Pel-Air Aviation Pty Ltd v Casey

In *Pel-Air Aviation Pty Ltd v Casey*, the New South Wales Court of Appeal considered a claim for personal injury brought by Ms Casey against Pel-Air Aviation Pty Ltd. Ms Casey suffered physical and psychiatric injuries, including Post Traumatic Stress Disorder (PTSD), as a result of an aircraft accident. The claim was brought under Article 17(1) of the Montreal Convention, as incorporated into Australian law by the *Civil Aviation (Carriers’ Liability) Act 1959* (Cth).

The primary legal issues before the Court of Appeal were whether PTSD constituted a "bodily injury" for the purposes of Article 17(1) of the Montreal Convention, and whether Ms Casey was entitled to recover the costs of funds management for her damages. The court was required to determine the scope of "bodily injury" in the context of international air carriage and the principles governing the recovery of out-of-pocket expenses, particularly where the loss may have been partly caused by an injury for which the defendant was not legally responsible.

The Court of Appeal reasoned that while PTSD could cause chemical changes in the brain, there was no evidence of physical damage to the brain itself. Consequently, the court held that PTSD, in the absence of such physical damage, did not fall within the definition of "bodily injury" under Article 17(1). Regarding the costs of funds management, the court applied principles from cases such as *Seltsam Pty Ltd v Ghaleb* and *Gray v Richard*, finding that the appointment of a funds manager was not so unreasonable as to preclude recovery.

The Court of Appeal allowed both the appeal and the cross-appeal, setting aside the previous judgment and orders. The parties were directed to lodge written submissions to quantify the final judgment amount in favour of Ms Casey and to address costs.