McKenna v Fraser

In the case of McKenna v Fraser, the plaintiff, McKenna, sought damages for injuries sustained in a car accident caused by the defendant, Fraser. The dispute centred on the extent of McKenna's future loss of earning capacity and the admissibility of certain evidence related to this assessment. The case was heard in the Supreme Court of Victoria.

The primary legal issue before the court was whether it was appropriate to consider hypothetical scenarios in assessing damages for future loss of earning capacity. Specifically, the court had to determine if evidence regarding potential alternative employment McKenna could have undertaken, had he not been injured, should be admitted. The court also needed to weigh the relevance and probative value of this evidence against any prejudicial effect it might have.

The court found that hypothetical considerations could be relevant when assessing damages for loss of earning capacity, provided they were based on reasonable assumptions and did not stray into speculative territory. The court held that the evidence regarding alternative employment was admissible as it was relevant to the issue of whether McKenna could have compensated for his loss of earning capacity through other means. The court concluded that while the evidence had some prejudicial effect, this was outweighed by its relevance to the assessment of damages. Consequently, the court ruled in favour of the plaintiff, allowing the hypothetical evidence to be considered in the damages assessment.

The final orders of the court included a determination of the plaintiff's entitlement to damages for future loss of earning capacity, with specific consideration given to the evidence of alternative employment. The court directed the parties to proceed with negotiations to determine the precise amount of damages to be awarded.