Pham v NRMA Insurance Ltd

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.