LiA Week 2: Navigating the Calculation of Quantum for PI and EC Cases
In week 2, I delved into the calculation of quantum, which forms an integral part of real-world legal aid work.
While our tort law lectures primarily focus on how to establish the liability of tortfeasors (i.e., the culpability of the wrongdoer), the calculation of the quantum (i.e., the compensation available to the victim) constitutes a big part of the work of LAD legal practitioners.
Succinctly put, there are four major heads of damages for PI cases, which are (1) pain, suffering and loss of amenities (PSLA), (2) pre-trial and post-trial loss of earnings, (3) loss of earning capacities, and (4) special damages (i.e., medical expenses). Sometimes, these damages will be deducted if the victim was contributorily negligent.
Damages for PI cases are slightly complicated to calculate (in comparison to EC cases). For instance, the post-trial loss of earnings involves a multiplicand/multiplier approach, in which the multiplicand is the plaintiff’s annual loss of earnings, and the multiplier is the remaining years until the normal retirement of the plaintiff’s professional career. But the court will engage in a discounting process to bring the number down, taking into account the vicissitudes of life, economic factors (e.g., investment failures) and other considerations. Hence, in calculating the compensation, one has to look at the Personal Injury Tables to find the multiplier, and the figure is calculated through actuarial science.
To facilitate the calculation, it is crucial to identify some material facts of the case, including the age of the victim at the time of the accident, the number of sick leave granted, and the monthly earnings at the time of the accident and after the accident.
Damages for EC cases, which are governed by the Employee Compensation Ordinance (Cap.282), are relatively straightforward. EC compensations are awarded on a no-fault basis, meaning that no liability has to be established against the tortfeasor to claim damages. Its calculation is divided into fatal and non-fatal, and the cases that I encountered at the LAD are non-fatal, so the damages are governed by s.9, s.10, and s.10A of the ECO.
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