Militar v Government Insurance Office of New South Wales

In *Militar v Government Insurance Office of New South Wales* [1993] NSWCA 180, the New South Wales Court of Appeal considered an appeal concerning the assessment of damages for a motor accident victim. The appellant, Mr Militar, had suffered injuries in a motor vehicle accident and sought to recover damages from the respondent, the Government Insurance Office of New South Wales (GIO), which was the compulsory third-party insurer. The core of the dispute revolved around the appropriate method for calculating the appellant's past and future economic loss.

The primary legal issue before the Court of Appeal was whether the trial judge had erred in the method used to calculate the appellant's loss of future earning capacity. Specifically, the court had to determine whether the trial judge had correctly applied the principles of assessing damages for economic loss, particularly in light of the appellant's pre-existing medical conditions and their impact on his ability to earn income both before and after the accident.

The Court of Appeal, in its reasoning, affirmed the established principles for assessing damages for loss of earning capacity. It held that the assessment must be based on the plaintiff's actual or prospective loss, taking into account all relevant factors, including their earning capacity at the time of the injury and any limitations or impairments that existed prior to the accident. The court found that the trial judge had properly considered the appellant's diminished earning capacity due to his pre-existing conditions when assessing the damages. The appeal was accordingly dismissed.