Djukic v Government Insurance Office of New South Wales

The New South Wales Court of Appeal considered the appeal of Mr. Djukic against a decision of the District Court concerning a claim for damages for personal injuries sustained in a motor vehicle accident. The Government Insurance Office of New South Wales (GIO) was the nominal defendant in the proceedings. The core of the dispute revolved around the assessment of Mr. Djukic's entitlement to damages, particularly in relation to his earning capacity.

The primary legal issue before the Court of Appeal was whether the District Court had erred in its assessment of the plaintiff's loss of future earning capacity. Specifically, the court had to determine if the judge had correctly applied the principles of assessing damages for such a loss, considering the plaintiff's pre-accident employment and his post-accident limitations.

The Court of Appeal found that the District Court judge had made an error in assessing the plaintiff's loss of future earning capacity. The judge had failed to adequately consider the plaintiff's potential to earn income in alternative employment, even if that employment was less skilled or remunerative than his pre-accident occupation. The court reiterated the principle that damages for loss of earning capacity are not limited to the loss of earnings in the plaintiff's former employment but extend to the loss of capacity to earn in any employment that the plaintiff might reasonably have been expected to undertake. The court allowed the appeal, setting aside the original damages award and remitting the matter for re-assessment of damages.