Brocx v Mounsey

The case of Brocx v Mounsey involved the appellant, Brocx, who sued the respondent, Mounsey, for damages resulting from personal injuries sustained in a car accident. The primary dispute centred on the assessment of damages for loss of future earnings, specifically the percentage deduction for contingencies that should be applied to these earnings. The matter was heard in the Supreme Court of Western Australia, Court of Appeal. The legal issues the court had to resolve included whether the primary judge correctly assessed the amount of the deduction for contingencies in respect of both the appellant's loss of earning capacity and her retained earning capacity, and whether work-related expenses should be included in the contingencies for loss of future earnings.

The court examined the principles of appellate court review and the application of contingencies in damages assessment. The court noted that while contingencies such as sickness, accident, unemployment, and industrial disputes are relevant, positive considerations like advancements in employment should also be accounted for. The court further considered the guidance provided by Luntz, which suggests that the maximum discount for all contingencies should be under 10% in the average case, although it acknowledged that this is less than the standard 15% allowed in some jurisdictions. The court concluded that the primary judge erred in making an additional 5% deduction for work-related expenses as these should have been included in the net income determination rather than deducted as a contingency. Consequently, the court found that the primary judge's assessment of damages was flawed.

In light of the court's findings, the appeal was allowed to the extent that the 5% deduction for work-related expenses was inappropriate, and the matter was remitted to the primary judge for reassessment of the damages for loss of future earnings. The final orders included a direction for the primary judge to reconsider the deduction for contingencies, ensuring that work-related expenses were appropriately accounted for in the net income calculation.