Pham v NRMA Insurance Ltd

Case [2014] NSWCA 22


Court of Appeal

New South Wales

Case Title: Pham v NRMA Insurance Ltd
Medium Neutral Citation: [2014] NSWCA 22
Hearing Date(s): 4 February 2014
Decision Date: 19 February 2014
Before: Macfarlan JA at [1];
Leeming JA at [23];
Tobias AJA at [36]
Decision:

(1) Appeal allowed.

(2) Declaration and orders made by Hall J on 3 May 2013 and any order for costs made by him subsequent to that date are set aside.

(3) Order that the Summons filed on 5 June 2012 be dismissed.

(4) Order the first respondent in this Court to pay the appellant's costs of the proceedings at first instance and on appeal.

(5) Direct the Registrar of the Court to refer this judgment to the Commissioner of Taxation for consideration.

[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

Catchwords: ADMINISTRATIVE LAW - judicial review - Motor Accidents Compensation Act 1999 ss 94(5), 126 - claimant operated dry cleaning business - whether claims assessor erred in assessing damages for future economic loss by concluding in the absence of evidence that claimant would have been forced to close his business and seek salaried employment - held that assessor did not conclude this but simply that earnings of a salaried employee were an appropriate guide to minimum loss of business income - significance of claimant's failure to disclose full business earnings in taxation returns - discussion of assessor's obligation to give reasons
Legislation Cited: Motor Accidents Compensation Act 1999 (NSW), ss 90, 94, 99, 106, 122, 126
Supreme Court Act 1970 (NSW), s 69
Cases Cited: Allianz Australia Insurance Ltd v Kerr [2012] NSWCA 13; 83 NSWLR 302
Commonwealth v Amann Aviation Pty Ltd [1991] HCA 54; 174 CLR 64
Commissioner of Taxation v Glennan [1999] FCA 297; 90 FCR 538
Craig v South Australia [1995] HCA 58; 184 CLR 163
Guzman v Zammit [2003] NSWCA 224
Matar v Jones [2011] NSWCA 304
Minister for Immigration and Ethnic Affairs v Wu Shan Liang [1996] HCA 6; 185 CLR 259
Morvatjou v Moradkhani [2013] NSWCA 157
Nelson v Nelson (1995) 184 CLR 538
Overseers of the Poor of Walsall v London and North Western Railway Co (1878) 4 AC 30
Plaintiff M70/2011 v Minister for Immigration and Citizenship; Plaintiff M106/2011 v Minister for Immigration and Citizenship [2011] HCA 32; 244 CLR 144
Skalkos v T & S Recoveries Pty Ltd [2004] FCAFC 321; 141 FCR 107
State of New South Wales v Moss [2000] NSWCA 133; 54 NSWLR 536
Category: Principal judgment
Parties: Thang Van Pham (Appellant)
NRMA Insurance Ltd (First Respondent)
Elyse White (Second Respondent)
Motor Accidents Authority of New…

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AGLC
Pham v NRMA Insurance Ltd [2014] NSWCA 22
Case
[2014] NSWCA 22
Decision Date

CaseChat Overview and Summary

The appeal concerned a decision of Hall J in the Supreme Court of New South Wales, which had reviewed a decision made by a claims assessor under the *Motor Accidents Compensation Act 1999* (NSW). The claimant, Mr. Pham, had suffered injuries in a motor accident and sought damages for future economic loss arising from his inability to continue operating his dry-cleaning business. NRMA Insurance Ltd was the insurer.

The primary legal issue before the Court of Appeal was whether the claims assessor had erred in law in assessing Mr. Pham's future economic loss. Specifically, the court considered whether the assessor had wrongly concluded that Mr. Pham would be forced to close his business and seek salaried employment, or whether the assessor had instead used the earnings of a salaried employee as a benchmark for the minimum loss of business income. The court also considered the significance of Mr. Pham's failure to disclose his full business earnings in his taxation returns and the assessor's obligation to provide reasons for their decision.

The Court of Appeal found that the claims assessor had not concluded that Mr. Pham would be forced to close his business. Instead, the assessor had used the earnings of a salaried employee as a guide to the minimum loss of business income, which was a permissible approach. The court noted the claimant's failure to disclose full business earnings in taxation returns and discussed the assessor's obligation to give reasons. Ultimately, the Court of Appeal allowed the appeal, setting aside the declaration and orders made by Hall J and dismissing the summons filed by Mr. Pham. The court ordered NRMA Insurance Ltd to pay Mr. Pham's costs of the proceedings at first instance and on appeal, and directed the Registrar to refer the judgment to the Commissioner of Taxation.

Orders

Orders of the court

(1) Appeal allowed.

(2) Declaration and orders made by Hall J on 3 May 2013 and any order for costs made by him subsequent to that date are set aside.

(3) Order that the Summons filed on 5 June 2012 be dismissed.

(4) Order the first respondent in this Court to pay the appellant's costs of the proceedings at first instance and on appeal.

(5) Direct the Registrar of the Court to refer this judgment to the Commissioner of Taxation for consideration.

[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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