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High Court of Australia |
GAMSER v. NOMINAL DEFENDANT [1977] HCA 7; (1977) 136 CLR 145
Practice (N.S.W.) - Damages
High Court of Australia
Barwick C.J.(1), Gibbs(2), Stephen(3), Murphy(4) and Aickin(5) JJ.
CATCHWORDS
Practice (N.S.W.) - Supreme Court - Court of Appeal Division - Powers - Damages for personal injuries - Subsequent discovery that injuries more serious than appeared at trial - Power to set aside judgment by reason of changed circumstances - Supreme Court Act 1970 (N.S.W.), ss. 75A (7), (8), (9) - Rules of the Supreme Court (N.S.W.), Pt 40, r. 9 (4), Pt 42, rr. 11, 12 (1).Damages - Personal injuries - Damages found by trial judge reduced by court of appeal - Principles governing interference by appellate court with award of trial judge - Whether damages unreasonable.
HEARING
Sydney, 1976, November 3-4.DECISION
1977, February 25.
2. In my opinion appeal no. 148 of 1976 should be dismissed and appeal no. 98
of 1975 should be allowed with costs the orders
of the Supreme Court, Court of
Appeal Division, set aside and in lieu thereof that it be ordered that the
appeal to that Court
be dismissed with costs. (at p146)
GIBBS J. I have had the advantage of reading the reasons for judgment
prepared by my brother Aickin. (at p146)
2. I agree that appeal no. 148 of 1976 must be dismissed for the reasons
which my brother Aickin has given. I regard it as unfortunate
that the
inherent power of an appellate court does not extend to varying its own orders
when the interests of justice require it.
It is of course a most important
principle, based on sound grounds of policy, that there should be finality in
litigation. However,
exceptional cases may arise in which it clearly appears
from further evidence that has become available that a judgment which has
been
given rested on assumptions that were false and that it would be manifestly
unjust if the judgment were allowed to stand.
In my opinion it is desirable
that the Court of Appeal should have a discretion - however guardedly it might
have to be exercised
- to reopen its judgments in cases such as that in which
the needs of justice require it. I agree, however, that the decision in
Bailey
v. Marinoff [1971] HCA 49; (1971) 125 CLR 529 shows that the Court of Appeal lacks that
inherent power. (at p147)
3. I agree that appeal no. 98 of 1975 should be allowed and, subject to what
is said below, am in general agreement with the reasons
given by my brother
Aickin for taking that course. There are two aspects of the matter, however,
upon which I must express my own
views. (at p147)
4. The learned trial judge assessed the damages in a global sum and did not
attempt to attribute separate amounts to its various
components. In Arthur
Robinson (Grafton) Pty. Ltd. v. Carter [1968] HCA 9; (1968) 122 CLR 649, at p 655 , Barwick
C.J. (speaking
of the duties
of an appellate court when asked to set aside a
jury's award
as excessive) warned of the danger of quantifying various
items
in
isolation and then aggregating them to compare their total with
the
verdict. However, he did not deny "the utility of
segregating
some of the
items which would necessarily have to have been considered
in arriving at the
ultimate figure". He also
expressed the
view that it was preferable that a
jury "be invited to consider directly
what global sum in their judgment
represents
fair compensation
for the injuries than that they be asked to work
out separately
the compensation for each of the elements of the
compensation
which
they should have in mind" (1968) 122 CLR, at p 660 . In the
present case
we are concerned not with the role
of a jury but with that
of a judge sitting
alone. With respect, I am unable to
see how a judge can properly perform his
duty in
making an assessment of
damages, in a case in which the personal
injuries are
serious and the award will therefore be large, without
examining
separately
each of the main heads of damage and allotting, albeit
tentatively
and in a preliminary way, a separate sum
to each head. Of course
the judge
must guard against the danger that he will
give compensation for the same
damage twice, under
separate heads. But the
assessment by a judge must be a
process of methodical
consideration, not one of ungoverned intuition. It
will
often - indeed usually,
be convenient for the judge to reveal the details
of
his reasoning, if not the amounts forming the
main components of the global
sum, so that if he has fallen into error, that may
be revealed and corrected
on appeal. I have read
what my brother Stephen has
said on this subject in his
judgment in the present
case, and would respectfully express my agreement
with
his remarks. However,
the fact that the learned trial judge did not itemize
his award was no ground for interfering with it
and it was not on that ground
that the Court of Appeal allowed the appeal. (at
p148)
5. The authorities have consistently recognized that when an appellate court
is called upon to review an award of damages its
approach must be different
depending upon whether the award is made by a judge or by a jury. I said
something on this subject in
Precision Plastics Pty. Ltd. v. Demir (1975) 132
CLR 362, at p 364 . For present purposes it is unnecessary to multiply the
citation
of authority and it will be sufficient to refer to the observations
made by Lord Wright in Davies v. Powell Duffryn Associated Collieries
Ltd.
(1942) AC 601, at pp 616-617 , which were cited with apparent approval by
Dixon C.J. and Kitto J. in their joint judgment
in Miller v. Jennings (1954)
[1954] HCA 65; 92 CLR 190, at pp 195-196 :
"There is an obvious difference between cases tried with aTo say that an award of damages made by a judge must be outrageous, or out of all reason, before an appellate court is entitled to intervene is, I think, with all respect, to state too high a test. However in the present case, in the circumstances stated by my brother Aickin, it should not have been held by the Court of Appeal that the award made by the learned trial judge was a wholly erroneous estimate of the damage suffered, and there was no sufficient ground for the Court of Appeal to have interfered with that award. (at p149)
jury and cases tried by a judge alone. Where the verdict is
that of a jury, it will only be set aside if the appellate court is
satisfied that the verdict on damages is such that it is out of
all proportion to the circumstances of the case: Mechanical &
General Inventions Co. Ltd. v. Austin (1935) AC 346 . Where, however,
the award is that of the judge alone, the appeal is by way of
rehearing on damages as on all other issues, but as there is
generally so much room for individual choice so that the
assessment of damages is more like an exercise of discretion
than an ordinary act of decision, the appellate court is
particularly slow to reverse the trial judge on a question of
the amount of damages. It is difficult to lay down any precise
rule which will cover all cases, but a good general guide is
given by Greer L.J. in Flint v. Lovell (1935) 1 KB 354,
at p 360 . In effect the court,
before it interferes with an award of damages, should be
satisfied that the judge has acted on a wrong principle of law,
or has misapprehended the facts, or has for these or other
reasons made a wholly erroneous estimate of the damage
suffered. It is not enough that there is a balance of opinion or
preference. The scale must go down heavily against the
figure attacked if the appellate court is to interfere, whether
on the ground of excess or insufficiency."
STEPHEN J. I have had the advantage of reading the reasons for judgment of
my brother Aickin. In the case of appeal no. 148 of
1976 I agree that that
appeal should be dismissed for the reasons stated by him, adopting as he does
the views expressed by Glass
J.A. in the New South Wales Court of Appeal. (at
p149)
2. In the case of appeal no. 98 of 1975 I would again agree with Aickin J. in
allowing that appeal and would, for myself, add
only this: that so long as
awards of damages for personal injuries are to be assessed at first instance
by judges rather than by
juries, with the accompanying advantage of the
existence of stated reasons, those reasons should condescend to some degree of
particularity
concerning the process by which the particular award of damages
has been arrived at. (at p149)
3. I do not, of course, advocate any process whereby items of damages are
quantified in isolation and are then simply aggregated;
that is no way to go
about the task. But to condemn that approach should confer no merit upon
another, no less objectionable, whereby
the total amount to be awarded is
stated without any disclosure of the mental processes by which that sum has
been arrived at.
An award of damages is not, nor should it ever be, arrived at
intuitively. Only if it were would particularity as to its component
parts be
otiose; and if an award is to be the result of a process of reasoning, often
quite complex, that process should be exposed,
both for the satisfaction of
the parties and for the enlightenment of appellate courts should there be an
appeal. (at p149)
4. So long as compensation takes the form of a lump sum award, arrived at by
an evaluation of evidence and by processes of reasoning,
there must
necessarily be involved some assessment of each item of detriment and some
process of computation in order to arrive
at the ultimate sum to be awarded.
There will very often be detriments suffered or risks of detriment to which a
party has been
exposed which are incapable of precise quantification. In such
cases estimates must suffice and the notion that some false impression
of
precise mathematical accuracy may be given can readily be dispelled by a few
words of explanation. There is no occasion to abandon
altogether the task of
explaining the components of the award. (at p150)
5. Having said this I nevertheless conclude that the learned trial judge's
award of $150,000 should have been allowed to stand,
for the reasons stated by
Aickin J. I believe that there existed no ground upon which the Court of
Appeal could properly have interfered
with that award. It is for the foregoing
reasons that I would dismiss the appeal in proceedings no. 148 of 1976 and
allow the appeal
in proceedings no. 98 of 1975, in the latter case setting
aside the order of the Court of Appeal and restoring the order of the
trial
judge. (at p150)
MURPHY J. There are two appeals in this matter from a decision by the Court
of Appeal of the Supreme Court of New South Wales
to allow an appeal by the
respondent (defendant) and reduce damages awarded to the appellant (plaintiff)
by McClemens J. in a personal
injury claim. (at p150)
2. The first appeal is from the Court of Appeal's rejection of the
appellant's application based on various provisions of the
Supreme Court Act
1970 (and Rules of Court under it) to reopen the appeal on the ground of fresh
evidence showing a deterioration
in his health and
earning capacity since the
appeal was decided. The provisions of the Supreme Court Act and rules which
the appellant
relied on do not sustain his claim. (at p150)
3. The rules are made by the judges of the Supreme Court and the Full Court's
construction of them, although it is not conclusive
(because the rules are
subject to disallowance by either House of the Parliament), should be given
great weight. Very clear language
would be necessary before legislation
(primary or delegated) would be construed to enable the Court of Appeal to
reopen an appeal
after judgment. (at p150)
4. In our system, when judgment on appeal is given, the appeal ends (Bailey
v. Marinoff [1971] HCA 49; (1971) 125 CLR 529 ).
The judgment stands,
although slips in it
may be corrected by the court. Questions of formality (such as
whether entry
of judgment
is necessary) do
not arise here and the procedure of separate
action impeaching a judgment for fraud
is not relevant. The first
appeal
should be
dismissed. (at p151)
5. The appellant argued that apart from the Supreme Court Act and rules there
was an inherent jurisdiction to reopen the appeal.
Even if there were an
inherent jurisdiction to reopen by reason
of some extraordinary circumstances,
there is no circumstance here
which could possibly warrant the exercise of
such a power. (at
p151)
6. The second appeal was from the judgment of the Court of Appeal reducing
the damages. McClemens J.'s assessment of $160,000
was reasonable and
appropriate and the Court of Appeal underestimated the element of impairment
of earning capacity in holding
that the award was excessive. (at p151)
7. I would allow the second appeal and restore the judgment of McClemens J.
(at p151)
AICKIN J. These two matters were heard together and each arises in an action
in which the present appellant was the plaintiff
seeking damages arising from
an accident in which he had been struck by an uninsured motor vehicle being
driven in a negligent
manner. The accident occurred on 29th October 1972 and
the proceedings were instituted in the Supreme Court of New South Wales in
June 1973. The plaintiff suffered very extensive physical injuries which
involved the amputation of both legs above the knee. The
matter came on for
trial before McClemens J. in October 1974 and on 22nd October judgment was
given for the plaintiff. No question
of liability remains. The trial judge
gives a careful review of the nature of the plaintiff's injuries, his position
and occupation
and his condition, both physical and psychological, as at the
date of the trial. It is not necessary at this point to repeat the
terms in
which the injuries are described. He had referred in qualitative but not
quantitative terms to all the matters which enter
into the assessment of
damages in such a case and awarded the sum of $150,000 as general damages plus
$10,000 as agreed special
damages. Judgment was accordingly entered for
$160,000. The defendant by a notice dated 5th November 1974 appealed to the
Court
of Appeal upon the ground that the damages were excessive. The matter
came on before the Court of Appeal on 27th June 1975 and judgment
was
delivered on 30th June 1975. The principal judgment was delivered by Moffitt
P. with whom Reynolds J.A. and Glass J.A. agreed,
adding only short comments.
The view which they took was that the damages were excessive and they
substituted a verdict for $125,000.
(at p151)
2. The appellant appealed from that decision by notice of appeal dated 18th
July 1975, and the appeal was placed in the list of
cases for hearing in the
sittings of this Court at Sydney to commence on 16th March 1976. However, on
7th July 1975, i.e. after
judgment was delivered in the Court of Appeal but
before notice of appeal to this Court, the appellant suffered a "grand mal"
seizure
as a consequence either of the head injuries suffered by him in the
accident or of the drugs administered to him for the alleviation
of pain
suffered in consequence of his severe injuries, or as a result of a
combination of those two factors. In the course of
the seizure the appellant
suffered further fractures and injuries which required extensive additional
surgical treatment. They
produced the result that it is unlikely the appellant
will ever walk again on artificial limbs even to the limited extent previously
possible. Moreover, the state of epilepsy discovered in the course of this
incident will render his future employment uncertain
and his future life will
be adversely affected. (at p152)
3. This appeal first came on for hearing in this Court on 7th April 1976 and
the appellant then sought leave to amend his notice
of appeal to add a further
ground of appeal to the following effect:
"That since the hearing of the appeal before the Court ofand further sought to adduce the fresh evidence referred to. This Court granted an adjournment of the matter in order to enable the appellant to approach the Court of Appeal of New South Wales to seek relief from that Court arising out of the events which occurred after its decision of 30th June 1975. (at p152)
Appeal further events have occurred which amount to fresh
evidence and which falsify the basis upon which the Court of
Appeal allowed the appeal by the defendant and substituted
a verdict of $125,000"
4. By a summons dated 22nd June 1976 an application was made to that Court
seeking an order that it should set aside its judgment
and either grant a new
trial or reassess damages on the ground that events had subsequently happened
which falsified the basis
of the judgment both of the Court of Appeal and of
McClemens J. Evidence was placed before the Court of Appeal on affidavit by
the appellant and by his solicitor exhibiting copies of medical reports. It
appears from those reports that he had complained to
his doctors of increased
pain in about March 1975 and that X-rays were taken at the request of his
surgeon which revealed that
he was in fact suffering from a traumatic
spondylolistheses. The surgeon's opinion was that this had occurred in the
road traffic
accident but had not been recognized at the time when he was
treated at the end of 1972 at Orange Base Hospital and at the Royal
Prince
Alfred Hospital. The surgeon had told the appellant in March 1975 that it
would probably require a further operation to
"stablize this unstable
condition when he walked about on his legs more than he was doing". The
surgeon then said that "things
were brought to a head when he had further
injuries when he sustained an epileptic seizure at the North Side Clinic".
Other medical
reports referred to the physical, psychological and emotional
problems arising out of that incident. (at p153)
5. The Court of Appeal heard the application on 5th August 1976. Moffitt P.
and Hutley J.A. agreed with the judgment of Glass
J.A. who reviewed the
arguments which were advanced and the authorities cited. These arguments were
again advanced in this Court.
The arguments fell into two categories, the
first based on various provisions of the Supreme Court Act 1970 and the Rules
of the
Supreme Court, and the second based on the inherent jurisdiction of the
Supreme Court. All these arguments
were rejected and the
application refused.
From that decision an appeal was lodged in this Court by a notice of appeal
dated 26th
August 1976. (at p153)
6. As to the first category, I am in agreement with the views expressed by
Glass J.A. and need add very little. The first provision
relied on was s. 75A
(7), (8) and (9) of the Supreme Court Act 1970. Those provisions confer
extensive powers on the Supreme
Court with respect to the receipt of new
evidence and the like but I agree
that it is clear on the face of the section
that they
can be exercised only during the currency of an appeal and not after
it has
been determined and finally disposed of by entry of
judgment. Reliance
was also placed on the Rules of the Supreme Court, Pt 40, r. 9 (4) which gives
power to vary orders. However,
I agree that there is no escape from the
conclusion that this matter plainly
falls within the first exception to that
provision,
namely "except so far as the order determines any claim for relief
or determines
any question (whether of fact or law or both) arising
on any
claim for relief." The third argument was based upon Pt 42, rr. 11 and 12 (1)
of the Rules of the Supreme Court which provide
that "a person bound by a
judgment may move for a stay of execution
or some other order on the ground of
matters occurring after
the date on which the judgment takes effect and the
Court may on terms
make such order as the nature of the case requires".
Whether
or not the appellant is a person bound by a judgment within the
meaning
of that rule, the context makes it clear that the kinds
of order
contemplated do not include one setting aside a judgment regularly
entered. I
agree with his Honour's reasons for that
conclusion. (at p153)
7. As to the question of whether there was in the Court inherent jurisdiction
to make the order sought, Glass J.A. took the view
that the decision of this
Court in Bailey v. Marinoff [1971] HCA 49; (1971) 125 CLR 529 was fatal to the argument. In
that case
this Court held
that when an appeal has been finally disposed of in
a court of appeal by an order duly entered it has no inherent
power to reopen
the case on an application made after the order has
been entered. That general
proposition is no doubt subject
to the rule that
a judgment apparently
regularly obtained may be impeached
upon the ground of fraud, and there would
seem to be
no reason why that
rule should not also apply to judgments upon
appeal, although
it is difficult to visualize how a judgment of
an appellate
court
could be obtained by fraud, other than in circumstances in which
the
original judgment which the appellate court
had upheld had
itself been
obtained by fraud. The majority judgments in Bailey
v. Marinoff appear to me
to make it clear that there
is no inherent
power to set aside judgments by
reason of changed circumstances
on application made after the case has been
finally
disposed of.
It is sufficient to quote what Menzies J. said (1971) 125
CLR,
at pp 531-532 :
"This appeal is not concerned with the power of a court to
alter orders in pending litigation. It is concerned with the
power of a court to make an order in litigation which, without
any error or lack of jurisdiction, has been regularly concluded
and is no longer before the court. To recognize the problem is,
I think, to solve it. However wide the inherent jurisdiction of
a court may be to vary orders which have been made, it
cannot, in my opinion, extend (to) the making of orders in
litigation that has been brought regularly to and end." (at p154)
8. In this Court it was argued that the cases there relied upon did not cover
the situation of fresh evidence and that fraud was
in truth an example or
category of fresh evidence, but the cases do not recognize such a principle
and indeed are inconsistent
with it. (at p154)
9. I am therefore in agreement with the reasons of Glass J.A. on the argument
concerning the inherent jurisdiction of the Court.
In the result therefore I
am of opinion that appeal no. 148 of 1976 should be dismissed. (at p154)
10. I now turn to the original appeal (no. 98 of 1975). The judgment of
McClemens J. proceeded after a binding of negligence on
the part of the driver
of the unlicensed vehicle, which was not challenged in the appeal, to detail
the extremely serious injuries
suffered by the appellant. He described those
injuries and the appellant's condition at the date of the trial. He adverted
in his
judgment to matters dealt with in the medical evidence affecting the
loss of amenities of life, including the problems associated
with the prospect
of the appellant having a normal marriage and the problems connected with
sexual relations. He reviewed the evidence
relating to all aspects of his
personal position, including the long period that he has spent in hospitals
and the series of operations
that he has experienced, including the
expectation that there will be further problems arising from the amputations.
It is important
to note that the medical evidence was that it was extremely
difficult to fit, and for the appellant to use, artificial limbs, and
that the
prospects of his being able successfully to use them other than for short
periods of time and for walking short distances
were unfavourable. The
judgment dealt with the appellant's economic future. He had a permanent
position with the Transport Department
and it is likely that he will be able
to keep it. McClemens J. does however point out that if anything should happen
in relation
to that employment his future employment prospects would be very
limited indeed. He adverted to the additional expense involved
in the way of
living which is forced upon the appellant by his physical condition, including
the necessary alterations to his living
quarters to enable him to manage
ordinary daily activities and the possibility of his requiring assistance, and
finally he adverted
to the psychological problem of mutilation. (at p155)
11. After this careful review of all the relevant factors, he awarded a sum
of $150,000 general damages plus the agreed figure
of $10,000 special damages.
He did not indicate that he had arrived at that figure by a process of
attributing particular sums
to individual ingredients and in this respect he
followed the indication which this Court had given in Arthur Robinson
(Grafton)
Pty. Ltd. v. Carter [1968] HCA 9; (1968) 122 CLR 649 that it is preferable not to
attempt to assess a figure under each possible
individual heading
and then to
add up the total. He noted that that was a case relating to a jury trial but
regarded it as a general
guide. There
can certainly
be no error in refraining
from attributing separate amounts to various headings or topics regarded as
matters to
be adverted to
in assessing general damages, and indeed it was
suggested that error lay, not in his method of approach,
but only
in the
quantum
of the award. (at p155)
12. In the Court of Appeal the only suggestion made as to a point on which
the trial judge may have erred in arriving at his assessment
of damage is in
the passage which reads: "It may be his Honour failed to apprehend some of the
evidence concerning the present
effect of the injury upon the respondent's
sexual capacity, which his Honour stressed as very significant in respect of
the respondent's
prospects of having a normal married life." Earlier in his
judgment Moffitt P. had said: "He had some sexual problems earlier, but
on his
own concession to the doctor who saw him just before the trial, this had
improved or disappeared by the date of the trial."
That no doubt is a possible
view of the evidence but it is by no means the only view. In my opinion the
trial judge was entitled
on the evidence to regard that as a continuing
problem, though there was a prospect or hope that it might disappear. What
evidence
there is on the matter does not point unequivocally in the direction
suggested by Moffitt P. Dr. Seaton who had attended the appellant
over a
period of time had given a written report dated 15th February 1974 when he had
last seen the appellant. He said in his oral
evidence in answer to questions
put by the judge, "I think it probable his impotence will get better. I feel
getting used to his
disabilities and having insight into his future, he is
well equipped emotionally and physically for a reasonable marriage but
obviously
there will be difficulties," which he then described as
"considerable difficulties". Another medical witness was Dr. Wilson, who
was
the Rehabilitation Medical Officer in the Department of Social Security and
had seen the appellant in the period from January
1973 onwards. He said that
the appellant had complained of the fact of impotence which he had had
investigated. Asked whether it
was likely to pass off with the passage of time
he answered "When you say 'pass off', yes, I think it would pass off as I
understand
it, but it may well recur in the future provided certain
circumstances of stress are similar" and a little later he said of the
sexual
problem "I don't think it is certain by any means what the outcome of this
will be". Asked by the trial judge about the
possibility of marriage he said
"It might be a very good thing or it could be a disaster, as you so rightly
point out" and added
"I don't know of any way to prognosticate that". In a
medical report by Dr. Gill dated 17th October 1974 which was put in evidence,
it was stated "... his sex drive which was initially poor, has now returned".
Dr. Gill however was not called as a witness. Dr.
Wilson was not
cross-examined, and in his cross-examination Dr. Seaton had expressed the
cautious view that it was probable that
the impotence would get better but
that there would be considerable difficulties in relation to marriage. Dr.
Gill's statement
was not put to him. (at p156)
13. In my opinion it is not correct to speculate that the trial judge might
have misapprehended this evidence. In my opinion the
trial judge's view that
there were great problems in relation to marriage was one which was entirely
open on the evidence and moreover
he expressly refers to the evidence of Dr.
Seaton that he thought the impotence would get better. In my opinion there is
no basis
for thinking that he misunderstood this matter. (at p157)
14. Moffitt P. said:
"The case is one where it is proper to make some material
provision for future economic loss being prospective loss of
earnings and increased expenses of the type referred to. It is
not a case where any positive identifiable loss can be
demonstrated or where any calculation can be made. In
consequence, an appellate court in reviewing an award must
accord a wide discretion to the trial judge. This, however,
does not mean that the award is not examinable. If an award
as a whole is to be examined, it is necessary to consider what
might be attributable to the economic ingredient in the award
and be within reasonable limits. I do not think that a sum in
excess of about $25,000 could reasonably be justified in
respect of this part of the award.
On this approach, we should therefore interfere, unless it is
reasonable to attribute in the order of $125,000 to the
personal aspects of the respondent's injuries." (at p157)
15. He then went on to say, considering the latter aspects, that the award as
a whole is excessive to a degree such that the Court
of Appeal should
interfere and said "having in mind what should be added to this somewhat
generous approach to economic loss I
propose that the total verdict to be
substituted be $125,000". (at p157)
16. It is undoubtedly true that both "prospective loss of earnings" and
increased living costs due to the appellant's injuries
are imponderables in
the sense that calculation of an amount in respect of them is not practicable.
However, the risk that some
such loss will occur and that some such
expenditure will be incurred may properly be regarded as very high. If one
looks at loss
of "earning capacity", as one should, instead of "loss of
earnings" the present case is better understood. Here the loss of earning
capacity is affected by the fact that the range of jobs which the appellant
could obtain and perform is drastically reduced, even
in the field of office
work and all else is excluded. The risk of future medical expenses and loss of
working time arising out
of further medical treatment is high. The risk of
additional expenses in relation to personal and household assistance is
likewise
high, because it is manifest that a man with these injuries and
disabilities could not look after himself entirely, and as time
goes by is
likely to be able to do less for himself than he can now. (at p157)
17. It is thus understandable that no basis for the choice of the figure of
$25,000 was stated. What these considerations demonstrate
is that this is not
a case where it is useful to attempt to attribute a precise figure to a
particular factor relevant to the award
of general damages. It may in some
cases be permissible to do so, but I do not consider that it can properly be
said, as the Court
of Appeal said, to be "necessary" to the process of
examining whether a total sum awarded without attributing particular amounts
to particular factors is wholly disproportionate to the circumstances. Unless
calculations of some kind are possible and appropriate,
little is achieved by
attempting to give an unreal precision to economic loss, when that and all
other individual factors are in
truth incapable of calculation. What is to be
determined in such a case as this is a total figure as compensation for all
loss
and damage, and in this respect I think that the approach of the trial
judge was correct. (at p158)
18. As was said by Barwick C.J. in Arthur Robinson (Grafton) Pty. Ltd. v.
Carter (1968) 122 CLR, at p 655 :
"It is the verdict as a single sum which must be juxtaposedThis is in essence what the Court of Appeal has done in this case, even though the figure for economic loss is not a calculated one. (at p158)
to the condition of the plaintiff which has resulted from the
(in) jury and its propriety considered ... But, in my opinion,
this does not justify deciding the proportion or the lack of
proportion of the verdict to the injury merely by quantifying
those items in isolation and then aggregating them to
compare their total with the verdict."
19. The critical question however is not whether the sum which the Court of
Appeal arrived at is one which could be supported
in the circumstances but
whether any basis is shown for interfering with the award made by the trial
judge. The occasion for the
Court of Appeal to arrive at its own view as to
the proper amount of damages arises only if the case is one in which it is
proper
to interfere because the verdict is "out of all reason" or
"unreasonably disproportionate to the circumstances of the injury". If
it is
thought proper for that purpose to consider one individual factor, and to
quantify that, it is necessary that some explanation
should be given as to how
such quantification has been arrived at before one can confidently proceed to
the next step of saying
that the balance over and above the figure, e.g. for
economic loss, is one which could not be regarded as proper for the remaining
components. In the present case this Court has the difficulty which arises
from the fact that the sum of $25,000 is stated as a
maximum for economic loss
without explanation as to how it is arrived at or what exactly has been
classified as economic loss.
(at p159)
20. For myself I can see no rational basis upon which one could choose a
figure of $25,000 as the maximum which "could reasonably
be justified" in
respect of economic loss. The causes, the extent and the duration of economic
loss to a man in the condition of
this appellant are even more imponderable
than such factors often are in physical injury cases. They are all in the
future and
to seek to quantify them separately as a total sum to cover all
such losses at this stage in this case seems to me to be a difficult,
if not
an impossible, task. What is certain is that there is a substantial loss of
earning capacity in the sense that prospects
of promotion in his present job
are reduced, and the range of alternative jobs which he could perform and
which he might obtain
is greatly diminished but no means of calculation is
available. (at p159)
21. The problems arising when a challenge is made to a trial judge's
assessment of damages have been examined in this Court in
two recent cases,
Precision Plastics Pty. Ltd. v. Demir [1975] HCA 27; (1975) 132 CLR 362 and Wilson v.
Peisley (1975) 50 ALJR
207 . The judgments
in those cases demonstrate the
difficulties involved
in the application of settled principles in this branch
of the law to particular
facts. I do not think that the present case depends
on any matter where any difference of principle has
arisen. It is sufficient
to say that I regard the following observations of
Barwick C.J. in the latter
case as apposite in the
present case (1975) 50 ALJR,
at p 209 :
"The setting aside of an award of damages in a trial which
has not been irregular or unfair, and where there is neither
challenge to the findings of fact made by the trial judge nor
any demonstrated misconception of the evidence should, in
my opinion, be a most unusual event, to occur only in
circumstances where the disproportion between injury and
award of damages is so great as to make the award quite
unreasonable, indeed outrageous, in the circumstances,
whether by being too great or too small: and therefore of itself
a demonstration of error present though otherwise
undisclosed. The less ponderable the elements of the damages
under consideration, the less likely will there be a case for
setting aside an award by a judge who has not overlooked
any significant fact at the end of a trial not blemished by
error or irregularity." (at p159)
22. In my opinion the proper approach to this case is to look at the total
sum awarded as general damages and at all the circumstances,
the pain and
suffering, past, present and future, the physical disabilities, the medical
and psychological problems which are inevitable
for the future, the effect on
earning capacity and the kinds of additional costs which the appellant will
necessarily incur, and
to ask oneself whether the sum of $150,000 is "out of
all reason" or "wholly disproportionate to the circumstances". No doubt every
case is in some sense "special", but there is no question that here the
injuries and disabilities are unusually severe. I do not
myself think that the
figure is wholly disproportionate to these circumstances and I do not think
that any basis has been shown
for that conclusion. (at p160)
23. I am therefore of opinion that this appeal should be allowed, the order
of the Court of Appeal set aside, and the order of
the trial judge restored.
(at p160)
ORDER
Appeal no. 148 of 1976 dismissed with costs.Appeal no. 98 of 1975 allowed with costs. Order of the Supreme Court of New South Wales (Court of Appeal Division) set aside and in lieu thereof order that the appeal to that Court be dismissed with costs.
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