Broad v Parish [1941] HCA 25

Broad v Parish [1941] HCA 25

The hiring of a motor car under a hire-purchase agreement is a use 'permitted' by the owner within sec. 63(1) Traffic Act 1925 (Tas.), thus the owner (Perpetual Insurance and Securities Ltd.) is liable for damages resulting from breach of statutory duty where the vehicle was used without proper insurance and caused injury. The High Court reversed the Supreme Court of Tasmania’s decision and ordered judgment for the appellant against Perpetual Insurance and Securities Ltd. Contributory negligence by the deceased was not established from the evidence.

Parties
Appellant; Plaintiff: Kathleen Isabel Broad; Respondent; Defendant: Maxwell James Parish; Respondent; Defendant: Perpetual Insurance and Securities Ltd.; Respondent; Defendant: C.V. Crawford; Respondent; Defendant: City Motors (1933) Pty Ltd.
Jurisdiction
Australia
Procedural Posture
Appeal / Appeal From the Supreme Court of Tasmania; High Court Judgment
Outcome
appeal allowed; cross-appeal dismissed
Legal Topics
Compulsory Motor Vehicle Insurance, Statutory Duty Under Traffic Act 1925 (tas.), Negligence, Hire Purchase Agreements, Contributory Negligence
Insurance Law Motor Vehicle Law Tort Law Compulsory Motor Vehicle Insurance Statutory Duty Under Traffic Act 1925 (tas.) Negligence Hire Purchase Agreements Contributory Negligence

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Parties

Kathleen Isabel Broad

Appellant; Plaintiff

Maxwell James Parish

Respondent; Defendant

Perpetual Insurance and Securities Ltd.

Respondent; Defendant

C.V. Crawford

Respondent; Defendant

City Motors (1933) Pty Ltd.

Respondent; Defendant

Procedural Posture

Appeal / Appeal From the Supreme Court of Tasmania; High Court Judgment

Legal Issues

  1. 1 Whether a hire-purchase agreement constitutes 'permission' under sec. 63(1) Traffic Act 1925 (Tas.) so as to make the owner liable for lack of insurance when the hirer causes injury
  2. 2 Whether the owner (Perpetual Insurance and Securities Ltd.) is liable to a third party for damages due to breach of statutory duty under sec. 63(1) when hirer causes an accident without proper insurance
  3. 3 Interpretation of 'owner' and 'agent' under sec. 63(2) of the Traffic Act 1925 (Tas.)

Ratio Decidendi

The hiring of a motor car under a hire-purchase agreement is a use 'permitted' by the owner within sec. 63(1) Traffic Act 1925 (Tas.), thus the owner (Perpetual Insurance and Securities Ltd.) is liable for damages resulting from breach of statutory duty where the vehicle was used without proper insurance and caused injury. The High Court reversed the Supreme Court of Tasmania’s decision and ordered judgment for the appellant against Perpetual Insurance and Securities Ltd. Contributory negligence by the deceased was not established from the evidence.

Court Disposition

appeal allowed; cross-appeal dismissed

Orders

  • Judgment in favour of Perpetual Insurance and Securities Ltd. set aside.
  • Appellant to recover £1,400 against Perpetual Insurance and Securities Ltd. to extent not recovered from Parish, apportioned: Kathleen Broad £750, John Henry Broad £30, Bertie Edward Broad £100, Gladys Emily Broad £250, Daryell Lance Broad £270.