Amaca Pty Ltd v Latz

The High Court of Australia considered an appeal by Amaca Pty Ltd concerning damages awarded to Mr Latz, who had been diagnosed with terminal malignant mesothelioma. Mr Latz had retired and was receiving both a superannuation pension and an age pension. He sued Amaca, the manufacturer of asbestos fencing he had installed decades earlier, for negligence. Amaca did not dispute liability.

The central legal issues before the High Court were whether Mr Latz's entitlement to receive his superannuation pension and age pension during the period of his "lost years" (the years lost due to his reduced life expectancy) constituted a compensable economic loss. The court also had to consider whether a reversionary pension payable to Mr Latz's partner upon his death should be deducted from the damages award.

The High Court allowed the appeal in part, finding that the Full Court of the Supreme Court of South Australia had erred in including an allowance for the loss of the expectation of receiving an age pension during the "lost years". The High Court reasoned that the common law does not recognise the loss of the opportunity to enjoy financial resources due to premature death as a distinct form of economic loss. To do so would depart from principles of equality before the law by valuing such a loss differently based on the source of the plaintiff's financial resources. The court found no satisfactory basis for such a departure.

Consequently, the High Court set aside the order of the Full Court regarding the assessment of damages and ordered that judgment be entered in an amount to be determined in accordance with the revised assessment. The appeal was otherwise dismissed, and the appellant was ordered to pay the respondent's costs of the appeal.