Course Name The Law of TortsNegligence (CACL- Chapter 15) Welcome! TO T H I S L E S S O N LEARNING INTENTIONS Following this lesson you will understand: I - Tort Law, What it is? II - Difference between tort law and contract law/consumer law III - The Tort of Negligence This lesson examines the law of Torts. Tort is a Latin word meaning “twisted” or “wrong”. ■ Duty of care ■ Breach of the Duty of Care ■ Damages - Causation and Remoteness WELCOME! ■ Defences (CACL 15.10) Definition - Tort The “wrong” here is a civil wrong and it is a “wrong” because the courts or parliament – not the parties – has created a “right” that a defendant’s wrongful conduct has infringed. The person who has committed the tort or wrong shall compensate the person against whom the Tort - protects rights that exist outside any agreement tort/wrong has been committed. i.e. whose rights have ben infringed. (CACL 15.10) 3 Comparing Tort with Contract and Criminal Law Contract • Rights and duties derived Tort • rights are given to Criminal Law • a person found guilty will from voluntary individuals by law receive criminal sanction agreements between the (common law and (fine/imprisonment/some parties. statute) other penalty) • innocent party compensated by the party breaching the contract. (CACL 15.20) • innocent party • the victim will not receive compensated by the any compensation from person committing the the guilty person. wrong i.e infringing the rights 4 Comparing Tort with Contract and Criminal Law professional services assault /false (solicitor/accountant <> client - imprisonment/ CRIME (CACL 15.20) reasonable care TORT CONTRACT TORT 5 Examples of Torts false trespass to imprisonmen land/goods t TORTS defamation (CACL 15.40) negligence 6 Tort of Negligence: scope • The tort of negligence determines legal liability for careless actions or inactions that cause loss or damage. • Negligence - careless behaviour- conduct that falls below an acceptable standard. • standard - that applies to all of us • purpose - protect us from an unreasonable risk of harm • How to determine - unreasonable risk of harm? • through Rules- (devised by courts and parliaments) (CACL 15.40) 7 Tort of negligence • –Modifying common law principles (duty / breach / damage) • –Restricting plaintiff’s rights to recover in particular categories – eg. •STATUTE Effect -limit the scope (CACL 15.50) professionals / volunteers / public authorities • –Placing caps on general or non- of potential liability for economic damages and for loss of negligence by: future earnings 8 Negligence criteria Does the Defendant owe a duty of care towards the plaintiff ? If yes, has the Defendant breached that duty of care If yes, has the Plaintiff suffered damage? Are there any defences? 9 The law of Negligence was born Donoghue v. Stevenson - Read CACL 15.70 and see the video In its modern form the tort of negligence began on 28 August 1928 in a café in Paisley, Scotland. (CACL 15.70) 10 Establishing a duty of care – Donoghue v Stevenson Lord Atkin’s test limits a defendant’s duty of care to his/her ‘neighbour’ those who are - “so closely and directly affected by my act that I ought reasonably to have them in contemplation as being so affected when I am directing my mind to the acts or omissions which are called in question” Also known as reasonable foreseeability of harm test (CACL 15.70) 11 Negligence criteria Does the Defendant owe a duty of care towards the plaintiff ? If yes, has the Defendant breached that duty of care If yes, has the Plaintiff suffered damage? Are there any defences? (CACL Fig 15.2) 12 Establishing a duty of care -courts -limit the scope of duty where damage is other than physical damage and scope •REASONABLE FORSEEABILITY of breach - may have wide scopeindeterminate liability (time, losses, people affected) •STATUTE -limit plaintiff's right to recover damages in certain situations volunteers, (professionals, public authorities) (CACL 15.50) 13 First Australian case to apply neigbour principle •Grant v Australian Knitting Mills Grant purchased a pair of woolen underwear from a retailer and Facts developed a severe case of dermatitis and spent over 17 weeks in hospital. This was caused by an excess of sulphites in the underwear. Grant sued the manufacturer. Issue Did the manufacturer owe a duty of care? Decision Yes (CACL (CACL 15.90) 3 14 Establishing a duty of care REASONABLE FORSEEABILITY ESTABLISHED CATEGORIES - necessary but may exposed defendants to indeterminate liability NOVEL CATEGORIES (CACL 15.100) 15 Duty of Care (Established categories) Most (90%) negligence manufacturers actions are based upon motorists occupier of premises an established duty of care - courts apply precedent to determine reasonable forseeability: see the recognised relationships employer- employee (CACL 15.100) Banks and Financial Insts local council 16 ESTABLISHED CATEGORIES Most (90%) negligence actions are based upon an established duty of architect engineer accountant care - courts apply precedent to determine reasonable forseeability: see the recognised relationships doctor health-therapist lawyer Examine separately the duty of care owed in professional relationships - NEXT LECTURE (CACL 15.100) 17 Duty of Care (Novel categories) •Tame v New South Wales Mrs Tame - car accident - police officer incorrectly reported blood Facts alcohol reading (0.14) - Mrs Tame my reputation in the community tarnished - psychotic depressive illness sued police in negligence. Issue Did the police owe Mrs Tame a duty? Decision no duty of care owed •a matter of fact and Reason •a reflection of community values ((CACL 15.130) 3 18 Duty of Care (Novel categories) •Osborne Park Commercial Pty Ltd v Miloradovic Facts Issue Plaintiff was on his way to collect his purchased goods from HARVEY NORMAN pick up point. Plaintiff crushed between his car and truck in the access way HARVEY NORMAN which was adjacent to the pick up point. Did HARVEY NORMAN owe a duty of care to the plaintiff. • a mere foreseeability of harm is insufficient to determine duty of care where injury is inflicted by third person. Decision • additional factors need to be looked into - physical and commercial proximity Yes - duty of care owed Reason HARVEY NORMAN- familiarity with access to bay; reliance by customers of a safe place to collect goods; control over the manner and circumstances of the collection (CACL 15.150) 3 19 1. Duty of Care ( acts causing physical or property loss) Generally not difficult to establish a duty of care where an act causes direct physical loss or damage Australian Safeway v Zaluzna CACL - 15.180 (CACL 15.180-200) Modbury v Anzil CACL - 15.200 3 20 2. Duty of Care ( acts causing mental harm) Common Law - reluctant to recognize pure psychiatric injury (independent of physical injury) as a loss that gives rise to a duty of care. Chester v Waverly City Council CACL – Foot Note 13 , pg 365 (CACL 15.40) (CACL 15.130) Annetts v Australian Stations CACL - 15.220 3 21 3. Duty of Care and liability for omissions See general principle – no duty to act except where there is a positive duty to act – parent/child, life saver/swimmer, teacher or school authority/student, occupier/visitor Rogers v Whitaker CACL 15.250 (CACL 15.130) CAL No. 14 v Motor Accidents Board CACL 15.270 3 22 4. Negligent acts causing pure economic loss (CACL 5. Negligent statements causing pure economic loss (CACL (CACL 15.40) (CACL 15.130) focus later in this topic 3 23 Negligence criteria Does the Defendant owe a duty of care towards the plaintiff ? If yes, has the Defendant breached that duty of care If yes, has the Plaintiff suffered damage? Are there any defences? 24 Step 2:Breach of the duty of care Section 48(1) A person is not negligent in failing to take precautions against a risk of harm unless: •The common law answer involved a two-step test: •Would a reasonable person in the defendant’s position have foreseen that their acts (or omissions) posed a risk of harm to the plaintiff?; and •Was the defendant’s response to the risk reasonable? Applying the “negligence calculus (laid down in the case of Wyong Shire Council v Shirt (also known as Wyong factors”) (a) The risk of injury was foreseeable (that is, it is a risk of which the person knew or ought to have known); and (b) The risk was not insignificant; and (c) In the circumstances, a reasonable person in the person’s position would have taken those precautions 2.Section 48(2) – “the negligence calculus” – In determining whether a reasonable person would have taken precautions against a risk of harm the court is to consider, inter alia, the following: (a) The probability that the harm would occur (b) The likely seriousness of the harm (c) The burden of taking precautions (cost and inconvenience) to avoid the harm (d) The social utility of the activity that caused the harm (CACL 15.500; Fig 15.5 ) 25 Step 2:Breach of the duty of care Section 48(1) So reasonableness is assessed against what a reasonable person in D’s position would have done in the same circumstances: • Not what the reasonable person, blessed with hindsight, could have been done (don’t examine a 2010 accident with 2021 spectacles) • What a “perfect” person would have done • Objective test – but certain characteristics or circumstances must be taken into account, including the skills/knowledge of the defendant. • E.g., Specialists have to act like reasonable specialists •If D is a brain surgeon, she must have acted as a reasonable brain surgeon not an ordinary doctor. •A tax adviser must act as a reasonable tax adviser not an ordinary lawyer • Young children are expected to exercise only the standard of care of a child of the same age and experience • Individual characteristics generally irrelevant – inexperience, ineptitude, impairment (CACL 15.530) 26 Step 2:Breach of the duty of care • Risk was reasonable foreseen • But risk was not insignificant • What would other ordinarily skilled intensive care paramedic would have done? Whitton v Dexus Funds CACL 15.540 Queensland v Masson CACL 15.510 (CACL 15.510; 15:540) 27 Step 2:Breach of the duty of care •If the risk was foreseeable (s 48(1)(a)) and was not insignificant (s 48(1)(b)) (slide 25) we then go to the second limb and answer the overarching question: would a person in D’s position have taken the precautions suggested by P? •Second limb: The reasonableness of the response: s 48(2).[note - Statute adopts the common law (Wyong) approach balancing the following four factors (a) The probability that the harm would occur (b) The likely seriousness of the harm (c) The burden of taking precautions (cost and inconvenience) to avoid the harm (d) The social utility of the activity that caused the harm (CACL 15.40) 28 Step 2:Breach of the duty of care Second limb: The reasonableness of the response (a) The probability of the occurrence of risk or injury When a risk is small, a reasonable person can ignore it. What a reasonable person must not do is create a risk that is substantial. Consider probability of conduct as well as probability of harm/injury. RTA NSW v Dederer (CACL 15.590-600) CACL 15.600 Bolton v Stone CACL 15.590 29 Step 2:Breach of the duty of care Second limb: The reasonableness of the response (b) The gravity/seriousness of the harm if an injury occurs The more serious the risk the greater need for a reasonable person to take precautions. This has particular relevance where: (i) the activity is dangerous, or (ii) P has a particular vulnerability. [Note again, time for assessing the risk is the time of the incident, not the time of the trial (especially in medical cases) Rogers v Whitaker CACL 15.250 (CACL 15.250; 630) Paris v Stepney Borough Council CACL 15.630 30 Step 2:Breach of the duty of care Second limb: The reasonableness of the response (c) The burden of eliminating the risk (expense and inconvenience) Need to balance risk and the measures necessary to eliminate the risk. The presence or absence of practical precautions available to D is a significant factor. P must prove precautions were available and, in failing to take such precautions, D failed to act reasonably. Graham Barclay Oysters v Ryan CACL 15.650 (CACL 15.650- 660) Woods v Multi-Sport Holding Pty Ltd CACL 15.660 31 Step 2:Breach of the duty of care Second limb: The reasonableness of the response (d) The social utility of the defendant's conduct Where the social utility of an activity is sufficiently high - a reasonable person would not have taken precautions against the identified risk of harm (e.g. rescuing people from impact of floods, cyclones, etc.) Watt v Hertfordshire CACL 15.690 (CACL 15.40) 32 Negligence criteria Does the Defendant owe a duty of care towards the plaintiff ? If yes, has the Defendant breached that duty of care If yes, has the Plaintiff suffered damage? Are there any defences? 33 Step 3: Damage – causation and remoteness •Common law requirements a. Causation - The defendant’s negligence must cause (or materially contribute to) the damage suffered by the plaintiff [P must prove that ‘but for’ the breach, the loss or damage would not have occurred]. and b. Remoteness - The damage must not be too remote from the defendant’s conduct – i.e. it must be reasonably foreseeable. (CACL 15.750 - 15.840) ) 34 Step 3: Damage – a) causation b) remoteness •Statutory requirements • The statute requires that two questions (previously address at common law) should be kept separate: i. how did the harm occur; and ii. whether legal responsibility should be attributed to the defendant •Section 51 General principles (1) A determination that negligence caused particular harm comprises the following elements: • (a) that the negligence was a necessary condition of occurrence of the harm (“factual causation”); and • (b) that it is appropriate for the scope of the defendant’s liability to extend to the harm so caused (“scope of liability”). (CACL 15.760) 35 Step 3: Damage – a) causation Section 51 General principles (1) A determination that negligence caused particular harm comprises the following elements: (a) that the negligence was a necessary condition of occurrence of the harm (“factual causation”) [restatement of the common law ‘but for’ test of causation] •Factual Causation: not generally an issue where P suffers physical injury. However two situations prove difficult: 1. Omissions 2. Failure to warn (medical cases) (CACL 15.7600) 36 Step 3: Damage – a) causation 1. Omissions- there is difficulty in determining whether D’s negligence was the cause of injury where D failed to act. The court has to determine what would have occurred if D had acted 2. Failure to warn (medical cases) Nouri v ACT CACL 15.830 Kazarov v State of Vic CACL 15.810 Read only if interested- not examinable Strong v Woolworths CACL 15.770 Chappel v Hart 15.790 (CACL 15.760 -830) 37 Step 3: Damage – b) remoteness •Section 51 General principles (1) A determination that negligence caused particular harm comprises the following elements: (a) ……. (b) that it is appropriate for the scope of the liability to extend to the harm so caused (“scope of liability”). (4) For the purposes of deciding the scope of the liability, the court is to consider…whether or not and why responsibility for the harm should be imposed on the party who was in breach of the duty (CACL 15.40) 38 Step 3: Damage – b) Remoteness • It is only necessary that the kind of injury be reasonably foreseeable: • not the precise nature or extent • Once the damage is reasonably foreseeable the extent of the damage that actually results is irrelevant Mt Isa Mines v Pusey (not in Overseas Tankship v Mort (15.850 -860 Wagon Mound No. 1 &2) (CACL 15.840-870) Read onlyCACL) if interested- not examinable 39 Negligence criteria Does the Defendant owe a duty of care towards the plaintiff ? If yes, has the Defendant breached that duty of care If yes, has the Plaintiff suffered damage? Are there any defences? 40 Step 4: Defences to negligence claims 4.1 contributory negligence • P failed to take reasonable care for their own safety • Damages that are assessed will be reduced to reflect the plaintiff’s own Wrongs Act s 26 contribution to the damage March v Stramere(15.900) Alzawy v Coptic Orthodox Church (15.910) (CACL 15.890-910) 41 Step 4: Defences to negligence claims 4.2 voluntary non fit injuria • Plaintiff fully aware of the risk & • freely accepted. • Note: NO Damages (CACL 15.930) 42 Summary In this lesson we examined I - Tort Law, What it is? Does the Defendant owe a duty of care towards the plaintiff ? II - Difference between tort law and contract law/consumer law III - The Tort of Negligence ■ Duty of care ■ Established Categories ■ Novel Categories If yes, has the Defendant breached that duty of care ■ Breach of the Duty of Care ■ The risk was foreseeable ■ The risk was Not insignificant ■ Reasonableness of the response (Wyong factors) If yes, has the Plaintiff suffered damage? • probability of risk • Gravity/seriousness of the harm • burden of eliminating the risk • social utility of the defendant's conduct ■ Damages Are there any defences? • Causation • Remoteness ■ Defences • Contributory Negligence and Voluntary Assumption of risk 43