Services

Legal

Cumpston Sarjeant provides reports, advice, and expert evidence for lawyers.

We have extensive experience providing actuarial advice in personal injury matters. The range of services include calculating earnings and superannuation loss, costs of future care and costs of funds management. We are able to deal with complex superannuation arrangements, are familiar with issues related to the self-employed, and with claims by the dependents of a deceased individual. See below for more detailed discussion of work in this area.

More generally, we are able to use actuarial skills to provide advice to lawyers on matters not normally associated with the courts. The services include

• income stream valuation and discounting future cash-flows
• exercises in statistics and probability
• allowance for uncertainty in a stream of payments
• data analysis and financial modelling services

David Heath is also a qualified Accountant, and can provide forensic accounting services.

We have published numerous articles discussing actuarial issues which arise in legal proceedings. Most recently, three of our directors have re-written the chapter on Actuarial Evidence in the Thomson Reuters publication "Expert Evidence".

Actuarial advice in personal injury matters include:

• Estimating loss of earnings and superannuation

  We have extensive experience calculating the current value of earnings and superannuation loss in personal injury matters. This includes employees and more complicated cases involving small-business owners. We ensure that we keep up to date on changes to tax or superannuation arrangements which may affect these calculations.

• Calculating the cost of investment management

  In cases where the plaintiff has suffered very serious injuries, they may not be able to assume responsibility for damages amounts awarded. In such cases a third party may be appointed as a trustee/investment manager. The fees for these services can be substantial. We have experience estimating the present value of these fees over the lifetime of the plaintiff. We have performed calculations based on the fee-scale of public trustees and private investment managers in most states of Australia.

• Estimating tax paid on weekly payment for Fox v Wood purposes

  When a plaintiff receives damages, they are required to repay payments of weekly compensation they have received. They repay the gross amount of these payments, however, since they have paid tax, they have effectively benefited only from the net amount of these payments. The difference, that is the tax paid on weekly compensation, may represent an additional loss incurred by the Plaintiff.

• Estimating the current value of future weekly benefits

  For solicitors acting on behalf of the plaintiff, there may be a decision to be made whether it is worthwhile pursuing damages for pecuniary losses, or whether the plaintiff would be financially better off to remain on weekly benefits. We are able to estimate the current value of future weekly benefits in order to assist with this decision.

• Estimating the value of life interest and remainder interest

  Estates often include property or other assets which are given to one individual for their life; the life tenant or life beneficiary. On their death the property or assets revert to other individuals, the remainder beneficiaries.In some cases it may be possible to sell the property/assets now, and divide the proceeds between the life beneficiary and the remainder beneficiary. We estimate the value of each interest in order to assist with this process.

• Estimating life expectancy based on anticipated future improvements in mortality

  The most commonly used life expectancy tables are based on current mortality rates at each age. However the recent experience has been one of improving rates of mortality at each age. Thi s trend is expected to continue.
  The most commonly used life tables may thus under-state life expectancy. The Australian Bureau of Statistics publishes population projections based on the assumption that mortality rates at each age will continue to improve. We have used these mortality rates to estimate life expectancy allowing for future improvements in mortality.
  The case of Zhang v Golden Eagle International Trading Pty. Ltd & Ors (22/2/06) in NSW accepted this approach. We understand that this is currently being appealed to the High Court.
  Life expectancy tables based on improving mortality are available in the Legal Publications section of the site.

• Estimating the cost of raising a child

  For some proceedings it may be necessary to estimate the cost of raising a child. We have experience providing estimates of these costs, based on family income, and the family structure.

• Estimating loss of dependency

  Dependents of a deceased individual may claim for loss of dependency. We have extensive experince providing estimates of dependency losses, based on income before death, and the family structure.
  A paper detailing our approach to estimating dependency losses is available in the Legal Publications section of the site.