Hulanicki v Walton

The case of Hulanicki v Walton involved a dispute concerning the assessment of damages for personal injury, specifically the brain injury sustained by the plaintiff, Hulanicki, which rendered them unable to manage their own affairs. The matter was heard in the Supreme Court of New South Wales. The primary legal issues revolved around the calculation of fund management fees, the method of assessing the cost of managing the awarded sum, and the treatment of income generated by the fund, as well as any deductions for early outgoings.

The court needed to determine whether the fund management fees should be calculated based on the fees of the ACT Public Trustee or a private trustee. It was held that, in the absence of evidence suggesting the Public Trustee's superiority, the fees should align with those of the Public Trustee, reflecting the Crown's parens patriae jurisdiction. This decision aimed to avoid overcompensation while respecting the statutory enactment of the Crown's protective role. The court also considered whether an allowance should be made for managing the sum awarded for fund management costs, income generated by the fund, and deductions for early outgoings, applying the principles established in Richards v Gray [2013] NSWCA 402.

The court reasoned that the fees should be set in line with the Public Trustee’s rates, as there was no evidence indicating a need for higher fees. It further determined that no allowance should be made for managing the sum awarded for fund management costs, nor for the management of income generated by the fund. Additionally, the court decided against making deductions for likely outgoings early in the fund's life before calculating the fund management fees. These decisions were based on the precedent set in Richards v Gray, which emphasised the importance of not duplicating costs or creating overcompensation. The final judgment awarded Hulanicki $4,227,676.32, with fund management to be calculated in accordance with the reasons provided and costs to be addressed in subsequent hearings.