FAI Allianz Insurance Ltd v Lang

FAI Allianz Insurance Ltd (appellant) appealed against a decision of the District Court of New South Wales awarding damages to Mr. Lang (respondent) for personal injuries sustained in a motor vehicle accident. The dispute concerned the assessment of damages, specifically future economic loss and the quantum of damages for home care services.

The primary legal issues before the Court of Appeal were whether the District Court judge erred in: (1) assessing future economic loss by applying a 15% discount for vicissitudes, considering the respondent's intercurrent adverse health conditions and life expectancy; and (2) awarding damages for home care services based on expert evidence of the respondent's needs, rather than the actual services provided.

The Court of Appeal, comprising Santow and Bryson JJA and Young CJ in Eq, found no error in the District Court's assessment. Regarding future economic loss, the court held that the 15% discount for vicissitudes was a reasonable and appropriate consideration given the respondent's pre-existing health conditions, which could impact his life expectancy and earning capacity. On the issue of home care, the court affirmed that damages could be awarded based on expert evidence of the respondent's future needs, even if the precise services provided to date were unclear, provided those needs were demonstrably attributable to the injuries sustained in the accident.

The appeal was dismissed, and the appellant was ordered to pay the respondent's costs.