KELLY v NARRANDERA SHIRE COUNCIL and ORS; GIO WORKERS COMPENSATION (NSW) LTD v MERCANTILE MUTUAL INSURANCE (AUSTRALIA) LTD [1998] NSWCA 121

KELLY v NARRANDERA SHIRE COUNCIL and ORS; GIO WORKERS COMPENSATION (NSW) LTD v MERCANTILE MUTUAL INSURANCE (AUSTRALIA) LTD [1998] NSWCA 121

The Council breached its duty to Mr Kelly by not fitting a lap seat belt; the failure was causative of his injuries, as evidence showed a seat belt would have prevented his ejection and paraplegia. Mr Kelly was contributorily negligent but not to the extent assessed at first instance. SRA and Bamford were not negligent, as the train was operated appropriately given circumstances, and those in charge could reasonably expect Mr Kelly to obey the stop sign and remain stopped. GIO is entitled to contribution from MMI as both policies covered the Council's liability.

Parties
Appellant/plaintiff: Desmond John Kelly; Respondent/first Defendant: Narrandera Shire Council; Respondent/second Defendant: State Rail Authority of New South Wales (SRA); Respondent/third Defendant: Leslie Bamford; Appellant/plaintiff: GIO Workers Compensation (NSW) Ltd; Respondent/defendant: Mercantile Mutual Insurance (Australia) Ltd
Jurisdiction
Australia
Judgment Date
16 December 1998
Procedural Posture
Appeals and Cross Appeals / Court of Appeal Judgment
Outcome
Appeal by Mr Kelly against Council allowed; appeal by SRA and Bamford allowed; appeal by GIO against MMI allowed.
Legal Topics
Employer's Duty of Care, Contributory Negligence, Safe System of Work, Double Insurance, Causation

Case Brief

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Parties

Desmond John Kelly

Appellant/plaintiff

Narrandera Shire Council

Respondent/first Defendant

State Rail Authority of New South Wales (SRA)

Respondent/second Defendant

Leslie Bamford

Respondent/third Defendant

GIO Workers Compensation (NSW) Ltd

Appellant/plaintiff

Mercantile Mutual Insurance (Australia) Ltd

Respondent/defendant

Procedural Posture

Appeals and Cross Appeals / Court of Appeal Judgment

  1. 1 Whether the Council breached its duty of care by failing to provide a seat belt and a safe system of work
  2. 2 Whether SRA and Bamford were negligent in the operation of the train
  3. 3 Causation: if a seat belt had been fitted, would Mr Kelly's injuries have been prevented

Ratio Decidendi

The Council breached its duty to Mr Kelly by not fitting a lap seat belt; the failure was causative of his injuries, as evidence showed a seat belt would have prevented his ejection and paraplegia. Mr Kelly was contributorily negligent but not to the extent assessed at first instance. SRA and Bamford were not negligent, as the train was operated appropriately given circumstances, and those in charge could reasonably expect Mr Kelly to obey the stop sign and remain stopped. GIO is entitled to contribution from MMI as both policies covered the Council's liability.

Court Disposition

Appeal by Mr Kelly against Council allowed; appeal by SRA and Bamford allowed; appeal by GIO against MMI allowed.

Orders

  • Judgment for Council set aside; Judgment for Mr Kelly on liability against Council; Damages to be assessed, reduced by 20% for contributory negligence; Remitted to Common Law Division for assessment.
  • Council to pay Mr Kelly's costs at first instance and appeal; Certificate under Suitors Fund Act if qualified.