Keen v Mackay

In the case of Keen v Mackay, the plaintiff, Keen, was severely injured in his left wrist, becoming naturally right-handed. He was assessed to have a 15 to 17.5 per cent loss of use of his left arm below the elbow. The court awarded Keen $30,000 for general damages, reduced by $10,000 due to the Motor Vehicle (Third Party Insurance) Act 1943, s 3C. Additionally, Keen was awarded $140,000 for future economic loss. The defendant, Mackay, appealed against the amount awarded for future economic loss, contending that the deduction for contingencies was excessive. The matter was brought before the court to determine whether the trial judge erred in assessing the damages for future economic loss.

The central legal issue before the court was whether the trial judge had made an error in calculating the damages for future economic loss, specifically in relation to the deduction for contingencies. Mackay argued that the deduction was excessive and that the trial judge had failed to properly consider the contingencies that would likely affect Keen's future earnings. The court had to examine the principles guiding the assessment of damages for future economic loss and whether the trial judge had applied them correctly in this instance.

The court found that the trial judge had not erred in his assessment of the damages for future economic loss. It held that the trial judge had properly taken into account the contingencies and made a reasonable estimation of the future economic loss. The court noted that each case turns on its own facts, and the trial judge had considered the specific circumstances of Keen's injury and its impact on his earning capacity. However, the court did find that the award of $140,000 for future economic loss was excessive and increased it to $155,000 before apportionment.

The court allowed the appeal and ordered that the damages for future economic loss be increased to $155,000 before apportionment. This decision highlights the importance of a careful and reasoned assessment of damages in personal injury cases, taking into account the specific circumstances of the plaintiff and the contingencies that may affect their future.