Jarvis v Woolworths Ltd

Jarvis brought an action against Woolworths in the Supreme Court of Victoria, seeking damages for a back injury sustained at work. The plaintiff claimed that the injury resulted in serious impairment, including a loss of earning capacity, under the Accident Compensation Act 1985. The dispute centred on the interpretation and application of the statutory provisions governing compensation for serious injuries, particularly the extent of the loss of earning capacity and the appropriate method of calculating damages in such cases.

The central legal issue was whether the trial judge correctly assessed the plaintiff's loss of earning capacity under s134AB of the Act. The court had to determine if the trial judge appropriately applied the principles from relevant case law, including Humphries v Poljak, Ansett Australia Ltd v Taylor, ACN 005 565 926 Pty Ltd v Snibson, State of New South Wales v Moss, and Advanced Wire & Cable Pty Ltd v Abdulle, in quantifying the damages. The court was also required to consider whether the trial judge correctly assessed the multiplier used to determine the loss of future earnings.

The court found that the trial judge had erred in calculating the loss of future earnings by applying an incorrect multiplier. The court held that the trial judge should have used a multiplier of 14 rather than 15. This adjustment was critical as it significantly affected the overall quantum of damages awarded. The court also noted that the trial judge had not adequately justified the chosen multiplier in line with established case law. Consequently, the court granted leave for the pain and suffering damages and loss of earning capacity damages, ordering a reassessment of the damages based on the correct multiplier.