First Report of Negligence Review Panel Released ....

The Trade Practices Amendment (Liability for Recreational Services) Bill 2002 has been introduced into parliament by the Federal Government to amend the Trade Practices Act to allow consumers to ‘waive’ implied warranties under the Act in a contract for the supply of a recreational service.  The Panel considers that the amendments contained in the Bill are necessary to enable waivers to be effective and compliments their recommendations with respect to recreational services and warnings.

The array of different limitation regimes in Australia leads to confusion, litigious disputes and materially influences the nature and cause of action relied upon, occasionally leading to forum shopping.  The Panel has recommended that the limitation period for actions be three years from the date when the plaintiff knew, or ought to have known that personal injury or death has occurred, and was attributable to negligent conduct of the defendant and was sufficiently significant to warrant bringing proceedings. With respect to minors, the Panel recommends that except in very limited cases (for example, when a minor is not under the care of a parent or guardian) the standard limitation period would apply.

This report is the first of two to be produced by the Review.  In its second report, due on 30^th September, the Panel will develop principled options for limiting liability and the quantum of awards for damages as well as evaluating proposals to allow self-assumption of risk to override the common law.

Senator Coonan stated that the changes being proposed are not taking away people’s rights or reducing consumer protection, but are about reforming a system that has become unaffordable.  There needs to be a balance between the interests of those who are injured with those of the community at large.  “The goal should be a system that imposes a reasonable burden of responsibility on individuals to take care of others and to take care of themselves”, she said.

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I feel these recommendations will generally be considered appropriate and reasonable.  Their implementation will have a positive effect on reducing the likelihood of successful legal actions and that will ultimately assist in obtaining sustainable liability insurance premiums – but it is our opinion that these actions will take time to influence underwriting selection and premium levels. 

Future IEA Sport Monthly Updates will address the recommendations of the second report of the Review Panel.            

Reference: Press release – The Assistant Treasurer – Minister Welcomes First Negligence Review Report

Note that the full report can be obtained from the Panel’s web-site at http://www.revofneg.treasury.gov.au

Written by Rod Hughes, CEO, IEA Brokers Pty Ltd, September 2002

The editor of the IEA Sport Monthly Update is  joint Chief  Executive Officer, Rod Hughes.

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