SHEEHAN AND PATERSON AS TRUSTEES OF THE MARIST TRUST AND COLE AND ROSE AS TRUSTEES OF THE WAITEMATA TRUST, TOGETHER TRADING AS OTAHUHU JOINT VENTURE PARTNERSHIP V WATSON AND ANOR HC AK CIV 2009-404-6079

SHEEHAN AND PATERSON AS TRUSTEES OF THE MARIST TRUST AND COLE AND ROSE AS TRUSTEES OF THE WAITEMATA TRUST, TOGETHER TRADING AS OTAHUHU JOINT VENTURE PARTNERSHIP V WATSON AND ANOR HC AK CIV 2009-404-6079

The Court held that either by purposive construction (reading 'lessee' to include the lessee's employees) or by reading qualifying words into s269 to avoid absurdity, the Property Law Act 2007 precludes recovery from the lessee's employees for fire damage to leased premises; alternatively, even if the statute did not so operate, it would not be arguable in law that the employees owed a duty of care because the statutory and contractual insurance and vicarious liability regime made imposition of a personal duty unfair, unjust and unreasonable, and the proceeding was struck out.

Citation
openlaw-7d43ce7d_de6f_42bc_a4ec_a61211dab3ec.pdf
Parties
Plaintiff (trustee): Michael Patrick Sheehan; Plaintiff (trustee): Rosemary Ainsley Paterson; Plaintiff (trustee): David William Cole; Plaintiff (trustee): Jonathan Rose; First Defendant: Trevor Watson; Second Defendant: Keith Robinson
Court
High Court
Jurisdiction
New Zealand
Judgment Date
23 December 2009
Procedural Posture
Civil Property Damage (lease, Insurance, Tort) / Pre Trial: Strike Out Application/decision
Outcome
Proceeding struck out; plaintiffs' claim dismissed
Legal Topics
Lessee Liability, Vicarious Liability, Statutory Exemption, Duty of Care, Privity, Subrogation
Property Law Tort Contract Law Insurance Law Statutory Interpretation Lessee Liability Vicarious Liability Statutory Exemption +3 more

Case Brief

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Parties

Michael Patrick Sheehan

Plaintiff (trustee)

Rosemary Ainsley Paterson

Plaintiff (trustee)

David William Cole

Plaintiff (trustee)

Jonathan Rose

Plaintiff (trustee)

Trevor Watson

First Defendant

Keith Robinson

Second Defendant

Procedural Posture

Civil Property Damage (lease, Insurance, Tort) / Pre Trial: Strike Out Application/decision

Legal Issues

  1. 1 Whether the Property Law Act 2007 or the lease prevents a lessor recovering damages from a lessee's employees for fire damage to leased premises
  2. 2 Whether the lessee's employees owed an independent duty of care in tort to the lessor

Ratio Decidendi

The Court held that either by purposive construction (reading 'lessee' to include the lessee's employees) or by reading qualifying words into s269 to avoid absurdity, the Property Law Act 2007 precludes recovery from the lessee's employees for fire damage to leased premises; alternatively, even if the statute did not so operate, it would not be arguable in law that the employees owed a duty of care because the statutory and contractual insurance and vicarious liability regime made imposition of a personal duty unfair, unjust and unreasonable, and the proceeding was struck out.

Court Disposition

Proceeding struck out; plaintiffs' claim dismissed

Orders

  • Proceeding struck out
  • Plaintiffs (OJVP) to pay defendants (Watson and Robinson) costs on category 2C scale plus disbursements