Todorovic v Waller

The High Court of Australia considered the appeal in *Todorovic v Waller*. The dispute concerned the assessment of damages for personal injuries sustained by the plaintiff, Mr. Todorovic, in a motor vehicle accident. The defendant, Mr. Waller, was the driver of the other vehicle involved in the collision.

The central legal issue before the High Court was whether the damages awarded to the plaintiff for future economic loss should be discounted to present value. Specifically, the court had to determine the appropriate discount rate to be applied to future losses, considering the principles of assessing damages for personal injury under Australian law.

The High Court, by majority, held that the appropriate discount rate for future economic loss should be 3% per annum. This rate was determined to be a reasonable reflection of the real rate of return on investments after accounting for inflation. The court affirmed the principle that damages for future economic loss should be awarded on a lump sum basis, discounted to their present value, to compensate the plaintiff for the loss of earning capacity. The reasoning emphasized the need for a consistent and predictable approach to discounting, balancing the interests of both the injured party and the defendant.