Allianz Australia Insurance Limited v McCarthy

The central issue in this matter concerned the application of s.55(3) of the Civil Liability Act and, in particular, whether or not the judge at first instance in making an award in relation to future economic loss had stated the assumptions on which the award was based and the methodology by which the amount was calculated.  Observations by White JA on the requirement to first establish a diminution of earning capacity and, second, to then establish that the diminution was productive of economic loss.