Gray v Motor Accident Commission

Donald Gray, the appellant, was injured when struck by a motor vehicle driven by Darren Bransden. The vehicle was insured under South Australia's compulsory third party scheme, with the Motor Accident Commission (the respondent) being the insurer. The primary judge found that Bransden deliberately drove at a group of Aboriginal youths, including Gray, intending to seriously injure him. Bransden was subsequently convicted of intentionally causing grievous bodily harm and sentenced to seven years imprisonment. Gray brought proceedings against Bransden, later substituted by the Commission, claiming damages for negligence, including a claim for exemplary damages. The Full Court of the Supreme Court of South Australia heard an appeal from the primary judge's decision.

The legal issues before the High Court concerned the assessment of damages. Specifically, the Court was required to determine whether the trial judge was precluded from awarding exemplary damages given that the tortfeasor, Bransden, had already been punished in criminal proceedings. Further issues related to the assessment of economic loss and whether the Full Court had erred in its handling of the appeal concerning the quantum of damages.

The High Court allowed the appeal, setting aside the order of the Full Court. The Court reasoned that while the claim for exemplary damages was rightly dismissed, there were errors in the assessment of other components of damages that necessitated correction. The Court concluded that a new trial on the issue of damages, excluding exemplary damages, was the appropriate remedy. The costs of this new trial were to be at the discretion of the judge presiding over it.