Pacific Power v Royal

Pacific Power (appellant) appealed a decision of the Supreme Court of New South Wales concerning damages awarded to Royal (respondent) for personal injuries sustained due to dust diseases. The appeal focused on the calculation and treatment of interest on the award for non-economic loss.

The primary legal issues before the Court of Appeal were whether interest awarded on the non-economic loss component of the damages was itself part of the non-economic loss, or whether it was to be treated as part of the economic loss component. Furthermore, the court had to determine if such interest was protected from reduction by section 12D of the relevant legislation, which limited awards for non-economic loss.

The Court of Appeal, in dismissing the appeal, reasoned that interest on an award for non-economic loss is not part of the non-economic loss itself, but rather an accessory to it. The court held that section 12D, which limits the quantum of non-economic loss, did not apply to the interest component. Therefore, the interest awarded on the non-economic loss was not subject to the statutory reduction.

The appeal was dismissed, and the appellant was ordered to pay the respondent's costs.