OUTER HOUSE, COURT OF SESSION
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PD2947/09
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OPINION OF MORAG WISE, QC (Sitting as a Temporary Judge)
in the cause
BRIAN JAMES SMITH
Pursuer;
against
JAMES STRANG LIMITED
Defenders:
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Pursuer: Sanders, Advocate; Thorntons Law LLP
Defender: C Murray, Advocate; Simpson & Marwick
9 November 2012
Introduction
[1] This
is an action for damages for personal injuries sustained by the pursuer when
subcontracted by the defenders to carry out fencing work. While primary
liability is admitted by the defenders, the contentious issues between the
parties relate to the circumstances in which the accident occurred, including
the issue of contributory negligence and quantification of the pursuer's loss.
I heard eight days of evidence and submissions on these issues.
Factual Background
[2] The
pursuer is thirty one years old. He trades on his own account as a fencing
contractor and has done so since about 2004. In March 2008 he was working in
Mennock, Dumfries and Galloway. He had been subcontracted by the Defenders to
carry out fencing work as part of works to construct a new section of the A76
there. The main contractor on the site was Raynesway Construction, part of the
Balfour Beattie group of companies. The defenders provided the pursuer with a
Bryce Suma Powershift, a post driver machine, to assist in the construction of
the fence. They certified him as competent to use such a machine. On 11 March 2008 the pursuer suffered a serious injury to his right hand when the left
sleeve of his fleece jacket became caught in the lever mechanism of the machine
when he was manually attempting to realign a fence post using his right hand. It
is that accident that gave rise to these proceedings.
The Bryce Suma Post
Driver machine
[3] The
equipment provided to the pursuer by the defenders is a hydraulically operated
post driver which must be mounted to a vehicle, most commonly a tractor, to
provide the hydraulic power. The particular model used by the pursuer was
designed by a farmer, a Jock Bryce. The machine has a "mast", a tall
vertical section, which holds a 400 kg hammer weight and a striking plate,
known as a post cap, in a running channel. The post cap is hooked on with a
chain and sits below the hammer weight. It has a short spike on its underside
which is used to straighten or otherwise adjust wooden posts using the various
controls. The weight is raised and lowered through operation of a hydraulic
lever contained within a control panel. The machine assists the driving of a
wooden post into the ground. The post is inserted under the post cap, the
weight is raised using one of the levers and then lowered using another lever
so that it drops onto the post cap which transfers the force onto the post to
drive it into the ground.
[4] A post
driver of the type used by the pursuer on the day of the accident is shown in
the illustrations within the Operators Instruction Manual No 6/31 of
process. The operating levers of the machine form part of a control panel of
eight levers. The panel is situated close to the centreline of the post driver
mast, in quite close proximity to the hammer weight and post cap. At the time
of the pursuer's accident, there was no cover or adequate guard rail over the
control levers to prevent them from being unintentionally activated. There was
a single bar, but it was not sufficient to prevent activation of the levers. The
hammer release lever could be operated with one hand. Had a spring loaded
handle (colloquially known as a "dead man's handle") been fitted to the hammer
release lever, the use of that control would have been a two handed operation.
That would prevent an operator from holding the fence post when the hammer was
being released. Also, the pursuer said that the rightmost lever of the control
panel was longer than the rest. His position was to some extent supported by the
evidence of David Craig and also by Barry Russell. David Craig
said that the rightmost lever was separate from the rest of the levers.
[5] The second
page of Bryce Suma Powershift Operators Instruction Manual referred to
above lists fourteen Safety Rules to be read by operators of the machine. These
include the following:
"6. Do not operate the post driver without the post cap in place
9 Never allow an assistant to hold a post in position, while being hammered, the post cap is provided for that function.
10. Never allow any part of the body to pass under the hammer, when it is in the raised position."
There was no post cap attached to the Powershift or post driver being operated by the pursuer on the day of his accident.
[6] The
pursuer had owned his own post driver machine and tractor but these had been
irreparably damaged in a road traffic accident on 12 February 2008. Accordingly, on 13 February 2008 he underwent brief training at the defenders'
premises in Denny and was duly certified as being competent to use safely an
agricultural tractor and Sumo Powershift Post Driver. The relative training
record and certificate are Nos 7/4 and 7/5 of process and were spoken
to in evidence. It was not seriously disputed that the training was little
more than a cursory examination of the pursuer driving a tractor with post driver
attached. It was undertaken so that the pursuer could work on the site in
accordance with rules laid down by the main contractor.
[7] The
Bryce Suma Powershift operated by the pursuer on the day of the accident had
been checked on 12 February 2008 by David Craig, a plant and
transport manger employed by the defenders. Mr Craig was at the material
time responsible for the daily running of all of the defenders' plant and
transport. Most of his work involved the transit pick up vehicles, HGV's and
mini excavators owned by the defenders. He was responsible for more than
30 items of vehicle and plant, but there had only ever been one powershift
post driver, the one involved in the pursuer's accident. It had been purchased
second hand by the defenders from a fencing contractor. On 12 February 2008 he had undertaken a check of the Bryce Suma powershift in advance of
it being used at the A76 Raynesway site. He completed and signed a checklist,
No 6/19 of process. The checklist is a general form that can be completed
for any of the defenders' plant. It contains a number of references to items
that have no relevance to a post driver (eg engine, coolant, tyres) and none
specific to such a machine. Thus there is nothing in the completed form to
indicate whether or not there was a post cap attached to the post driver when
it was checked by Mr Craig. In evidence his recollection was that it had
been present, although he could not remember any details, such as checking the
chain attaching it to the mast. He was very clear that when the machine came
back to the yard after the accident, there was no post cap attached to it.
[8] I
accept the evidence of Mr Craig, who presented as a careful and
conscientious employee. I am satisfied on balance that the post cap was
attached to the post driver when it left the defenders' yard in mid February. While
it is difficult to be certain as to how it came to be removed, I consider it
unlikely that the post cap was somehow removed after it left the defenders'
premises but before it was handed over to the pursuer. The accident did not
take place until 11 March 2008. The pursuer's position (and that of his
colleague Barry Russell) was that there was no post cap attached to the
Bryce Suma Powershift when it was given to him, yet he did not raise that mater
with anyone on site. He knew the dangers involved in using the machine with no
post cap but seemed content to do so. Bill Cassells, a Health and Safety Consultant
called as an expert witness for the pursuer, has for about 11 years owned
a post driver very similar to that involved in this accident. He said that it
was not uncommon for the shear bolts fixing on the post cap to fail. Later in
this opinion I make adverse findings in relation to the pursuer's credibility
generally. I do not accept his evidence that there was no post cap on the
machine when he received it. While I am unable to go so far as to find that he
deliberately removed the post cap from the machine himself, it seems to me to
be more likely than not that it came to be separated from the machine at some
point between its delivery to site in mid February and the date of the accident
on 11 March. So the defenders delivered it to site with the post cap
attached and at some point while it was being used by the pursuer it became
separated from the machine. There was some suggestion that work could be done
quicker by one person without the post cap being attached, but the pursuer was
assisted by Barry Russell on this job and was not carrying out the work by
himself. While the post cap was never found after the accident, I do not
consider that material as it could have been apart from the machine for a
period of weeks prior to the accident. Whether the post cap came loose and
fell off because the sheer bolts failed or whether the pursuer removed it, what
is absolutely clear is that the pursuer knew that the machine should not be
used without a post cap and was experienced enough to know the dangers of doing
so. I will return to that issue in relation to contributory negligence.
[9] The basis
on which liability is conceded by the defenders in this case is regulation 4
of the Provision and Use of Work Equipment Regulations 1998. regulation 4(1)
provides that:
"Every employer shall ensure that work equipment is so constructed or adapted as to be suitable for the purpose for which it is used or provided."
In terms of regulation 3(3)(a) the duty imposed by regulation 4 is an absolute and continuing one and is owed by any person who exercises control to any extent of work equipment. As it is conceded that the post cap was not present on the post driver at the time of the accident, it follows that the equipment, which was owned by the defenders and accordingly within their control, was not suitable for the purpose for which it was being used. There was, however, no concession that the defenders failed in their common law duties or of any breach of Regulations 11 or 17 of the 1998 Regulations. I will return to those matters after considering the mechanism of the pursuer's accident.
The circumstances and
causes of the pursuer's accident on 11 March 2008
[10] In
the afternoon of 11 March at about 3pm, the Pursuer was operating the post driver machine to drive in fence posts. His colleague Barry Russell
was working about 150 yards away, stapling nets in the fence. The hammer
weight of the post driver was raised, poised to be dropped on a
100mm x 100 mm post. The pursuer noticed that the post was not
aligned properly, probably because of a stone below it. He put his hand on it
to reposition it. As he did so, the sleeve of his fleece jacket caught the
rightmost lever on the control panel and the hammer weight was released onto
his right hand, causing a crushing injury. Had the post cap been attached,
that could have been used to realign the post and the pursuer would not have
put his hand on it.
[11] While Mr Russell
did not witness the accident itself, he heard the pursuer shout for help
immediately afterwards and ran to him. The pursuer had managed to free his
injured hand from the weight and had wrapped a towel around it. Kevin Quigley,
who was at that time the site manager on the project but who was by the date of
proof a project manager with Balfour Beattie, was in the site compound when the
pursuer and Barry Russell arrived there. He realised that the pursuer
required immediate medical attention. He took the pursuer to Dumfries &
Galloway Royal Infirmary ("DGRI") and was informed that the pursuer would
require to stay there overnight.
[12] On 12 March 2012 an investigation into the causes of the pursuer's accident commenced. Kevin Quigley
was involved in the investigation although it was led by Ian Hislop, the
company's safety adviser. Mr Quigley was involved in the interviews and
statements stage of the investigation. He said in evidence that he had been
present when the pursuer was interviewed by Mr Hislop in hospital. He
confirmed that the pursuer had explained the mechanism of the accident as being
that the sleeve of his jumper/fleece caught in the lever that is used to drop
the hammer weight. There had been some discussion about whether the pursuer
had been using a post holder in the course of his work. A post holder in a non
mechanical instrument for straightening fence posts. It is sometimes called a
"crook" as it resembles slightly a shepherd's crook in size and design,
although the top is almost square so that it can fit over the top of a post. The
pursuer's position was that he had been using a post holder in his work in the
absence of a post cap on the machine. However, there was no dispute that the
accident occurred when he was using his hand rather than a post holder to
reposition a fence post. Mr Quigley was familiar with Balfour Beattie's
report following the investigation, No 6/ 20 of process. That report is
critical of the method statement and risk assessment in place at the time of
the pursuer's accident (No 6/21 of process) for the activity he was
involved in and concludes that there was no safe system of work in place. It
concluded also that the control levers on the post driver machine were too
close to the hammer and were unprotected, with no enabling switch and that this
was one of the immediate causes of the accident. However, the causes also
include the pursuer's failure to use a post holder, resulting in him using his
hand to align the post. One of the "corrective actions" suggested in the
report is to ensure that suitable equipment be procured with robust protective
systems in place. Mr Quigley agreed with the terms of the report when it
was prepared and in evidence. He acknowledged that the control panel of the
machine had one bar fitted as a guard but he considered that to be inadequate
as it was at the lower level of the controls and would not prevent inadvertent
striking of the hammer control lever.
[13] Duncan Brown
was the contracts manager employed by the defenders at the material time. On 12 March 2008 he had completed the accident report relating to the pursuer's accident
the previous day. That report (No 6/18 of process) records that the
accident happened when the lever controlling the hammer of the post driver was
caught in the pursuer's clothing, which accorded with Mr Brown's
recollection of what he had been told at the time. He explained that the defenders
were part of Ludden Construction. Ludden carried out their own investigation
into the accident. A report was prepared by Ludden's own Health and Safety
Adviser, an Adrian Aikman. On 4 April 2008 Mr Aikman emailed his report to, amongst others, Kevin Quigley and Duncan Brown. The e
mail and the report are lodged at No 6/19 of process. That report (at page 6)
concluded that the simple and unprotected nature of the controls on the post
driver made it possible for the hammer to be unintentionally released. In
addition there was criticism of the contents of the method statement, which was
vague and the risk assessment which failed to consider the risks associated
with using the equipment. The report recommended that the machine be modified
in two ways: (i) by fitting a cover over the control levers to prevent
unintentional activation and (ii) by fitting a spring loaded clip on the hammer
release lever so that it became a two handed operation. In evidence Mr Brown
said he "couldn't argue with" the first conclusion in relation to the
unprotected nature of the levers. He had been unhappy at the time about the
criticism of the method statement, which he had written. However, he did not
think he was in a position to argue with the main contractor (Raynesway) about
it. After the accident Mr Brown had become involved in the decision to
cease using the pursuer as a contractor because of his failure on several
occasions to turn up on site at the end of May 2008. His letter to that
effect is lodged at No 7/11 of process.
[14] Some
independent evidence on the health and safety issues in the case was adduced
from Bill Cassells, a consultant in that field. He spoke to a report he
had prepared, together with various photographs, all lodged at No 6/30 of
process. Mr Cassells, who has knowledge of post drivers having owned and
operated his own Bryce Suma powershift for many years, was critical of the
defenders' risk assessment (No 6/21). The section of the risk assessment
relating to "Install Timber Strainer Posts & Stobs" notes the potential
for damage to limbs and serious crush injuries and states:
"... use post cap for holding large strainer posts in position. If stobs require to be held in position whilst driving into ground, post holder 'tongs' must be used".
In Mr Cassell's view this was an unsafe instruction and contrary to the manufacturer's own safety guidance. In his opinion, the absence of the post cap coupled with the extended, non standard, extension on the hammer weight control lever both materially contributed to the accident. In evidence he agreed that fitting a proper guard over the controls and fitting a safety clip or " dead man's handle" to make the hammer release a two handed operation would render the machine safer, although it would still have the potential to cause serious injury. He had not fitted a cover or extra guard to his own machine since hearing of the pursuer's accident. Both of the safety features suggested (a guard and a safety clip to the handle) would have been inexpensive modifications. Under cross examination Mr Cassells accepted that there were no circumstances in which a fence post driver operator would require to go near the post under a raised hammer, which would be an extremely high risk activity. It was clear he would never do such a thing himself.
Credibility and
reliability
[15] A
significant challenge to the credibility and reliability of the pursuer's
evidence was made by the defenders. First, he gave evidence that he had been
involved in a road traffic accident the week before commencing work in February 2008.
His vehicles had been written off but he said he had not been injured. However
it transpired that he had raised proceedings against another driver in that
accident, claiming that a back condition had been aggravated by the incident. His
GP had been cited in connection with that case, although the pursuer's medical
records (No 7/1 of Process) had no note of any consultation about the
accident or its sequelae at all. Secondly, the pursuer has a very poor
driving record, with four separate instances of driving without insurance. He
has also been convicted from driving while disqualified from holding or
obtaining a driver's licence. Details of the various relevant road traffic
contraventions were agreed during the proof and are narrated in a Joint Minute No 34
of process. Further, the pursuer secured a policy of insurance for his
business vehicle which clearly does not provide cover for business use. He and
his partner Jenna Black, give conflicting accounts of how it had come
about that the insurance policy for the pursuer's business vehicle runs in the
name of Ms Black. The pursuer seemed to say it was because Ms Black
could take advantage of a " no claims bonus" but she said that she applied for the
insurance cover because she was good at completing forms using a computer and
in any event they were both going to drive the vehicle. It is noteworthy in
light of that evidence that when the policy on question was taken out (see No 7/25
of Process) the pursuer had eight penalty points in his driving licence, which
were not disclosed to the insurer. During a period of disqualification from
driving the pursuer had purchased two vehicles. When applying for the policy
for one of these, a Nissan four wheel drive vehicle, the pursuer had
incorrectly given information that he had not been convicted of any motoring
offence or been disqualified from driving during the preceding five years -
see No 6/36 of process. Further, when applying for a tradesman insurance
policy in July 2008, the pursuer (or someone on his behalf) had answered a
question about whether he had sustained loss, damage, injury or disability
during the previous three years in the negative, an astounding response in
light of the claims now being made.
[16] Further
issues relative to credibility arise from an application the pursuer made for
job seekers' allowance in October 2009. In the application form, which is
signed by the pursuer and forms No 7/31 of process, the pursuer confirms
that he is not currently doing any work and that his business has ceased
trading permanently. He confirms also that he has no injury as a result of an
accident at work. In fact the pursuer had undertaken a substantial piece of
work at Crieff Hydro which he invoiced on 1 October 2009 (No 7/13 of process). He received payments totalling £3,286 during
October 2009 for work carried out in his business as a fencing contractor.
It seems clear that the pursuer gave false information in completing the job
seeker's allowance form in an attempt to secure state benefits. While it is
not part of the court's task in these proceedings to investigate the extent of
any false claim for state benefits (and no evidence was led of the extent of
benefits actually received), I conclude that in applying for job seeker's
allowance in October 2009 the pursuer gave such answers to the questions
being asked of him that best suited his purpose rather than those that were
true and accurate.
[17] There was
evidence about the history of the pursuer's registration for VAT in connection
with his business at the end of 2008. During 2009 he rendered VAT
invoices and collected VAT from customers. He has not prepared or submitted
any VAT returns. His accountant, Mr McEwan, gave evidence that he had
prepared four returns for the pursuer to check and sign. The pursuer's
position was that he had become VAT registered because the defenders had asked
why he had no VAT registration and seemed to expect him to have it. However,
as Counsel for the defenders pointed out, the pursuer became VAT registered
some months after he ceased doing any work for the defenders. In any event,
the turnover of the pursuer's business was comfortably below the VAT threshold.
I find the pursuer's account in relation to this chapter of evidence to be
unsatisfactory. What is clear is that for a period of time he held out to
customers that he was VAT registered and required to add VAT to his invoices,
but he did not forward the money collected to HMRC.
[18] It was submitted
for the defenders that aspects of the pursuer's evidence were in any event
unreliable. In particular, various instances of the pursuer being vague or
unreliable in his evidence about his sources of work, the amounts paid to
subcontractors and the nature and extent of his business outgoings. His
evidence was inconsistent with that of his father William Smith, his
brother Cairn Smith and his accountant Mr McEwen. It was
acknowledged by his Counsel that the pursuer was someone who was poor in
attending to paperwork and to the detail of running a business.
[19] I consider
there is considerable force in the challenges made by the defenders in relation
to the pursuer's credibility. Over a number of years, the pursuer has shown a
tendency to disregard authority and to give information he knows to be
incorrect with a view to benefitting financially, either directly or indirectly.
Some of the instances of that relied upon by the defenders would not be so
significant in isolation. However, there is a pattern to the pursuer's
behaviour that I consider is relevant in addressing some of the issues in this
case. As indicated, I have accepted in general terms the pursuer's account of
the accident because it was consistent with what was said to other witness shortly
after the event and because, although he was alone at the moment of the injury
being sustained, others (Barry Russell and Kevin Quigley) saw the
impact of it when they assisted him. The criticisms made by the defenders of
the pursuer's account of the accident seemed to me to be a little overstated. For
example, it was submitted that the pursuer was anxious to suggest he was using
a post holder at the time of the accident, yet his account was that his right
hand was on the fence post. This ignores the obvious point that the pursuer
did not suggest he was using a post holder at the very moment of the accident,
just that he had been using one during the course of his work that day. Also,
it was contended that the pursuer's account of the sleeve of his fleece having
caught the lever was inconsistent and implausible. However, Duncan Brown
recollected that the pursuer had given that explanation at the time and this
was recorded as the mechanism of the accident in the Balfour Beatty Report (No 6/20
of process). Notwithstanding the adverse conclusion I have reached on the
pursuer's credibility I do not consider that there is any force in the
contention that his account of the mechanism of the accident was implausible. The
issues with the pursuer's credibility have much more bearing on the
quantification of his loss.
[20] There was
no serious challenge to the credibility of most of the other witnesses and I
consider that they were all doing their best to assist the court. I had some
concerns about the reliability of Barry Russell's recollection on matters
of detail such as the presence or absence of the post cap prior to the accident.
Mr Russell has continued to work with the pursuer and is no doubt aware of
the pursuer's position on that issue. I do not suggest that Mr Russell
was being untruthful, simply that his own recollection was vague and he may
have persuaded himself that he had never seen a post cap on the machine. He
gave no detail about when he first saw the machine on site. The defenders challenge
the conclusion reached by Adrian Aikman and suggested that his evidence
was illogical insofar as it criticised the defenders' method statement. For
the reasons given below I reject that challenge and accept the criticisms made
by Mr Aikman.
Liability and
Contributory Negligence
[21] On
the basis of the evidence led, including the reports spoken to, I conclude that
the main cause of the pursuer's accident was the absence of the post cap. There
were important contributory factors, such as the absence of a suitable guard
rail that would have prevented the control lever being operated when the
Pursuer's fleece became caught in it. Further, had there been a spring loaded
handle on the lever that was used to lower the hammer, two hands would have been
required to operate it and it would not have been possible for the pursuer's
hand to be on the post while the hammer was released. All of these factors
caused or materially contributed to the pursuer's accident. In general I
accept the pursuer's account of how the accident happened, which was supported
by those who saw or spoke with him shortly afterwards. The defenders have,
properly in my view, conceded a breach of regulation 4 of the Provision
and Use of Work Equipment Regulations 1998. I have decided that they were
also in breach of regulations 11 and 17. The control panel of the post
driver, which operated a 400kg hammer, was in my view the type of
dangerous part that required a fixed guard that would prevent access to it in
terms of regulation 11. Such guard as was present was unsuitable, failing
as it did to prevent the one handed operation of the lever which lowered the
hammer (reg 11(3)). Further, I am of the view that the Defenders did not
ensure, as they must in terms of regulation 17(3), that when the post
driver, which was work equipment, was about to start, there would be no risk to
the Pursuer's health or safety as a result of the operation of the control
lever that released the hammer. It would have been reasonably practicable for
them to ensure the Pursuer's safety by fitting a spring loaded clip so that the
lever could only be operated with two hands. A proper guard has been fitted to
the post driver since the pursuer's accident. There was a clear causal link
between these breaches of statutory duty and the pursuer's loss. I have also
reached the view that the defenders were in breach of their common law duty of
care to the pursuer. The system of work they designed was not safe, as
highlighted in the Balfour Beatty report No 6/20 of process. As Counsel
for the pursuer pointed out, the defenders' procedures actively condoned and
even recommended that in certain circumstances the machine could and should
have been used without the post cap - Method Statement No 6/21 of
process. Mr Aikman conducted a thorough enquiry following the accident. I
do not accept that he was overzealous as contended for the defenders. He
concluded that the system could have been made safe by requiring a two-handed
operation of the hammer lever. Despite these conclusions on primary liability,
however, it is important that the pursuer was well aware of the extreme danger
involved in placing his hand on a post while operating the post driver and it
is not seriously disputed that his actions contributed to the accident. The
issue is to what extent?
[22] The Pursuer
contends for a finding of less than 20% contributory negligence. Reliance
was placed on the decision of Lord Hodge in McLellan v Dundee
City Council 2009 Rep LR 64. In that case (at para 29) it was
emphasised under reference to authority that an employer in carrying out his
statutory duties and in the exercise of his common law duty must recognise that
an employee may not act with care at all times. In McLellan the
pursuer, a gardener, had been injured when attempting to release a blockage in
a lawn mower when he dropped a crowbar and his fingers became trapped between
the rotating cutter and the sole plate of the mower. Primary responsibility
lay with his employers who had failed to explain to the pursuer of the risk of
the cutter blades kicking or partially rotating on the release of stored energy.
Contributory negligence was assessed at 20%. The Defenders suggest a
finding of contributory negligence in excess of 60%, contending that if
it was established that the post cap was in place when the post driver was
given to the pursuer the finding should be as high as 80%. While
accepting that each case turned on its own facts and circumstances, it was
contended that where a pursuer had wilfully accepted a risk (as opposed to
inadvertence) a level of contributory negligence in the region of 50% was
normally justified - Neil v East Ayrshire Council [2005] CSOH 13. Comparative cases were said to include Boyes v
Carnation Foods Limited 1986 SLT 145, Anderson v Thames Case
Limited 1987 SLT 564, Samson v NCB 1980 SLT (Notes) 57
and Nicholson v British Coal Corporation 1989 GWD 4-176.
Interestingly, all of these were cases of accidents where primary liability
attached to the employer but the employee had failed to look out for their own
safety to a material extent and in each case contributory negligence was
assessed at 50%. However, it was argued that the pursuer in this case
acted in the knowledge of certain danger and that his actions were manifestly
dangerous and cavalier in the extreme. Accordingly, a higher percentage of
contributory negligence was justified. I have reached the view that a
reasonably substantial finding of contributory negligence is appropriate in
this case. The pursuer was an experienced fencer and had owned and operated
his own post driver machine. He had failed to read the instruction manual
which gave clear warnings about the danger of placing any body part under the
raised hammer. His actings were extremely careless and he accepted in evidence
that what he done was very dangerous He was aware of the risk he took. I have
concluded that the post cap had become detached from the post driver after it
had been delivered to him. Witnesses who had some familiarity with a post driver
machine all said they could not envisage any circumstances in which they would
place a hand on a fence post under the raised hammer (Duncan Brown,
Cairn Smith, Adrian Aikman and Bill Cassells). Balancing the
pursuer's actings against the findings I have made (one of which was conceded)
in respect of primary liability, I consider that the pursuer's share in the
responsibility for his injuries can appropriately be assessed at 50%.
Quantification of
Loss
Solatium
[23] The pursuer
sustained a crush injury to his right hand. It was not in dispute that these
injuries were undisplaced fractures of the right index and middle finger
metacarpals and undisplaced fractures of the right index and middle finger
phalanges, together with some undisplaced fracture to the intra-articular MCP
joint extension. These injuries are summarised in a letter to the pursuer's GP
following a clinic appointment at Perth Royal Infirmary on 17 March 2008 - see No 6/1 of process. While the injury was quite severe and must have
been extremely painful, fortunately there was no significant nerve damage. The
carpel tunnel was compressed to allow for the swelling, a small area of skin
flap was debrided and the wound was irrigated. At the second surgical look at
the wound, there was no need for debridement. The treatment the pursuer
received at Dumfries and Galloway Royal Infirmary ("DGRI") was conservative and
entirely appropriate.
[24] On
discharge from DGRI the pursuer recuperated at the home of his parents, William and
Helen Smith and was supported by his girlfriend Jenna Black. In
evidence his parents spoke to some care they had to provide for him for a short
period after his return, as did Jenna Black, but the pursuer was back at work
within about eight weeks of the accident. He failed to attend follow up
medical appointments or wear a compression glove provided to him by the
Occupational therapy team. It was not disputed that he was back working on a
contract at Bishopbriggs for the defenders in mid May 2008. The disputed
issue was the length of time after the accident that the pursuer continued to
suffer and to what extent. In particular, there was considerable dispute about
whether he was left with a loss of grip strength in his right hand. Evidence
on this issue was led on the pursuer's case from Mr Carlos Wigderowitz and
in the defender's case from Mr David Ross. Messrs Wigderowitz and
Ross are both very experienced consultant orthopaedic surgeons. Both prepared
reports for the court's assistance and both are well qualified so to report.
[25] Carlos Wigderowitz,
who qualified originally in the 1980's in Brazil, is a consultant
orthopaedic surgeon and lecturer in Dundee. His primary contract is with the University of Dundee and his time is divided equally between his work as a senior lecturer and
his position as an NHS consultant and Ninewells. He is a member of the British
Society of Surgery to the Hand. He spoke to his report No 6/17 of
process, prepared after he examined the pursuer in October 2008. While he
found that Mr Smith had a good range of movement in his hand, he used a
dynamometer to test his grip strength. A hand dynamometer works by the patient
gripping a vertical bar with his hand. The gauge of the instrument then
measures the strength of the grip in kilogrammes. Inevitably, such an
instrument requires the patient to make optimal effort for the reading to
assess the grip strength accurately. In October 2008, Mr Wigderowitz's
findings, having used the dynamometer, were that the pursuer's grip strength
was 20kg on the right dominant hand compared with 50kg on the left. He
concluded at that time that it was very unlikely that the pursuer would ever
recover the same grip strength that he had before the accident. During the
examination, Mr Wigderowitz found the pursuer to be co-operative. He felt
the results of the grip strength test were consistent with the history. The
pursuer also complained more of a cold sensation in his hand, particularly in
the morning. Mr Wigderowitz explained that with a relatively severe
injury of this type, sensitivity to cold and paraesthesia can be permanent. The
use heated packs and gloves by the pursuer in the morning were sensible and
would assist. Following his first report, Mr Wigderowitz had seen a
report from Mr David Ross, (No 7/3 of process) expressing the view
that grip strength measurements, while helpful in a clinical setting were
inappropriate for a medico legal report. Mr Wigderowitz did not accept
the distinction between the two types of reporting. When asked to comment on Mr Ross's
view on the period of time for improvement of grip strength following such an
injury, Mr Wigderowitz agreed that two years was the accepted threshold
for improvement. However, he expressed the view that if the hand has not
recovered after two years there will be no further recovery and disagreed with Mr Ross's
view (in 2010) that such disability as remained would last for only a
further year. Mr Wigderowitz considered that there was likely to be some
permanent loss of strength. His spoke to his written response (No 6/32 of
process) to Mr Ross's criticisms of his position. He referred to
literature that supported a contention that crushing injuries were more
difficult to reconstruct than cuts where it was easier to re-establish the
circulation. Crushing injuries led to poorer outcomes because they could not
be repaired.
[26] Mr Widgerowitz
examined the pursuer again in July 2010 and prepared a report (No 6/22
of process) where he found a little improvement in the right hand grip
strength (25kg). Most recently he saw the pursuer in May 2012 and produced
a further report of 29 May (No 6/42 of process). He found that
nothing had changed much so far as the pursuer's grip strength was concerned. Over
the period 2008‑2012 he had tested the pursuer's grip strength on three
occasions and the results were 50kg, 50 kg and 40kg in the left hand and 20 kg, 25kg and 20kg in the right. Thus he said the readings were consistently
about half the strength in the right hand to the left hand. He concluded that
the pursuer has been left with a hand with 50% less strength than his non
dominant left hand. His report records "... I don't think that there is any
evidence that he was malingering or trying to unduly increase his discomfort or
weakness." On being shown surveillance footage lodged by the defenders (No 7/7
of process) the witness did not consider anything in it to be inconsistent with
his clinical findings.
[27] Under cross
examination, Mr Wigderowitz confirmed that while he had published articles
on a variety of aspects of lower and upper limb surgery, his surgical practice
was all in the field of upper limb surgery. He agreed that when he first met
the pursuer he had not had sight of any of the medical records and had relied
on the information given to him by the pursuer. When shown some of the records
(eg page 37 of No 7/1 of process) Mr Wigderowitz agreed that it
appeared that the pursuer had failed to attend for follow up appointments and
agreed that he should have attended. On being shown the Occupational therapy
records (page 10 of No 6/7 of Process), he agreed that the pursuer's
failure to wear a compression glove provided to him could have led to
increased stiffness and fibrosis. He accepted that his observation that the
pursuer had callousing on both hands could amount to objective information
about the extent to which he uses both his right and left hands. He agreed
that the pursuer could make a good grip with his right hand, the only issue was
the strength of that grip. Some guidance from a text on clinical examination
by Foy & Fagg was put to him that indicated that metered grip strength
measurements could be misleading and that it is better to make an assessment on
clinical grounds. Mr Wigderowitz responded by reiterating that he could
not dispute the volitional element when trying to assess a patient's grip
strength. However, he said that no alternative method to the one he used has
been shown to be better. It is impossible to detect with precision whether a
patient is "faking" or not. He disagreed that a more reliable view could be
formed by looking at the patient's day to day functioning, by assessing the arm
muscles and the callousing in the hands. He accepted that he had relied on the
pursuer's input on the issue of how long he could work with his right hand
before feeling pain or discomfort. He described that fact as the "single most
important" one in determining whether or not there had been full recovery. While
there was no doubt that the pursuer could carry out a wide range of functions
with his right hand, he considered that the comparison with the left hand was
the crucial test.
[28] David Ross
has been a consultant at Kings Park Hospital in Stirling since 1990. He
has worked as an orthopaedic surgeon since the 1970's. He has a
particular specialism in hand surgery. He too is a member of the British
Society of Surgery to the Hand. He had prepared several reports and
commentaries for this case. These are produced at Nos 7/2, 7/3, 7/29 and
7/36 of process. Mr Ross made a clear distinction between a medico legal
assessment and a clinical examination. The mechanism of the injury was
particularly important for the former, not so much for the latter. He had
examined the X Rays taken at DGRI and having done so concluded that the
injuries were at the lower end of fracture severity. For example, the wrist
and thumb were not involved. When Mr Ross saw the pursuer in May 2010
(Report No 7/2 of process) Mr Smith told him that his right hand had
improved significantly but was not yet quite back to its pre injury state. Mr Ross
considered that to be a reasonable self assessment at the time. There was no
complaint of persisting numbness in the right hand. Mr Ross considered at
that time that the pursuer would regain full strength within a few months of
May 2010. When Mr Ross saw the pursuer again on 28 February 2012 (No 7/36 of process) he measured his hand circumferences and his forearm
circumferences. He found that the right forearm proximal third was slightly
larger than its let equivalent. That was to be expected in the dominant arm. It
was the forearm proximal third that controlled grip. If one hand was "out of
action" or being used infrequently, the measurements would have been
significantly different from those of the pursuer. In Mr Ross's opinion,
the pursuer was likely to have made a complete functional recovery within three
years of the date of the injury, leaving him with permanent but not troublesome
scarring and some residual cold intolerance. He considered that the pursuer
could continue his work as a fencer until normal retirement age and his
recreational work with horses would not be affected. The pursuer told Mr Ross
that he had not returned to his hobby of looking after horses since the
accident. That was untrue.
[29] Mr Ross
described the decision whether or not to measure grip strength using a
dynamometer as a contentious issue. In his opinion measuring grip strength
using such an instrument could have some value in a clinical setting, where it
can be measured over a long period of time by the same examiner. In a medico
legal context he considered it had no value as it was impossible to tell
whether or not the patient was making an effort. Observation was a better
method where there was a legal context. He had discussed this at conferences
with leaders in the field at Derby and Nottingham. Mr Ross had reviewed
the video surveillance of the pursuer and considered that the footage
demonstrated that Mr Smith had normal hand function. His injury was not
at the extreme end of the spectrum of hand injuries. The history and clinical
findings were not indicative of any serious long term consequences.
[30] Under
cross examination Mr Ross agreed that the pursuer's original injuries were
more severe than their appearance in the X Ray suggested. He accepted
that the pursuer had been cooperative at examination. He agreed that the only
real difference between him and Mr Wigderowitz related to whether there
remained a loss of grip strength. Mr Ross considered that it was easy to
fake the grip strength readings on a dynamometer as the dial can be seen by the
patient. He said he knew of no practising hand surgeon who would confirm such
a test was of value of a medico legal context, although when pressed he
accepted that it could be described as of some limited value rather than no
value at all. He had overlooked measuring the pursuer's forearms when he saw
him in 2010 but had done so in 2012. He considered that the
circumference of the forearm was highly relevant because it controls grip.
[31] In
my view, the evidence of Mr Wigderowitz and Mr Ross simply
highlighted that there is no satisfactory way of measuring grip strength
objectively. Mr Wigderowitz had no reason to doubt the pursuer or to
question his motivation. He knew nothing of the pursuer's tendency to give
answers that best suit his purpose with a view to financial gain. He had not
seen the medical records when he first saw the pursuer and he formed the view
from the description given to him that this was an injury from which even a
young fit man like the pursuer would be unlikely to recover fully. Having
considered the expert evidence carefully, I have reached the view that
measuring grip strength using a dynamometer where that strength is a
contentious issue is not a reliable tool and certainly cannot be used in
isolation from clinical findings and other available material. In this case I
have had the benefit of material about the way in which the pursuer behaves
when making claims for state benefits and for insurance that was not available
to the expert witnesses. The pursuer's primary complaint when examined was not
been of a loss of grip strength and he was observed in July 2009 in the
surveillance footage carrying out a variety of tasks with his right hand
without any difficulty. In direct contradiction to what he told Mr Ross,
the pursuer is seen tending horses and handling their reins with ease. As Mr Ross
found, there is nothing in his physical appearance when measured that is
suggestive of his using his right arm and hand less than his left. It is
noteworthy that grip strength comes largely from the muscles in the forearm. It
was not suggested that the pursuer suffers from any weakness in his right
forearm. He has been actively engaged in fairly heavy manual labour since a
few weeks after the accident. As is evident when considering wage loss, any
periods of inactivity in his business appear to be completely unrelated to any
ongoing physical weakness. In the circumstances I have not attached any weight
to the grip strength tests in reaching a conclusion on the extent of the
pursuer's recovery. The pursuer himself in evidence made no complaint of
feeling that his grip was weakened, he alleged that he was in pain after
working with his right hand. I accept the opinion of Mr Ross that in
terms of the use and strength of his hand the pursuer effectively made a full
recovery from his injuries within three years of the accident. He is of course
left with some numbness and a cold sensation at times and has permanent
scarring.
[32] Accordingly,
I consider the physical consequences of the pursuer's accident to have been (i)
significant pain and suffering from the crush injury to the right hand for
about six weeks (ii) a complete functional recovery within three years of the
date of the accident but with (iii) occasional residual cold intolerance and
paraesthesia in his right hand. In addressing the issue of solatium both
Counsel relied on The Judicial Studies Board Guidelines in making submissions
about an appropriate level of award. The Pursuer contended that the pursuer's
injuries fell within chapter 6(1)(e) (£19.000-£40,650) or, at the very
least the top end of chapter 6(1)(f) (£9,500 - £19,000). He
sought a total award of £30,000 under this head, with two thirds
attributable to the past. For the Defender it was suggested that the pursuer's
injuries fell more neatly within chapter 6(1)(g) (£4,100 - £8,700),
being described as a moderate hand injury, which could include crush injuries,
rather than chapter 6(1)(f) which would be appropriate only had the
pursuer been left with significantly impaired function. Both Counsel referred
to case law. This included Graham v The Ubiquitous Chip 1999 Rep
LR 75, Peterkins v Market Rasen Racecourse Limited (Kemp
& Kemp)for the Pursuer and Rennicks v Bison Concrete Limited 1988
SLT 343, Marshall v Bertrams Limited 1985 SLT 80,
Green v Northern Foods plc (Kemp & Kemp, G8-019) 1997,
Nicholson v British Coal Corporation 1989 SLT 360 and
Stewart v Greater Glasgow Health Board 1992 SLT 668. While
I consider the level of solatium suggested for the pursuer to be overstated in
light of the conclusion I have reached on the medical evidence, some of the
comparisons suggested by the Defenders were of cases where the initial injury
was a little less severe than that suffered by the pursuer in this case. This
was a serious accident and the injury was to the pursuer's dominant hand. The
pain was acute initially and while the pursuer has made a very good recovery, Mr Ross
accepted in 2010 that it was reasonable for him to report at that time that his
hand was not back to its pre injury state. In all the circumstances I consider
that a fair assessment of the pursuer's claim for solatium is £8,000, all
attributable to the past.
Past
Loss of Earnings
[33] The
pursuer sought to prove that he had lost earnings in the period between the
accident in 2008 and the proof in 2012. Although he was back working within a
few weeks of the accident, his case on record is that he required to use
subcontractors to undertake some of his work. A considerable amount of time at
proof was taken up with this aspect of the case. In addition to the pursuer
himself evidence was led in his case from Barry Russell, Cairn Smith
and William Smith, all of whom had carried out work as subcontractors for
the pursuer at various times. No clear picture emerged of there being any
relationship between the pursuer's injuries and the employment of
subcontractors. There was no evidence of the pursuer having to withdraw from
contracts as a result of the accident or even of him requiring to use
subcontractors instead of carrying out the work himself. All three men
confirmed that they had worked together with the pursuer when he subcontracted.
They gave figures different to those given by the pursuer to others about their
rates of pay. In particular, Cairn Smith agreed that he was paid £12
per hour (£96 per day) and William Smith said he had not been paid an
hourly rate, but received about £100 per day. The pursuer's claim to his
expert witness was that they were paid £64 per day. Evidence in relation
to the accounts of the pursuer's business over the relevant period was led from
his accountant, Jim McEwan a partner in the firm of Finlaysons who have offices
in Perth and Crieff. Mr McEwan assisted the pursuer by preparing accounts
and completing the pursuer's tax return each year. The accounts he prepared
were simple unaudited accounts and he relied on the information given to him by
the pursuer. It became apparent that the pursuer was a poor record keeper and
that there were examples of his having produced receipts for items that might
not strictly have been business expenses. It is also noteworthy that there was
no noticeable change to the motor vehicle expenses during a period of
disqualification from driving. In any event, the evidence about the pursuer's
earnings from his business over a seven year period commencing 6 April 2005 can be summarised as follows:
Year to 5 April 2006 - Income £26,397, net pre tax profit £23,429
Year to 5 April 2007 - Income £38,212, net pre tax profit £31,329
Year to 5 April 2008 - Income £27,375, net pre tax profit £ 20,782
Year to 5 April 2009 - Income £39,115, net pre tax profit £20,737
Year to 5 April 2010 - Income £21,408, net pre tax profit £8,589
Year to 5 April 2011 - Income £26,441, net pre tax profit £6,736
Year to 5 April 2012 - Income £18,823, net pre tax profit £7,598
In each of these years, the Income figure represents turnover and the net pre tax profit figure is achieved by deducting all allowable business expenses from that turnover. The relevant accounts form Nos 6/9, 6/11,6/13, 6/35, 6/37 and 6/39. As the pursuer had failed to give his accountant information in time for accounts for the period 5 April 2009 to be submitted, 6/35 represents accounts for both the year to 5 April 2009 and to 5 April 2010. There were some discrepancies in the paperwork but Mr McEwan had done his best using the bank statements, invoices and receipts provided to him. He was unaware of the pursuer becoming VAT registered until he was preparing the 2009-2010 accounts. The pursuer told him he was deregistering but he had not been involved in that. He prepared four VAT returns on behalf of the pursuer but he did not know whether the pursuer had submitted them.
[34] Peter Graham,
a chartered accountant in practice as a partner in Begbies Trainer LLP, gave
evidence as an expert witness for the pursuer. Mr Graham has extensive
forensic accountancy experience, including the preparation of reports in court
disputes. He had provided an initial report on the issue of loss of earnings (6/29 of
process) but following the receipt of further information that had been
superseded by two further reports (Nos 6/40 and 6/41 of process) to which
he spoke in evidence. Peter Graham was instructed to proceed on the basis
that the injury sustained by the pursuer on 11 March 2008 had limited his
ability to perform his work as normal and had led to loss of profits (see para 2.4
of No 6/40 of process). In seeking to quantify that loss, Mr Graham
identified the three years ending 5 April 2006, 2007 and 2008 years of
"usual established trade" for the pursuer. He estimated that the pursuer would
be available to work in his business for 217 days per year, the pursuer's
account that he worked for eleven months of the year being clearly unrealistic
given the nature of the business. He then estimated the value for a day's work
by dividing known turnover by the number of trading days. His calculations initially
appeared at paragraph 3.14 of his report No 6/40 of process. These
were revised and the revised figures were lodged during his evidence in a
document No 35 of process. Mr Graham took into account the position
as given to him in relation to subcontracted labour. He took into account
that 2007 was a year in which turnover had been high as a result of a
particular contract with the Council. He gave alternative figures for loss,
first on the basis that a typical pre accident year of trade was the average of
2006 and 2008 only and alternatively that a typical year would be the average
of 2006, 2007 and 2008. He then looked at the period following the accident. He
acknowledged that the year immediately following the accident was the most
successful year for the pursuer's business in terms of turnover. He was told
that was due to a lucrative contract involving Network Rail. He noted from the
accounts that over £8,000 worth of sub contracted labour was used by the
pursuer in that business year. He expressed the view that the pursuer's loss
for 2009 would be the excess subcontractor labour required as a result of
being physically unable through the physical consequences of the accident of
being able to carry out all of the work himself. He concluded that the loss
was within the range of £3,634 - £5,466 for that year. For the year
to April 2010 Mr Graham took into account both the payment of sub
contract labour and what he understood to be the pursuer's inability to secure more
work than he could if fully fit. He calculated that to generate £18,302
of income (turnover less materials) at £116 per day required 158 days of
effort. On the basis that the pursuer could work for 217 days if fully fit,
the loss included (i) the cost of subcontractors (£2,581) and (ii) the
days "lost" though being unfit, namely 59 days (217-158) x £116 per
day (£6,844). However some account had to be taken of the recession which may
have resulted in a downturn in available work anyway. Estimates of the effect
of both a 5% and a 10% downturn were given. The ultimate effect was
a range of possible values for "lost days" for 2010 of between £4,292 and £9,675
depending on the day rate and the percentage downturn (see table 7 in para 4.19
of No 6/40). Mr Graham was also asked to consider what loss might
arise in 2011 and in future years. He spoke to his report No 6/41 of
process in this regard. He noted that turnover was dropping in 2011 and 2012.
He considered that the pursuer's loss for these years was the payments made to
subcontractors, £2,272 and £1,802 respectively.
[35] Under
cross examination Mr Graham agreed that the version of the accounts to
5 April 2008 he had used had included a deductable expense of £1,000
for subcontractors. On being shown No 6/13 of process, he accepted that
if those were the final accounts, there had been no subcontractors paid that
year. He agreed that he had relied on the pursuer for information about the
subcontractors. If there was now different evidence of rates paid to
subcontractors he accepted that would alter the figures. He had been told by
the pursuer that he had paid £40 per day to Barry Russell and £64
per day to each of his father and brother. (In evidence the pursuer said he
paid his father £13 per hour, which was reasonably consistent with the
estimate of £100 per day given in evidence by his father). Peter Graham
was aware of the different analysis made by Mr Bruce Graham, who had
analysed the invoices of the business, Peter Graham had primarily used the
accounts. He described Bruce Graham's approach as "bottom up" and his own
as "top down". He considered that both methods were appropriate. In a ideal
world, where the paperwork was in perfect order, the different approaches
should lead to the same result. He accepted that his assessment of loss for
the later years based on the employment of subcontractors was based on the
premise that the subcontractors were there to assist a debilitated Mr Smith.
He accepted that the figures used for subcontractors would require to be
altered on the basis of evidence about the rates actually paid. One example
put to him was that in the year to 5 April 2009, on the evidence that Cairn and
William Smith were the sources of subcontracted labour and were paid £96
per day the figures would all be recalculated such that the excess
subcontracted labour was 5 days rather than 59 on a reduced estimate
of 286 manpower days (as opposed to 302) being required for that
year's turnover (see paras 4.6 and 4.7of No 6/40 of process). Depending
on whether the lower or upper estimate was used, this would reduce the loss for
that year to between £320 and £2,016. Mr Graham also agreed
that it was impossible to assess accurately whether or not the drop in the
pursuer's turnover in later years was wholly attributable to the recession and
its impact on the construction industry.
[36] Robert Bruce McLaren
Graham, known as Bruce Graham, is a chartered accountant of vast
experience and good standing in the profession in Scotland. He was until 2001
a partner in Price Waterhouse Coopers having previously been a partner in
Coopers & Lybrand. Since 2001 he has worked on his own account
providing expert reports and giving evidence in various types of litigation. He
and Peter Graham have known each other professionally for many years. Bruce Graham
prepared two reports for the assistance of the court in this case,
Nos 7/23 and 7/40 of process. He spoke to those reports in evidence.
Mr Graham examined the invoices rendered by the pursuer. He noticed in
particular that in the year to 5 April 2009 the sums invoiced amounted to £46,681,
more than £7,500 higher than the figure for income in the accounts for
that year of £39,115. While some of the difference might be explained by
one of the customers going into liquidation (with a possible consequence of non
payment), the decision not to include the higher figure in the accounts meant
that the level of activity of the business was not fully illustrated by those
accounts. After examining the primary material behind the accounts, Mr Graham
had noticed that the pursuer's business had lost its two primary sources of
business during the year 2009 - 2010, namely Lumberjax
Environmental Limited (the Network Rail contract) and Torrance Building Services
Limited. Lumberjax went into liquidation on 26 June 2009. Mr Graham noted also that no invoices at all had been rendered by the pursuer for 6 of
the 12 months in the business year to April 2012, namely April, June,
July, August, September 2009 and January 2010. On the basis of all
of the information available to him Bruce Graham concluded that there was
nothing to support the contention that the pursuer required to "employ"
subcontractors to carry out work he was unable to do. The network rail contract
was sufficiently large that assistance was required from his father and brother
to complete it (see the account given by the pursuer to that effect at No 6/8
of process) but there were months when he performed significant levels of the
work without such assistance. In 2010 the pursuer appeared to have
carried out most of the work himself without subcontractors. In light of the
very significant increase in the turnover of the business in 2009, Mr Graham
could not see the basis for the contention that business was lost as a result
of the accident and the pursuer's injury. There was no vouching to support an
argument that the business would have done even better than it did in 2008
but for the pursuer's accident. Bruce Graham had seen the report of Peter Graham,
who he considered had taken a more "theoretical" approach to any possible loss.
Peter Graham had made assumptions (i) that the turnover stated in the
accounts was accurate, (ii) that the pursuer would work a fixed amount of
217 days per year and (iii) that there was a relationship between the use
of subcontractors and the pursuer's injuries, albeit a relationship that was
not explored. For Peter Graham's approach to be accepted those three
assumptions required to be correct. Bruce Graham challenged each of those
assumptions. He considered that calculating the worth of a man hour on the
basis of turnover in the accounts when the sums invoiced were different was
erroneous. Even if some invoices later had to be written off as a bad debt,
they were part of a calculation of the "man hour rate" of the business. Secondly,
the working days would not be the same in each year, the availability of work
was an important variable. Thirdly, the approach to subcontractors ignored the
extent to which subcontractors were employed simply because the job required it.
It was clear from the invoices of the subcontractors that they were not
employed in every month, but just when a contract required it. In
January 2009 Mr Smith rendered invoices of £11,314 but there
appeared to be no subcontractors working at that time. The paperwork showed no
regular ongoing use of subcontractors. Further, it was noteworthy that the
level of business picked up a little in 2011 to a level close to 2008.
Looking at maters broadly it was reasonable to assume that the factors
resulting in the pursuer earnings less from 2010 onwards were the
liquidation of Lumberjax and the recession. There was nothing to support a
conclusion that any ongoing loss was attributable to the pursuer's accident
in 2008. There was no basis for the selection by Peter Graham
of 5% and 10% as representative of the downturn attributable to the
recession.
[37] Under
cross examination it was suggested to Bruce Graham that while there were
difference in methodology between him and Peter Graham, both approaches
were appropriate, it was a matter of choice. He responded that as Peter Graham's
approach was based on assumptions, one required to test those assumptions. There
was an absence of vouching for some of the assumptions made by Peter Graham.
While his approach was theoretically valid, it didn't assist in this case
because the facts did not appear to support the conclusion. Had all of the
paperwork been available to show the extent (if any) to which subcontractors
were used as a result of the accident, there would have been no need to use the
theoretical construct adopted by Peter Graham. Bruce Graham agreed
that he too had made one or two general assumptions, for example in relation to
the recession having an impact on the pursuer's business, but he considered
that was a reasonable assumption on the known facts.
[38] Having
considered the evidence of the lay and expert witnesses, I have reached the
conclusion that the pursuer has failed to establish any more than 6- 8
weeks loss of earnings immediately following the accident. There is no dispute
that the pursuer's best year of trading took place in the business year that
commenced a few weeks after the accident. During that year (to 5 April 2009) the pursuer worked alone for periods when he invoiced significant
amounts (eg December 2008 and January 2009). He used subcontractors
in some other months, primarily where he was fulfilling the considerable
demands of the large Network Rail contract. I accept the evidence of Bruce Graham
in it's entirely. In preferring his conclusion to that of Peter Graham I
intend no criticism of Peter Graham's approach at all. It seems to me
that he did the best he could on incomplete and at times completely inaccurate
information. He was instructed to proceed on an assumption that that the
injury sustained by the pursuer on 11 March 2008 had limited his ability to perform his work as normal and had led to loss of profits. He was entitled
to proceed on the basis of that instruction. He was given the accounts of the
business and used those to calculate the loss that he was led to believe had
arisen through the pursuer's requirement to use subcontractors more than he
would have done but for the accident. The method he used may well have worked
had the underlying information been accurate. However, I do not accept the
pursuer has shown that his business activities were curtailed as a result of
the accident for anything more than eight weeks. He was back at work full time
in mid May 2008. He was released from that contract at the end of May
because of his failure to turn up on site. His position in evidence was that
he had failed to turn up once. There was no suggestion that his failure was
related to any inability to work. Thereafter it seems that the pursuer enjoyed
a successful year to April 2009, with no evidence to support a contention
that his business would have been even more successful but for the accident. He
was fit for work and while I have accepted that he had some residual pain and
that his right hand was not completely recovered for some time following the
accident, there is simply no material on which I can conclude that there was a
relationship between that and his earnings. There was no evidence of contracts
that could not be pursued due to his being less than one hundred per cent
recovered and there was no information about contracts pursued but not awarded
for that reason. The invoices of the subcontractors do not support any pattern
of their increased use due to injury. More recently the pursuer has acquired
another post driver machine to assist his work but I do not accept that he has
done so because of any inability to carry out the work manually. He did not
acquire a new machine during the period of greatest turnover following the
accident. The pursuer's earnings have dropped since 2009. He accepted in
evidence that by 2009 the only significant issue with his right hand that
might have affected his work was the cold or numb sensation in the mornings
which he could improve with heated packs. In the summer of 2009 the
pursuer did not render any invoices for four consecutive months. It was during
that period that he was observed carrying out a number of activities including
tending to horses. At the end of that period he sought job seekers allowance
on the basis that he had no work. His best source of work, Lumberjax, went
into liquidation in June 2009. These factors all support a conclusion
that the reduction in the pursuer's income was not attributable to any
incapacity or disability but to economic factors. In all the circumstances I
assess his loss of earnings as a result of the accident at £2,800. I do
so having regard to the average level of net pre tax profits he was making
in 2008 and 2009 and taking an amount equivalent to two months pre
tax profit less a deduction for tax. On the evidence I consider that to be the
only period when it was established that the pursuer lost earnings as a result
of the accident. It is clear from the evidence that he had sufficient work at
the time of the accident to be fully engaged in his business. His counsel made
a suggestion that he had returned to work earlier than was advisable given the
injury he sustained and I accept that he appears to have been keen to be back
to business as soon as possible, consistent with his being a self employed
individual. However, there is no evidence to suggest that his early return to
work impeded his recovery or that he was unable to carry out his work
effectively at that time. Counsel for the defender submitted that the pursuer
had not sustained any wage loss after the accident because of payments he had
made to himself from his business account. I reject that contention. As a
sole trader, any money in his business account between 11 March and mid
May 2008 must have been accumulated prior to the accident or at least
related to work carried out prior to the accident. In my view there was a two
month period when the pursuer earned nothing as a result of the accident and
that but for that accident he would have been working full time.
Future
Loss of Earnings/ Loss of Employability
[39] It
will be apparent from the views already expressed that I do not consider the
pursuer to be at a disadvantage as a result of the injury which he sustained
but from which he has now fully recovered. There was no acceptable evidence
upon which to base an award for future loss of earnings or for a loss of
employability award. While evidence was led from Gordon Cameron, a
vocational consultant about this matter, the report he prepared for the court (No 6/16
of process) was ultimately of little use as it relied on various statements
made by the pursuer to a Derek Grant, a witness the pursuer did not call.
The information given to Mr Grant was wrong in a number of respects,
particularly in relation to whether or not the pursuer had a full time employee.
Further Mr Cameron had not been made aware of the defender's medical
evidence. He had proceeded on the basis that the pursuer had only 50% of
his previous grip strength in his right hand. Quite properly Mr Cameron
accepted it was a matter for medical opinion whether or not the pursuer was
capable of continuing with his current work. He had not been asked to consider
what types of heavy manual labour might be available to the pursuer as he had
proceeded on the basis of the information given to him to the effect that the
pursuer would not be able to carry out heavy manual labour at all. In any
event the alternative work Mr Cameron considered would be available to the
pursuer (see para 2.7 of No 6/16 of process) would earn him more than
his business has provided for him during the years to April 2011 and
April 2012. In submissions for the pursuer it was accepted that Mr Cameron
had been faced with a difficult task in trying to predict what the future might
hold for the pursuer given that his current business seems no longer
economically viable. It was accepted that an award for future loss of earnings
or loss of employability would be appropriate only if the pursuer's medical
evidence was accepted. For the reasons given I have preferred the defender's
medical evidence. Like Peter Graham, Mr Cameron did the best he
could with the material available to him and on the basis of the assumptions he
was asked to make. I have not relied on his evidence simply because it did not
assist given the conclusions I have reached in relation to the medical evidence
and the reasons for the pursuer's recent drop in earnings. Counsel for the
pursuer sought an award of between £27,150 and £42,052 under this
head. Had I been persuaded that the pursuer was disadvantaged on the labour
market as a result of the accident, I would have been minded to make a more
modest award of £15,000.
Services
[40] The
pursuer sought an award in respect of services provided by his parents and by
his girlfriend Jenna Black. While his parents gave slightly differing accounts
of the period of time during which the pursuer required assistance with lifting
things and with cooking and laundry, I accept that these differences arise from
honest recollections differing after a period of some years and they do not
detract from the credibility of those witnesses. It seems that the pursuer
required the assistance referred to for a period of up to six weeks. His
mother also provided some emotional support in the week or two immediately
after the pursuer was discharged form hospital. His father tended to the
horses on his behalf. Jenna Black provided assistance in bathing the pursuer and
cleaning his house. However, both she and the pursuer confirmed that they were
not living together as a couple in their own home until quite some time after
2008. Ms Black was living with her parents at the time of the pursuer's
accident. Accordingly, the assistance she provided does not qualify for an
award - see Administration of Justice Act, s.13(1) and Lawrie v
Lanarkshire Health Board 1994 SLT 633. Counsel for the Pursuer
submitted under reference to Mitchell v Inverclyde District Council 1998
SLT 1157 that it was appropriate to take a broad view in assessing an
award for services. While I agree with that general proposition, the Mitchell
case does not assist the pursuer with the contention that Jenna Black
should be treated as a relative in this context. I consider the appropriate
award for services is £300 for the contribution of each parent.
Decision
[41] For
all of the reasons given, I consider that the defenders are liable to the
pursuer in this case, but with a finding of contributory negligence of 50%.
The damages award on a full liability basis of £8,000 for solatium, £2,800
for past wage loss and £600 for services amounts to £11,400. Applying
interest at half the judicial rate from the date of the accident to the date of
decree increases that sum to £13,528. The total falls to be reduced
by 50% for the pursuer's contributory negligence.
Disposal
[42] I
shall pronounce decree against the defenders for payment to the pursuer of £6,764,
inclusive of interest to date. I shall reserve all questions of expenses
meantime.