Cochrane v Hannaford

Cochrane v Hannaford concerned an appeal and cross-appeal from a judgment of the District Court of New South Wales following a motor vehicle accident. The plaintiff, Ms Cochrane, suffered personal injuries when a grader, which she was working beneath on a banking, moved unexpectedly. The defendant, Mr Hannaford, was the driver of the grader. The primary dispute revolved around whether Ms Cochrane had acted reasonably in her own safety and the quantification of her economic loss.

The Court of Appeal was required to determine several key legal issues. Firstly, it had to consider whether Ms Cochrane was contributorily negligent in the circumstances, particularly given the unexpected movement of the grader. Secondly, the court needed to assess the appropriate method for quantifying Ms Cochrane's economic loss, specifically whether the cost of a full-time foreman was the correct measure of her loss of earning capacity and whether her share of partnership profits was a relevant consideration for this calculation. Finally, the court was asked to consider the award of interest on damages under section 73 of the *Motor Accidents Act 1988* (NSW), including whether an earlier offer of settlement was unreasonable and whether the judge's reasons for decision were sufficient.

The Court of Appeal upheld the appeal in part and the cross-appeal in full. The court found that it was reasonable for Ms Cochrane to assume the grader would be maintained safely in position. Regarding economic loss, the court determined that the cost of providing a full-time foreman was an appropriate measure of the plaintiff's loss of earning capacity. The court also considered the loss of opportunity to develop the farm property, noting the partnership at will with her son and mother. The court's reasoning on the award of interest under s 73 of the *Motor Accidents Act 1988* (NSW) led to the upholding of the cross-appeal.