(e) "The trial judge misapplied the test of causation in finding that the appellant suffered from [PTSD] of significant intensity as a result of the robbery, but that such a condition did not lead to his use of heroin causing catastrophic injuries".
7 During the course of the appeal, Dr Morrison SC, who, together with Mr Conomos, appeared for the appellant, asserted that the second ground was based on the proposition that the appellant should have been trained how to react when unusual circumstances arise and, in particular, to recognise the risk involved in going to a room at the request of an unidentified caller.
8 The respondent filed a notice of contention to the effect that the trial judge should have found that the appellant was, in fact, an accomplice of the robbers and, further, that his Honour should have found that the appellant did not suffer from PTSD as a result of the robbery.
9 Dr Morrison submitted that at this stage it was only necessary for the Court to determine whether the trial judge had wrongly held that the respondent had not breached the duty of care that it owed to the appellant. This was the only issue canvassed in oral submissions.
10 The Capital Hotel was located at 111 Darlinghurst Rd, Kings Cross. It was described by witnesses as a multi-storey (15 level) accommodation hotel of modern design, in the heart of the Kings Cross area. Other business enterprises were also situated at that address, namely, a Korean bathhouse, a bottle shop, a licensed bar premises, a casino and a TAB.
11 The foyer of the accommodation hotel fronted on Darlinghurst Road. The liquor licence facilities were situated on either side of the foyer. The casino, bathhouse and TAB were part of the same building complex. There was no direct access, however, from any of these enterprises to any part of the hotel proper (that is, the accommodation area).
12 A door from the licensed facilities led to a rear set of fire stairs that were shared with the accommodation section of the hotel. The fire stairs were alarmed and monitored. The rear façade of the hotel complex overlooked Victoria Street. There was entry into the rear of the hotel through a guest car park but this was barred by a solid roller grill door. Three fire stair exit doors along the rear façade "were locked for egress only". The fire doors had strong door closers with no handles on the outside. They would be difficult to open from the outside, if closed. This configuration contributed to the security of the hotel.
13 The foyer of the hotel was large and open with the reception desk at the rear. The lift foyer was opposite the reception desk. All areas of the entry door to the hotel and the lift foyer were clearly visible from all points behind the reception desk. A flight of stairs ascended from the lift foyer but led only to the first floor offices of the hotel and the restaurant. These stairs did not give access to guest rooms or any other floors of the complex. This layout meant that anyone entering the hotel would have to pass the reception desk and would be visible to any person sitting there. This, too, was a security feature.
14 At about 2.20 am on 9 June 1998, when the appellant was sitting at the reception desk in the foyer, he received a call from room 312 on the third floor. The appellant knew that the third floor was undergoing maintenance and was entirely unoccupied. He also knew that, when guests were registered at the hotel, their names were entered in the hotel computer and if, thereafter, guests telephoned reception, their names and the rooms from which they were calling would be shown on the hotel reception's telephone screen. Thus, when the call was made to the appellant, he must have known that it was coming from a room that was vacant and not occupied by a registered guest. Nevertheless, the appellant, without demur, requested his co-night auditor, Mr Yoganathan, to go up to the room to check out the complaint about the lights.
15 Mr Yoganathan went up to the third floor and walked towards room 312. The door was open. He saw a masked face peeking around the corner. He attempted to get back into the lift but the masked man kicked him on the side of his head and he fell to the ground. The man kicked him again and taped his mouth and eyes, wrist, lower arms and ankles with adhesive tape. Mr Yoganathan was taken into the bathroom where he was punched and was told, "[t]hink about your family, we won't harm you. You have to help". Mr Yoganathan agreed, was dragged to the telephone, told to call "the other guy" and to ask him to come immediately to room 312 and turn all the lights off. This, Mr Yoganathan did. He was then dragged back into the bathroom. He heard a female swearing at him. She told him not to move. He was tied to a commode in the bathroom.
16 The appellant, in response to Mr Yoganathan's request, turned off the lights, thereby plunging the hotel foyer into darkness. He went up to room 312 and knocked on the door. The door opened and he saw a gloved hand waving him in. He entered. A man grabbed him, pushed him onto the bed and put his knee at the appellant's back. The man then pulled the appellant up and told him to come with him. The man, armed with a gun, marched the appellant towards the lift. They first went down to level 1 and then walked down the stairs to the ground floor and into the back of the reception area. There, the man ordered the appellant to turn off all alarms. This, the appellant did.
17 The man asked the appellant to give him all the money that was kept in the reception area. The only money in that area was the hotel float and the appellant handed this over.
18 The man asked the appellant to open the safety deposit boxes. The appellant replied that he did not have the keys, only the guests did. The man then selected a number of boxes and put them in a bag that he had with him. Some of the boxes were left scattered on the floor. Some of these were later found emptied, others were found still locked.
19 According to the appellant, the man then saw a safe in the rear of the reception area and instructed the appellant to open it. The safe had a combination lock and the appellant told the man that he did not know the combination. The man then ordered the appellant to take him "to your other safe". The appellant used his keys to open the door to the room in which the other safe was kept. When they entered the room, the man sprayed the video camera in the room with paint from a can. The "other" safe was of an unusual kind as the locking mechanism was not a combination or key lock system but had padlocks, described by Mr Jennings, the respondent's expert, as "hanging off the front of it". The man had with him a power cutting tool, a grinder, and he gave this to the appellant, ordering him to use it to cut the padlocks. This, the appellant did.
20 The safe contained a large number of envelopes containing cash. The appellant and the man put the envelopes in the bag in which the safety deposit boxes had been put.
21 The appellant and the man returned to room 312. The man told the appellant to lie down between the two beds in the room and that is where he was taped and assaulted as I have described.
22 About 40 minutes later Mr Yoganathan, who had been tied up in the bathroom of room 312, freed himself and untied the appellant. The police were called and it was discovered that about $80,000 had been stolen.
23 The trial judge accepted that "it was likely that the robbers had inside information about the hotel". That is to say, he found that the robbery was an "inside job," commenting in this regard:
"Of particular significance … is the fact that they had an angle grinder available to them for opening the clasps on the padlocks on the safe which, I am prepared to accept, was unusual. They knew that only two members of staff would be on duty when they made their first moves. It was necessary to cross the downstairs lobby area in order to gain access to the room where the safe was and accordingly, necessary to turn the reception lights off."