DAMAGES IN AN ACTION FOR WRONGFUL DEATH The effect of entering into, or of the prospect of entering into, a financially supportive cohabitation relationship, and the effect of the likelihood of divorce or separation on the assessment of damages in a wrongful death claim Report No 57 Queensland Law Reform Commission November 2003 The short citation for this Report is QLRC R 57. Published by the Queensland Law Reform Commission, November 2003. Copyright is retained by the Queensland Law Reform Commission. ISBN: 0 7242 7744 7 Printed by: Goprint DAMAGES IN AN ACTION FOR WRONGFUL DEATH The effect of entering into, or of the prospect of entering into, a financially supportive cohabitation relationship, and the effect of the likelihood of divorce or separation on the assessment of damages in a wrongful death claim Report No 57 Queensland Law Reform Commission November 2003 To: The Honourable Rod Welford MP Attorney-General and Minister for Justice In accordance with section 15 of the Law Reform Commission Act 1968 (Qld), the Commission is pleased to present its Report on Damages in an Action for Wrongful Death. The Honourable Justice R G Atkinson Mr P D T Applegarth SC Chairperson Member Ms A Colvin Ms H A Douglas Member Member Mr B J Herd Ms R A Hill Member Member Mr G W O’Grady Member COMMISSIONERS Chairperson: The Hon Justice R G Atkinson Members: Mr P D T Applegarth SC Ms A Colvin Ms H A Douglas Mr B J Herd Ms R A Hill Mr G W O’Grady SECRETARIAT Director: Ms P A Cooper Acting Secretary: Mrs D Gurnett Senior Research Officer: Ms C E Riethmuller Legal Officers: Miss M T Collier Mrs C A Green Ms C M Treloar Administrative Officer: Mrs T L Bastiani The Commission’s premises are located on the 7th Floor, 50 Ann Street, Brisbane. The postal address is PO Box 13312, George Street Post Shop, Qld 4003. Telephone (07) 3247 4544. Facsimile (07) 3247 9045 E-mail address: [email protected] Internet home page address: http://www.qlrc.qld.gov.au Previous Queensland Law Reform Commission publications in this reference: Issues Paper, Damages in an Action for Wrongful Death: The effect of entering into, or of the prospect of entering into, a financially supportive cohabitation relationship, and the effect of the likelihood of divorce or separation on the assessment of damages in a wrongful death claim (WP 56, June 2002) TABLE OF CONTENTS SUMMARY OF RECOMMENDATIONS................................................................................... i CHAPTER 1............................................................................................................................. 1 INTRODUCTION ..................................................................................................................... 1 1. TERMS OF REFERENCE................................................................................ 1 2. BACKGROUND................................................................................................ 1 3. SUBMISSIONS ................................................................................................ 3 4. THE STRUCTURE OF THIS REPORT............................................................ 3 CHAPTER 2............................................................................................................................. 5 THE ACTION FOR WRONGFUL DEATH............................................................................... 5 1. INTRODUCTION.............................................................................................. 5 2. THE LOSS FOR WHICH DAMAGES MAY BE CLAIMED ............................... 6 3. PERSONS WHO MAY BRING AN ACTION .................................................... 8 4. WHEN THE ACTION MUST BE BROUGHT.................................................... 8 5. PERSONS FOR WHOSE BENEFIT AN ACTION MAY BE BROUGHT .......... 9 6. THE ELEMENTS OF A WRONGFUL DEATH ACTION................................. 11 (a) The death must be caused by a wrongful act, neglect or default ....... 11 (i) Wrongful act, neglect or default .............................................. 11 (ii) Causation................................................................................ 11 (b) The deceased, if he or she had not died, must have been able to bring an action against the defendant................................................. 12 CHAPTER 3........................................................................................................................... 13 THE ASSESSMENT OF DAMAGES..................................................................................... 13 1. INTRODUCTION............................................................................................ 13 2. COMPENSATORY DAMAGES...................................................................... 13 (a) The nature of compensatory damages............................................... 13 (b) The allowance for contingencies ........................................................ 14 (c) Off-setting consequential benefits ...................................................... 15 3. ASSESSMENT OF DAMAGES IN A WRONGFUL DEATH ACTION ............ 15 (a) The allowance for contingencies ........................................................ 15 (b) Off-setting consequential benefits ...................................................... 16 CHAPTER 4........................................................................................................................... 17 FACTORS WHICH AFFECT DAMAGES IN A WRONGFUL DEATH ACTION ................... 17 1. INTRODUCTION............................................................................................ 17 2. RECENT CHANGES TO THE LAW............................................................... 18 CHAPTER 5........................................................................................................................... 20 THE POSITION IN OTHER JURISDICTIONS....................................................................... 20 1. INTRODUCTION............................................................................................ 20 2. THE UNITED KINGDOM................................................................................ 20 (a) Formation of a subsequent relationship by the surviving spouse....... 20 (b) The effect of separation or divorce ..................................................... 23 3. AUSTRALIAN JURISDICTIONS .................................................................... 24 (a) Recent changes to the common law................................................... 24 (b) Jurisdictions other than the Northern Territory ................................... 25 (i) The position prior to De Sales v Ingrilli ................................... 25 (ii) The position following De Sales v Ingrilli................................. 27 (c) The Northern Territory ........................................................................ 27 4. NEW ZEALAND ............................................................................................. 29 5. CANADA ........................................................................................................ 30 CHAPTER 6........................................................................................................................... 32 THE EFFECT OF A POSSIBLE FUTURE RELATIONSHIP................................................. 32 1. INTRODUCTION............................................................................................ 32 2. THE EFFECT OF DE SALES V INGRILLI ..................................................... 33 3. ISSUES FOR CONSIDERATION................................................................... 36 (a) Should the possibility be able to be taken into account?.................... 37 (i) Demeaning and intrusive inquiries.......................................... 37 (ii) Speculation ............................................................................. 40 (iii) The risks of under or overcompensation................................. 41 (iv) Artificial behaviour................................................................... 42 (v) The practice is distasteful for the judge .................................. 43 (vi) The practice is based on outmoded concepts, assumptions and stereotypes ...................................................................... 44 (vii) The practice may operate unfairly against women ................. 46 (viii) Submissions............................................................................ 47 (b) How to account for the possibility? ..................................................... 48 (i) Accounting for the possibility as a separate deduction........... 48 (ii) Accounting for the possibility as part of the general discount for contingencies/vicissitudes of life ......................... 49 (iii) Accounting for the possibility by reference to a standard rate of discount ....................................................................... 50 4. THE COMMISSION’S VIEW .......................................................................... 54 (a) Should the possibility be able to be taken into account?.................... 54 (b) How to account for the possibility? ..................................................... 55 5. RECOMMENDATIONS .................................................................................. 55 CHAPTER 7........................................................................................................................... 56 THE EFFECT OF