lecture 3 torts-negligence
TRANSCRIPT
Lecture 3 NEGLIGENCE AND THE CIVIL LIABILITY ACT
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DIVISION 3 Causation Step 3: Has the plaintiff suffered damage?
Harm caused
by breach
Was the breach a necessary
condition of the occurrence
of harm?
NO
Harm was not
caused by breach
YES
Is it appropriate for the scope
of the defendant’s liability
to extend to the harm?
NO
Harm was not
caused by breach
YES
Harm was caused
by breach
Source: James (2010: 172) amended by
Verity Greenwood, 2011 BUSL250 Sem 1, 2012
FACTUAL CAUSATION
Factual causation
X must establish that your careless act caused, either directly or indirectly, the harm suffered by X:
: Yates v Jones [1990] Aust Torts Rep 81-009
: March v Stramare Pty Ltd (1991) CLR 506 : Chappell v. Hart (1998) 195 CLR 232
It is not necessary that X establish that your carelessness was the sole cause of the harm. It is sufficient to show that the carelessness was a contributing cause along with other causes.
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Remoteness
The court considers whether, and to what extent, the defendant should be responsible for the consequences of their conduct.
It is a question of law and the test is whether a reasonable person could foresee such a happening.
— The Wagon Mound (No. 1) (1961) (see p. 187)
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Step 4 — Defences
What defences will D raise?
Two defences can be raised by a defendant and the burden of proof rests with them:
1. Voluntary assumption of risk
2. Contributory negligence
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DIVISION 4: Assumption of Risk
ss. 5F-5G
If in action for damages for breach of duty causing
harm, a defence of voluntary assumption of risk is
raised by the defendant and the risk is an obvious
risk, the plaintiff is taken to have been aware of the
risk unless the plaintiff proves, on the balance of
probabilities, that he or she was not aware of the risk.
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OTHER MATTERS TO BE CONSIDERED
Section 5F-5I : Assumption of risk
• Meaning of “obvious risk” (5F)
• No proactive duty to warn of obvious risk (5H)
: Mulligan v Coffs Harbour City Council [2005] HCA 63.
• Duty to warn of ‘material risks’ inherent : Rogers v Whittaker (1992) 175 CLR 479
• Plaintiff must have accepted the precise risk
: Rootes v Shelton (1967) 116 CLR 383
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• This Division applies only in respect of liability in negligence for harm to a person (the plaintiff) resulting from a recreational activity engaged in by the plaintiff
• This Division does not limit the operation of Division 4 in respect of a recreational activity
If the plaintiff suffers harm as a result of engaging in a dangerous recreational activity they are assumed to have been aware of the risk : Agar v Hyde [2000] HCA 41
DIVISION 5 : Recreational Activities
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Partial defence : Ingram v Britten [1994] Aust Torts Rep 81-291
Standard of care : Mc Hale v Watson (1966) 115 CLR 199
Plaintiff could be found completely responsible for their own loss or injury
Intoxication: presumption of contributory negligence : Insurance Commissioner v Joyce (1948) 77 CLR 39
: Norris v Blake (Unreported, NSWCA, 1996, BC9604688)
DIVISION 8: Contributory Negligence
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Damages
Yes Yes
Source: Gibson & Fraser, 2011:191
What will the
plaintiff recover?
Contributory
negligence
Where there are
no defences
Defendant's damages
reduced
Proportionately
(Under CLA up to 100%)
Total defence.
Plaintiff does not
recover anything
Plaintiff recovers
the full amount
Voluntary assumption
of risk
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Standard of care at common law
Standard of care under Civil Liability Act 2002
Peer Professional Standards
Peer Professional Opinion defence : Dobler v Kenneth Halverson & Ors [2007] NSWCA 335
DIVISION 6 : Professional Negligence
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Occupier’s liability
An occupier of premises owes a duty of care to all persons entering the premises to ensure that the premises are safe:
- Australian Safeway Stores Pty Ltd v Zaluzna (1987) 162 CLR 479
- Phillips v Daly [1989] Aust Torts Reports 80-234
- Consolidated Broken Hill Ltd v Edwards [2005] NSWCA 380
Do you also owe a duty of care to people who are on your premises without your permission?
- Hackshaw v Shaw (1984) 155 CLR 614
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Non-delegable duties
Non-delegable duties & strict liability
A non-delegable duty of care includes:
Employer – employee relationship
Landlord – tenant relationship
Hospital – patient relationship
Teacher – pupil relationship
The rule in Rylands v Fletcher
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Non-delegable duty of care:
- a duty of care that cannot be delegated or passed on to another person
Kondis v State Transport Authority (1984) 154 CLR 672
Burnie Port Authority v General Jones Pty Ltd (1994) ALJR 331
See also: Northern Sandblasting Pty Ltd v Harris (1997) and
Leichardt Municipal Council v Montgomery (2007)
DIVISION 7: Non-delegable duties
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DIVISION 7 : Vicarious Liability • A form of strict liability where one person is held liable for the
wrongdoing of another :
Century Insurance Co Ltd v Northern Ireland Road Transport Board [1942] AC 509)
• An employer who is vicariously liable may have an action against the negligent employee for breach of a term of their contract of employment: Lister v Romford Ice & Cold Storage (1957)
• Arises most frequently within the relationship of employer and employee Deatons Pty Ltd v Flew (1949) 79 CLR 370
• Employees versus independent contractors : control test
Stevens v Brodribb Sawmilling Co Pty Ltd (1986) 160 CLR 16
• Organisation (multi-facet) test :
Hollis v Vabu Pty Ltd [2001] HCA 44
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NEGLIGENT MISSTATEMENT In cases of pure economic loss the law has additional requirements:
1. To establish duty of care, reasonable foreseeability of harm to a plaintiff is not enough. A duty of care will not arise where it is not reasonable for the plaintiff to rely on the statement:
: San Sebastian Pty Ltd v The Minister Administering Environmental Planning and Assessment Act [1986] HCA 68 -
2. Plaintiff must prove existence of a “special relationship” between
the Defendant and the Plaintiff (proximity)
: Hedley Byrne & Co Ltd v Heller & Partners [1964] AC 465 : Rentokil Pty Ltd v Channon [1990] Aust Torts Reports 81-019 3. An inadequate response can amount to a negligent misrepresentation if it is relied upon by the plaintiff: Pyrenees Shire Council v Day (1998)
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DUTY OF CARE AND SPECIAL RELATIONSHIP
To establish that a “special relationship” exists there are two major requirements:
• Assumption of responsibility by defendant
: Shaddock & Associates Pty Ltd v Parramatta City Council [1981] HCA 59
• Reasonable reliance by plaintiff
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TEST FOR AUDITORS DUTY TO THIRD PARTIES
In order to establish a duty of care to third parties for statements made by auditors, the Plaintiff must prove that the Defendant knew or ought to have known (objective test) that the statement:
- would be communicated to a third party;
- would be used to induce the third party to act in
reliance on the advice and
- that if advice is incorrect, the third party risks suffering loss by relying on it when
making their decision
Esanda Finance Corporation Ltd v Peat Marwick Hungerfords [1997] HCA 8
AWA v Daniels t/a Deloitte Haskins & Sells (No 2) (1992) 10 ACLC 933
When seeking a remedy for negligent advice given in trade or commerce, the recipient of the advice can also rely on Australian Consumer Law
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Next week
Business
Related Torts
Reading: Chapter 10
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