MIDDLETON v TEH [1995] NSWCA 292

MIDDLETON v TEH [1995] NSWCA 292

The assessment of damages was fatally flawed due to the use of an inappropriately low tax rate and an excessive vicissitudes deduction; the proper approach requires using the top marginal tax rate and a standard vicissitudes deduction of 15%.

Parties
Appellant: Middleton; Respondent: Teh
Jurisdiction
Australia
Judgment Date
06 March 1995
Procedural Posture
Appeal and Cross Appeal / Court of Appeal Decision on Assessment of Damages
Outcome
Appeal and cross-appeal allowed.
Legal Topics
Assessment of Damages, Impairment of Future Earning Capacity, Appropriate Rate of Tax, Future Economic Loss, Vicissitudes Deduction
Tort Law Assessment of Damages Impairment of Future Earning Capacity Appropriate Rate of Tax Future Economic Loss Vicissitudes Deduction

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Parties

Middleton

Appellant

Teh

Respondent

Procedural Posture

Appeal and Cross Appeal / Court of Appeal Decision on Assessment of Damages

Legal Issues

  1. 1 Whether the trial judge erred in using an 18% rather than 47% tax rate in calculating impairment of future earning capacity
  2. 2 Whether future economic loss should be awarded to age 65 or 60
  3. 3 Whether a 50% vicissitudes deduction was appropriate

Ratio Decidendi

The assessment of damages was fatally flawed due to the use of an inappropriately low tax rate and an excessive vicissitudes deduction; the proper approach requires using the top marginal tax rate and a standard vicissitudes deduction of 15%.

Court Disposition

Appeal and cross-appeal allowed.

Orders

  • Court to adopt short minutes drafted by counsel reflecting these reasons.
  • No order as to costs.