Richards v Gray

In *Richards v Gray*, the New South Wales Court of Appeal considered an appeal concerning the assessment of damages for personal injuries, specifically the inclusion of fund management costs. The dispute centred on how these costs should be calculated and whether certain components of the award should be subject to further management fees.

The primary legal issues before the Court of Appeal were whether an allowance should be made for the management of the sum awarded for fund management costs, and whether an allowance should also be made for the management of income earned by the fund during its existence. Furthermore, the Court had to determine whether fund management fees should be allowed at the rates charged by a private trustee or at the rates of the relevant public trustee.

The Court applied the principles established in *Todorovic v Waller* (1981) 150 CLR 402 regarding the assessment of damages. It reasoned that the plaintiff, having been incapacitated and requiring management of their affairs, was entitled to compensation for the costs associated with managing the awarded sum. The Court determined that an allowance should be made for the management of the fund management costs themselves, as well as for the income generated by the fund. Regarding the rate of fees, the Court found that the rates charged by a private trustee were appropriate, rather than those of a public trustee, in circumstances where a private trustee was engaged.

The Court of Appeal allowed the appeal in part, setting aside the original order and substituting a judgment for the plaintiff in the sum of $11,424,000. The parties were directed to file submissions regarding costs of the trial and appeal.