McGilvray v Amaca Pty Ltd

Case [2001] WASC 345


JURISDICTION     :   SUPREME COURT OF WESTERN AUSTRALIA

IN CIVIL

CITATION:   McGILVRAY -v- AMACA PTY LTD (Formerly JAMES HARDIE & COY PTY LTD) [2001] WASC 345

CORAM:   PULLIN J

HEARD:   10, 11 & 12 DECEMBER 2001

DELIVERED          :   14 DECEMBER 2001

FILE NO/S:   CIV 1817 of 2001

BETWEEN:   DAVID McGILVRAY

Plaintiff

AND

AMACA PTY LTD (Formerly JAMES HARDIE & COY PTY LTD) (ACN 000 035 512)
Defendant

Catchwords:

Damages - Assessment of damages - Mesothelioma - Future loss of earnings - Taxation effect - Lost years - Living expenses

Legislation:

Nil

Result:

Damages assessed at $1,077,333, plus interest

Category:    A

Representation:

Counsel:

Plaintiff:     Mr J R C Gordon

Defendant:     Mr B J Goetze

Solicitors:

Plaintiff:     Slater & Gordon

Defendant:     Minter Ellison

Case(s) referred to in judgment(s):

Bowen v Tutte (1990) A Tort Rep 81-043

Clark v Kramer [1986] WAR 54

De Sales v Ingrilli (2000) 23 WAR 417

Easther v Amaca Pty Ltd (Formerly James Hardie & Coy Pty Ltd) [2001] WASC 328

Husher v Husher (1999) 197 CLR 138

James Hardie & Coy Pty Ltd v Roberts (1999) 47 NSWLR 425

Lawson v Flavell [2001] WASCA 272

Paul v Rendell (1981) 55 ALJR 371

Planet Fisheries Pty Ltd v La Rosa (1968) 119 CLR 118

Rose v Ford [1937] AC 826

Sharman v Evans (1977) 138 CLR 563

Skelton v Collins (1965) 115 CLR 94

Spargo v Haden Engineering Pty Ltd (1993) 60 SASR 39

Van Gervan v Fenton (1992) 175 CLR 327

Case(s) also cited:

Arthur Robinson (Grafton) Pty Ltd v Carter (1968) 122 CLR 649

Conley v Minehan [1999] NSWCA 432

Coulthard v CSR Ltd & Anor, unreported; SCt of WA (Owen J); Library No 920496; 2 October 1992

CSR Ltd v Wren (1998) A Tort Rep 81-461

CSR Ltd v Young (1998) 16 NSWCCR 56

Graham v Baker (1961) 106 CLR 340

Griffiths v Kerkemeyer (1977) 139 CLR 161

Jongen v CSR Ltd & Anor (1992) A Tort Rep 81-192

Kember v Thackrah [2000] WASCA 198

Malec v J C Hutton Pty Ltd (1990) 169 CLR 638

Medlin v State Government Insurance Commission (1995) 182 CLR 1

Napolitano v CSR Ltd & Midalco Pty Ltd, unreported; SCt of WA (Seaman J); Library No 940487; 30 August 1994

Naxakis v Western General Hospital (1999) 162 ALR 540

Neal v CSR Ltd (1990) A Tort Rep 81-052

Nicholson v Nicholson (1994) 35 NSWLR 308

Nolan v Hamersley Iron Pty Ltd [2000] WASCA 304

Purkess v Crittenden (1965) 114 CLR 164

Sigler v Seddon (1984) A Tort Rep 80-633

Simon Engineering (Australia) Pty Ltd v Brieger, unreported; NSWCA; 6 September 1990

Simpson v Midalco Pty Ltd, unreported; FCt SCt of WA; Library No 7421, 7 December 1988

Sturch v Willmott [1997] 2 Qd R 310; (1996) A Tort Rep 81-373

Sullivan v Gordon (1999) A Tort Rep 81-524

The Board of Management of Royal Perth Hospital & Anor v Frost, unreported; SCt of WA; Library No 970069; 26 February 1997

Wallaby Grip Ltd & Anor v Pierce & Ors; James…

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McGilvray v Amaca Pty Ltd [2001] WASC 345
Case
[2001] WASC 345
Decision Date

CaseChat Overview and Summary

David McGilvray, the plaintiff, brought an action against Amaca Pty Ltd (formerly James Hardie & Coy Pty Ltd), the defendant, for damages arising from the supply of asbestos products which led to his diagnosis of mesothelioma. The defendant admitted liability at the trial's commencement, and judgment was entered for the plaintiff. The court was required to assess the damages. The main issues were the calculation of general damages, loss of expectation of life, loss of earning capacity, and the taxation effect. The court found that the plaintiff would have continued to work until he was 65 and would have earned an average of $133,500 annually. The court rejected the defendant's argument that damages should be calculated based on the plaintiff earning all partnership income and being taxed as a sole trader. Instead, the court found that the loss of earning capacity should be calculated by aggregating the after-tax income of the plaintiff and his wife. The court also found that the deduction for living expenses during the lost years should be $6,500, not $3,290 as the plaintiff suggested. The court concluded that the total damages should be $1,077,333, plus interest on the appropriate heads of damages at 6 per cent.

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Background

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