Compensation for the loss of financial benefits as a result of a shortening of life

Personal injury resulting from a civil wrong may reduce the injured person’s life expectation. An injured person who would have worked during the lost years has lost earning capacity, which is compensable if judgment is obtained in the injured person’s lifetime. An injured person who would not have worked during the lost years (in particular a retiree) has not lost remuneration for work done during the lost years but may have lost other income that would have been received during the lost years, for example a pension. This article investigates whether the loss of such other income should be compensable if judgment is obtained in the injured person’s lifetime. The focus is on the loss of pension payments, which was considered by the High Court of Australia in Amaca Pty Ltd v Latz.