McKay v Palmers Removalists & Storage Pty Ltd

In *McKay v Palmers Removalists & Storage Pty Ltd*, the appellant, Mr. McKay, appealed to the Court of Appeal of New South Wales against a decision of the District Court concerning damages for future economic loss. The dispute arose from injuries sustained by Mr. McKay, which impacted his earning capacity.

The central legal issue before the Court of Appeal was whether the experience Mr. McKay gained in a new role after his injury should be taken into account when assessing his claim for future economic loss. This required the court to consider the application of the principles established in *Malec v JC Hutton Pty Ltd* regarding the assessment of damages for future economic loss, particularly in circumstances where a plaintiff's post-injury circumstances might affect their claim.

The Court of Appeal reasoned that the District Court had erred in its assessment of future economic loss by not adequately considering the impact of Mr. McKay's subsequent employment and the experience he gained. Applying the principles from *Malec v JC Hutton Pty Ltd*, the court held that the assessment of future economic loss must take into account all relevant contingencies, including the possibility of the appellant obtaining new employment and developing new skills. The court found that the District Court had not properly applied these principles.

Consequently, the Court of Appeal allowed the appeal, ordered that the respondent pay the appellant's costs of the appeal (with a potential certificate under the Suitors’ Fund Act 1951), and remitted the matter to the District Court for a redetermination of the question of future economic loss. Before this redetermination, the assessment was to be referred to mediation pursuant to section 26 of the Civil Procedure Act 2005.