Lewis (by his litigation guardian P Osborne) v Bundrock & Anor

[2008] QSC 189

Supreme Court of Queensland

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Interrogate

Catchwords

1. Damages
2. › Personal injuries
3. › Assessment
4. › Trustee's management fees
5. › Whether management fee should be calculated on capital sum plus management fees (compounding)
6. › Whether iterative recalculation of fee upon fee required
1. Damages
2. › Personal injuries
3. › Assessment
4. › Trustee's management fees
5. › Whether tax deductibility of management fees should reduce amount payable by defendants
6. › Discount rate in Todorovic v Waller
7. › Civil Liability Act 2003 (Qld), s 57

Quick Take

When fixing a trustee's administration fee as part of a personal injury settlement, the fee should be calculated on the capital sum alone without iterative compounding of fee upon fee. The tax deductibility of management fees should not reduce the amount payable by the defendant, because the statutory discount rate (derived from Todorovic v Waller) already accounts for the incidence of taxation, including the deductibility of investment-related expenses.