McGRATH v NRMA INSURANCE LTD [1996] NSWCA 351

McGRATH v NRMA INSURANCE LTD [1996] NSWCA 351

The trial judge erred in (1) fixing retiring age at fifty-five absent evidence justifying retirement before sixty, and (2) increasing the vicissitudes deduction to twenty per cent based on factors not evidencing likely earlier work cessation nor properly translating non-work stress to work situations. The verdict and judgment of Hulme J were set aside and judgment substituted on the correct valuation basis.

Parties
Appellant: McGrath; Respondent: NRMA Insurance Ltd
Jurisdiction
Australia
Judgment Date
27 August 1996
Procedural Posture
Appeal / Judgment
Outcome
appeal allowed; verdict and judgment of Hulme J set aside; substituted judgment for appellant
Legal Topics
Assessment of Damages, Retirement Age in Loss Assessment, Vicissitudes of Life Deduction
Damages Tort Law Assessment of Damages Retirement Age in Loss Assessment Vicissitudes of Life Deduction

Case Brief

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Parties

McGrath

Appellant

NRMA Insurance Ltd

Respondent

Procedural Posture

Appeal / Judgment

Legal Issues

  1. 1 Whether the trial judge erred in assessing non-economic loss at thirty per cent of the maximum
  2. 2 Whether the trial judge erred in calculating loss of future earning capacity only until age fifty-five rather than sixty
  3. 3 Whether the trial judge erred in applying a twenty per cent reduction for vicissitudes of life instead of the usual fifteen per cent

Ratio Decidendi

The trial judge erred in (1) fixing retiring age at fifty-five absent evidence justifying retirement before sixty, and (2) increasing the vicissitudes deduction to twenty per cent based on factors not evidencing likely earlier work cessation nor properly translating non-work stress to work situations. The verdict and judgment of Hulme J were set aside and judgment substituted on the correct valuation basis.

Court Disposition

appeal allowed; verdict and judgment of Hulme J set aside; substituted judgment for appellant

Orders

  • Verdict in favour of appellant for $485,727.92
  • Respondent to pay appellant's costs of the appeal