Sita is able to claim personal injury damages under an action in tort for negligence. The principle of these damages is restituo in inegrum, which is based on the principle restoring the plaintiff to the position they were in before the tort took place (Sharman)1. These damages are presented on a once and for all basis as a lump sum with the date of assessment being that of the date of trial.
1. Economic Loss
Economic loss is under Divison 2 of the Civil Liability Act2 (CLA). Under common law this used to be known as special damages that could be speculated with some accuracy. Under the tort law reforms there is now a more structured limited approach to torts, with the CLA3 providing steps and figures with which to calculate and limit the damages.
1.1 Past out of pocket expenses
Any expenses incurred by the plaintiff during any reasonable medical treatment of to the injury are recoverable under damages upon proof of payment. This includes any surgery Sita may have under gone as well as hospital fees and other medical fees. However Sita also has a duty to mitigate these losses (British Westinghouse4)
1.2 Loss of earning capacity
A plaintiff is compensated for the income that he could have earned, but is now not able to because of the injury. This applies both to the past and future however when calculating Sita’s future income, the court compensates according to her 'earning capacity' as opposed to the precise income that she was previously earning (Cullen5) taking into account her high potential for promotion. This net income over future years then deducts expenses that would have been incurred during her job such as travel. Due to the fact that Sita is able to continue working despite her injuries, she can be compensated only if her new income as receptionist is now lower than it would have been before and this income is then also deducted from the net income (Sharman6). It would be difficult to take into account her consulting work, as it