WILDRIDGE AND SINCLAIR ENGINEERING PTY LTD v LAW [1994] NSWCA 348

WILDRIDGE AND SINCLAIR ENGINEERING PTY LTD v LAW [1994] NSWCA 348

Following Arklow Pty Ltd v Taavao and the General Agreement on Interest, interest should only be awarded on the pre-award portion of a lump sum for pain and suffering under s67 of the Workers Compensation Act 1987. The award must be apportioned between pre- and post-award pain and suffering, and the appropriate interest rates are 14% (27 May 1988–31 Dec 1988), 12% (1 Jan 1989–31 Dec 1990), and 8% (1 Jan 1991–21 Feb 1992) on the pre-award portion. The rate of 18% awarded below was excessive.

Parties
Appellant: Wildridge and Sinclair Engineering Pty Ltd; Respondent: Law
Jurisdiction
Australia
Judgment Date
18 August 1994
Procedural Posture
Workers Compensation Appeal / Appeal Supreme Court of NSW Court of Appeal
Outcome
Appeal upheld; orders of Burke CCJ varied.
Legal Topics
Interest on Compensation Awards, Lump Sum Compensation, Apportionment of Pain and Suffering, Statutory Interpretation
Workers Compensation Personal Injury Interest on Compensation Awards Lump Sum Compensation Apportionment of Pain and Suffering Statutory Interpretation

Case Brief

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Parties

Wildridge and Sinclair Engineering Pty Ltd

Appellant

Law

Respondent

Procedural Posture

Workers Compensation Appeal / Appeal Supreme Court of NSW Court of Appeal

Legal Issues

  1. 1 Whether interest on a lump sum award for pain and suffering under s67 of the Workers Compensation Act 1987 should be apportioned between pre- and post-award periods.
  2. 2 Whether only the amount representing pre-award pain and suffering should carry interest.
  3. 3 Whether the rate of interest awarded was excessive.

Ratio Decidendi

Following Arklow Pty Ltd v Taavao and the General Agreement on Interest, interest should only be awarded on the pre-award portion of a lump sum for pain and suffering under s67 of the Workers Compensation Act 1987. The award must be apportioned between pre- and post-award pain and suffering, and the appropriate interest rates are 14% (27 May 1988–31 Dec 1988), 12% (1 Jan 1989–31 Dec 1990), and 8% (1 Jan 1991–21 Feb 1992) on the pre-award portion. The rate of 18% awarded below was excessive.

Court Disposition

Appeal upheld; orders of Burke CCJ varied.

Orders

  • Para (B) of original award deleted and replaced with: A lump sum of $20,000 under s67 apportioned as $10,000 pre-award and $10,000 post-award.
  • Para (D) of original award set aside and replaced with: Interest on $10,000 pre-award portion—14% p.a. from 27 May 1988 to 31 Dec 1988; 12% p.a. from 1 Jan 1989 to 31 Dec 1990; 8% p.a. from 1 Jan 1991 to 21 Feb 1992.