Edition 09/2002

First Report of Negligence Review Panel Released

The July 2002 edition of the IEA Sport Monthly Update reported that Senator Helen Coonan had announced the establishment of a high level Panel chaired by the Honourable Justice David Ipp to review the Law of Negligence.  On 2nd September Senator Coonan released the first report of this review Panel, commenting that it contained a number of very significant proposals in regard to addressing the issue of restoring balance to the legal system.  She stated that they would be carefully considered by the Commonwealth and urged State and Territory Governments to do likewise.  This Update edition advises on the contents of this report. 

It is the Panel’s view that in order for law reform to be effective, reforms to personal injury law must provide a uniform scheme regardless of the legal category under which a claim is brought.  The Panel unqualifiedly supports the desirability of a national response to be incorporated in a single statute.  The law would need to be incorporated in each jurisdiction – the Commonwealth (where relevant) and each State and Territory.  The legislative scheme should apply (unless expressly provided to the contrary) to any claim for damages for personal injury or death resulting from negligence regardless of whether the claim is brought in tort, contract, equity, under statute (such as Trade Practices Act 1974, or State and Territory Fair Trading Acts) or any other cause of action.

Rather than adopt the approach of a general exemption for Not For Profit Organisations the Panel has preferred to address the need to strike a better balance between the various interests at stake.  Not for Profits vary considerably in size and scope, and the risks associated with them are no different to those presented by similar activities conducted on a commercial basis. 

Page   1

home

A change recommended by the Panel that will assist Not For Profit and community activities, as well as activities more broadly, is that the provider of a recreational service should not be liable for personal injury or death suffered from a voluntary participant in a recreational activity as a result of the materialisation of an obvious risk.  An obvious risk is one that, in the circumstances, would have been obvious to a reasonable person in the position of the participant, including matters of common knowledge.  The rationale for this approach is that people who participate in such activities do so voluntarily and for their own enjoyment.

In line with this basic principle that people should take responsibility for their own safety, the Panel has recommended that the law be amended so that a person cannot be held liable for a failure to warn of obvious risks.  The Panel’s recommendation would apply broadly and would have particular applicability to the liability of occupiers of land.  Currently, the failure of a land occupier to provide warnings of dangers may constitute negligence, even though the occupier could not reasonably be expected to remove the danger.       

As it becomes more difficult for plaintiffs to succeed in claims based on negligence, lawyers will inevitably search for alternative causes of action on which to base the same claim.  The Trade Practices Act and equivalent provisions in State and Territory law provide potential sources for claims for personal injury and death.  The Panel recommends that the Trade Practices Act should be amended to ensure that actions taken under the Act are not more attractive or available than actions under the general law of negligence.  These amendments relate to Part IVA (unconscionable conduct), Part V Div 1A (product safety and product information) and Part V Div 2A (liability of manufacturers and importers of goods).  To the extent that legislative changes are made to limit the potential use of the Trade Practices Act for claims for personal injury and death, similar changes should be made to State and Territory legislation containing similar provisions.

                                                  Continued ....