George v State of New South Wales

George v State of New South Wales involved the plaintiff suing the defendant, the State of New South Wales, for damages arising from a work injury. The dispute centred around whether the defendant was vicariously liable for the actions of a superior officer who had bullied and harassed the plaintiff, resulting in a psychiatric injury. The case also addressed the assessment of damages, particularly whether the plaintiff's loss of earning capacity was attributable to the tortious injury and how to properly assess damages, including the application of a discount for unrelated causes of incapacity. Additionally, the court interpreted statutory provisions to determine whether the plaintiff's loss of superannuation benefits was subject to a cap under s 151I of the Workers Compensation Act 1987 (NSW).

The court was required to determine several key legal issues. Firstly, whether the employer could be held vicariously liable for the actions of a superior officer who bullied and harassed the plaintiff. Secondly, whether the employer's duty of care was breached, and if so, whether this breach caused the plaintiff's psychiatric injury. Thirdly, the court had to assess whether the tortious injury was causative of the plaintiff's loss of earning capacity, and if so, how to properly calculate the damages. Finally, the court needed to interpret the relevant statutory provisions to determine whether the loss of superannuation benefits was subject to a cap under s 151I of the Act.

The court held that the employer was vicariously liable for the actions of the superior officer who had bullied and harassed the plaintiff, leading to the psychiatric injury. It found that the employer's duty of care was breached, and this breach was the cause of the plaintiff's injury. In assessing damages, the court determined that the tortious injury was causative of the plaintiff's loss of earning capacity and applied an appropriate discount for unrelated causes of incapacity. The court also concluded that the loss of superannuation benefits was subject to the cap under s 151I of the Workers Compensation Act 1987 (NSW). Consequently, the plaintiff was awarded $953,244 in damages.

The court ordered judgment in favour of the plaintiff in the sum of $953,244. The questions of costs and interest were reserved for further agreement between the parties or re-listing for argument if necessary. The parties were directed to provide proposed Short Minutes of Order within seven days if costs and/or interest were agreed upon. If there was no agreement, the parties were to confer and approach the court's Associate within seven days to re-list the matter for argument, with an agreed timetable for the service of evidence if considered necessary.