How Vicissitudes Impact Future Economic Loss in Legal Cases

Nov 24, 2023 | Publication

When it comes to calculating future economic loss in legal cases, one concept that often arises is “vicissitudes.” But what exactly are vicissitudes, and how do they affect the compensation awarded to plaintiffs? In this article, we’ll delve into the definition of vicissitudes, explore the standard percentage applied, and identify situations where the usual percentage may not be applied.

What Are Vicissitudes?

Vicissitudes, in legal terms, refer to “a change of circumstances or fortune.” When a plaintiff is seeking damages in a legal case, it’s important to consider the potential changes in their circumstances and financial fortune in the future. In essence, it involves assessing how life’s uncertainties can impact the calculation of future economic loss.

The Role of Vicissitudes in Legal Cases

Vicissitudes play a crucial role in legal cases, particularly when determining future economic loss. To ensure a fair and accurate calculation of damages, the Civil Liability Act in many jurisdictions mandates that courts consider vicissitudes when awarding compensation.

The Standard Deduction for Vicissitudes

One of the key aspects of vicissitudes in legal cases is the standard deduction applied. In most cases, a 15% deduction is the norm when calculating future economic loss. This means that when estimating the financial impact of an injury or loss, courts typically reduce the potential compensation by 15% to account for the inherent uncertainties in life.

Exceptions to the Standard Percentage

While a 15% deduction is the standard practice, there are situations in which the usual percentage may not be applied. One notable exception is when the plaintiff is nearing retirement age, and unexpected adverse vicissitudes of life are less likely to occur.

In such cases, a smaller deduction may be deemed appropriate. Courts may take into consideration the reduced probability of significant future changes in the plaintiff’s circumstances, as retirement age often marks a transition to a more stable financial phase of life.

It’s important to note that the determination of the appropriate deduction for vicissitudes is a complex process, and courts weigh various factors, including the plaintiff’s age, occupation, and the nature of the injury or loss when making this assessment.

The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this publication is accurate at the date it is received or that it will continue to be accurate in the future. We are not responsible for the information of any source to which a link is provided or reference is made and exclude all liability in connection with use of these sources. If you do not wish to receive newsletters from us, please let us know.

Latest Insights

Partnership Disputes – Causes and Resolution

Partnerships are a common business structure.  Frequently we see disputes where one or more partners wishes to leave the partnership, and financial and other disputes relating to a partnership.  Understanding the causes of these disputes and how they can be...

What Types of Claims can be made on a Deceased Estate?

A deceased estate has a range of potential claims that can be made against it.  These arise not only from the actions of the deceased but also from legislation that deals with how deceased estates are administered and distributed. Some examples of potential...

Fundamentals of Companies – Getting the Basics Right

A company is a separate legal entity, being an artificial person that only ceases to exist via the hands of its members or via government intervention.  A company’s personality is expressed in its constitution and enables the members of the company to combine...

Loss of chance

In the landmark decision of Tabet v Gett [2010] 240 CLR 537, the High Court of Australia provided crucial insights into the principles of causation in negligence claims. This case is pivotal for understanding how courts assess the direct link between alleged...

Webinar – How to Reduce the Risk of a Claim on Your Estate

Join us for an informative seminar on "How to Reduce the Risk of a Claim on Your Estate" via Zoom on Thursday, 5 September at 8 pm. This one-hour complimentary session, including a Q&A segment, will provide valuable insights and practical strategies to safeguard...

New Industrial Manslaughter laws in NSW

The Industrial Manslaughter Bill has passed NSW Parliament and will make industrial manslaugther an offence. According to the NSW government, since 2019 more than 300 workers have been killed in NSW.  Under the new law, a business or individual can be held...

8 Types of People that can Claim on a Deceased Estate

In New South Wales, there are many different types of people that can potentially claim on a deceased estate if, for instance, inadequate or no provision has been made for them or they are owed money by the estate (or they were owed money by the deceased).  ...

What is the difference between Joint Tenancy and Tenants in Common?

A very important difference in ownership of property where there are two or more owners is Joint Tenancy v Tenants in Common. It is essential to understand the difference when and if you buy property with another person. If you own a property as Joint Tenants and one...