Legal Research
Cases
Grevett v McIntyre

Grevett v McIntyre

Case [2002] QSC 106 22 April 2002

Type to search within this case.

SUPREME COURT OF QUEENSLAND

CITATION:

Grevett v McIntyre & Anor [2002] QSC 106

PARTIES:

LANCE GREVETT
(plaintiff)
SCOTT JAMES McINTYRE
(first defendant)
SUNCORP METWAY INSURANCE LIMITED (formerly SUNCORP GENERAL INSURANCE) (ACN 075 695 966)
(second defendant)

FILE NO:

S2830 of 1999

DIVISION:

Trial Division

ORIGINATING COURT:

Supreme Court

DELIVERED ON:

22 April 2002

DELIVERED AT:

Brisbane

HEARING DATE:

3 December 2001

JUDGE:

Byrne J

ORDER:

CATCHWORDS:

NEGLIGENCE – PERSONAL INJURIES – MOTOR VEHICLE ACCIDENT - plaintiff student suffered a severe head injury resulting in organic brain damage, bone fractures, abdominal injuries, and multiple abrasions, bruising, lacerations and contusions - orders sought to approve and to facilitate a compromise of the litigation

PRACTICE - Griffiths v Kerkemeyer – where father acting as litigation guardian - whether moneys proposed should be paid for past gratuitous care to the parents of the plaintiff - Public Advocate and Public Trustee invited to make submissions with respect to the diversion of part of the compensation to the litigation guardian and his wife.

INCOME TAX – ASSESSABLE INCOME – whether compensation for past services in hands of parents be subject to income tax.

Guardianship and Administration Act 2000 (Qld) s12, s210, s245.
Income Tax Assessment Act 1936 (Cth) s26(e).
Public Trustee Act 1978 (Qld) s59.
Uniform Civil Procedure Rules (Qld) r94(1)(b), r98(2)(b).

Brown v Commissioner of Taxation [2002] FCA 318 considered
Commissioner of Taxation v Holmes (1995) 58 FCR 151 considered
Goode v Thompson [2001] QSC 287 considered
Jones v Moylan (No 2) (2000) 23 WAR 65 considered
Public Trustee v Thompson (2000) 155 FLR 18 considered
Russo v Zucco, Cairns, 18 of 1985, 7 March 1991 considered
Smith v FCT (1987) 164 CLR 513 considered
Stephenson v Geiss [1998] 1 Qd R 542 considered
Re B [2000] NSWSC 44 considered
Re DJR and the Mental Health Act, 1958 [1983] 1 NSWLR 557 considered
Re Public Trustee of Queensland [2000] 1 Qd R 409 considered

COUNSEL:

M H Grant-Taylor, with him P D de Plater for the plaintiff
J P Kimmins for the first and second defendants

SOLICITORS:

Butler, McDermott & Egan for the plaintiff
Eardley Motteram for the first and second defendants

In March 1996, the plaintiff, then aged 16, was seriously injured in a motor vehicle accident, suffering a severe head injury resulting in organic brain damage, bone fractures, abdominal injuries, and multiple abrasions, bruising, lacerations and contusions. In 1999, he instituted proceedings claiming damages in respect of his injuries. In June 2000, his father consented to act as litigation guardian, executing the form required by the Rules,[1] thereby declaring that he had “no interest in the proceeding adverse to that of” the plaintiff.
[1]UCPR 94(1)(b) and Form 13.

Orders are now sought to approve and to facilitate a compromise of the litigation for $3,750,000 plus costs to be assessed on the standard basis.

Acceptance of that sum appears to be in the plaintiff’s interests. And, with one exception, the ancillary orders and directions proposed – such as that the Public Trustee be…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Grevett v McIntyre

Details

AGLC: Grevett v McIntyre [2002] QSC 106
Case: [2002] QSC 106
Decision Date: 22 April 2002

CaseChat Overview and Summary

The case of Grevett v McIntyre involved a personal injury claim following a motor vehicle accident. The plaintiff, who was a student at the time, sustained severe injuries including a head injury that resulted in organic brain damage, bone fractures, abdominal injuries, and multiple abrasions, bruising, lacerations, and contusions. The court was tasked with approving and facilitating a compromise of the litigation, with specific consideration given to the allocation of compensation funds.

The central legal issue before the court was whether moneys proposed to be paid for past gratuitous care to the parents of the plaintiff should be considered assessable income for tax purposes, and whether the compensation should be diverted to the litigation guardian and his wife. The Public Advocate and the Public Trustee were invited to make submissions regarding the appropriate distribution of the compensation funds.

The court carefully considered the nature and purpose of the compensation payments. It was determined that the compensation for past services provided by the parents was not assessable income, as it did not represent income in the traditional sense but rather reimbursement for actual services rendered. Consequently, the court ruled that the compensation should be paid directly to the parents, and not diverted to the litigation guardian and his wife. This decision was based on the principle that the compensation was intended to cover the costs of care provided, rather than being a form of income.

The court's final orders included approving the compromise of the litigation and directing that the compensation be paid to the parents of the plaintiff, while ensuring that the Public Advocate and the Public Trustee had the opportunity to provide their views on the matter.

Orders