Star & Anor v O'Brien

The High Court of Australia heard an appeal concerning a dispute between the appellants, Star and another party, and the respondent, O'Brien. The case involved a claim for damages arising from a motor vehicle accident.

The central legal issue before the High Court was whether the damages awarded to the respondent for future economic loss should be reduced by the amount of a workers' compensation payment the respondent had received. This question turned on the interpretation of section 151Z of the *Workers Compensation Act 1987* (NSW) and its interaction with the common law principles of assessing damages for personal injury.

The High Court, in a joint judgment, held that section 151Z of the *Workers Compensation Act 1987* (NSW) did not operate to reduce the respondent's common law damages for future economic loss by the amount of workers' compensation received. Their Honours reasoned that the statutory scheme of section 151Z was intended to prevent double recovery for past economic loss and certain other heads of damage, but it did not extend to future economic loss. The court affirmed the principle that damages for future economic loss are intended to compensate for the loss of earning capacity, and this loss is distinct from the statutory benefit of workers' compensation.

The appeal was dismissed.