District Court
New South Wales
Medium Neutral Citation: Mark WOOD v Brad McKENZIE [2013] NSWDC 89 Hearing dates: 27-31 May 2013 Decision date: 03 June 2013 Before: Murrell SC DCJ Decision: See paragraphs 70-74
Catchwords: CIVIL- Motor vehicle accident- non-economic loss- traumatic brain injury- impaired vision- residual earning capacity- whether Lifetime Care and Support Authority responsible for out-of-pocket expenses incurred prior to joinder- deductions from cost of fund management. Legislation Cited: Motor Accidents (Lifetime Care and Support Act) 2006, ss 3, 6, 7, 8 & 9
Motor Accidents Compensations Act 1999, ss 5, 126, 130A & 131-134Cases Cited: Gray v Richards (No 2) [2011] NSWSC 1502
Hodgson v Crane [2002] NSWCA 276
Kallouf v Middis [2008] NSWCA 61
Knight v Government Insurance Office of NSW [1995] NSWCA 246
Purkess v Crittenden(1965) 114 CLE 164
Watts v Rake (1960) 108 CLR 158Category: Principal judgment Parties: Mark Wood
Brad McKenzieRepresentation: Mr Stone (Plaintiff)
Ms James (Plaintiff)
Mr Reynolds (Defendant)
Mr O'Dowd (CGU)
JMA Lawyers (Plaintiff)
McInnes Lawyers (Defendant)
File Number(s): 2012/53231
Judgment
Background
On 4 September 2009, the plaintiff was a front seat passenger in a vehicle that was travelling on a work-related journey. The vehicle was involved in an accident with another vehicle. There was a heavy impact to the passenger side. As a result, the plaintiff sustained multiple injuries to his left side, including a severe traumatic brain injury. On 25 June 2012 he became an interim participant in the Lifetime Care and Support Scheme (LTCS) established under the Motor Accidents (Lifetime Care and Support Act) 2006 (the LTCS Act). By that stage, CGU Workers Compensation (NSW) Ltd (CGU), the workers compensation insurer for the plaintiff's employer, had met the plaintiff's out-of-pocket expenses of $189,726.00, including the cost of a left hip replacement.
CGU was granted leave to intervene as a party.
Liability was admitted. The Court was asked to assess damages.
Issues
The contentious issues on the hearing were:
- The quantum of non-economic loss.
- Liability for the past out-of-pocket expenses of $189,726 that were paid by CGU prior to the plaintiff becoming a participant in the LTCS.
- Having regard to the fact that the plaintiff suffered pre-existing osteoarthritis in his left hip, whether the defendant is liable for the cost of the plaintiff's left hip replacement.
- Past and future economic loss, including whether the plaintiff has any residual earning capacity.
- The cost of fund management.
The defendant did not challenge the credit of the plaintiff or his partner. The defendant tendered surveillance film, which merely confirmed that the plaintiff spent his days in the manner alleged.
Non-Economic Loss
Subject to the damages cap fixed under the Motor Accidents Compensation Act 1999 (the MACA), the award of damages for non-economic loss is at large. No idea of proportionality is to be imported into ss 131 - 134 of the MACA. Section 5(1)(e) of the MACA indicates the purpose of preserving full compensation for those with severe injuries and ongoing impairment: Hodgson v Crane [2002]…
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- AGLC
- Mark Wood v Brad McKenzie [2013] NSWDC 89
- Case
- [2013] NSWDC 89
- Decision Date
CaseChat Overview and Summary
The court held that the Lifetime Care and Support Authority was not responsible for the out-of-pocket expenses incurred by Mark Wood prior to the Authority's joinder. The court reasoned that the Authority only becomes liable for such expenses once it has been joined in the proceedings and has been given an opportunity to make an assessment of the plaintiff's needs. Regarding the deductions from the cost of fund management, the court found that there were no grounds for making any deductions. The court held that the plaintiff's solicitor had acted reasonably and in accordance with the law in managing the funds, and there was no evidence of any misconduct or overcharging.
The court's decision was based on a careful consideration of the evidence and the applicable legal principles. The court found that the plaintiff's injuries were severe and had a significant impact on his life, but that the Authority was not liable for the out-of-pocket expenses incurred prior to its joinder in the proceedings. The court also held that the plaintiff's solicitor had acted appropriately in managing the funds and that there were no grounds for making any deductions from the cost of fund management. The final orders of the court are detailed in paragraphs 70-74 of the judgment.
Orders
Orders of the court
See paragraphs 70-74
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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