Aussems v Commonwealth of Australia

The case of Aussems v Commonwealth of Australia involved the plaintiff seeking damages for personal injury, specifically post-traumatic stress disorder (PTSD), sustained during his employment with the Commonwealth. The plaintiff had been employed in various roles for an extended period before establishing his own business. The High Court of Australia was tasked with determining the appropriate assessment of the plaintiff's loss of earning capacity in light of his long-standing employment history and subsequent entrepreneurial venture. The central issue was whether the plaintiff's PTSD, which arose from his employment, warranted compensation for his reduced capacity to earn income both in his former employment and in his business.

The court considered the unique circumstances of the plaintiff's career, which included substantial periods of employment followed by self-employment. The assessment of damages for PTSD required careful consideration of the plaintiff's pre-existing capacity to earn and the impact of the disorder on his ability to maintain that capacity. The court had to balance the plaintiff's long history of gainful employment with the disruptive effect of PTSD on his earning potential in both his former employment and his own business. The court also needed to address the complexities of assessing damages for self-employed individuals, ensuring that the award reflected the realities of the plaintiff's situation.

In its decision, the court held that the plaintiff's PTSD had indeed resulted in a loss of earning capacity, both in terms of his former employment and his business activities. The court emphasised the importance of a holistic approach to the assessment of damages, taking into account the plaintiff's entire career trajectory. It ruled that the plaintiff was entitled to compensation that reflected the impact of his PTSD on his ability to earn income. The court's decision underscored the need for a nuanced assessment that considered both the plaintiff's past employment and his entrepreneurial endeavours.

The court ordered that the Commonwealth pay the plaintiff damages for his loss of earning capacity, reflecting the impact of his PTSD on both his former employment and his business activities. The award was designed to compensate the plaintiff for the specific losses he had incurred, ensuring that the assessment was fair and just in light of his unique circumstances.