Gem v State of New South Wales (No 2)

The plaintiff, Gem, sought further damages against the State of New South Wales for additional funds management charges incurred following an initial assessment of her personal injury damages. The case was heard in the Supreme Court of New South Wales. The primary legal issue was whether Gem was entitled to an additional sum of money to cover the funds management charges that arose from the investment of her damages award.

The court examined the nature of the funds management charges, which were incurred due to the need to manage Gem's damages award until she reached a certain age. It considered the statutory obligations under the Guardianship Act 1987, which mandated the appointment of a trustee to manage the funds. The court had to determine if these charges were properly incurred and whether they were a legitimate part of the plaintiff’s damages.

The court found that the funds management charges were necessary and reasonable, given the statutory requirement to protect Gem's interests. It assessed the total amount of these charges to be $136,720, which was then added to the previous damages award, resulting in a total judgment of $491,275. The court directed that part of the judgment sum be paid to Medicare Australia to cover a statutory charge, while the balance was to be invested by the NSW Trustee and Guardian on Gem's behalf until she reached a certain age or until otherwise ordered by a court or tribunal. The defendant was also ordered to pay Gem’s costs of the proceedings.