loss.
94 Mr Ferreira's past work history is best seen from his income tax returns. For the year ended 30 June 1997 Mr Ferreira's taxable income was $21,024, for the year ended 30 June 1998 it was $7,998 and for the year ended 30 June 1999 it was $4,646.
95 Mr Joseph submitted that his Honour erred in insufficiently discounting Mr Ferreira's loss of earning capacity by reason of his past work history and in not taking account of his back condition.
96 The period of past economic loss is from 15 December 2000 to the date of the trial, a period of about 36 months. In this period, Mr Ferriera worked for three months. Thus the overall period of his relevant entitlement under this head is 33 months.
97 Garling DCJ stated that Mr Ferreira's total loss of wages for the three years from December 2000 to December 2003 was about $107,000. Mr Ferreira earned $685 per week as a chef for the short time he worked prior to Martin's death. If one assumes that, but for Martin's death, Mr Ferreira would have continued to earn $685 a week, his annual loss of income would amount to $35,620 and his loss of income over the three-year period would indeed amount to about $107,000.
98 The judge said: "Doing the best I can I have allowed him in the past up until the end of December 2003 the sum of $70,000". The award of $70,000 for the three years ending December 2003 involves a reduction of about 35% of $107,000. The $70,000 amounts to about $2,000 per month.
99 Mr Ferreira's notional annual income on the basis of earning $685 a week is $35,620. His actual past earnings, however, come nowhere near this amount. In his last year of full employment prior to the time he began to look after his family he earned $21,000. For the two subsequent years his income was substantially lower. The approximately $2,000 per month (which appears to have been the basis for the award of past loss of economic capacity for the period 15 December 2000 to December 2003) is more than Mr Ferreira's monthly earnings in 1997. Nevertheless, regard must be had to the fact that he earned $685 a week (that is, about $2,800 per month) for a short period immediately prior to the accident.
100 Garling DCJ said that he had to discount Mr Ferreira's loss of income "because of his past work history" but made no mention of his back injury in this particular context. Analysis of the calculations used by his Honour to arrive at his award leads to the inference that he did not take Mr Ferreira's pre-existing back injury into account. In my opinion, when regard is had to the back injury, the notional $2,000 per month on which the loss is based for the period December 2000 to December 2003 is too high a figure.
101 In my opinion, a further deduction of 25% should be made from the $70,000 to take into account the problems that Mr Ferreira had with his back. This results in a deduction of $17,500 leaving $52,500 for past loss of economic capacity until the end of December 2003.
102 As regards the period of 40 weeks from December 2003 to December 2004, Garling DCJ said:
"[T]he medical evidence at the best is he is fit for work as a waiter, not a chef, that he is earning $90 per week. He spent three months in gaol between December 2003 and December 2004. He therefore during that period had a reduced earning capacity for nine months. I find that reduced earning capacity to be $500 per week for 40 weeks and that would total $20,000."
103 For that 40 week period, if one starts with an assumed loss of earning capacity of $685 per week and reduces that by 35%, one is left with $445 per week. If that is to be reduced by $90 for Mr Ferreira's earning as a waiter the result is $355 per week. $355 per week for 40 weeks is $14,200. As I have said, the judge awarded $20,000 for this period.
104 Taking into account what I have set out in the preceding paragraph, as well as Mr Ferreira's back injury, I would reduce the award of $20,000 in respect of the 40-week period by 25% ($5000), thereby arriving at an amount of $15,000.
105 In the result, I consider the appropriate award for past loss of earnings to be a total of $67,500 made up of $52,500 for the period from the date of Martin's death to December 2003 and $15,000 for the period from December 2003 to December 2004.
106 Garling DCJ allowed a buffer for the future of $20,000 and in my opinion that is unexceptionable.