Read the full judgment text of FACV 23/2000 on BabelCite. This FACV judgment was delivered on 20 February 2001 before Chief Justice Li, Mr Justice Bokhary PJ, Mr Justice Chan PJ, Mr Justice Litton NPJ and Sir Anthony Mason NPJ.
Personal injury and death – damages for benefit of estate – loss of accumulation of wealth – Law Amendment and Reform (Consolidation) Ordinance (Cap 23) s.20(2)(b)(iii) – whether pre-mortem pattern of savings is an absolute pre-condition to award – whether multiplier and multiplicand method or global basis should be used for calculation – whether retirement expenditure must be deducted from pre-retirement accumulation. The deceased was a 42-year-old married painting worker, frugal and without undesirable habits, who died in a work accident falling from defective bamboo scaffolding. Although he had not accumulated any wealth during his lifetime, the trial judge awarded $320,000 for loss of accumulation of wealth, affirmed by the Court of Appeal. The first issue was whether, absent any proven evidence of an established pre-mortem pattern or habit of savings, it is open to the court to find that the deceased would have accumulated wealth by developing such a habit in the future. Held: No; a pre-mortem savings pattern is not an absolute pre-condition. Section 20(2)(b)(iii) requires only that the court be satisfied the deceased would have achieved an accumulation of wealth but for the fatal act. The legislative history (1985 Law Reform Commission report and Attorney General's statement) does not warrant reading down the statute, and the court assesses future loss by evaluating chances. The second issue concerned the basis of calculation, including whether the multiplier and multiplicand formula with deduction for retirement expenditure is appropriate. Held: Both global awards and the multiplier and multiplicand method are permissible. The court must consider the position at the end of the notional full life, factoring in retirement expenditure; global awards are generally preferable where finding a multiplicand is too difficult. The trial judge's approach involved no error of principle, and the award of $320,000 was a concurrent finding of fact not to be disturbed. Appeal dismissed with costs to be taxed on common fund basis if not agreed, and legal aid taxation of respondents' own costs ordered.
Legal issues: Whether pre-mortem savings pattern is an absolute pre-condition for loss of accumulation of wealth award · Basis for calculation of loss of accumulation of wealth
Outcome: Appeal dismissed; award of $320,000 for loss of accumulation of wealth affirmed.