Battunga Country Lions Club v Paues

The appeal concerned an assessment of damages for future loss of earning capacity. The appellant, Battunga Country Lions Club, challenged the quantum of damages awarded to the respondent, Paues, by the trial judge.

The central legal issue before the appellate court was whether the trial judge's assessment of the respondent's future loss of earning capacity was excessive, notwithstanding that the trial judge had made no error of principle or fact. Specifically, the court had to consider the combined effect of the trial judge's findings regarding the respondent's likely working life, the delayed commencement of financial loss, and the method used to calculate future losses.

The appellate court acknowledged the restraint an appellate court should exercise when reviewing a trial judge's assessment of damages. While not finding any error of principle or fact in the trial judge's findings, the court concluded that the award for future loss of earning capacity was excessive in the relevant sense. This excess was attributed to the use of a multiplier from the date of trial to age 65, with a 15 per cent contingency reduction, which the court found resulted in too high an award. The court undertook a fresh assessment, considering the likely delay in the commencement of significant financial loss and the eventual cessation of work.

The appeal was allowed. The judgment in favour of the respondent was set aside, and an award of $250,000 for future loss of earning capacity was substituted. The total judgment in favour of the respondent was reduced to $398,617.