LAW 114 Legal Research challenge

Annette Goodwin

Learning outcomes we are working towards:

  • be able to demonstrate a broad understanding of the role of tort law and the principles governing tortious remedies
  • be able to demonstrate an understanding of the elements of tortious liability, including the rules pertaining to the recovery of damages
  • be able to explain the purpose of the Civil Liability Act 2002 (NSW) and its relationship to the common law
  • be able to explain how tort law, including the relevant defences, has been developed and modified through statutory processes in Australia
  • be able to explain the law pertaining to compensation schemes within the NSW legal system
  • be able to plan and apply effective strategies in legal research of tort law based scenarios
  • be able to present clear coherent arguments based on leading tort law precedents

Comments - Learning objectives

2 Scenarios that:

  1. Requires them to look up leading cases on tort of negligent infliction of pure economic loss
  2. Tortious scenario that requires the student to locate the most recent gazetted amount of damages provisions

Scenario 1

Ferris is a young venture capitalist. One evening, whilst at a party, Ferris has a conversation with Rodney Adle, a trader on the share market. Rodney tells Ferris that if he wants to make a good return on his investments, then the share market is the way to go. He says:

“In fact, take my advice, to make big bucks fast you need to put $100,000 in Sureto Sink Pty Limited- a labour outsource company that is taking the business world by storm.”

Ferris does not realise that Rodney has had a few martinis when he makes this statement. The next day, Ferris mortgages all he has and loans the $100,000. He buys shares in Sureto Sink Pty limited at $13.90 a share.

Three weeks later, Ferris is horrified to see Sureto Sink Pty Limited in the national papers being prosecuted for labour exploitation. Apparently, the company has been using illegal immigrants to provide labour and not paying their workers award rates.

The shares plummet to $0.10. The company looks like it will fold.

Ferris instructs your firm to advise him. He wants to know if he can sue Rodney Adle for negligent misstatement.

You are required to consider:

  1. Does the CLA apply? (Consideration of section 3B).
  2. Identify the elements of the tort, without your texts. What resources can you utilize to achieve this?
  3. Find the most authoritative cases on the element of reliance in Australia.

Scenario 2

Freya Fabulous is a well- known music artist and personality. Freya is known for her outlandish costumes and big hair. She always wears sunglasses that are heavily tinted. She is invited to attend Duramble Shopping Centre (a large inner city shopping complex) to promote her latest album – “Just Awful”. Duramble shopping Centre is owned and managed by Westpaddock Pty Limited. Upon walking into the centre, she slips in some vomit that was left by a child after too many Wendy’s sundaes.

It would seem that Westpaddocks did not have an adequate system of inspection or maintenance of the common area of the shopping where Freya fell as the vomit had been there for some time.

Freya is badly injured. She sustains a broken left leg, a rupture to the c5 of the spine and shock. She is unable to return to recording or promotional work for a period of at least 18 months.

You can assume the defendant shopping centre occupier/manager, Westpaddock Pty Limited, has admitted liability and agree they are liable to pay damages. They want this done quickly and quietly as their reputation is being damaged. The only issues in contention are:

a)How much each head of damage is worth

b)Whether the damages should be reduced by a percentage of contributory negligence given Freya’s choice of footwear.

The matter is due to be mediated out of court.

The managing partner of your firm (who acts for the insurer of Westpaddocks) wants you to produce a legal memorandum that answers the following issues:

1. Does the CLA apply to this action?

2. Identify potential heads of damage Freya may claim and link these to the appropriate sections of the Act that will be relevant to each.

3. What rules govern the maximum she can claim for general damages? If we assume her injuries equate to 40% of worst case scenario, how do we work out what the maximum is that she can claim? (Give consideration of sections 16 and 17, and location of figure for annual indexation).

4. What is the legal standard for contributory negligence in a case like this? Find me an authority.

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