Bayon v Bayon
[2014] NSWCA 434
At a glance
Source factsCourt
Court of Appeal (NSW)
Decision date
2014-11-20
Before
Basten JA, Meagher JA, Adamson J
Catchwords
- 160 CLR 513 Allianz Australia Insurance Ltd v GSF Australia Pty Ltd [2005] HCA 26
- 221 CLR 568 Barnes v Hay (1988) 12 NSWLR 337 March v Stramare (E&MH) Pty Ltd [1991] HCA 12
- 13 ANZ Ins Cas ¶61-643 Leach v The Nominal Defendant (QBE Insurance Australia) Ltd [2014] NSWCA 257
- 67 MVR 494 Nominal Defendant v GLG Australia Pty Ltd [2006] HCA 11
Source
Original judgment source is linked above.
Catchwords
Judgment (13 paragraphs)
Judgment 1BASTEN JA: As more fully explained by Adamson J, this matter involves a claim for damages by a person shot in the head by a friend operating a rifle during night time spotlighting from the back of a vehicle. The driver of the vehicle was the plaintiff's father: the claim was run on the basis that the respondent, as the third party compulsory insurer of the vehicle, would be liable for any damages to which the plaintiff was entitled. 2The plaintiff's claim was dismissed by the trial judge, Curtis DCJ, on the basis that the injury was not caused by any fault of the driver to which the statutory policy established by s 10 of the Motor Accidents Compensation Act 1999 (NSW) responded. As senior counsel for the insurer put it in colloquial terms, the injury was a result of a shooting accident, not a motor vehicle accident. 3While I agree with Adamson J that the appeal must be dismissed, some observations may be in order with respect to the legal basis upon which the case proceeded, both at trial and in this Court. On one view, the parties took on a somewhat artificial, if not idiosyncratic, view of the law. It is generally inappropriate for this Court to decide cases on the basis of legal principles which do not accord with its view of the law: cf Sahade v The Owners - Strata Plan 62022 [2014] NSWCA 208 at [8]-[9] and [93]-[94]. 4The liability of the insurer depended upon an application of s 10 of the Motor Accidents Compensation Act. That provision relevantly reads: 10 Third-party policies (1) A third-party policy under this Act is a policy that is in the following terms: Third-party Policy The insurer insures the owner of the motor vehicle and any other person who at any time drives the vehicle (whether or not with the consent of the owner) against liability in respect of the death of or injury to a person caused by the fault of the owner or driver of the vehicle: (a) if the motor vehicle is not one to which paragraph (b) applies - in the use or operation of the vehicle in any part of the Commonwealth (whether or not on a road), or ... In this policy, words and expressions have the same meanings as in the Motor Accidents Compensation Act 1999. (2) .... 5Relevantly for present purposes, there are two words or expressions used in the "policy" which have defined meanings under the Act, as defined in s 3. They are: 3 Definitions In this Act: ... fault means negligence or any other tort. ... injury means personal or bodily injury ... 6It was not in dispute that the statutory policy was subject to the general restrictions imposed by s 3A, which (without reference to the notes contained within the section) presently reads as follows: 3A General restrictions on application of Act (1) This Act (including any third-party policy under this Act) applies only in respect of the death of or injury to a person that is caused by the fault of the owner or driver of a motor vehicle in the use or operation of the vehicle and only if the death or injury is a result of and is caused (whether or not as a result of a defect in the vehicle) during: (a) the driving of the vehicle, or (b) a collision, or action taken to avoid a collision, with the vehicle, or (c) the vehicle's running out of control, or (d) a dangerous situation caused by the driving of the vehicle, a collision or action taken to avoid a collision with the vehicle, or the vehicle's running out of control. ... (2) This Act (including any third-party policy under this Act) does not apply in respect of an injury that arises gradually from a series of incidents. 7Subparagraph (1)(d) was not part of the section when the accident in which the plaintiff was injured occurred, on the evening of 8 August 2009. That paragraph was introduced by the Motor Accidents Compensation Amendment Act 2010 (NSW), Sch 1[3]. A similar amendment was made to the definition of "motor accident" in s 3, although that term does not appear in s 3A or s 10. (The term is used in the note to s 3A, and also in s 3B which deals with the application of Chs 3-6 in respect of death or injury resulting from the use or operation of a motor vehicle.) The 2010 amendments to ss 3 and 3A are said to "extend to an incident or accident that occurred on or after 1 October 2006, but not so as to affect any compromise or settlement of a claim, or any decision made by a court, before the date of assent to the amending Act": Sch 5, Pt 9, cl 38. It was assumed (and may be accepted for present purposes) that the amendment to s 3A retrospectively broadened the scope of the Act and any third party policy in existence at the time of this accident, namely 8 August 2009. 8A critical element in establishing liability on the part of the insurer was establishing "fault" on the part of the owner or driver of the motor vehicle. The pleading, relevantly for present purposes, alleged negligence on the part of the owner and driver. Accordingly, to establish the liability of the insurer the plaintiff had to establish that his injury was caused by the negligence of the owner and driver of the vehicle. (There are additional constraints, namely that the fault occur "in the use or operation of the vehicle" and that the injury be "a result of and ... caused ... during ... the driving of the vehicle": consideration of the second element may be deferred, the third element raises a temporal limitation.) In dealing with a claim for damages for harm resulting from negligence, including with respect to motor accidents, Pt 1A, Divs 1-4 and 8 of the Civil Liability Act 2002 (NSW) apply: s 3B(2) and s 5A. Assuming that there was a duty of care owed by the driver to another person in the vehicle which extended to the use of the firearm, any question of breach must therefore be determined in accordance with s 5B (in Div 2) and questions of causation by reference to ss 5D and 5E (Div 3) of the Civil Liability Act. 9The trial judge dealt with the case on the basis that the injury was not "a result of" either (a) - the driving of the vehicle - or (d) - a dangerous situation caused by the driving of the vehicle- being the only potentially relevant paragraphs in s 3A(1). He therefore deemed it unnecessary to identify the fault of the owner or driver. It was sufficient to conclude that the only fault on the part of the driver pleaded by the plaintiff "that may relate to the driving of the insured vehicle is the act of positioning the cab of the vehicle between the shooters and the rabbits": at [41] (emphasis in original). The judge then identified the relevant standard to be applied by a number of steps. 10First, he rejected the "but for" test, preferring a "functional evaluation of the relationship and the purposes and policy of the relevant part of the law" in accordance with the reasons of Mahoney JA in Barnes v Hay (1988) 12 NSWLR 337 at 353, referred to by the trial judge at [44]. (That case involved a claim for damages against a solicitor with respect to advice given on the renewal of a lease.) 11The second step in the reasoning referred to a passage in the joint reasons of Gummow, Hayne and Heydon JJ in Allianz Australia Insurance Ltd v GSF Australia Pty Ltd [2005] HCA 26; 221 CLR 568 at [102] where the Court was considering the definition of "injury" inserted in the Motor Accidents Act 1988 (NSW) (the predecessor to the present Act) by the Motor Accidents Amendment Act 1995 (NSW) ("the 1995 Act"). As amended, s 3(1) read: "injury: (a) means personal or bodily injury caused by the fault of the owner or driver of a motor vehicle in the use or operation of the vehicle if, and only if, the injury is a result of and is caused during: (i) the driving of the vehicle or ..." 12Noting that the purpose of the 1995 Act was to restrict the scope of compulsory third party insurance legislation, the joint reasons stated at [102]: "The use in the definition of the emphatic and intensive phrase 'if, and only if' directs attention to notions of predominance and immediacy rather than to more removed circumstances. The definition of 'injury' looks, for the CTP insurance system, to notions of proximate cause found in insurance law. That construction is consistent with the subject, scope and purpose of the 1995 Act." 13The reason to look to insurance law to understand the statutory provision was explained in a footnote by reference to Australian Casualty Co Ltd v Federico [1986] HCA 32; 160 CLR 513 at 534-535 and March v Stramare (E&MH) Pty Ltd [1991] HCA 12; 171 CLR 506 at 511. Australian Casualty was a case involving a claim under a sickness and accident policy which was not confined to claims in tort. In considering the scope of an entitlement based on an injury "caused by an accident" Brennan J stated that "[t]he rule in applying contracts of insurance is that the proximate cause of loss is alone regarded, ... [b]ut where an accident is a remote cause of a loss, the loss may nevertheless be regarded as caused by the accident". The passage referred to in March v Stramare was a discussion in the judgment of Mason CJ to the constraints imposed on causation in relation to the common law defence of contributory negligence. 14The third step in the reasoning of the trial judge was to pick up an expression used in Lasermax Engineering Pty Ltd v QBE Insurance (Australia) Ltd [2005] NSWCA 66; 13 ANZ Ins Cas ¶61-643 at [5] where Ipp JA, summarising a decision of the Full Court of the Supreme Court of Western Australia dealing with the meaning of "directly caused" in a policy of insurance, stated that "[a] proximate cause is not the first, or the last or the sole cause of the loss; it is the effective or dominant or operative cause." The trial judge then asked, and answered in the negative, the question whether the positioning of the vehicle was "a dominant cause" of the plaintiff's injury. 15Although neither party challenged this approach, it should not be adopted or applied in the future. If there is any principle which is uncontestable, it is that statutory interpretation must proceed by reference to the text of the statute to be applied. That is not to say that words are to be extracted and viewed in isolation, nor that the context or, where relevant, the legislative history and the history of amendments to the legislation should be disregarded. However, the operation of a current statute is not to be determined primarily by reference to statements in case law relating to the different language of other legislation, let alone insurance policies. 16The proper construction of s 3A is by no means straightforward. The task has been rendered unnecessarily complex by the drafting device (at least where par (d) is engaged) of three consecutive uses of the expression "is caused by". Further, whilst no doubt s 3A applies to the statutory form of the policy in s 10, it applies generally to motor accident injuries as dealt with in Chs 3-6. These provisions regulate claims made under the common law but do not create some special statutory scheme of liability outside the general law of negligence. Dealing with causation differently with respect to a claim for third party insurance and in determining the common law liability of the driver or owner of the vehicle is a recipe for incoherence. Furthermore, the language construed in Allianz is no longer to be found in the definition of "injury" nor, since its removal to s 3A, is the phrase "if and only if" used at all. 17The question of causation in determining fault (at least in the most common case of negligence) is to be addressed by reference to s 5D of the Civil Liability Act. That section adopts a "but for" test of "factual causation" and seeks to separate out any normative requirements that were thought to be concealed within a formula such as "the proximate cause": March v Stramare at 510 (Mason CJ). The proceedings in Allianz predated the commencement of Pt 1A of the Civil Liability Act, which therefore did not apply: Civil Liability Act, Sch 1, Pt 3, cl 6(1) (the relevant commencement date being 6 December 2002). In the subsequent case of Nominal Defendant v GLG Australia Pty Ltd [2006] HCA 11; 228 CLR 529, which applied the reasoning in Allianz, the proceedings were also commenced before the commencement of the Civil Liability Act, Pt 1A: see GLG Australia Pty Ltd v The Nominal Defendant [2004] NSWCA 166 at [21]. 18This is not the first occasion on which the issue of statutory construction has been raised. It was adverted to, somewhat obliquely, in Nominal Defendant v Hawkins [2011] NSWCA 93; 58 MVR 362 at [45], by Hodgson JA. It was referred to again, much more recently, in Leach v The Nominal Defendant (QBE Insurance (Australia) Ltd ) [2014] NSWCA 257; 67 MVR 494 at [11], by McColl JA, and at [86], by Sackville AJA. There must come a point at which the courts can no longer disregard the enacted law because the parties blithely continue to argue cases on some other basis. 19Applying s 5D, it would be necessary to determine that "the negligence was a necessary condition of the occurrence of the harm": s 5D(1)(a). This requires that the negligence be identified. If that test is satisfied, it is then necessary to consider whether "it is appropriate for the scope of the negligent person's liability to extend to the harm so caused": s 5D(1)(b). 20In the circumstances explained by Adamson J, the plaintiff did not establish on the balance of probabilities that the driver of the vehicle was negligent. The evidence did not establish with any degree of specificity where the rabbit which Ms Mammone sought to shoot was situated in relation to the vehicle. The only witness who gave evidence was the plaintiff, who did not see the rabbit. A statement taken from Ms Mammone by the police did no more than reveal that the rabbit had been caught in the spotlights, without any clear indication as to whether the spotlights were focused entirely in front of the vehicle or in part to one side or the other. 21Wherever the rabbit was, it is clear that Ms Mammone was not aiming at the rabbit when the gun fired: indeed, she was not aiming at all, but the gun was pointed down into the cabin of the vehicle. Assuming that the relevant negligent act related to the positioning of the vehicle, there was simply no evidence to suggest, even by way of speculative inference, what precautions a reasonable person in the position of the driver would have taken: Civil Liability Act, s 5B(1). Indeed, because there was no evidence that the driver knew where the rabbits were, it is by no means clear that relevant "precautions" were not taken. 22It was not established that the position of the vehicle with respect to the rabbit could properly be described as causally related to the accident. Accordingly, the plaintiff should have failed because he did not establish factual causation within the terms of s 5D(1)(a) of the Civil Liability Act. 23In other respects I agree with the reasoning of Adamson J. 24MEAGHER JA: I agree for the reasons given by Adamson J that this appeal should be dismissed with costs. I also agree with Basten JA's observations at [3] to [22] which provide additional reasons for the making of that order. 25ADAMSON J: Favian Bayon appeals against the judgment of Curtis DCJ entered in favour of GIO General Limited (the respondent) following a trial in the District Court. The appellant brought proceedings against his father, Juan Bayon (Mr Bayon), Ms Mammone and the respondent in which he claimed damages in respect of injuries sustained by him on the evening of 8 August 2009 when he was shot in the course of a hunting expedition. At the time he was the passenger in the front cabin of a stationary Toyota Hilux utility of which Mr Bayon was the driver. Amy Mammone and her husband, Christian Vargas, were in the tray of the utility. Ms Mammone lost control of the rifle she was holding while attempting to shoot a rabbit. The bullet entered the cabin and struck the appellant, who was almost 15 years old. Mr Bayon was insured under a third party policy in accordance with the Motor Accidents Compensation Act 1999 (NSW) (the Act) as the owner and driver of the utility. 26The primary judge ordered judgment in favour of the respondent on the basis that his Honour was not satisfied that the act of positioning the cab of the vehicle between the shooters and the intended prey, which was the only fault alleged against Mr Bayon that might relate to the driving of the insured vehicle, was a "dominant cause" of the appellant's injuries. In these circumstances his Honour did not consider it necessary to determine whether Mr Bayon was actually at fault as alleged. Judgment in favour of Ms Mammone was also ordered.