Harrison v Melhem

Case [2008] NSWCA 67


Reported Decision: 72 NSWLR 380
Appeal Outcome: Special leave application refused with costs by the High Court – 14 November 2008

New South Wales


Court of Appeal


CITATION: Harrison v Melhem [2008] NSWCA 67
This decision has been amended. Please see the end of the judgment for a list of the amendments.
HEARING DATE(S): 6 December 2007
 
JUDGMENT DATE: 

29 May 2008
JUDGMENT OF: Spigelman CJ at 1; Mason P at 21; Beazley JA at 191; Giles JA at 192; Basten JA at 193
DECISION: 1 Appeal upheld in part
2 Vary the judgment entered in the Common Law Division by substituting $676 248.85 for $637.409.62
3 Cross appeal dismissed
4 Respondents to pay appellant’s costs of the appeal and to have a certificate under the Suitors’ Fund Act 1951 if qualified.
CATCHWORDS: APPEAL AND NEW TRIAL – Appeal – general principles – excessive or inadequate damages – damages excessive – amount not so large as to be entirely erroneous – errors in principle in relation to particular components - DAMAGES – Measure and remoteness of damages in actions for tort – measure of damages – personal injuries – loss of earnings and earning capacity – expense flowing from plaintiff’s inability to work – particular cases – where loss of earning capacity attributed to injury and also to drug use – whether attributing for drug use an error - DAMAGES – Measure and remoteness of damages in actions for tort – measure of damages – personal injuries – method of assessment – generally – claim for domestic assistance – where assistance required for less than 6 hours per week but for more than 6 months – Civil Liability Act 2002, s15(3) - STATUTES – Acts of Parliament – interpretation – rules of construction – words to be given literal and grammatical meaning – Civil Liability Act 2002, s15(3) - STATUTES – Acts of Parliament – interpretation – rules of construction – where meaning ambiguous or uncertain – presumptions as to legislative intention - STATUTES – Acts of Parliament – interpretation – consideration of extrinsic material – legislative history of the Act – previous state of law and mischief to be remedied – Civil Liability Act 2002, s15(3)
LEGISLATION CITED: Civil Liability Act 2002
Evidence Act 1995
Health Care Liability Act 2001
Interpretation Act 1987
Motor Accidents Act 1988
Motor Accidents (Amendment) Act 1993
Motor Accidents Amendment Act 1995
Motor Accidents Amendment Act 1997
Motor Accidents Compensation Act 1999
Motor Vehicles (Third Party Insurance) Act 1942
Personal Injuries Proceedings Act 2002 (Qld)
Private International Law (Miscellaneous Provisions) Act 1995 (UK)
Workers Compensation Act 1987
Wrongs Act 1958 (Vic)
CASES CITED: Alcoa Portland Aluminium Pty Ltd v Victoria WorkCover Authority [2007] VSCA 210
Allianz Australia Insurance Ltd v GSF Australia Pty Ltd [2005] HCA 26; (2005) 221 CLR 568
Al-Kateb v Godwin [2004] HCA 37; (2004) 219 CLR 562
Beech v Eagles [2005] VSC 231; (2005) 141 LGERA 155
Black-Clawson International Ltd v Papierwerke Waldhof-Aschaffenburg AG [1975] AC 591

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Harrison v Melhem [2008] NSWCA 67
Case
[2008] NSWCA 67
Decision Date

CaseChat Overview and Summary

In *Harrison v Melhem*, the Court of Appeal of New South Wales considered an appeal and cross-appeal concerning damages awarded in a personal injury claim. The appellant, Harrison, sought to challenge the quantum of damages awarded, while the respondent, Melhem, cross-appealed against certain aspects of the judgment.

The primary legal issues before the Court of Appeal were whether the trial judge had erred in principle in assessing the appellant's loss of earning capacity, specifically in relation to the attribution of that loss to drug use rather than the injury itself, and whether the trial judge had correctly interpreted and applied section 15(3) of the *Civil Liability Act 2002* (NSW) in assessing the claim for domestic assistance.

The Court of Appeal reasoned that the trial judge had made an error in principle by failing to adequately distinguish between the loss of earning capacity attributable to the injury and that which might have been caused by the appellant's drug use. The Court applied the principle that damages for loss of earning capacity should reflect the impact of the wrongdoer's actions, not pre-existing conditions or subsequent independent factors. Regarding section 15(3) of the *Civil Liability Act 2002*, the Court undertook a literal and grammatical interpretation of the provision, considering its legislative history and the mischief it was intended to remedy. The Court found that the trial judge's assessment of domestic assistance was affected by an error in applying this section.

Consequently, the Court of Appeal upheld the appeal in part, varying the judgment entered in the Common Law Division by substituting an increased amount for the original award. The cross-appeal was dismissed, and the respondents were ordered to pay the appellant's costs of the appeal.

Orders

Orders of the court

1 Appeal upheld in part

2 Vary the judgment entered in the Common Law Division by substituting $676 248.85 for $637.409.62

3 Cross appeal dismissed

4 Respondents to pay appellant’s costs of the appeal and to have a certificate under the Suitors’ Fund Act 1951 if qualified.

17/10/2008 - incorrect figures - Paragraph(s) Coversheet Order 2, Headnote Order 2, [44], [190] Order 2

28/04/2009 - par [2] reference [118] should be [88], par [117] paragraph [95] should be par [115] par [128] paragraph [91] shoudlb e par [111] - Paragraph(s) [2], [117], [128]

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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