ARTICLE · 29 MARCH 2010

Charitable Donations to Volunteers and Economic Loss

DLA Piper Australia

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In Zheng v Cai [2009] HCA 52 the High Court held that payments made by a church to an injured plaintiff were not to be considered in the plaintiff’s economic loss assessment.

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Alexander Sudbury

In Zheng v Cai [2009] HCA 52 the High Court held that payments made by a church to an injured plaintiff were not to be considered in the plaintiff's economic loss assessment.

Key Points

Truly charitable donations for the benefit of a plaintiff may not be taken into account when assessing economic loss.
If it is the intention of the benefactor to reduce the damages payable by the tortfeasor, rather than to aid the plaintiff, only then may payments diminish the award.

Facts

The Chinese speaking plaintiff suffered spinal injuries in a car accident in May 2000. Subsequently she was unable to sit or stand for long periods of time or continue her employment as a seamstress. Lack of proficiency in English also limited her options in non-manual work.

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