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ARTICLE · 27 MARCH 2012

Prohibition on plaintiffs' self-interested statements about hypothetical scenarios reinforced

The Court confirms that any assertion of what the plaintiff would have done in a hypothetical situation is inadmissible.

AustraliaInsurance
Focus: Warragamba Winery Pty Ltd v State of NSW [2011] NSWSC 1492
Services: Insurance
Industry Focus: Insurance

In recent times, there has been testing of the boundaries of Section 5D(3)(b) of the Civil Liability Act 2002 (NSW) ("the Act"), which provides:

"any statements made by the person after suffering the harm about what he or she would have done is inadmissible except to the extent (if any) that the statement is against his or her interest".1

The principal aim of the prohibition on this evidence is to reduce the inherent hindsight bias it encapsulates and its questionable probative value.

In the bush fire matter of Warragamba Winery v State of New South Wales, 15 plaintiffs brought proceedings for alleged breach of duty and creation of a nuisance by the National Parks Wildlife Service, NSW Rural Fire Service and Sydney Catchment Authority. The plaintiffs alleged that the defendants failed to assess adequately the risk

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