Punitive Damages - ACB VS Thomson Medical PTE LTD, ETC.
Punitive Damages - ACB VS Thomson Medical PTE LTD, ETC.
Punitive Damages - ACB VS Thomson Medical PTE LTD, ETC.
[2017] SGCA 20
Between
ACB
… Appellant
And
Between
ACB
… Plaintiff
And
INTRODUCTION............................................................................................4
BACKGROUND ..............................................................................................7
LOSS OF AUTONOMY................................................................................70
THE DEVELOPMENT OF AN AWARD FOR LOSS OF AUTONOMY ........................71
ARGUMENTS AGAINST THE RECOGNITION OF LOSS OF AUTONOMY AS AN
ACTIONABLE INJURY IN ITS OWN RIGHT .........................................................76
CONCLUSION.............................................................................................134
This judgment is subject to final editorial corrections approved by the
court and/or redaction pursuant to the publisher’s duty in compliance
with the law, for publication in LawNet and/or the Singapore Law
Reports.
ACB
v
Thomson Medical Pte Ltd and others
[2017] SGCA 20
TABLE OF CONTENTS
Introduction [1]–[5]
Background [6]–[13]
conception
The UK [58]–[73]
Australia [74]–[80]
Analysis [86]–[100]
2
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
Conclusion [210]–[212]
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ACB v Thomson Medical Pte Ltd [2017] SGCA 20
Introduction
1 In this appeal, we are concerned with the proper limits of civil liability.
As Griffiths LJ (as he then was) aptly observed, “[e]very system of law must
set some bounds to the consequences for which a wrongdoer must make
reparation … In any state of society it is ultimately a question of policy to
decide the limits of liability” (see the English Court of Appeal decision of
McLoughlin v O’Brian and others [1981] 2 WLR 1014 at 1036G–H, reversed
in McLoughlin v O’Brian and others [1983] 1 AC 410 (“McLoughlin (HL)”),
although not on this particular point). The law sets these limits not only
because of concerns over the adverse effects that the imposition of liability
might have on the legal system or on public welfare more generally but also,
more positively, for reasons of “public benefit and convenience” (see the
decision of the Court of the King’s Bench in Lawton v Lawton (1743) 3 Atk
13 at 16 per Lord Hardwicke LC). These boundaries are set in various ways.
The different means employed include the doctrines of causation, remoteness,
and – most pertinently in this case – through the refusal to recognise particular
types of damages as heads of recoverable loss.
2 Of course, the converse is possible and the law may expand, rather
than limit, the boundaries of liability. This is true both of tort and of contract.
The tort of negligence emerged in its modern form as a cause of action for
physical injury directly caused by the positive act of a negligent stranger.
However, it expanded to embrace, in the classic House of Lords decision of
M’Alister (Or Donoghue) (Pauper) v Stevenson [1932] AC 562 (“Donoghue v
Stevenson”), injury caused by the negligent manufacture of goods. Since then
it has grown to include other forms of injury such as pure economic loss
arising from a negligent misstatement (see, in particular, the decision of the
House of Lords in Hedley Byrne & Co Ltd v Heller & Partners Ltd [1964] AC
4
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
3 The Appellant and her husband sought to conceive a child through in-
vitro fertilisation (“IVF”). The Appellant underwent IVF treatment and
delivered a daughter, whom we shall refer to as “Baby P”. After the birth of
Baby P, it was discovered that a terrible mistake had been made: the
Appellant’s ovum had been fertilised using sperm from an unknown third
party instead of sperm from the Appellant’s husband. The Appellant sued the
Respondents in the tort of negligence and for breach for contract and sought
damages for, among other things, the expenses she would incur in raising
Baby P (“upkeep costs”). The Respondents conceded liability but argued that
the Appellant should not be allowed to recover upkeep costs. They argued that
the child is a blessing, and that there was something distasteful, if not morally
offensive, in treating the birth of a normal, healthy child as a matter for
5
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
compensation. The High Court Judge (“the Judge”) agreed. In the penultimate
paragraph of his judgment he added, “[w]ere the [Appellant] to succeed in her
upkeep claim, whether in tort or in contract every cent spent in the upbringing
of Baby P will remind her that it was money from compensation for a mistake.
Baby P should not ever have to grow up thinking that her very existence was a
mistake” (see ACB v Thomson Medical Pte Ltd and others [2015] 2 SLR 218
at [16] (“the Judgment”)).
5 There can be no doubt that this is a “hard case” (in both the colloquial
and jurisprudential senses of the word) but if anything this calls for greater
analytical clarity and rigour in order to avoid the reproach that hard cases
make bad law (see the House of Lords decision of Fairchild v Glenhaven
Funeral Services Ltd and others [2002] 3 WLR 89 at [36], per Lord Nicholls
of Birkenhead). Before we turn to the substance of our decision, however, we
6
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
Background
7
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
8 The second round of IVF was carried out. Shortly afterwards, the
Appellant conceived and gave birth to a daughter, Baby P, sometime in
October 2010. The Appellant and her Husband noticed that Baby P’s skin tone
and hair colour were different from their own, and were also markedly
different from those of their first child, who had also been conceived through
IVF. A blood test was performed and it showed that Baby P had a blood type
which did not match either of theirs. Worrying that Baby P might be suffering
from jaundice or a genetic disorder, the Appellant and her Husband insisted
that further tests be performed. The results of these further tests came as a
shock. The Appellant and her Husband were told that Baby P possessed a
blood type that could not have been the result of the combination of their
genetic material and further investigations confirmed that the Appellant’s egg
had been fertilised with the sperm of an unknown male Indian donor instead of
that of the Husband’s.
8
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
(b) The second Respondent was sued both in the tort of negligence
as well as for breach of contract. The two pleaded breaches of contract
were: (i) failing to fertilise the Appellant’s egg with the Husband’s
9
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sperm and instead fertilising it with the sperm of another person; and
(ii) failing to provide reasonably good medical services.
11 For the breaches detailed in the previous paragraph, the Appellant put
forward two principal heads of claim. The first was for pain and suffering
relating to the pregnancy as well as damages for mental distress. The second
was for upkeep costs and it included, among other things, the cost of enrolling
Baby P in an international school in Beijing where the Appellant and her
Husband presently reside, the cost of tertiary education in Germany, travelling
expenses, medical expenses, and the cost of feeding and caring for Baby P
until she is financially self-reliant. For ease of reference, we shall refer to the
second head of claim as the “upkeep claim”. Additionally, the Appellant also
filed a claim for provisional damages by which she sought to hold the
Respondents liable for damages (until such time as Baby P reaches 35 years of
age) arising from any genetic condition or disease that Baby P might have
inherited that might be attributable to the donor’s genes.
10
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
14 The Judge first began by considering the Appellant’s argument that the
Respondents should be liable for upkeep costs because they had failed to
detect and therefore inform her of the mix-up ahead of time, thereby denying
her of the opportunity to seek an abortion. This argument was summarily
11
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
rejected as being a “mere afterthought”. The Judge noted that the Appellant
had neither pleaded this in her SOC nor deposed in any of her affidavits that
she would have terminated her pregnancy if she had been told of the mix-up
earlier. The Judge also held that even if this argument had been properly
pleaded, he would still have rejected it on the ground that there was no
authority to support the proposition that damages could be claimed in respect
of a lost opportunity for an abortion (see the Judgment at [14]).
12
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
there was, in the words of Lord Millett in the House of Lords decision of
McFarlane and another v Tayside Health Board [1999] 3 WLR 1301
(“McFarlane”) at 1345D which the Judge cited at [16] of the Judgment,
“something distasteful, if not morally offensive, in treating the birth of a
normal, healthy child as a matter for compensation”. To this, he added two
more specific concerns. The first was the detrimental impact that an award of
damages might have on Baby P’s well-being; the second was his view any
such award would be antithetical to the essence of a parent-child relationship
(at [16]).
17 Owing to the novelty and the complexity of the matters which were
raised, we invited Assoc Prof Goh Yihan (“Prof Goh”) to assist the court as
amicus curiae. We wish to state from the outset our deep appreciation for the
submissions he put forward, which were comprehensive, elegantly expressed,
and lucidly organised. We derived tremendous assistance from them, as well
as from the submissions put forward by counsel for the parties:
Mr N Sreenivasan SC (“Mr Sreenivasan”) for the Appellant, and Mr Lok Vi
Ming SC (“Mr Lok”) for the Respondents. We do not propose to summarise
the submissions made by the parties at this juncture and will instead address
the relevant submissions in the course of our reasoning and analysis.
18 Initially, the sole issue which was placed before us was simply whether
the upkeep claim was legally sustainable. However, as we observed during the
hearing this is, as a statement of the consequences of parenthood, strikingly
inadequate. It has the effect of selecting – out of the myriad of legally,
morally, and socially significant obligations that attend the institution of
parenthood – only the financial costs of raising a child and focusing on that as
13
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
the subject of the upkeep claim. This is a problem which is not confined only
to this case but generally afflicts the case-law in this area. During the oral
hearing, we expressed these misgivings and invited further submissions on the
other possible claims that might be advanced in a case such as this. After
receiving these further submissions, and hearing further oral arguments from
the parties, it became clear to us that the remit of the inquiry could and should
be broadened to include two other matters which formed the focus of the
parties’ further submissions, namely, a claim for loss of autonomy and a claim
for punitive damages. We will deal with the claims in this order: (a) upkeep
costs; (b) a potential award for the loss of autonomy; and (c) a potential award
of punitive damages.
19 Before we turn to our detailed analysis, we will first deal with two
preliminary objections which were raised by the parties.
14
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
Properly construed, therefore, the Respondents were saying that they conceded
liability in respect of all the heads of claim except for those which related to
the upkeep of Baby P. In our judgment, it is perfectly open for them to contest
the upkeep claim at this juncture.
15
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
22 There are three important points to note here. First, this is a power- and
not a jurisdiction-conferring provision: the section plainly assumes that the
court is already seised of jurisdiction in respect of the underlying “cause or
matter” and its purpose is to confer upon the court the power to order “any
question or issue arising in a cause or matter” to be determined preliminarily.
This disposes of Mr Lok’s jurisdictional objection. The short point is that we
have the jurisdiction to consider the further issues canvassed because we are
already seised of the underlying dispute. The only question is whether this
power should be exercised, and on this question, it is well-settled that it ought
to be exercised if it would save substantial time and expenditure (see, for
example, the decision of this court in Federal Insurance Co v Nakano
Singapore (Pte) Ltd [1991] 2 SLR(R) 982 at [25]). In our judgment, this is an
appropriate case for us to exercise our power to enlarge the remit of the
inquiry. As will be clear during the course of our analysis, this will allow
fuller treatment of the issues and allow for a more just outcome. Secondly,
O 33 r 2 of the Rules expressly provides that this power may be exercised in
respect of any matters which arise from the dispute, even matters which are
not pleaded. This deals with Mr Lok’s objection that the additional issues
relate to heads of claim which were not pleaded. Thirdly, it is the court which
is in control of this process. This is critical here because it means that it was
within the power of the High Court to decide on the ambit of the preliminary
question. This is a power which this court retains on appeal because of s 37(5)
of the Supreme Court of Judicature Act (Cap 322, 2007 Rev Ed), which
provides that the Court of Appeal may “give any judgment, and make any
order which ought to have been given” in the court below.
23 It does not matter that the Appellant did not appeal against the Judge’s
decision not to broaden the ambit of the question, because O 57 r 13(4)(a) of
16
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
the Rules specifies that the powers of the Court of Appeal may be exercised
notwithstanding that no notice of appeal had been given in respect of a
particular part of the decision of the Court below. It also does not matter that
the questions were raised by this court of its own initiative (see, for example,
the decision of this court in Townsing Henry George v Jenton Overseas
Investment Pte Ltd [2007] 2 SLR(R) 597 at [80]). What is critical is that this
court must have all the facts bearing on the new contention and the
Respondents must have been given an adequate opportunity to address us on
it. We are satisfied that this is the case in the present appeal. The additional
questions posed to the parties are pure questions of law in respect of which the
Respondents have been given ample opportunity to address us on, both orally
and in writing.
25 The basic question which is before this court can be framed as follows:
Are the expenses which arise in relation to the unplanned birth of a healthy
17
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
27 As the Judge rightly noted, this case is unlike most cases in which
upkeep costs are sought. The premise of the Appellant’s case is not that she
did not want to conceive. Rather, it is quite the opposite – the Appellant
actively desired to have a child and was fully willing to bear the costs of
raising one, although she only planned to have a child that was conceived
using her Husband’s sperm. On this basis alone, the Judge held that the
upkeep claim had to fail. With respect to the Judge, we do not think that this is
18
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
28 The cases which were cited to us (and to the Judge) all concern claims
for what we shall, for ease of exposition, term “reproductive wrongs”. We will
clarify immediately that what we have in our contemplation are not the full
breadth of claims that may arise out of surgical or medical procedures which
relate to reproductive medicine, but only those where the damage or loss
relates to the unplanned birth of a child. In broad terms, the relevant cases in
this area all possess the following four features (see Stephen Todd, “Wrongful
Conception, Wrongful Birth and Wrongful Life (2005) 27 Sydney Law
Review 525 (“Todd”): (a) there is an allegation of wrongful conduct on the
part of a healthcare professional (whether a doctor or a nurse or otherwise) in
relation to the treatment of a patient or the patient’s partner; (b) by reason of
this, a child has been born; (c) if proper care had been taken, the child would
not have been born; and (d) by reason of the birth either the parents or the
child has suffered damage which consists of, among other things, upkeep
costs.
29 These cases are all acutely difficult because they raise the question of
whether, and if so, to what extent, “the expense associated with the unplanned
… existence of a human being ought to be recognised in law as amounting to
damage of a kind which can found an action” (see Todd at 526). In general
terms, the cases in this area can be divided into three broad categories falling
under the following headings: “wrongful life”, “wrongful birth”, and
“wrongful conception”. We note that the use of these terms is not without
controversy, as they appear to carry with them a negative evaluation of the life
19
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
which is brought into being (see Todd at 525). We clarify that is not our
intention to espouse any such view, and we use these terms for the sake of
exposition only.
20
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
not). The essence of such a claim is that the parents never planned to
have children – hence, it is the “conception” that is unwanted – and,
concomitantly, never planned to undertake the commitments of
parenthood. Wrongful conception cases may be distinguished from
wrongful birth cases because the act which is complained of (that is to
say, the negligent sterilisation or the negligent advice) takes place pre-
conception; whereas in wrongful birth cases, the tortfeasor’s wrongful
act takes place post-conception.
30 It is immediately apparent that the present case does not fit neatly into
any of the aforementioned categories. The wrongful life cases are plainly not
relevant because the plaintiff in this case is the mother and not the child.
Wrongful life cases involve acutely difficult questions of morality (whether a
life is worth living) and philosophy (whether it is possible to compare a state
of existence with one of non-existence). In the only local reported decision on
the subject, recovery was denied on the ground of public policy (see the
Singapore High Court decision of JU and another v See Tho Kai Yin [2005]
4 SLR(R) 96). In our assessment, the wrongful birth cases are also not
material because, as the Judge noted, the Appellant neither pleaded nor did she
ever aver that she would have terminated the pregnancy if she had been
informed of the mix-up ahead of time (this is the gist of a wrongful birth
claim). The Appellant has not disputed the correctness of the Judge’s decision
on this point on appeal, and for our part, we think that the Judge was right to
reject such an argument.
31 This leaves the wrongful conception cases. The present case resembles
the wrongful conception cases in the sense that the Appellant’s core argument
is that if the Respondents had not been negligent, Baby P would not have been
born and the Appellant would not now be put to the expense of raising Baby P.
21
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
Wrongful fertilisation
22
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
33 To the best of our knowledge, there has only been one wrongful
fertilisation case in which the subject of upkeep costs was considered by a
court of law. This is the decision of the New York State Supreme Court in
New York County in Andrews v Keltz 15 Misc 3d 940 (2007) (“Andrews”),
where the mistake likewise consisted of the insemination of the plaintiff-
mother’s egg with the sperm of third party stranger. The plaintiff delivered a
healthy child and subsequently brought a claim for upkeep costs. Her claim
was dismissed on the basis that public policy precluded recovery for the
ordinary costs of raising a healthy child. The court did not elaborate on the
policy reasons in any great level of detail and merely held itself to be bound
by the decision of the New York Court of Appeals in O’Toole v Greenberg,
477 NE 2d 445 (1985) and Weintraub v Brown, 98 AD 2d 339 (1983), both of
which were cases involving wrongful conception.
23
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
plaintiffs never planned to have this child (that is to say, the child who was
born as a result of the use of the wrong genetic material) but instead planned
for and desired to have a child with whom they would share genetic kinship.
36 From this passage, it would appear that the Judge regarded the fact that
the Appellant wanted a child and was willing to assume the financial
consequences of childrearing as being fatal to her claim for upkeep costs. The
Judge did not elaborate on the reasons why, but regard may usefully be had to
what he said in the Striking Out Decision. The narrow question before him
then was simply whether the upkeep claim should be struck out on the basis
that it was legally unsustainable. At that time, liability had yet to be
determined and the Judge refused the application on the ground that the issues
of liability and damages were so inextricably linked that the matter ought to
proceed to trial (see the Striking Out Decision at [13]). Nevertheless, he went
on to opine why he thought the upkeep claim had to fail in the following terms
(at [15]):
24
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
37 From these two extracts, it appears that the point that the Judge was
making was one about causation. What he was saying was that even if the
Respondents had not been negligent, the Appellant and her Husband would
still have spent the same amount of money raising a child anyway – thus, it
had not been shown that “but for” the Respondents’ negligence, the upkeep
expenses would not have been incurred. Mr Lok puts the argument in the
following way. He submits that there is no evidence that the Appellant had
“suffered additional upkeep costs above and beyond what would ordinarily
have been incurred for the upkeep of a healthy child” [emphasis in the
original] because the Appellant wanted a child and did in fact receive a
healthy child – Baby P – whom she would not spend any more raising than she
would spend on a child who was biologically related to herself and her
Husband. On this basis, he argues that the Appellant did not in fact suffer any
recoverable loss. With respect, we cannot agree with these arguments.
25
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
rubella and they became concerned that the mother, too, might have contracted
rubella with deleterious consequences for her as yet unborn child. They sought
medical advice but were negligently informed that the mother was free from
infection. The mother subsequently delivered a child, Ali, who suffered from
congenital rubella syndrome and was born severely disabled as a result. As a
consequence, the plaintiffs decided not to have any further children and in fact
terminated a subsequent pregnancy which was unplanned. The plaintiffs then
brought a wrongful birth claim for upkeep expenses on the ground that the
mother would have terminated the pregnancy if she had been correctly
diagnosed with rubella. At the time, the weight of authority was in favour of
allowing the claim, so the argument which was taken on appeal was that the
quantum of the award should be reduced to account for the costs that the
plaintiffs would otherwise have spent raising a healthy child which they would
have had. This argument was accepted by the English Court of Appeal.
26
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
Mann LJ concurred in the ultimate result, but he thought that the issue was one
of causation (at 406h–j):
… I regard this as being one of those cases which are now rare
in the field of actions for negligence where it is necessary to
inquire whether the defendants’ negligence was causative of
the asserted loss. Upon the facts of this case the answer to
that question must be No. Had the defendants not been
negligent, Mrs Salih’s pregnancy would have been terminated
and she would have sought another pregnancy. It is probable
that she would again have become pregnant. That it is
probable is shown by the occurrence of the unplanned
pregnancy which was terminated. The loss represented by the
capitalised cost of maintenance would thus probably have been
incurred by the plaintiffs in any event. That being so the
negligence is not causative of the loss. [emphasis added]
27
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
some other child, and this cost would not have been incurred but for the
defendants’ negligence. There therefore cannot be an issue as to causation.
However, this reasoning applies equally to the argument on quantification of
loss. The problem with the reasoning of the majority, with respect, is that it
rests on a tenuous equivalence: that the costs that they would have incurred in
raising another child are “identical [in] purpose [and] in pari materia with the
costs of Ali” (see Salih at 405b per Butler-Sloss LJ). This can only be correct,
as Lord Morison pointed out in McLelland v Greater Glasgow Health Board
[2001] SLT 446 at 457 (a decision of the Inner House of Session and where,
although Lord Morison was in a minority, only he in fact expressed a view on
the correctness of Salih), if the claim is regarded as one “made on behalf of the
‘family unit’, rather than as one made in respect of an individual” (at 457). It
is only if one takes this perspective that it can be possible to say that the
expenses incurred are in any way equivalent. But the problem is that the claim
in Salih (like the claim here) was not framed in such an abstract way. Instead,
each of Ali’s parents had brought a claim in their individual capacities for the
costs of maintaining a child with disabilities when neither of them
contemplated having to do so (and indeed, this was the very result they sought
to avoid and in respect of which they had sought advice from the defendants).
41 With respect to the Judge, to say that the Appellant “had wanted a
second child all along” is overly simplistic. The Appellant sought IVF not in
order to beget a child irrespective of paternity (just so that she could have an
addition to “her family unit”) but to have a child with her husband. This
makes all the difference. The short point is this. There is no question that if the
IVF procedure had been correctly performed and the Appellant had given birth
to a child who was genetically related to herself and her Husband, she would
have been perfectly willing to bear the costs of raising that child. However, it
28
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
surely cannot be said that she or her Husband ever contemplated (let alone
intended) having to raise a child that was not completely theirs, particularly
one who had been born to them in the present circumstances (see Margaret
Fordham, “An IVF Baby and a Catastrophic Error—Actions for Wrongful
Conception and Wrongful Birth Revisited in Singapore” [2015] Sing JLS 232
(“Catastrophic Error”) at 237). In this essential detail (and at the risk of
putting the matter somewhat indelicately), the present case is like the wrongful
conception cases in the sense that the Appellant’s argument is that, but for the
Respondents’ negligence, Baby P would not have been born and the Appellant
would not now be put to the expense of raising her. We also observe that in
Andrews (which is, as far as we are aware, the only wrongful fertilisation case
in which the issue of upkeep costs was litigated), the defendants did not argue
that the upkeep costs were not causally linked to the defendants’ negligence.
29
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
43 What this shows is that the question of whether upkeep costs are an
actionable head of damage cannot, as the Judge thought, be avoided. We will
now take that question in two parts, beginning first by setting out the general
analytical framework to be applied before turning to the arguments proper.
30
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
identified above at [18], the first two issues – upkeep costs and loss of
autonomy – relate to the concept of damage. They each raise the question of
whether a particular type of damage is actionable. The third issue – punitive
damages – relates to the concept of damages. It engages the question of the
proper basis upon which an award for those admitted heads of damage should
be assessed.
31
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
32
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
of duty of care (see Cattanach at [21]–[22] per Gleeson CJ) – that is to say,
the issue of whether a particular type of injury is an actionable head of damage
resolves itself to the question: Did the defendant owe the plaintiff a specific
duty of care in respect of this particular head of loss? As Lord Hoffmann put
it in the House of Lords decision of South Australia Asset Management v York
Montague Ltd (sub nom Banque Bruxelles Lambert SA v Eagle Star Insurance
Co Ltd) [1997] AC 191 at 211:
33
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
the court then moves to the second stage, where it considers whether there are
any policy considerations which (in the main) militate against the imposition
of a duty.
34
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
the analysis usually takes place at the second stage of the Spandeck analysis. A
good illustration would be the decision of this court in Man Mohan
Singh s/o Jothirambal Singh and another v Zurich Insurance (Singapore) Pte
Ltd (now known as QBE Insurance (Singapore) Pte Ltd) and another and
another appeal [2008] 3 SLR(R) 735. The appellants in that case were parents
who had lost both of their children in a car accident caused by the second
respondent. The appellants brought suit and claimed damages for a number of
things including the cost of fertility treatment that they underwent following
the accident in the hope of begetting more children. The High Court judge
disallowed the claim for fertility treatment and this decision was affirmed on
appeal. At [51], we explained why the recognition of such a head of damage
(for fertility treatment to “replace” a deceased loved one) would be contrary to
public policy:
35
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
36
ACB v Thomson Medical Pte Ltd [2017] SGCA 20
53 However, policy also has, in our view, a role (albeit a limited one) to
play in contract outside the defence of illegality and public policy. In
particular, contrary to what Mr Sreenivasan submitted, policy has long had a
role to play in regulating the types of damages which are recoverable in an
action for breach of contract. In general, the law of contract concerns itself
with the remediation of pecuniary damage, and the scope for recovering
damages for non-pecuniary loss in contract is greatly limited. This is the
reason for the well-established rule that the law of contract does not generally
award recovery for reputational damage and mental distress arising from a
breach of contract (see, generally, Addis). In the English Court of Appeal
decision of Watts and another v Morrow [1991] 1 WLR 1421 at 1445F,
Bingham LJ (as he then was) explained that these restrictions were not
“founded on the assumption that such reactions are not foreseeable, which
they surely are or may be, but on considerations of policy” [emphasis added].
One of the policy reasons for this rule is that the law of contract has long
concerned itself with commercial affairs, in which contract-breaking is, as
explained by Lord Cooke of Thorndon in the House of Lords decision of
Johnson v Gore Wood & Co [2001] 2 WLR 72 at 108C–D, “an incident of
commercial life which players in the game are expected to meet with mental
fortitude” (although cf The Law of Contract, especially at para 21.112, as well
as Andrew B L Phang and Goh Yihan, Contract Law in Singapore (Wolters
Kluwer Law & Business, 2012) at paras 1539−1540).
54 However, this justification of course does not apply to tort. This leads
us to an important point, which is that while policy guides the recoverability of
damages in both contract and tort, it does not operate in precisely the same
way in both. There are considerations which might bar recovery only under
contract but not in tort, and vice versa. The reason for this is that contract and
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tort are founded on different principles and pursue different policies. The
former deals with obligations which are voluntarily assumed and has as its
primary object the enforcement of parties’ bargains; the latter deals with
obligations imposed by the general law and is primarily concerned with the
prevention of harm. This is a point which we shall return to at [102]–[105]
below. With that, we now turn to the authorities on the recovery of upkeep
costs proper.
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The UK
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As will be seen, these four reasons have formed the standard bases for the
rejection of upkeep claims worldwide (see J K Mason, The Troubled
Pregnancy: Legal Wrongs and Rights in Reproduction (Cambridge University
Press, 2007) (“The Troubled Pregnancy”) at p 108).
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remarked that “every baby has a belly to be filled and a body to be clothed” (at
230F). However, he held that a set-off had to be made in order to account for
the joy that the birth of the child had brought. He achieved this by disallowing
the claim for ante-natal pain and suffering arising out of the pregnancy itself,
holding that this should be set off against the joy of new life, and did not
reduce the quantum of upkeep costs sought.
60 By the time Thake (HC) was heard on appeal, the English Court of
Appeal had already handed down its decision in Emeh v Kensington and
Chelsea and Westminster Area Health Authority and others [1985] 2 WLR
233 (“Emeh”), where it unanimously rejected the public policy reasons
articulated in Udale. For this reason, the defendant in Thake (HC) did not take
up the point about public policy on appeal (probably considering, quite rightly,
that the argument would have been a non-starter), and confined himself only
to disputing the findings made by Pain J on liability. On this basis, the appeal
was dismissed and the decision of Pain J was unanimously affirmed (see
Thake and another v Maurice [1986] 2 WLR 337 (“Thake (CA)”)), save only
that the appellate court reversed Pain J on the issue of the set-off and allowed
the claim for ante-natal pain and suffering. Following Emeh and Thake (CA),
the position in both England and Wales and Scotland appeared to be well-
settled. For 15 years thereafter, the courts regularly awarded damages for
upkeep costs (see The Troubled Pregnancy at pp 110–111). However, this
changed in 1999, when the House of Lords handed down its seminal decision
in McFarlane.
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unsuccessful. After the operation, he was informed that his sperm count was
negative and that he could resume sexual intercourse without the use of
contraceptives and he did so. Soon after, Mrs McFarlane became pregnant and
delivered a healthy daughter, which the judgment also records as having been
accepted into the family with “love and joy” (at 1341C). An action in
negligence was brought against the defendant-hospital and, in the usual way,
two heads of claim were asserted: the first was what was referred to as the
“mother’s claim” for pain and suffering arising out of the pregnancy and the
childbirth; the second was the “parents’ claim” for upkeep costs. The former
was allowed by a majority of 4-1; the latter was unanimously disallowed. One
difficulty with McFarlane is that even though the law lords were agreed on the
result, they spoke in vastly different terms.
62 It will be helpful to begin with the speech of Lord Millett, for he was
the only one of the five law lords to reject the mother’s claim entirely. He
admitted that, as a factual proposition, the birth of a child is “a mixed
blessing” – in his words, it “brings joy and sorrow, blessing and
responsibility” (at 1347G–H). For this reason, individuals might elect to
eschew parenthood, and it would be perfectly open for them to do so.
However, as a matter of legal policy, he held that “society itself must regard
the balance as beneficial. It would be repugnant to its own sense of values to
do otherwise. It is morally offensive to regard a normal healthy baby as more
trouble and expense than it is worth” (at 1347H). In an oft-quoted line, he
stressed, drawing on the language of the law of restitution, that the plaintiffs
could not be allowed “by a process of subjective devaluation, to make a
detriment out of a benefit” (at 1346F). Unlike the other law lords, however, he
saw this chain of logic as leading inexorably to the conclusion that the
mother’s claim should also be disallowed in its totality. As he explained, the
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“only difference between the two heads of damage claimed is temporal” (at
1348B). Ultimately, he explained, both the mother’s claim for damages for
pain and suffering and the parents’ claim for upkeep costs flowed from the
fact of the child’s birth, the consequences of which the law was bound to
regard as not sounding in damages.
64 Lord Slynn of Hadley, Lord Steyn, and Lord Hope were each troubled
by the fact that the claim for upkeep appeared to be one for pure economic
loss. On this basis, they approached the issue on the footing that the question
to be considered was whether the defendant owed the plaintiffs a duty of care
to avoid the costs associated with the raising of a child. In their own way, each
answered this question in the negative. Lord Slynn adopted the approach set
out in the leading House of Lords decision of Caparo Industries plc v
Dickman and others [1990] 2 AC 605 (“Caparo”) which sets out a “three part
test” for determining the existence of a duty of care. In broad terms, a duty of
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care will be found under the Caparo approach where (a) the harm to the victim
was foreseeable; (b) there is a relationship of proximity between the parties;
and (c) the court considers that it is “fair, just and reasonable” for a duty of
care to arise. In this regard, the learned law lord concluded that the mother’s
claim failed at the last hurdle: he held that it would not be “fair, just or
reasonable to impose on the doctor or his employer liability for the
consequential responsibilities, imposed on or accepted by the parents to bring
up a child” (at 1312H). Lord Hope likewise concluded that it would not be
“fair, just or reasonable” for the upkeep claim to succeed. His reasons, in
essence, were the same as those of Lord Clyde, namely, that the compensatory
principle would demand that a deduction be made for the benefits of
parenthood, but that no such deduction could be made: in his words, “the
value which is to be attached to these benefits is incalculable” and he thus
concluded that upkeep costs would not be recoverable (at 1332D–E).
Lord Steyn, on the other hand, sought recourse to the concept of distributive
justice which, he said, concerned the “just distribution of burdens and losses
among members of a society” (at 1318D). He held simply that members of
society would “instinctively” say that “the law of tort has no business to
provide legal remedies consequent upon the birth of a healthy child, which all
of us regard as a valuable and good thing” (at 1318F–H).
65 What is clear from their speeches is that the majority of the law lords
(Lord Millett dissenting on this particular point) proceeded on the basis that
the reasons which militated against the allowance of the parents’ claim for
upkeep costs were distinct, and therefore did not wholly bar recovery of the
mother’s claim as such. Thus, they held that both general damages arising out
of the pain and suffering associated with pregnancy and childbirth as well as
special damages arising out of the consequential medical expenses were
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properly recoverable by the mother. However, they did not explain why this
was so in any great detail. For instance, Lord Steyn merely stated that “[t]he
considerations of distributive justice which militated against the claim for the
[upkeep costs] did not apply for the claim for a solatium” (at 1320E), while
Lord Clyde stated simply, without further elaboration, that the mother’s claim
was “reasonably a subject for compensation” (at 1339F).
(b) Second, it also did not address the question of whether recovery
would be allowed if one or both of the parents, rather than the child,
was disabled.
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68 The issue as to whether upkeep costs could be awarded where the child
was born disabled arose for decision in Parkinson v St James and Seacroft
University Hospital NHS Trust [2002] QB 266 (“Parkinson”). The claimant,
Mrs Parkinson, underwent a sterilisation operation which was negligently
performed, and as a consequence she gave birth to her fifth child, who was
born significantly disabled. This placed Mrs Parkinson, who was already
living in very humble circumstances, under great financial pressure. She
subsequently brought suit against the defendant-hospital and sought to recover
the full costs of bringing up the child. While the English Court of Appeal held,
mirroring the practice in wrongful birth cases decided post-McFarlane (see
above at [66]), that while she was precluded from recovering the costs of
caring for a normal healthy child, she was nevertheless entitled to an award for
the extra expenses associated with bringing up a child with a significant
disability.
69 Brooke LJ, delivering the first of the two fully reasoned judgments in
this case, noted that parents in Mrs Parkinson’s situation (that is to say, parents
of children with congenital defects) had been able to recover upkeep costs for
the better part of 15 years (since Emeh). This, he held, was not affected by the
decision in McFarlane, which stood for the proposition that a medical
professional did not, for reasons of policy, owe a duty of care in respect of the
costs of raising a healthy baby. He accepted that this would preclude recovery
for the ordinary costs of raising a child. However, the calculus was quite
different where the extra expenses associated with the raising of a disabled
child were concerned. In such a case, he ruled that it would both be “fair, just
and reasonable” (to use the language of Caparo preferred by Lord Slynn and
Lord Hope in McFarlane) and consistent with the principles of “distributive
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justice” (to use the language of Lord Steyn in McFarlane) to permit recovery
of those extra costs: see Parkinson at [50].
70 The speech of Hale LJ (as she then was) began from the premise that
all the consequences arising out of the unplanned pregnancy (which, as she
noted, were many and varied and which she described in powerful detail) were
directly caused by the defendant’s negligence, and they would, according to
what she termed the “normal legal principles” of the law of tort, normally be
recoverable (see Parkinson at [75] and [76]). The only impediment was the
decision in McFarlane. While she noted that the law lords had given different
reasons for their conclusion in McFarlane, she ultimately located the ratio of
the case in what she termed the “solution of deemed equilibrium” – that is to
say, the benefits and burdens of parenthood were assumed to cancel each other
out where one was concerned with a healthy baby (at [87] and [90]) (this
reasoning did not, however, subsequently find favour). For this reason,
Hale LJ confined the holding in McFarlane only to upkeep claims involving
healthy children. There was, she said, “no reason or need to take that
limitation any further than it was taken in McFarlane’s case” (at [90]). She
was careful to add, however, that her approach did not have the effect of
treating a disabled child as being of any less worth than a healthy child.
Instead, she concluded that her approach “treats a disabled child as having
exactly the same worth as a non-disabled child. It affords him the same dignity
and status. It simply acknowledges that he costs more” (at [90]). She also
added that she thought that such an award could not be impugned as being
either unfair, unjust, or disproportionate (at [95]).
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child was born to disabled parents came up for decision in Rees v Darlington
Memorial Hospital NHS Trust [2003] 3 WLR 1091 (“Rees”). The plaintiff,
Ms Rees, was severely visually handicapped. Fearing that she would not be
able to care for a child, she underwent a sterilisation operation which was,
unfortunately, negligently performed. Subsequently, Ms Rees conceived and
gave birth to a healthy child. She sued the defendant-hospital and brought an
upkeep claim. This was disallowed at first instance but allowed in part by the
English Court of Appeal, which restricted the quantum of the award to the
additional upkeep costs which were attributable to the special difficulties she
would face in taking care of the child as a result of her disability. When the
matter came before the House of Lords, there were two issues. The first was
whether McFarlane should be overruled entirely. On this, the law lords were
unanimous: all of them declined to do so on the basis of the doctrine of
precedent. The second issue was whether the decision of the Court of Appeal
to grant Ms Rees a partial award should stand. By a slim majority of 4-3, the
Court of Appeal was reversed and the upkeep claim was denied. However, the
majority also awarded Ms Rees a “conventional award” in the sum of £15,000
to afford a measure of recognition of the wrong which she had suffered.
72 On the issue of upkeep costs, the majority was clear that the present
case fell within the scope of the rule in McFarlane. Lord Millett was perhaps
the clearest on this, as he pointed out that the focus in McFarlane was on the
costs associated with the raising of a healthy child and, on this point, the
holding of the House was that such costs were irrecoverable. On this basis, the
decision of the Court of Appeal, which resulted in an award for the costs of
raising a healthy child, was “not a legitimate extension of Parkinson, but an
illegitimate gloss on McFarlane” (see Rees at [113]). The majority were also
persuaded by the powerful dissenting opinion of Waller LJ in the court below,
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who pointed out that there would be serious anomalies if an award were to be
made. He compared the situation of a claimant-mother with four children who
lived in straitened circumstances, and for whom the addition of a fifth child
would cause a breakdown in her health, with that of a claimant-mother who
was disabled but wealthy. It appeared unfair and unprincipled (viewing
matters through the prism of need) to award damages to the latter but not to
the former (see the decision of the English Court of Appeal in Rees v
Darlington Memorial Hospital NHS Trust [2003] QB 20 at [53]–[55] per
Waller LJ). The minority accepted the force of this critique, but did not think it
insuperable. At the end of the day, they simply rested their dissent on the
ground that “special consideration” (at [39] per Lord Steyn) could and ought
to be given to Ms Rees on the ground of her disability and that it was “fair,
just and reasonable” (at [97] per Lord Hutton) for this to be done.
73 In many ways, the decision of the majority was not surprising – it was
simply an affirmation of the holding which had been laid down scarcely four
years earlier in McFarlane. The most controversial aspect of Rees has been the
fashioning of the “conventional award”, which was assailed by the minority
for being “contrary to principle (at [46] per Lord Steyn), as well as “hugely
controversial” and a subject better left to Parliament (at [77] per Lord Hope).
We will defer detailed discussion of this aspect of the judgment until we come
to the section on an award for a “loss of autonomy”.
Australia
74 From the UK, we turn to Australia. Prior to 2003, there were relatively
few cases which were directly on point and there was no consistent practice as
such. In the wrongful conception case of Dahl v Purnell (1993) 15 QLR 33,
the District Court of Queensland awarded upkeep costs following a failed
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vasectomy, but reduced the award by one quarter to account for the intangible
benefits received from the child. In the wrongful birth case of Veivers v
Connolly (1995) 2 Qd R 326, the Queensland Supreme Court awarded upkeep
costs of approximately A$800,000 for the doctor’s negligence in failing to
diagnose that the mother suffered from rubella and warn her of the risks
thereof. Finally, in the wrongful birth case of CES v Superclinics (Australia)
Pty Ltd (1995) 38 NSWLR 47, the New South Wales Court of Appeal refused
to award upkeep costs but allowed the claim for damages for pain and
suffering. This was an unusual case because only one of the judges,
Priestley JA, gave reasons in support of this result (he held that the decision of
the mother to accept the child constituted a novus actus interveniens). Kirby P
(as he then was) rejected this argument and would have been inclined to award
both upkeep costs as well as damages for pain and suffering but concurred in
the decision in order to produce a plurality in favour of the final result. The
last judge, Meagher JA, would have not have made any award at all on the
ground that the cause of action itself was barred by public policy.
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right fallopian tube had been removed and ought to have advised her to have it
specifically investigated. The judge allowed the claim for upkeep but his
decision was reversed on appeal to the Queensland Court of Appeal. By the
time the matter came before the High Court of Australia, the claim in contract
had been abandoned. By a slim majority of 4-3, the High Court reversed the
decision of the Queensland Court of Appeal and allowed the upkeep claim.
77 For this reason, large portions of their opinions were given over to
detailed rebuttals of the principal arguments against the award of upkeep costs.
In particular, the following common themes ran through their judgments:
(a) First, it was stressed that the “damage” which the law sought to
compensate was not the birth of the child per se, but the financial
burdens arising therefrom. At [68], McHugh and Gummow JJ stated
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that the “unplanned child is not the harm for which recompense is
sought in this action; it is the burden of the legal and moral
responsibilities which arise by reason of the birth of the child that is in
contention.” Thus, it was held that the award of damages did not
necessarily entail a negative value judgment of the worth of the child
(at [148] per Kirby J).
(c) Thirdly, they held that there should not be any offset for the
intangible benefits brought by the child, as had been the practice in
some American jurisdictions (see, for example, the decision of the
Californian Court of Appeal in Custodio v Bauer, 59 Cal Rptr 463
(1967) (“Custodio”)). The reason for this, as McHugh and Gummow JJ
explained at [90], was that it was impermissible in principle to place on
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the same scales the benefits accrued from one legal interest against the
losses occasioned by the infringement of a separate legal interest (see
also at [175] per Kirby J and at [298] per Callinan J).
78 The minority comprised Gleeson CJ and Hayne and Heydon JJ. They
each argued that the expenses incurred in the upkeep of a child was not a
proper subject for recovery. In arriving at this conclusion, they eschewed
many of the traditional justifications and/or re-cast them in a different light.
Central to their view was the insight that the creation of the parent-child
relationship was an integral aspect of the damage for which recovery was
sought and this made it untenable for recovery for upkeep to be claimed (at
[26] per Gleeson CJ). Hayne J warned against the “commodification” of the
child and said, “[i]f attention is to be paid to all of the consequences of the
defendant’s negligence, one of those consequences is that there is a new life in
being … life is not an article of commerce and to it no market value can be
given” [emphasis in original] (at [248]).
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[338]–[346].
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helpful to clear out some of the conceptual detritus before turning to the
substantive analysis proper. These three reasons are:
82 First, we consider that it does not matter whether the upkeep claim is
classified as an action for the recovery of pure economic loss (see, for
example, the speeches of Lords Slynn, Steyn, and Hope in McFarlane and the
opinion of Gleeson CJ in Cattanach) or as one for the recovery of
consequential economic loss (see, for example, Kirby J in Cattanach and
Hale LJ in Parkinson) because there is no general exclusionary rule against
recovery for pure economic loss in Singapore (see Spandeck at [69]). Thus,
the characterisation of the claim cannot determine its success. The distinction
is only useful as a proxy (and only then as a very rough one) for whether a
duty of care in tort ought ordinarily to arise in a given context. At the end of
the day, the existence of a duty of care falls to be adjudicated based on the
facts of each case and cannot merely be an arid matter of labels.
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contestable factual propositions. This point was well made by the majority in
Cattanach (see above at [77(b)]). However, those who seek to deny upkeep
costs have never seen themselves as making a factual claim that the benefits of
having a child always outweigh the burdens, or that the children of the
claimants will necessarily carry the psychological scars of the litigation.
Rather, their claim is that the award of upkeep costs would be antithetical to
settled legal policy concerning the value human life or the character of a
parent-child relationship. As Gleeson CJ put it, the “value of human life,
which is universal and beyond measurement, is not to be confused with the
joys of parenthood, which are distributed unevenly” (see Cattanach at [6]; see
also McFarlane at 1347G–H per Lord Millett, cited above at [62]).
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the Appellant did not, in fact, have any choice in the matter.
Analysis
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ultimately persuaded by the arguments against the award of upkeep costs. Our
essential reasons are twofold (and which, as we shall see, are, by their very
nature, closely related):
We turn now to consider, seriatim, these reasons why we consider that the
claim for upkeep should not be allowed.
87 Turning to the first reason, a common theme among those who would
permit recovery is the argument that the upkeep claim is maintainable simply
on the application of the conventional principles of civil liability. This is a
view that is shared even among those who would deny upkeep claims (see, for
example, Cattanach at [192] per Hayne J and Rees at [12] per Lord Nicholls).
On this view, a claim for upkeep is no different in principle from a claim for
damages for pain and suffering, or a claim for the cost of the medical expenses
associated with the IVF procedure. In one sense, this is right – the claim for
upkeep costs is simply the last link in the concatenation of obligation, breach,
causation, foreseeability, and damage that forms the chain of civil liability in
the law of negligence. With respect, however, we do not think that this
presents the whole picture. This is too general an approach and requires more
nuance (especially given the very sensitive issues that we are dealing with).
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The critical difference is this. In the present case (and in upkeep claims more
generally), the complaint is not about the direct consequences to the Appellant
qua patient of the physical and other aspects of pregnancy and birth; rather, it
is about the consequences to the Appellant qua mother of the existence of the
child and the concomitant creation of a relationship pursuant to which there
are legal, moral, and social obligations to care for, support, and nurture Baby P
(see Todd at 532). In short, the upkeep claim is an action seeking relief in
respect of a particular consequence of parenthood – the duty to provide
material support for one’s child – and its success therefore necessarily depends
on the recognition of the obligations of parenthood as actionable damage. In
our judgment, this is not a step that this court should take.
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90 The point, for present purposes, is this. The duty to maintain one’s
child is a duty which lies at the very heart of parenthood, and thus the
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expenses which are incurred towards the discharge of this estate are not
capable of characterisation as a loss. This is not a factual claim and it has
nothing to do with the subjective perceptions of individual parents; nor has it
anything to do with the felt reality of parenthood, which, on occasion, can
even feel like a chore. Rather, it is a normative claim about the paradigm of
family relationships which exists in the law, which views the responsibilities
of parenthood as obligations of a legal and moral character that arise in
relation to the birth of new life (see, generally, Cattanach at [258] per
Hayne J). These are obligations which arise out of the dual character of
parenthood, which “inhabits the intersection of two distinct relationships”: a
custodial relationship between parent and child and a relationship of
trusteeship between the parents and wider society (see Elizabeth Brake and
Joseph Millum, “Parenthood and Procreation” in The Stanford Encyclopedia
of Philosophy (Winter 2016 Edition), (Edward Zalta, gen ed),
<https://plato.stanford.edu/entries/parenthood/> (accessed 5 December 2016)).
Neither of these relationships gives rise to obligations which are capable of
valuation as “loss” in any meaningful sense and therefore cannot, in our
judgment, be the subject of a claim for damages.
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for instance, the hours of lost sleep spent putting her to bed; the sorrow and
worry endured during a bout of illness; or the simple act of blowing on a
spoonful of hot soup before feeding it to her – falls outside the domain of the
law. These, and a million other sacrifices, both big and small, that parents
make unthinkingly for their children during the course of their lifetime, are –
to use the words of Viscount Simon LC in the House of Lords decision of
Benham v Gambling [1941] AC 157 (“Benham”) at 168 – “incapable of being
measured in coin of the realm” [emphasis added]. As Heydon J put it at [356]
of Cattanach:
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[9] per Gleeson CJ). The challenge, for those who would allow claims for the
costs of upkeep, is to find a principled justification as to why the pecuniary
consequences of the birth of an unplanned child should sound in damages but
the non-pecuniary costs should not. One solution to this incongruity would be
to say that these non-pecuniary aspects of parenthood, too, should also sound
in damages, but this suggestion need only be stated for it to be rejected. This
intuition, we think, stems from the fact that to do so would be to seek
recompense for a matter which is intrinsically incapable of valuation – the
nurturing of a human relationship which has long been held up as the “natural
and fundamental group unit of society” (see Art 23 of the International
Covenant on Civil and Political Rights (19 December 1966), 999 UNTS 171).
This principle has also been enshrined in the texts of many other international
human rights instruments (see, generally, Cattanach at [35] per Gleeson CJ)
and it also finds expression in Singapore in the Shared Values White Paper,
where it is stated that the family is “the basic unit of society” (see Shared
Values White Paper (Cmd 1 of 1991, 15 January 1991) at para 52).
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obligation is his (and his spouse’s). He cannot be a parent and have someone
else pay to bring up the child” (see the Judgment at [16]). Once again, this not
a factual claim, but a normative one about the meaning of legal parenthood.
The reality is that there are many parents who do not in fact shoulder the bulk
of the financial burden of raising their children. This may be so for many
reasons, but it does not detract from the force of the normative argument,
which is that the obligations of parenthood are fundamental, indivisible, and
incapable of sounding in damages.
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97 However, the rub lies in determining when the same interest has been
infringed such that a set-off is permissible. There are cases (see, for example,
the decision of the Court of Appeals of Michigan in Troppi v Scarf,
187 N W 2d 511 (1971) and the decision of the Supreme Court of Minnesota
in Sherlock v Stillwater Clinic, 260 N W 2d 169 (1977)) where a broad
interpretation has been adopted and the non-pecuniary benefits of parenthood
were offset against its pecuniary costs. However, there are also cases where
such a set-off has been rejected (see, for example, Custodio, above at [77(c)]).
It appears that the practice in civil law jurisdictions is mixed: most disallow
set-offs on the basis that the benefits and burdens are incommensurable (for
example, Germany and France), but there are some (for example, Austria),
which permit such a set-off: see Barbara Steininger, “Wrongful Birth and
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[64]); or, as was argued by Lord Clyde, that recovery should be denied
because the award of full upkeep costs would be disproportionate if no set off
can be achieved (see above at [63]).
100 In any event, we are of the view that even if no off-setting were to be
allowed, this would only deal with half the problem. At most, it would remove
the incentive for parents to downplay the benefits which their children bring;
however, there would still be an incentive for them to emphasise the
detriments brought about by the child in an effort to secure a larger award. It
might also, as suggested by Heydon J, lead to a situation in which parents set
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101 For the foregoing reasons, we would uphold the decision of the Judge
on the issue of upkeep costs. The recognition of a claim for upkeep would
require the court to regard, as actionable damage, the incidents of a
relationship which is regarded as socially foundational and incapable of
estimation as loss. Such recognition would also be inconsistent with, and
deleterious to, the health of the institution of parenthood and would be against
the public interest.
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action for “loss arising from the combination of incorrect sets of genetic
material”. However, one can immediately see how strained and artificial this
would be. At the end of the day, what is objectionable about the claim in tort is
the same as what is objectionable about the claim in contract, namely, that it
amounts to a claim for an indemnity for the costs of raising a child and places
parents in a position where their personal interests as litigants will conflict
with their duties as parents.
103 The case of Greenfield v Irwin and others [2001] 1 WLR 1279
(“Greenfield”), although factually quite dissimilar, is nevertheless illustrative
of an important point of principle. In Greenfield, the plaintiff was prescribed a
course of contraception by injection by her general practitioner. The nurse
who administered the contraception neglected to test whether the claimant was
already pregnant. It was admitted that this was a negligent act. As it transpired,
the claimant was pregnant and she gave birth to a healthy daughter. She quit
her job to take care of the child and then brought suit in tort against the general
practice, arguing that had the test been performed, she would have aborted the
child then (by the time she found out, it was too late). She claimed
compensation not for upkeep costs per se but for loss of earnings because she
had left her job to take care of her child. The English Court of Appeal denied
her claim on the basis that it was precluded by McFarlane. May LJ wrote (at
[44]):
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accepted by, the parents to bring up the child: see, for example,
Lord Slynn, at p 96c, and Lord Hope, at p 97c-f. The present
claim for the loss of earnings is in my view plainly such a claim.
[emphasis added in italics and bold italics]
104 It seems to us that Greenfield stands for the proposition that one cannot
so easily side-step McFarlane by re-framing the head of loss (as loss of the
mother’s earnings instead of upkeep costs of the child) if the substratum of the
claim still consists in the burdens flowing from the birth and existence of the
child. As explained in The Troubled Pregnancy at p 144, “since the financial
consequences of both maintenance and loss of earnings stem from the same
root, Greenfield and McFarlane fall into perfect alignment”. By parity of
reasoning, a plaintiff should likewise not be allowed to avoid the
(objectionable) policy considerations merely by pleading a different cause of
action. If the policy considerations hold sway in tort, they should also hold
sway in contract.
105 Two possible exceptions, neither of which arises on these facts, may be
when there is: (a) a contractual warranty guaranteeing a particular outcome –
that is, that a child containing the genetic material of both parents would be
born – or (b) a clause providing for damages in the event of a situation such as
the present. Both of these possibilities were broached in McFarlane: the first
by Lord Clyde (at 1334D–F); the second by Lord Slynn (at 1312H–1313A).
The latter – a clause expressly providing for damages in the event of a mix-up
– would require the court to resolve the tension between two sets of competing
principles: the general enforceability of bargains on the one hand and the
policy considerations against the award of upkeep on the other. On the
question of how such a balance is to be struck, we express no concluded view
and will leave it to be decided on another occasion should the issue arise.
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Loss of autonomy
106 We now turn to the second issue, which concerns a potential award for
loss of autonomy. Like the judges in the courts which have been confronted
with issues similar to those before us, we have some discomfort with the result
which we have reached thus far. It may justifiably be asked if our finding
leads to an incongruous − and even unjust as well as unfair – result. In
particular, given the Respondents’ own admission of liability, how can it be
just and fair that they be liable for only a relatively small amount of damages
(comprising, in the main, damages for pain and suffering arising from the
pregnancy and/or the costs of the failed IVF procedure)?
107 In this regard, one aspect of this case that troubled us from the start, as
we noted at [18] above, is the inadequacy of an approach that focuses only on
upkeep costs. This involves, as Gleeson CJ said in Cattanach, a “partial and
selective approach to the results of the child’s birth and existence” (at [9]). It
ignores not only the non-pecuniary aspects of parenting, such as the moral,
psychological, and social obligations which are involved, but also many of the
financial obligations which – although not necessary for subsistence – are
nevertheless socially obligatory (eg, birthday presents and gifts). Underlying
this is a deeper and more serious concern, which is that the focus on the
financial consequences of the birth is not only inadequate, but (ultimately)
misleading. In the words of Lord Bingham of Cornhill in Rees at [8], such an
approach risks “mask[ing] the real loss suffered in a situation of this kind”.
This search for an award to compensate for the “real loss” culminated in the
recognition, in Rees, of a novel head of damage: that for a loss of autonomy.
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would fix not on the liabilities arising out of the care of the unplanned child
(which is the gravamen of the objection against the award of upkeep) but on
the independent interests of the parents which have been transgressed as a
result of the negligent act (see Catastrophic Error at 239–240). What we
propose to do in this part of the judgment is to explore this particular
development in the law to determine if it is a step which we should also adopt.
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(a) Lord Bingham stated that the “real loss” in this situation was
the fact that the mother had been denied “the opportunity to live her
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life in the way that she wished and planned”. The conventional award,
he said, “would not be, and would not be intended to be,
compensatory” and therefore “would not be the product of
calculation”. Instead, its object was to “afford some measure of
recognition of the wrong done” (at [8]).
(d) Lord Scott viewed the matter not in terms of injury or harm, but
in terms of the deprivation of a benefit. He explained that the plaintiff
was “entitled to the benefit of the doctor’s contractual obligation to his
NHS employers to carry out the operation with due care” and that it
was open to the court to “put a monetary value on the expected benefit
which she was, by the doctor’s negligence, deprived” (at [148]).
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113 Thus summarised, it is clear that Chester was a case about the creation
of a narrow exception to the traditional principles of causation in the context
of a doctor-patient relationship (in the words of Lord Hope, the issue was
“essentially one of causation”: at [40]). It was not, strictly speaking, about the
recognition of a head of claim for loss of autonomy (ultimately, the majority
only awarded damages for the factual disability sustained by the patient, and
did not award any damages for loss of autonomy per se). Nevertheless, the
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case is useful in at least two ways. The first, which we shall return to later, is
that it illustrates how the concept of autonomy can be held up as a value or
principle which underlies the existence or development of a legal rule without
itself being the subject of the rule – in Chester, for instance, it moved the court
to modify the traditional principles of causation in order to provide the
plaintiff with a remedy. The second is because of what the law lords had to say
on the subject of personal autonomy. Three of the law lords identified the
plaintiff’s autonomy as an important consideration that the law should
recognise:
(b) Lord Hope openly admitted that his decision was motivated by
policy. He stated that the “function of the law is to enable rights to be
vindicated and to provide remedies when duties have been breached”;
and that, unless liability could be found, the doctor’s duty to warn
would be “a hollow one, stripped of all practical force and devoid of all
content” (at [87]). On this basis, he found that the requirement of
causation had been satisfied and held the defendant liable.
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114 After the decision, at least one academic suggested that the case ought
to have been disposed of not on the basis of causation, but as one in which a
distinct interest – the plaintiff’s right to autonomy – had been infringed (see
Kumaralingam Amirthalingam, “Causation and the Gist of Negligence”
[2005] CLJ 32 (“Gist of Negligence”) at 34). On that view, the only difficulty
with Chester would be the quantification of the loss. Since Chester, references
to autonomy have cropped up occasionally in the English cases. In her
separate concurring opinion in the UK Supreme Court decision of
Montgomery v Lanarkshire Health Board (General Medical Council
intervening) [2015] AC 1430, which was also a case concerning a surgeon’s
failure to properly advise a patient of the risks of a procedure, Baroness Hale
of Richmond stated confidently that “the interest which the law of negligence
protects is a person’s interest in his own physical and psychiatric integrity, an
important feature of which is their autonomy, their freedom to decide what
shall and shall not be done with their body” (at [108]).
115 There has been a veritable mountain of material written on the subject
and, due to the industry of counsel, our attention was drawn to much of it.
After careful consideration of the competing arguments, we are of the view
that we should not – despite having been invited to do so by Mr Sreenivasan –
take the step of recognising a loss of autonomy (without more) as an
actionable injury in its own right. In our judgment, such a development would
pose significant problems of legal coherence and would be contrary to well-
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(b) Second, the notion of a loss of autonomy does not comport with
the concept of damage in the tort of negligence. We shall refer to this
as the “coherence objection”.
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[one’s] own life” (at 351F). Under this liberal, individualistic conception,
autonomy is chiefly understood in negative terms as the liberty to live one’s
life free from external interferences or control. Its value, as Prof Ronald
Dworkin explained in Life’s Dominion: An Argument about Abortion,
Euthanasia, and Individual Freedom (Knopf, 1993) at p 224, is that it makes
“self-creation possible”: it allows all of us to “be responsible for shaping our
lives according to our own coherent or incoherent – but, in any case,
distinctive – personality. It allows us to lead our lives rather than be led along
them, so that each of us can be … what we have made of ourselves”. This
“thin” view of autonomy is often said to be “content-neutral”, in the sense that
it is not concerned with the desirability of the choices which are made, so long
as they are freely chosen. As Lord Donaldson of Lymington MR observed in
the English Court of Appeal decision of Re T (Adult: Refusal of Treatment)
[1992] 3 WLR 782 at 796H–797A:
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118 Yet others would argue that both of these accounts, being
individualistic in nature, do not adequately take into account the socially
embedded nature of human beings and the importance of social relations to
one’s sense of self and to self-determination. They would argue for a more
substantive account of autonomy that reflects this relational dimension of
personhood (see, for example, Antony Blackburn-Starza, “Compensating
reproductive harms in the regulation of twenty-first century assisted
conception” in Revisiting the Regulation of Human Fertilisation and
Embryology (Routledge, 2015) (Kirsty Horsey ed) (“Compensating
reproductive harms”) at p 164). Among those who would support such a view
are theorists who belong to the communitarian (as opposed to the
individualistic) tradition. Feminist theorists would also support a more
substantive account of autonomy, and they would in addition stress the role of
traditional social structures in shaping beliefs and choices (see, for example,
Craig Purshouse, “How should autonomy be defined in medical negligence
cases?” (2015) 10 Clinical Ethics 107 (“Purshouse”) at 109).
119 What this brief account reveals is that the very concept of “autonomy”
itself is the subject of rigorous theoretical and conceptual disagreement as well
as controversy. The differences amongst these competing conceptions
(particularly if one subscribes to a “thicker” and more substantive account) of
the concept of “autonomy” turn on more fundamental questions of political
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(the proper relationship between the State and its citizens) as well as moral
(different conceptions of “the Good”) philosophy. At the end of the day, it is
neither possible nor is it the place of this court to decide such questions. But
without a workable concept of autonomy, it is impossible to say that autonomy
can, in and of itself, be the subject matter of legal protection. This is not just
an academic issue, because it has important practical implications on the scope
of liability, as we shall explain in the section on the “over-inclusiveness”
objection.
121 At the end of the day, the notion of an action for “loss of autonomy” is
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124 An analogy can also be drawn with Gregg v Scott [2005] 2 WLR 268.
In that case, the defendant-doctor had negligently misdiagnosed a lump in the
claimant’s arm as a benign collection of fatty tissue when it was in fact a
tumour. If the mistake had been discovered earlier, the claimant would have
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125 For the foregoing reasons, we are not disposed to recognise the loss of
autonomy as a recoverable head of damage in its own right. However (and this
is where we return to the point first discussed above at [113]), this is not to say
that we do not recognise the relevance of autonomy as an important
background consideration. We find the following statement made by
Lord Hoffmann in the House of Lords decision of Wainwright v Home Office
[2004] 2 AC 406 to be illuminating (at [31]):
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could not sue for libel. But no one has suggested that freedom
of speech is in itself a legal principle which is capable of
sufficient definition to enable one to deduce specific rules to
be applied in concrete cases. That is not the way the common
law works.
126 Although Lord Hoffmann made that remark in the course of rejecting
an argument that there should be a standalone common law tort of invasion of
privacy, we find the (general) principle–rule distinction to be a useful one. By
reason of the Respondents’ negligence, the Appellant has suffered a severe
dislocation of her reproductive plans that is constituted principally by the
fracture of biological parenthood. This is a complex concept; and to say
simply that she has suffered a “loss of autonomy” is only correct at the highest
level of generality. Her loss cannot be understood without a more developed
and substantive (as well as nuanced) notion of “autonomy” that takes into
account existing family building practices, kinship arrangements, and the
socially-constituted value of genetic relatedness (see, generally, Compensating
reproductive harms at p 155). What we propose to do is to unpack some of
these ideas in order to identify the “true loss” which she has suffered in this
case and explain why we consider that it can and should be considered a
distinct and recognisable head of damage.
127 We begin with this. The Appellant’s desire to have a child of her own,
with her Husband, is a desire that is a basic human impulse, and its loss is
keenly and deeply felt, even if it is difficult to put into words. Her desire (and
therefore her loss), as explained by Fred Norton in an excellent article, was for
“genetic affinity” (see Fred Norton, “Assisted Reproduction and the
Frustration of Genetic Affinity: Interest, Injury, and Damages” (1999)
74 NYU L Rev 793 (“Genetic Affinity”)). One prominent bioethicist put it the
following way (see Leon R Kass, Life, Liberty and the Defense of Dignity: The
Challenge for Bioethics (Encounter Books, 2002) at pp 96–97):
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128 To say, as Mr Lok does, that the issue here is merely one about
“‘incorrect’ / ‘undesired’ genetic mix or skin tone” (which we categorically
state to be language that we abjure), is to completely miss the point. As Norton
goes on to explain, the desire for genetic affinity is complex and multi-faceted.
It is, at its core, a desire for identity bounded in consanguinity. The ordinary
human experience is that parents and children are bound by ties of blood and
share physical traits. This fact of biological experience – heredity – carries
deep socio-cultural significance. For many, the emotional bond between
parent and child is forged in part through a sense of common ancestry and a
recognition of commonalities in appearance, temperament, and physical
appearance. For yet others, genetic continuity and biological lineage is deeply
important to religious and cultural belonging (see Dov Fox, “Reproductive
Negligence” (2017) 117 Colum L Rev 149 (“Reproductive Negligence”) at
179). This interest in affinity does not exist only at the bilateral level (between
parent and child), but also multilaterally – it affects the parents’ relationship
with their extended relations; the child’s relationship with his/her siblings; as
well as the family’s relationship with the wider community of which they are a
part.
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South Africa have mixed ancestry and they have different racial markers,
including different skin tones). The appellants brought suit on the ground that
because of the respondent’s negligence, they had been born a different skin
colour from their parents. This, they argued, had led to their being the subject
of abusive and derogative comments and hurtful name calling which had
caused them emotional distress and affected their quality of life. The trial
judge dismissed the suit on the ground that a difference in skin colour could
not constitute a form of damage and his decision was upheld on appeal by the
Court of Appeal.
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in which the husband reported not only the racist bullying which his child had
been subjected to, but also the fact that their family had received unkind
questions as to his wife’s fidelity and the paternity of his children.
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Quantification of damages
137 The quantification of damages for intangible injuries is, by its very
nature, an exercise that is invariably fraught with difficulty, because it seeks to
ascribe a monetary value to matters which do not lend themselves easily to
pecuniary expression. In such cases, the law does not pretend that there is any
perfectly objective standard with which to conduct the assessment but it
strives to achieve two goals. The first is to “award sums which must be
regarded as giving reasonable compensation”; the second is to “endeavour to
secure some uniformity in the general method of approach [of quantification]”
(see the House of Lords decision of H West & Son Ltd and another v
Shephard [1963] 2 WLR 1359 (“West v Shephard”) at 1368 per Lord Morris
of Borth-y-Gest).
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guideline which can point the way to a correct assessment” (see the House of
Lords decision of Lim Poh Choo v Camden and Islington Area Health
Authority [1979] 3 WLR 44 at 54F per Lord Scarman). Any award that is
made cannot be the product of precise calculation but must necessarily be
“conventional” in the sense that it does not reflect the actual loss which has
been suffered but is instead a sum which is thought appropriate in the
circumstances. The figure arrived at is one which, in the words of Lord
Denning MR in the English Court of Appeal decision of Ward v James [1965]
2 WLR 455, is “derived from experience and from awards in comparable
cases” (at 470D).
140 However, the House of Lords in Rees took this one step further. Not
only was the sum of £15,000 that it awarded “conventional” in the sense that it
was not the product of precise calculation, but it was also said to be a fixed
sum that would be awarded to all future claimants. In the words of
Lord Millett, the conventional award of £15,000 “should not be susceptible of
increase or decrease by reference to the circumstances of the particular case”
(see Rees at [125]). The award of a fixed sum irrespective of the circumstances
of each case is not without precedent in the law of damages. Such an approach
is used in situations where a case-by-case analysis of the sum to be awarded
would be unseemly. For instance, in West v Shephard, the House of Lords was
faced with a claim for “loss of expectation of life” (in essence, a claim for the
tortious shortening of life) which, until 1982, was a head of loss in negligence
in the UK. In that case, the House of Lords affirmed its previous decision in
Benham and awarded a fixed sum of £500 (increased from £200 to account for
inflation) for this head of claim. In explaining why this approach was adopted,
Lord Pearce stated that it “would be lamentable if the trial of a personal injury
claim put a premium on protestations of misery and if a long face was the only
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141 This was also the approach which Mr Lok urged us to adopt, should we
be disposed to make an award for loss of autonomy. He argued, amongst other
things, that such an approach would have the virtues of consistency,
uniformity, expedience, and fairness to commend it. We do not disagree that
this approach brings with it the advantages that Mr Lok pointed to. However,
after considered reflection, we do not consider it to be appropriate here for two
reasons. First, we consider that it would be contrary to the value of individual
autonomy, which lies at the heart of the current award. As one commentator
has argued, the award of a uniform sum presupposes that all parents are
identically situated and would be impacted in the same way by the disruption
of their reproductive plans (see Nicolette M Priaulx, “Damages for the
‘Unwanted’ Child: Time for a Rethink?” (2005) Medico-Legal Journal 152 at
160). This would not only fly in the face of reality, but also fail to respect the
unique life plans of the individual who is before the court. If the objective is to
compensate the particular plaintiff for the particular types of harm which
have been inflicted, then the award must be tailored to the facts and
circumstances of each case.
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when the Singapore Parliament passed the Civil Law (Amendment) Act 1987
(Act 11 of 1987) to create a statutory cause of action for “bereavement”, the
quantum of which was fixed by statute at $10,000 (it has since been increased
and presently stands at $15,000: see s 21 of the Civil Law Act (Cap 43, 1999
Rev Ed).
143 The second approach was that suggested by Prof Goh. Under his
approach, “autonomy” consists of the “right to make life decisions so as to be
free of unsolicited legal or moral obligations”. Thus, autonomy is “lost” in this
sense when obligations are imposed upon a person (such as those arising out
of an unplanned pregnancy), and the damages for a loss of autonomy claim
should therefore be assessed in terms of the expenses necessary to overcome
or cope with the restrictions on autonomy which arise therefrom. This is
analogous to the so-called “functional approach” towards the assessment of
damages for non-pecuniary loss which is favoured in Canada, in respect of
which damages for non-pecuniary loss are awarded as a means for the plaintiff
to obtain substitute pleasures to replace the loss (see Law Commission, Report
on Damages for Personal Injury: Non-Pecuniary Loss, Law Com No 257,
15 December 1998) at para 2.4). Prof Goh explained that such an approach
would be compatible with the general compensatory nature of damages and
may include such expenses as childcare or live-in help that would enable the
parents to live their lives without the strictures imposed by having to care for
the child. In this way, the damages that may be awarded, he said, would
“overlap with aspects of upkeep expenses but are not the same conceptually”.
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plainly not appropriate. His approach seems at once to lead us to go too far
and yet also not far enough. It goes too far inasmuch as it attempts to pull
within its orbit all the obligations of parenthood which we have already
explained to be matters which are not capable of being the subject of
compensation – for instance, the cost of providing the child with the
“necessaries” of life would invariably have the effect of curtailing the parents’
ability to spend their money as they wish, but it is not possible to make this a
matter for compensation as it involves making, as a subject of compensation,
that which is incapable of being counted as loss (see above at [90]–[94]). Yet,
at the same time it does not go far enough because it rests on a particular view
of autonomy (as the negative freedom from constraints on action), and
therefore fails to recognise that a loss of autonomy may also be constituted in
the positive freedom of persons to pursue certain goods (in this case, an
interest in genetic affinity) and that the denial of such goods can result in
appreciable harms. Furthermore, given the fact that the restrictions on
autonomy would most tangibly manifest themselves in the financial
obligations incurred as a result of parenthood, Prof Goh’s approach would
have the effect of encouraging plaintiffs to come to court to prove the burden
that the child has been. As explained above at [95]–[100], this encourages
behaviour which is inimical to parenthood, and it provides another reason for
rejecting this approach.
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146 Groberman J observed that the motivations of the parents for wanting
to limit their family were different. Mrs Bevilacqua was motivated primarily
by the desire to limit the size of the family in order that they could broaden the
range of activities which each of them could participate in so her harm
consisted principally of the limitations imposed on her lifestyle choices and
autonomy arising out of, among other things, pregnancy and childbirth.
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147 Given that the court in Bevilacqua was concerned with a different form
of harm, the approach adopted there cannot be transposed to the context of the
present case without modification. However, the aspect of the decision which
commends itself most to us is the focus on the precise motivations of each
plaintiff. In our view, this properly reflects the compensatory objective of an
award of damages. It is vital, in our judgment, to take into account the unique
types of harm suffered by a person when his/her reproductive plans are
disrupted in deciding on an appropriate award (see, generally, Reproductive
Negligence at 219–220). These types of harm will, as we explained above,
vary depending on the particular reasons fertility treatment was sought, the
precise manner in which the negligence took place, and the personal
circumstances of the plaintiff (such as the presence of other children or the
familial and/or cultural histories particular to him or her).
148 Of course, there is still the matter of fixing a precise quantum. Unlike
the court in Bevilacqua, we have no comparable precedents (whether local or
foreign) against which to draw appropriate comparisons. In the circumstances,
we consider that we should benchmark the eventual award as a percentage of
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the financial costs of raising Baby P. Although we have determined that this is
not an appropriate case in which to award upkeep costs as such to the
Appellant, the financial costs of raising Baby P are not, in our view, wholly
irrelevant as, absent such costs, there would be no other criterion or standard
by which to assess the quantum of damages that ought to be awarded. This
approach would have several advantages. First, to the extent that one of the
purposes behind the grant of damages for non-pecuniary loss is to provide
solace to the claimant, we consider that an award which is benchmarked
against upkeep costs would achieve this purpose. Second, any such award
would not be derisory but would instead produce a substantial award that
offers “reasonable compensation”. Indeed, we note that such an approach is
not wholly without precedent. Prof Amirthalingam has suggested that the
majority in Chester implicitly recognised the deprivation of patient autonomy
as the “harm” in that case, and the physical injury (the surgical complication)
was a matter which went to the quantification of loss (see Gist of Negligence
at 34).
149 Lest there be any confusion, we clarify that an award for loss of
genetic affinity and an award of upkeep costs rest on very different theoretical
bases. The former is an award of damages for non-pecuniary loss as
compensation for the plaintiff-mother’s loss of genetic affinity; the latter is an
award for pecuniary loss arising from the expenses incurred in relation to the
raising of the child. Our approach of using the latter as a benchmark for
assessing the magnitude of the former does not derogate from what we have
said about how the obligations of parenthood are incapable of being regarded
by the law as loss (see [90]–[94] above). Whilst it is perhaps not theoretically
elegant, the approach of benchmarking the present award against upkeep costs
is practical (provided one always bears in mind that the quantum of full
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upkeep costs is but a benchmark) and it prevents the court from having to
pluck a figure out of thin air, so to speak. In any event, a theoretically elegant
result would, in any event, be elusive in the extreme, given the nature and
complexities of the issue and the attendant difficulties that arise from such a
controversial area of the law.
150 As we have explained above at [102], the award of full upkeep costs
would amount to giving the Appellant an indemnity for the costs of raising
Baby P. This would not, in our judgment, be appropriate compensation for the
loss which has been suffered. However, it is also neither logical nor desirable
to award the Appellant a merely nominal sum because to do so would be to
make a mockery of the value of the interest at stake. It is clear that the
damages to be awarded should therefore lie somewhere between these two
extremes. On the issue of precisely where along the spectrum it should fall, the
facts and circumstances are of the first importance. In our judgment, it is clear
that substantial damages ought to be awarded to the Appellant. Whilst (as we
have already noted), the Appellant and her Husband have accepted Baby P as
their own, the reality of the situation cannot be denied (see, especially, the
anguish, stigma, disconcertment, and embarrassment suffered by the Appellant
and her family as expressed in the Appellant’s affidavit (reproduced above at
[131] and discussed at [132]–[135])). In the circumstances, we are of the view
that the Appellant ought to be awarded 30% of the financial costs of raising
Baby P as compensation, which is an amount that, we consider, properly
reflects sufficiently the seriousness of the Appellant’s loss and is just,
equitable, and proportionate in the circumstances of the case.
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assessment may not be without difficulty. During the course of the hearing,
our attention was drawn to some of the potential pitfalls. These include the
fact that the financial costs of raising a child would depend, in large part, on
the subjective preferences of the claimants (for instance, whether they insist on
private education or extra-curricular enrichment classes). As pointed out by
Gleeson CJ in Cattanach at [26], in a great many cases, the line between legal
obligation, moral obligation, and parental discretion will be difficult to draw.
Furthermore, it is difficult to identify a suitable cut-off date for liability since
it is common in modern affluent societies for children to be dependent on their
parents for a longer time than was previously the case. However, given that we
have not heard the parties on these points, we do not think it proper for us to
express any concluded views on the proper methodology of assessment.
Undoubtedly, the potential difficulties and issues raised here and/or at those
proceedings will be dealt with by the judge concerned after receiving detailed
submissions on the matter.
152 Before we leave this point, however, we would like to observe that
given the protracted nature of the legal proceedings up to this particular point
in time, it would be preferable for the parties to arrive at an amicable
settlement in relation to the issue of quantification. Whilst we understand that
the Appellant and her Husband have confronted – and will continue to
confront – difficult emotional and relational challenges, we think that an
amicable settlement will assist them in achieving some closure. We do not
consider that an extension of this litigation would be of any help to them in
putting these unfortunate experiences behind them and moving forward in life
(together with Baby P). It would also be appropriate, in our view, for the
Respondents to assist the Appellant and her Husband in achieving such
closure.
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153 The final issue which was canvassed in this appeal concerns the issue
of punitive damages in the law of tort. There are weighty legal issues that arise
for consideration. The first, and perhaps most crucial, is whether it is now time
to depart from the relatively straitjacketed approach embodied in the House of
Lords decision of Rookes v Barnard [1964] AC 1129 (“Rookes”), which, as
we will elaborate below, lays down three extremely limited situations in which
the English courts would be prepared to award punitive damages in the
tortious context. It is only if this hurdle can be overcome that the next issue
arises for decision, which is whether punitive damages can ever be awarded
when the defendant has been punished under the criminal law. If the answer to
that is in the affirmative, the final issue which arises for consideration is
whether a punitive award can ever be made in respect of a negligent (as
opposed to a deliberate or intentional) act. As will be clear in the course of our
analysis, these are difficult questions not only of legal principle but also of
policy, and are subjects in respect of which courts in different jurisdictions
have arrived at different conclusions. It is only if these legal hurdles can be
surmounted that we can turn to the facts of the present appeal to consider if
this is an appropriate case for an award of punitive damages to be made.
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and we consider that it can and should be left for another day, when the issue
is squarely raised on the facts of the case and a decision is necessary.
155 Punitive damages were first awarded in a series of 18th century cases
involving the arbitrary interference by public officers with the private rights of
citizens (see Harry Street, Principles of the Law of Damages
(Sweet & Maxwell, 1962) at p 29). In these cases, the juries awarded damages
far in excess of the material harm constituted by such trespasses. In Huckle v
Money (1763) 95 ER 768, the Court of the King’s Bench held that the jury had
“done right in giving exemplary damages”, stating that “to enter a man’s
house by virtue of nameless warrant, in order to procure evidence, is worse
than the Spanish Inquisition” (at 769). In a later decision by the same court in
Wilkes v Wood (1763) 98 ER 489, Pratt LCJ explained that juries had it in
their power to “give damages for more than the injury received” and that
damages were “designed not solely as a satisfaction to the injured person, but
likewise as a punishment for the guilty, to deter any such proceeding for the
future, and as proof of the detestation of the jury to the action itself” (at 498–
499). In this short passage, the three-fold purpose of punitive damages – to
punish, deter, and condemn – was succinctly articulated for the first time.
156 Before we proceed further, we will say a few words about terminology.
First, the expression “punitive damages” has historically been used
interchangeably with the expression “exemplary damages” and no distinction
is to be drawn between them (see the Singapore High Court decision of Li Siu
Lun v Looi Kok Poh and another [2015] 4 SLR 667 (“Li Siu Lun”) at [195]).
The former was favoured until the decision of the House of Lords in
Cassell & Co Ltd v Broome and another [1972] 2 WLR 645 (“Broome (HL)”)
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157 It was once thought that exemplary damages could be awarded in any
case of tort where the defendant’s conduct had been particularly outrageous
(see, for example, Clerk and Lindsell on Torts (Michael Jones gen ed)
(Sweet & Maxwell, 21st Ed, 2014) (“Clerk and Lindsell”) at para 28-139).
This thinking changed with the decision of the House of Lords in Rookes. In
that case, an agreement was reached between the plaintiff’s trade union and
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his employer that no strike would be organised and that any disputes would be
referred to arbitration. Subsequently, the plaintiff resigned from his
membership of the trade union and the union, acting through the defendants,
informed the plaintiff’s employer that unless the plaintiff was dismissed
immediately, the other members of the union would go on strike. The
employer gave in to the threat and dismissed the plaintiff. The plaintiff then
sued the defendants for the tort of intimidation. The jury found the defendants
liable and awarded the plaintiff a sum of £7,500, a large part of which
comprised punitive damages. The Court of Appeal reversed the decision on
liability. The plaintiff appealed against the Court of Appeal’s decision on
liability while the defendant cross-appealed on the question of damages. The
House of Lords restored the decision of the trial court on liability but it set
aside the jury’s award on the ground that punitive damages were not available
on the facts of that case.
158 Lord Devlin, who delivered the only fully reasoned speech on the issue
of damages, made it clear where his sentiments on the matter lay. From the
outset, he observed that the object of damages in the “usual sense” was to
compensate; however, the object of punitive damages was to “punish and
deter”. He then framed the issue as follows: “your Lordships therefore have to
consider whether it is open to the House to remove an anomaly from the law
of England” (at 1221). After an extensive review of the authorities, he
concluded that two reasons compelled a negative answer to that question: the
first was the weight of precedent; the second was the fact that punitive
damages could sometimes serve a “useful purpose in vindicating the strength
of the law” (at 1225–1226). However, he held that the award of punitive
damages was henceforth to be restricted to cases falling within one of the
following three categories:
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159 Further, Lord Devlin also set out three considerations which he said
ought always to be borne in mind when a punitive award was being
considered. First, the claimant must be the victim of the punishable behaviour
(at 1227). Second, the power must be exercised with restraints because the
award of punitive damages could “be used against liberty” (at 1227). Third,
the means of the parties (although ordinarily irrelevant in an award of
compensatory damages) should be taken into account in the calculation of a
punitive award, as should “[e]verything which aggravates or mitigates the
defendant’s conduct” (at 1228).
160 The so-called “categories test” set out in Rookes was subjected to
stinging criticism by the English Court of Appeal in Broome v Cassell & Co
Ltd and another [1971] 2 WLR 853, where Lord Denning MR described it as
“hopelessly illogical and inconsistent” (at 870G) and considered that it had
been given per incuriam (at 871D). The House of Lords, Viscount Dilhorne
dissenting, disagreed (see Broome (HL)). Lord Reid, who had been a member
of the coram which decided Rookes, candidly admitted that the categories
approach was not altogether satisfactory, but defended it on the basis that it
was the best that could have been done in the circumstances. He observed as
follows (at 683G):
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161 In AB and others v South West Water Services Ltd [1993] 2 WLR 507,
the English Court of Appeal went even further in attempting to restrict the
ambit of punitive damages. Relying on certain dicta made by Lord Hailsham
and Lord Diplock in Broome (HL), the court added a further “cause of action”
requirement: in order for punitive damages to be available, the cause of action
had to be one in respect of which punitive damages had been awarded before
Rookes was decided. This “cause of action test” was accepted in several
subsequent authorities (see the Law Commission Report at para 4.88) before it
was conclusively overruled by the House of Lords in Kuddus v Chief
Constable of Leicestershire Constabulary [2002] 2 AC 122 (“Kuddus”) as
being contrary to authority. Therefore, the position in England at present is
that punitive damages may be awarded for any tort as long as it falls within
one of the categories enunciated in Rookes (see Clerk & Lindsell at para 28-
146).
162 The categories test has, however, been rejected by almost all the other
major Commonwealth jurisdictions. In Uren v John Fairfax & Sons Pty Ltd
(1966) 117 CLR 118, which was decided soon after Rookes, the High Court of
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Australia declined to adopt the categories test. Its objections were rooted both
in precedent (since punitive damages in tort had always been available in
Australia on grounds wider than would be available under Rookes, which was
not binding on the High Court of Australia) and in principle. Taylor J was of
the view that the categories were too restrictive and also thought their
boundaries to be nebulous. For instance, he said, of the second category, that
there was no reason for the law to look with particular disfavour on wrongs
committed with a profit motive and to consider them worse than, say, wrongs
which were committed maliciously or vindictively (at 138). Windeyer J
focused on the general principle underlying punitive damages which, in his
view, was to make it clear that tort did not pay. That being the case, he said
that he could see no reason to restrict the award of punitive damages only to
the instances identified by Lord Devlin (at 149). Owen J opposed the
restrictions on the ground that they were not in accord with precedent and
would remove what he considered to be a “useful protection” against persons
who exercised their power in disregard of the rights of others (at 160–161).
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and indifference towards the interests of the plaintiff. There is, however, no
need to demonstrate that the wrongdoing was motivated by any malice
towards the plaintiff (see, generally, R P Balkin and J L Davis, Law of Torts
(LexisNexis Butterworths Australia, 4th Ed, 2009) at para 27.10).
164 New Zealand has likewise rejected the categories test. In Taylor v
Beere [1982] 1 NZLR 81, a decision of the New Zealand Court of Appeal,
Richardson J held that the logic behind the categories was “not immediately
apparent” and that the “arbitrary limitations of the kinds formulated by
Lord Devlin would be wrong in principle and unsatisfactory in practice” (at
92). In so far as the first category in Rookes was concerned, he asked
rhetorically: “Why should servants of the government be singled out?”
“[T]echnicalities of employment status”, he held, were not a good basis for
determining whether there had been heinous conduct on the part of the
defendant which justified a punitive award of damages. In so far as the second
category in Rookes was concerned, he stated that he did not see any basis for
singling out acts performed with a profit motive. Again rhetorically, he asked:
“Is oppressive, calculated, conduct any more opprobrious or otherwise
inherently worse if motivated by financial greed than, say, by spite, malice or
a lust for power over others?” (at 92). Summing up, he expressed the view that
it was the “quality of the conduct which should count” and that the “the
availability of the remedy of exemplary damages should not hinge on the
occupation of the defendant or on any fine analysis of his motivation” (at 92).
165 Today, the courts in New Zealand exercise the power to award punitive
damages with considerable restraint, and save it only for cases where there has
been “truly outrageous conduct” that cannot be punished in any other way (see
the decision of the New Zealand Court of Appeal in Dunlea v Attorney-
General [2000] 3 NZLR 136 at [34] per Keith J, with whom Richardson P,
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166 Canada has also rejected the categories test. In Paragon Properties
Ltd v Magna Envestments Ltd (1972) 24 DLR (3d) 156 (“Paragon
Properties”), the Appellate Division of the Alberta Supreme Court declined to
follow Rookes. Clement JA, dissenting with regard to the result but not on the
point of principle involved, explained that the project of categorisation was
inconsistent with the general purpose of the punitive damages jurisdiction,
which was to censure, deter, punish, and to serve as a recognition of the
unnecessary humiliation and harm which the victim had been subject to (at
167). He opined that:
167 This view was subsequently endorsed by the Supreme Court of Canada
in Vorvis v Insurance Corporation of British Columbia [1989] 1 RCS 1085,
where McIntyre J held definitively that Rookes should not apply in Canada (at
1105a–g). At present, punitive damages may be awarded in all tort claims in
Canada, though they are more frequently awarded in cases involving
intentional torts (see, generally, Lewis N Klar, Tort Law (Carswell, 5th Ed,
2012) at p 121). One caveat to this is that it has been held that it should not be
awarded in cases of negligence unless the circumstances are “extreme” (see
the decision of the New Brunswick Court of Appeal in Canadian National
Railway Co v di Domenicantonio (1988) 49 DLR (4th) 342).
168 The position in Malaysia is somewhat less clear. In a recent case, the
Malaysian Court of Appeal held that Rookes was the “most important
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authority for the award of exemplary damages” and disallowed a claim for
punitive damages on the ground that it did not fall within one of Lord Devlin’s
three categories (see Sistem Televisyen Malaysia Bhd & Ors v Nurullah bt
Zawawi & Anor [2015] 6 MLJ 703 at [31]–[32]). In the same year, Rookes
was also applied by a differently constituted bench of that same court in
Zulkiply bin Taib & Anor v Prabakar a/l Bala Krishna & Ors and other
appeals [2015] 2 MLJ 607, which described the decision as the “best reference
for a consideration of an award of exemplary damages” (at [74]). However, it
has also been observed that the practice is less than uniform, and that the
Malaysian courts have awarded punitive damages in cases falling outside the
scope of Rookes (see the decision of the Malaysian High Court in Cheong Fatt
Tze Mansion Sdn Bhd v Hotel Continental Sdn Bhd (Hong Hing Thai
Enterprise Sdn Bhd, third party) [2011] 4 MLJ 354 at [53]). To the best of our
knowledge, the issue has never been considered by the Federal Court of
Malaysia.
169 The only clear exception, perhaps, is Hong Kong, where it has been
stated that Rookes has consistently been followed “without question” (see the
decision of the Hong Kong Court of First Instance in A & Ors v Director of
Immigration [2009] 2 HKC 452 at [53(10)]. Rookes has also been applied by
the Hong Kong Court of Appeal on a number of occasions, though each time
without substantial argument as to its correctness (see, for example, China
Light & Power Co Ltd & Anor v Ford [1996] 2 HKC 23 and Allan v
Ng & Co & Anor [2012] 2 HKC 266). To the best of our knowledge, the issue
has never been considered by the Hong Kong Court of Final Appeal.
170 It has been hitherto at least tacitly assumed that Singapore courts
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171 As a starting point, we begin with the notion that the award of punitive
damages is “anomalous”. This has always been the principal (if not sole)
justification for the categories test (see above at [158] and [160]). The
argument is that the award of punitive damages confuses the function of the
civil law, which is to compensate, with that of the criminal law, which is to
deter and punish, and therefore should be kept within narrow confines (see
Broome (HL) at 683B per Lord Reid). However, we do not think this to be
correct as a matter of principle. As Lord Wilberforce forcefully argued in the
same case, this assertion rests on two contestable notions: first, that the civil
law is focused exclusively with compensation; and second, that punishment
and deterrence are the exclusive preserves of the criminal law. The former
may be questioned because there are civil wrongs, of which the tort of
defamation is but one example, where there is a “delictual element which
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contemplates some penalty for the defendant”; and the latter is a normative
claim which is often made without any clear support in authority (at 708H–
709C).
173 In other words, the award of punitive damages has a distinct and
important role to play in the context of private law by filling that important
interstitial space that exists between those cases where the demands of justice
are served purely by the award of a compensatory sum, and those cases which
properly attract criminal sanction. Among other things, it permits the private
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had the Practice Statement (Judicial Precedent) [1966] 1 WLR 1234 been in
force then: see the Law Commission Report at para 5.1).
175 For the foregoing reasons, which are largely the same as those given
by the courts in Australia, New Zealand, and Canada, we conclude that the
categories test set out in Rookes should no longer be a part of Singapore law.
Although the common law of England is part of Singapore law pursuant to
s 3(1) of the Application of English Law Act (Cap 7A, 1994 Rev Ed), it is
subject to the requirements of suitability (or applicability) as well as
modification under s 3(2) (which also reflects the (prior) requirements under
the general reception of common law). In our view, this is an occasion when
the hitherto received common law as embodied in Rookes ought to be
departed from. That law is no longer applicable to the circumstances of
Singapore and, in any event, ought to be modified by being replaced with a
more logical as well as appropriate rule. This is the issue to which we shall
now turn.
176 We begin with the basic question: When should punitive damages be
awarded? In Broome (HL), Lord Diplock commented that the case law was
replete with “a whole gamut of dyslogistic judicial epithets such as wilful,
wanton, high-handed, oppressive, malicious, outrageous” (at 723B). For
instance, in Australia, the preferred test is that punitive damages should be
awarded where there has been “conscious wrongdoing in contumelious
disregard for another’s rights” (see above at [163]). It may be that it is quixotic
to expect any single test to cover the entire field, but we consider that it is
useful to settle on something as a touchstone. With this in mind, we indicate
our preference for the expression “outrageous” because it – of all the
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adjectives used – relates not to the manner of the commission of the act, but to
its gravity. This is an important point. As has been stressed in the various
decisions cited above, if the award of punitive damages is a response to
conduct which is beyond the pale and therefore deserving of special
condemnation, then any restrictions imposed must be related to the character
of the offending conduct. In our judgment, therefore, punitive damages may be
awarded in tort where the totality of the defendant’s conduct is so outrageous
that it warrants punishment, deterrence, and condemnation.
177 Two specific considerations that merit more detailed discussion, both
of which arise on the facts of this case, are:
178 In Rookes, Lord Devlin stressed that exemplary damages should only
be awarded as a last resort, where the existing remedies are inadequate. He
said that when assessing damages in a case where punitive damages are
available, the jury should be directed that (at 1228):
… if but only if, the sum which they have in mind to award as
compensation (which may, of course, be a sum aggravated by
the way in which the defendant has behaved to the plaintiff) is
inadequate to punish him for his outrageous conduct, to mark
their disapproval of such conduct and to deter him from
repeating it, then it can award some larger sum. [emphasis
added in italics and bold italics]
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Broome (HL) and has since come to be known as the “if but only if” test (see
the Law Commission Report at paras 4.115). It has been widely accepted
throughout the Commonwealth, even though the categories test has been
widely rejected (see the Law Commission Report at para 5.99). The principle
behind it was lucidly set out by Lord Reid in Broome (HL) at 685G–686B,
where he explained that one always had to bear in mind that the task of the
court was not to devise two sums (one for compensation and one for
punishment), but to decide on an appropriate sum which served two purposes:
compensation and punishment. If the sum the court had in mind as
compensation was already sufficient to serve the aim of punishment, then no
more need be added. In our judgment, this is a sound principle and it should be
followed.
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for his fraud and, since the purpose of punitive damages was to punish
the defendant, such damages ought not to be awarded where the
defendant had already been punished for his tortious act by the
criminal courts (at 368C–D).
181 In Gray, the majority of the High Court of Australia held that where
the criminal law had been brought to bear on the wrongdoer and “substantial
punishment” had been inflicted for “substantially the same conduct which is
the subject of the civil proceeding”, this was an absolute bar to the imposition
of punitive damages (at [40]). Two reasons were given for this bright-line rule:
first, the purposes for the award of punitive damages would already have been
wholly met if substantial punishment had been inflicted by the criminal law (at
[42]); and second, the award of punitive damages in this context might result
in the imposition of double punishment (at [43]). The majority was at pains to
stress that this was not merely a matter of “discretion”, but a “rule” which
governed the court’s punitive damages jurisdiction (at [55]). Kirby J, who was
in the minority on this issue, did not dispute the validity of these two
considerations. However, he would have held that the court should still retain
a discretion to award punitive damages even where the defendant had been
punished either under the criminal law or through disciplinary sanctions. That
being said, he swiftly clarified that it was a “discretion to be exercised in
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182 The choice between these two approaches is, as was pointed out in
Daniels, one of policy (at 49 per Richardson P, Gault, Henry, and Keith JJ).
This was also the view of the Privy Council. In W v W [1999] 2 NZLR 1
(“W v W”), which was the decision of the Board upon hearing the appeal from
Daniels, the Privy Council held that the question whether punitive damages
would be available where the defendant had already been punished under the
criminal was one which “depends on a perception of the balance of public
advantage and disadvantage” and was therefore a question of policy par
excellence in respect of which the Board would not substitute its views for that
of the national court (at 4 per Lord Hoffmann). We agree with the
characterisation of this question as being a question of policy. However, it is a
choice that is informed, in part, by deeper questions of principle concerning
the comparability of civil and criminal punishments, as well as the purpose of
an award of punitive damages. After careful consideration, we prefer a less
categorical approach which still reposes the court with a discretion to decide
whether punitive damages are warranted even if the defendant has already
been the subject of criminal or disciplinary proceedings. We give two reasons
for this conclusion.
183 First, we consider that civil punishment performs a distinct and unique
function and its purposes are not exhausted just because the criminal law has
been brought to bear on the defendant. A condign criminal sentence is one
which accurately reflects society’s interest in the “four pillars of sentencing” –
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criminal court nor does it suggest that the civil court is sitting in judgment
over the adequacy of the sanction meted out by the criminal court (which is
sometimes cited as a reason for an absolute bar: see the decision of the
majority in Gray at [46]). This is merely a recognition that civil punishment
has purposes which are distinct from those of criminal punishment. An
analogy can be drawn with disciplinary proceedings under the Legal
Profession Act (Cap 161, 2009 Rev Ed), where professional sanctions are
often meted out on top of any criminal sanctions which the defendant might
face (see, generally, the Singapore High Court decision of Law Society of
Singapore v Tham Yu Xian Rick [1999] 3 SLR(R) 68 at [18]).
185 Second, and closely related to the first reason, is what we shall term
the “supplementary function” of punitive damages. As we explained above at
[172], without punitive damages there would exist many unfilled “gaps” in the
law. These gaps may exist for a variety of reasons but at a basic level, they
exist because a criminal prosecution is, by design, a matter between the State
and an accused person; it is not a mechanism for victims to seek vindication of
their private interests As the Ontario Law Reform Commission pointed out,
one of the disadvantages of the criminal process is that the victims of crime
are “disenfranchised” – their role is merely that of complainant and they have
little control over the process (see Report on Exemplary Damages (1 June
1991) (Chairperson: Rosalie S Abella) at p 45). The availability of punitive
damages fills gap by affording victims who have been subject to “outrageous”
conduct a means to vindicate their interests themselves as plaintiffs in civil
suits. Because of the “formal equality of tort law, and the relatively greater
degree of victim control that it affords”, the opportunity to bring suit against
the offenders has the potential to bring about significant symbolic and
therapeutic benefits (see Bruce Feldthusen, “The Civil Action for Sexual
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187 In conclusion, therefore, we would put the matter as follows: the fact
that a defendant has already been punished by the criminal law or through the
imposition of a disciplinary sanction, is a weighty factor to be taken into
consideration when deciding whether to award punitive damages but it is not
determinative or conclusive. Regard must be had to the facts of each case and,
in particular, to the purposes sought to be achieved by a punitive award and
the extent to which they have already been achieved by the imposition of
criminal punishment. That being said, at the end of the day, whether the
approach is described as a matter of “rule” or as one of “discretion” is, it
seems to us, of lesser moment than the point of principle involved, which is
simply that the court should not make a punitive award when there is no need
to do so.
188 Indeed, we observe that the difference between the approaches adopted
by the majority and Kirby J did not make any practical difference to the result
in Gray. The appellant in that case sustained serious personal injuries after he
was struck by a car that had been deliberately driven at him by the respondent,
who was subsequently convicted of causing grievous bodily harm and
sentenced to seven years’ imprisonment. The appellant sued the respondent
and sought punitive damages but this was unanimously refused. The majority
held that this was a case in which substantial punishment had already been
imposed on the respondent through the criminal law, so punitive damages
were, as a rule, unavailable (at [56]). Kirby J held that the lower court had not
erred in the exercise of its discretion when it concluded that punitive damages
should not be awarded because the sentence of imprisonment which had been
imposed adequately fulfilled all of the purposes for which an award of
punitive damages would otherwise have been appropriate (at [98]).
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189 The next matter concerns the question of whether, as a matter of law, a
precondition for the award of punitive damages is that the defendant must
consciously have run the risk of harm to the plaintiff. This resolves itself into a
disagreement over whether inadvertent conduct (that is, conduct that is
performed without consciousness of the risk to the plaintiff) can ever be the
subject of an award of punitive damages. Although this concerns, for reasons
which are obvious, an issue that chiefly, if not exclusively, relates to cases in
the tort of negligence, it does not involve the reintroduction of a “cause of
action” requirement as such. Rather, it is an issue that relates to the
defendant’s state of mind (for this reason, we shall term this the “state of mind
requirement”). Proponents who support the introduction of a “state of mind
requirement” hold that inadvertent conduct cannot be the subject of an award
of punitive damages. They argue that, unlike the categories test or the cause of
action test, their position is perfectly consistent with the principle underlying
the punitive damages jurisdiction of the court. On the other hand, detractors
who argue that there should not be any such requirement would say that
inadvertent conduct can be the subject of a punitive award. They argue that the
introduction of a “state of mind requirement” would have the effect of
fettering the jurisdiction of the court in a manner that is neither necessary nor
beneficial.
190 This issue was argued before us as a contest between two cases of the
very highest authority. The first is A v Bottrill [2003] 1 AC 449 (“Bottrill”), a
decision of the Privy Council where the Board held, overruling the decision of
the New Zealand Court of Appeal by a 3-2 majority, that no “state of mind
requirement” should be introduced. The second is Couch v Attorney-General
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192 The judgment of the majority (comprising Lord Nicholls, Lord Hope,
and Lord Rodger of Earlsferry) was delivered by Lord Nicholls. As a starting
point, he located the source of the court’s jurisdiction to award punitive
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advertent and inadvertent conduct, he said, would only have the effect of
“distract[ing] courts from making a decision in accordance with the
fundamental rationale of exemplary damages”, which was whether the
defendant’s conduct was outrageous (at [37]).
194 The minority, comprising Lord Hutton and Lord Millett, differed from
the majority on the purpose of punitive damages. They held that the rationale
behind the award of punitive damages was “not to mark the court’s
disapproval of outrageous conduct by the defendant … [but to] punish the
defendant for his outrageous behaviour” (at [77]). On this basis alone, they
considered that it would be inappropriate to visit punishment upon a defendant
who did not possess the requisite “guilty mind” and they supported the
introduction of the state of mind requirement (at [77]). Notwithstanding this,
they joined the majority in ordering a re-trial because they held that the facts
were such that there was a triable issue as to whether the defendant might have
been subjectively reckless, and not just scandalously incompetent.
195 Couch was decided after the Supreme Court Act 2003 (No 53 of 2003)
(NZ) had been passed to abolish appeals to the Privy Council and to establish
a new Supreme Court for New Zealand which would take the place of the
Privy Council as the apex court in the New Zealand judicial hierarchy. The
plaintiff in that case was the victim of a serious attack committed by a parolee
who had been inadequately supervised. She brought suit against the Attorney-
General as the representative of the Government and sought an award of
punitive damages. The appeal concerned a number of issues, but the only one
which concerns us at this moment is the fact that the Supreme Court of New
Zealand decided to depart from Bottrill and held that punitive damages were
not to be awarded unless the defendant had a conscious appreciation for the
risk of causing harm and had run that known risk.
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196 Of the judges in the majority, Tipping J delivered the most fully
reasoned speech. He began, as the law lords did in Botrill, by examining the
purpose of an award of punitive damages, which he identified as the
punishment of the defendant (at [92]–[95]). While he acknowledged that such
an award might serve several other subsidiary purposes (eg, deterrence,
condemnation, and the appeasement of the victim), he held that all of these
were ultimately ancillary (at [115]). They were, in his words, “best regarded as
the consequences of a punitive award rather than as purposes of the award in
their own right” (at [95]). On this footing he held, following the minority in
Bottrill, that punishment should not be meted out to those who did not
consciously appreciate the risk that was being run and therefore could take
steps to avert punishment (at [111]–[112]). On this analysis, the introduction
of the state of mind requirement was consistent with, rather than contrary to,
the rationale for the award of punitive damages (at [124]). Tipping J also took
issue with the use of “outrageousness” as the sole criterion for the award of
punitive damages, holding that it was a concept which was inherently
subjective and ought to be coupled with a requirement of consciousness of risk
(at [151]).
197 In their own way, the rest of the judges in the majority pursued similar
lines of reasoning. Blanchard J emphasised the point that because the purpose
of punitive damages was to punish the defendant, the focus should be “on the
character of the defendant’s conduct, not on the loss or suffering of the
plaintiff”; and emphasised that the subject of punishment was “the private
wrong committed against the plaintiff, not a public wrong against the State”
(at [58]). In a similar vein, Wilson J held that because the purpose of punitive
damages was the punishment of the defendant, the focus should be “on the
mind of the defendant, in order to decide whether punishment is deserved” (at
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[254]). McGrath J stressed that because of the focus on punishment, it was the
“culpability of the defendant’s conduct that justifies an award of [punitive]
damages”; and given that culpability was closely related to the state of mind of
the defendant, the court was justified in setting the threshold at the level of
conscious recklessness (at [239]).
198 In dissent, Elias CJ held that punitive damages had long been generally
available “irrespective of the grounds of liability in tort … wherever
compensation to the plaintiff is inadequate to respond to the outrageousness of
the defendant’s conduct” (at [19]), and that the jurisdiction to award punitive
damages was properly exercised “in vindication of a public interest otherwise
not readily able to be addressed” (at [39]). On this basis, she concluded –
echoing the words of Clement JA in Paragon Properties (see above at [166])
– that the introduction of the state of mind requirement would have the effect
of “evad[ing] the underlying principle” behind the jurisdiction of the court.
Additionally, she criticised such an approach as creating a new “species of
negligence” in which conscious recklessness was an element for the sole
purpose of either permitting or excluding an award of punitive damages, when
no such distinction or requirement had previously been recognised in the case
law (at [1] and [31]).
199 The positions of both sides are powerfully argued indeed but, in our
judgment, the issue comes down to a single point of principle, which is the
true purpose of punitive damages. Both sides agree that as a matter of general
principle “the availability of exemplary damages should be co-extensive with
its rationale” (see Kuddus at [65] per Lord Nicholls), but they disagree on
what that rationale is. As is clear from the foregoing, those who support the
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201 In the light of this, it is difficult not to take Lord Nicholls’s warning
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about the limits of judicial prospicience to heart. Whilst it is true that the
outrageous nature of the conduct often takes its colour from an intentional act
on the part of the tortfeasor, and that, overwhelmingly, an award of punitive
damages will only be appropriate where the defendant’s wrongdoing was
intentional or consciously reckless, one can never foresee every factual
permutation that might arise. There may be situations where the defendant’s
conduct, though technically only negligent, was – “because of its quality or
extent, or its duration or repetitiveness, or casualness or indifference, or any
other reprehensible feature” (see Bottrill v A [2001] 3 NZLR 622 per
Thomas J, dissenting) – so beyond the pale that it is properly characterised as
outrageous. We would venture to suggest that Bottrill was such a case. Even if
it could be shown that the defendant-doctor was not conscious of the risk that
his misdiagnoses would pose to his patients, there is a good case for saying
that his betrayal of the trust reposed in him by his patients (which was
misplaced), the magnitude of the potential harm his conduct posed, and his
sustained pattern of laxity and incompetence, were collectively sufficient to
satisfy the criterion of outrageousness. In Bottrill, Lord Nicholls gave the
example of a person who deliberately points a loaded gun at another person
and, believing it to be unloaded, squeezes the trigger, causing serious injury.
In such a case of “stupidly dangerous behaviour”, there is an arguable case
that the defendant’s conduct should attract an award of punitive damages, even
if he genuinely believed his act to be harmless (at [38]).
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205 Several points can be made in response to this. First, for reasons which
we have already set out above, we reject the criticism that punitive damages
should somehow be treated with suspicion because they are “anomalous” (see
above at [171]–[173]). This critique overlooks the “supplementary function”
of punitive damages. Second, there are many criminal offences in respect of
which proof of negligence is a sufficient basis for liability (see, for example,
ss 269, 284–289, 304A, 336–338(b) of the Penal Code (Cap 224, 2008 Rev
Ed)). If negligence can be a basis for the imposition of liability in the criminal
law (where foreseeability of liability is a matter of cardinal importance), we
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think that, a fortiori, it can be the basis for the imposition of punitive damages.
Third, the use of the expression “outrageous” does not entail that the
imposition of a punitive award is contingent on public distaste or any sort of
emotional response. Rather, it sets out a reasoned normative standard that
requires the court to consider whether the defendant’s conduct is so
reprehensible that a normal compensatory award is insufficient and something
more is required. This involves an exercise of reasoned judgment of the sort
that courts perform on a regular basis. Further, there is no reason to think that
the process of determining whether the defendant was subjectively reckless
would be any less certain. As we observed above at [202], drawing a
distinction between advertent and inadvertent conduct in this context only
risks obscuring the value judgment which lies at the heart of the inquiry.
206 The direction the law has taken in New Zealand can perhaps be
explained by the presence of accident compensation legislation. Under the
provisions of the Injury Prevention, Rehabilitation, and Compensation Act
2001 (NZ) (“the NZ Compensation Act”) and its legislative precursors, the
victim of an accident can make a claim for statutory compensation without
proof of fault. However, s 317(1) of the NZ Compensation Act provides that
all proceedings for damages “arising directly or indirectly out of” personal
injury are barred. In Donselaar v Donselaar [1982] 1 NZLR 97, the New
Zealand Court of Appeal held that this did not bar a claim brought purely for
punitive damages, subject only to the caveat that punitive damages could not
be used to make up for any perceived shortfall in the statutory sum (at 107).
Against this background, it is understandable that the New Zealand courts
would be careful not to expand the ambit of punitive damages too widely, lest
it subvert the social and economic objects of the NZ Compensation Act (see,
generally, Stephen Todd, “A New Zealand Perspective on Exemplary
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207 It is perhaps somewhat ironic that this particular issue (in relation to
whether or not punitive damages ought to be awarded) was the only issue
which all parties were actually in agreement on. Put simply, all the parties
were of the view that, this being a case pertaining to purely negligent conduct
on the part of the Respondents, there was no scope for the award of punitive
damages. For the reasons we have given, we do not think this is an absolute
barrier to such an award. We also do not think the fact that the first
Respondent has been charged for breaching the conditions of its licence to
provide assisted reproduction services is a bar to such an award. In our
judgment, the substance of the charge against the first Respondent is quite
different and does not present itself as an obstacle to the making of a punitive
award. The offence for which the first Respondent was charged was that of
breaching the conditions of its licence by failing to “ensure that suitable
practices were used in carrying out [assisted reproduction] activities” (see
above at [9]). Thus framed, the charge would appear to be a simple regulatory
offence, and does not adequately capture the types of harm which were caused
to the Appellant.
208 That being said, we do not think that we are presently able to conclude
that this is a proper case for a punitive award. The facts are simply too scant to
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support a finding of outrageous conduct. The allegation in the SOC is that the
mix-up had taken place because more than one sample had been handled in the
laminar hood at the same time and because the disposable pipettes had not
been discarded promptly after each use (see above at [9]). However, even
accepting both of these allegations to be true, we are not satisfied that such
conduct crosses the requisite threshold. Bottrill is instructive in this regard.
When the matter first came before the High Court of New Zealand, the trial
judge had no trouble concluding that the defendant had been guilty of
professional negligence, but he was not prepared to say – just by looking at the
plaintiff’s case in isolation – that the defendant’s conduct had crossed the
threshold of outrageousness. This only changed after the results of the State-
ordered inquiry revealed an alarming rate of false positives and a persistent
pattern of incompetent performance on the part of the defendant. Likewise, we
cannot conclude – from this single instance of negligence alone – that the
Respondents’ conduct was of such a character as to be considered outrageous.
Conclusion
210 This has been a difficult case, possibly one of the most difficult to
come before this court thus far. However, not once have we wavered in our
conviction as to the truth of the following principle, which has already been
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emphasised right at the outset of this judgment: the life of every person
carries with it its own inestimable value and dignity and the worth of a
person can neither be enlarged nor its importance abridged by any
pronouncement of this court – nothing we have said should (or, indeed,
could) be taken as a reflection of this court’s view of the worth of Baby P.
That is not the issue before this court nor can it ever be. The question in this
appeal was the proper legal response to what is, by any account, a tragic set of
facts. In summary, we dismiss the appeal in so far as the issue of upkeep costs
is concerned. However, we recognise the Appellant’s right to claim, as general
damages, a sum in recompense of the injury which she has suffered to her
interest in “genetic affinity”. The quantum of this award should be assessed in
accordance with the principles we have set out above at [145]–[152]. Finally,
while we recognise that a claim for punitive damages may in principle be
mounted in respect of claims in negligence, such an award is not available in
this case.
211 On the issue of costs, we direct that that parties are to file written
submissions, which should be limited to 5 pages and are to be submitted
within two weeks of the date of this Judgment, as to the appropriate costs
orders to be made both here and below.
212 Finally, we would like to record our deep appreciation once again to
Prof Goh for the invaluable assistance he provided us – notwithstanding the
fact that we did not ultimately agree with all of his submissions. His masterly
integration of theory and practice exemplifies all that excellent legal
scholarship should be. We also commend Prof Goh for his excellent advocacy.
Indeed, this is not the first time that Prof Goh has been commended in the
highest terms for his assistance as amicus curiae (see, for example, the
Singapore High Court decision of Ang Jeanette v Public Prosecutor [2011]
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4 SLR 1 at [76] and the decision of this court in Re Nalpon Zero Geraldo
Mario [2013] 3 SLR 258 at [72] (where it was observed that “both
[Prof Goh’s] written and oral submissions were models of clarity and
conciseness”)).
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