AAI Limited t/as AAMI v Whitehead - [2025] NSWPIC 15

CERTIFICATE OF DETERMINATION OF MEMBER
CITATION:	AAI Limited t/as AAMI v Whitehead [2025] NSWPIC 15
CLAIMANT:	Heath Whitehead
INSURER:	AAMI
MEMBER:	Maurice Castagnet
DATE OF DECISION:	15 January 2025
CATCHWORDS:	MOTOR ACCIDENTS - Motor Accident Injuries Act 2017; approval of settlement; section 6.23 claim for damages for non-economic loss and past and future economic loss; significant injury to the left knee requiring two surgical procedures; scarring; permanent impairment assessed at 12%; claimant was working as a landscaper at the time of the accident; claimant has returned to full-time employment in a different role as a sales merchandiser; damages for non-economic agreed at $330,000; buffer for future economic loss agreed at $300,000; Held – proposed settlement of $725,000 is approved.
DETERMINATIONS MADE:	CERTIFICATE Settlement Approval Issued under s 6.23 of the Motor Accident Injuries Act 2017 1. The proposed settlement sum of $725,000 is approved under sub-s 6.23(2)(b) of the Motor Accident Injuries Act 2017 (the Act). 2. Pursuant to sub-s 3.40(1)(b) of the Act the insurer is entitled to deduct the sum of $68,141.90 from the proposed settlement sum by way of recovery for weekly payments of statutory benefits paid to the claimant under Division 3.3. 3. accident was not caused wholly by the fault of the claimant. 4. The insurer is to pay the claimant’s regulated costs.

STATEMENT OF REASONS

INTRODUCTION

On 13 September 2022, the claimant, Heath Whitehead, was involved in a motor accident when a vehicle insured by AAMI, made a right-hand turn across the path of the claimant’s motorcycle, causing the claimant to be thrown onto the roadway. As a result of the accident, the claimant sustained injuries.
The claimant has made a claim for common law damages for the injuries he sustained in the accident with the insurer. On 8 November 2024, the insurer admitted liability for the claim.
The parties have agreed to a settlement of the claim.
The claimant is self-represented. Section 6.23(2) of the Motor Accident Injuries Act 2017 (MAI Act) requires that any settlement of a claim for damages by a claimant who is self-represented be approved by Personal Injury Commission (Commission). Accordingly, on 19 November 2024, the insurer lodged an application with the Commission to have the settlement approved.
On 4 December 2024, the insurer informed the Commission that the parties had agreed to an updated settlement in the sum of $675,000.
The matter was referred to me to consider the approval.
Following discussions at a teleconference held on 10 December 2024, the insurer made a revised offer of settlement in the sum of $725,000 which was accepted by the claimant. This is the proposed settlement which is now considered for approval.

THE EVIDENCE

The claimant was 20 years old at the time of the motor accident and is now 22.
The NSW Ambulance Service attended the scene of the accident and conveyed the claimant to Nepean Hospital where he remained for treatment until 14 September 2022.
According to the clinical notes of the hospital, the claimant was diagnosed…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2025] NSWPIC 15
Decision Date: 15 January 2025

CaseChat Overview and Summary

AAI Limited trading as AAMI brought an application to the Supreme Court of Victoria for approval of a settlement with Mr Whitehead, the insured of the respondent, in a motor accident claim. The dispute centred on the quantum of damages for non-economic loss and past and future economic loss. The court was required to determine whether the settlement amount was appropriate, considering the nature and extent of Mr Whitehead’s injuries, his recovery, and his return to employment.

The primary issue was whether the proposed settlement amount of $725,000 was fair and reasonable, taking into account the injuries sustained and the agreed damages for non-economic loss and future economic loss. The court examined the evidence provided regarding Mr Whitehead’s injuries, which included a significant injury to his left knee requiring two surgical procedures, resulting in scarring and a permanent impairment rating of 12%. The court also considered Mr Whitehead’s pre-accident employment as a landscaper and his current full-time employment in a different role as a sales merchandiser.

In approving the settlement, the court noted that the parties had agreed on damages for non-economic loss at $330,000 and a buffer for future economic loss at $300,000. The court found that the settlement amount was fair and reasonable, given the totality of the circumstances, including the nature of the injuries, the scarring, the permanent impairment, and Mr Whitehead’s return to employment. The court considered the settlement to be appropriate and approved the proposed amount.

The court orders the settlement amount of $725,000 be approved.

Orders