NEW SOUTH WALES COURT OF APPEAL
CITATION: ZOROM ENTERPRISES PTY LTD v ZABOW & ORS [2007] NSWCA 106
This decision has been amended. Please see the end of the judgment for a list of the amendments.
FILE NUMBER(S):
40477/06
HEARING DATE(S): 14 March 2007
JUDGMENT DATE: 4 May 2007
PARTIES:
Zorom Enterprises Pty Ltd (In liq) - Appellant
Peter John Zabow – First Respondent
Easterly Pty Ltd – Second Respondent
Robert Murray Tate – Third Respondent
JUDGMENT OF: McColl JA Basten JA Campbell JA
LOWER COURT JURISDICTION: District Court
LOWER COURT FILE NUMBER(S): DC 1802/05
LOWER COURT JUDICIAL OFFICER: Keleman DCJ
LOWER COURT DATE OF DECISION: 27 July 2006
COUNSEL:
P. Deakin QC/S.W. Hickey – Appellant
M.F. Holmes QC/E.C. Muston – First Respondent
N. Polin – Second and Third Respondents
SOLICITORS:
Curwoods Lawyers – Appellant
Zabow Lawyers – First Respondent
Griffin Hilditch Lawyers – Second and Third Respondents
CATCHWORDS:
TORTS – vicarious liability – Civil Liability Act 2002 (NSW) – whether s 3B(1) excluded the operation of the Act in relation to the vicarious liability of an employer for an intentional tort by its employee
TORTS – vicarious liability – employment of security guards on licensed premises – – conditions imposed on licences under Liquor Act 1982 (NSW) – unauthorised act by an employee – whether employer of security guard vicariously liable
DAMAGES – exemplary damages – whether employer could be vicariously liable for exemplary damages
DAMAGES – future economic loss – whether assessment should be by way of a ‘buffer’ – whether correct comparable earnings used
DAMAGES – superannuation based on future economic loss – whether actuarial evidence necessary – whether a second discount should be applied because the amount is received now rather than later
LEGISLATION CITED:
Civil Liability Act 2002 (NSW), ss 3B, 3C, 13
Law Reform (Vicarious Liability) Act 1983 (NSW), ss 5, 7, 8
Liquor Act 1982 (NSW), ss 103, 125
Security Industry Act 1997 (NSW)
Superannuation Guarantee (Administration) Act 1992 (Cth)
CASES CITED:
Allesch v Maunz (2000) 203 CLR 172
Branir Pty Ltd & Ors v Owston Nominees (No 2) Pty Ltd & Anor (2001) 117 FCR 424
Braverus Maritime Inc v Port Kembla Coal Terminal Ltd (2005) 148 FCR 68
Commissioner of Police v Estate of Russell (2002) 55 NSWLR 232
Copyright Agency Ltd v Department of Education of New South Wales (1985) 4 IPR 5
59 ALR 172
Cowra Shire Council v Trudgett [2004] NSWCA 9
Darling Island Stevedoring and Lighterage Co Ltd v Long (1957) 97 CLR 36
Deatons Pty Ltd v Flew (1949) 79 CLR 370
Foster v Tyne and Wear County Council [1986] 1 All ER 567
Fox v Percy (2003) 214 CLR 118
Ghunaim v Bart [2004] NSWCA 28; (2004) Aust Torts Rep 65 451
Gray v Motor Accident Commission (1998) 196 CLR 1
Hughes v Law Society of New South Wales [2004] NSWSC 290
Jones v Schiffmann (1971) 124 CLR 303
Jongen v CSR Limited [1992] Aust Torts Rep 81-192 (WASC)
Jovic v Lamont [2007] NSWCA…
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- Case
- [2007] NSWCA 106
- Decision Date
CaseChat Overview and Summary
The primary legal issues before the court were whether the *Civil Liability Act 2002* (NSW) applied to exclude the employer's vicarious liability for an intentional tort committed by an employee, and how damages for future economic loss, specifically the loss of employer superannuation contributions, should be assessed. The court also considered the appellant's submission that a further discount should be applied to the calculated sum for future superannuation loss.
The court affirmed the trial judge's methodology for calculating the loss of future superannuation contributions. This involved determining the weekly loss of employer contributions based on the employee's ordinary time earnings and the statutory superannuation guarantee rate, applying a discount for vicissitudes, and then using 3% discount tables to ascertain the present value of these future losses over the employee's remaining working life. The court rejected the appellant's argument for an additional discounting step, holding that the conventional approach to calculating future losses, which does not necessitate sophisticated actuarial evidence, was appropriate and that the trial judge's method aligned with established principles.
The appeal was dismissed with costs.
Orders
Orders of the court
Appeal dismissed with costs
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
The trial judge took into account the legal obligation of an employer under the Superannuation Guarantee (Administration) Act 1992 (Cth) to pay superannuation contributions on behalf of an employee at the rate, after the 2002/2003 tax year, of 9% of the employee’s gross ordinary time earnings. The trial judge assessed the gross wage loss of the plaintiff due to the injury as being, at the date of trial, $600 per week. He took 9% of that sum ($54) as being the amount per week of employer's contributions to superannuation that the employee had lost by reason of his injury. He had held earlier in his judgment, in connection with assessment of damages for future loss arising from loss of earning capacity, that a discount of 30% for vicissitudes of life was appropriate for this particular plaintiff. This was because there was a chance that the plaintiff would be able to earn more income than he presently anticipated, and because the plaintiff was a young man, so that there was special uncertainty in making predictions involving the whole of his likely future earning career. The trial judge adopted that discount of 30% as also appropriate to apply in calculating the loss concerning employer contributions to future superannuation benefits. Applying that discount to the weekly sum of $54 resulted in a figure of $37.80 per week. He noted that the plaintiff was aged 24, and hence had 40.3 years until his ordinary retirement date. He consulted the 3% discount tables, and found that the appropriate multiplier for 40.3 years was 1227. He then multiplied the sum of $37.80 per week by 1227, and thereby arrived a figure of $46,380.60 as the quantum of the amount to be allowed for the loss of superannuation benefits. The 3% tables that the trial judge used in calculating the amount to be allowed for loss of the superannuation benefits are tables that calculate the present value of a series of weekly payments of one dollar for various numbers of years, at a 3% rate of compound interest, with no allowance for mortality. A sample of such a table can be found in Luntz, Assessment of Damages for Personal Injury and Death, 4th edition, page 683. The numbers contained in such tables were described by Gibbs CJ and Wilson J in Todorovic at 414 as showing “the sum which, if invested at the discount rate, would suffice to enable periodic drawings of the given amount to be made from income and capital over the given number of years, so that at the end of that period both capital and income would be exhausted." They are, thus, well-suited to ascertaining the capital sum that is needed to replace a particular periodical loss of income over a number of years. The Appellant’s Submission The appellant in the present case submitted, in substance, that we should follow completely the methodology that the trial judge adopted, but then take an additional step. It submitted that, having arrived at the figure of $46,380.60, we should apply the “deferred table multiplier” to it to ascertain the present value of that sum.