HEADNOTE
[This headnote is not to be read as part of the judgment]
On 26 November 2016, a 3-year-old girl was killed when an ANZAC memorial headstone in the grounds of the Black Head Bowling Club became dislodged from its base and fell on her. At the time, a 10-year-old boy was riding the monument as if it were a horse. The underlying cause of the collapse was that the monument had been poorly constructed in 1997.
The deceased's family members (the plaintiffs) claimed damages against the Club, John Edstein, the stonemason who had constructed and installed the monument, and CGU, the insurer of the stonemason's company. The Club cross-claimed against Mr Edstein and CGU.
The primary judge found that the Club was liable in negligence and ordered judgment against it in favour of the plaintiffs. His Honour found that the reasonable precautions which the Club negligently failed to take were to retain an engineer to assess and certify the stability and integrity of the proposed method of installation of the monument (the certification precaution) and to perform a push test immediately after construction and again 10 years later which would have revealed the instability of the headstone (the push test precaution).
His Honour found that Mr Edstein was negligent but that the scope of his liability ought not extend to the harm caused, and that the CGU policy did not cover the liability. The Club was ordered to pay the costs of the plaintiff, Mr Edstein and CGU.
The Club appealed against the judgment entered against it and the costs order. The plaintiffs challenged, by cross-appeal, the judgment in favour of Mr Edstein in order to also hold him liable. All matters involving CGU were resolved and the proceedings against it were discontinued.
The Court held (Payne JA and Simpson AJA, Adamson JA in dissent regarding the liability of the Club):
Liability of the Club (the appeal)
The certification precaution
(1) The primary judge's finding that the Club had a duty to engage an engineer to assess and certify the stability and integrity of the proposed method of installation should be understood as a finding that the Club breached its duty of care in 1997 to engage an engineer for the stated purpose and was correct: [40] (Payne JA and Simpson AJA).
Per Adamson JA (in dissent):
(2) None of the preconditions of liability in s 5B of the Civil Liability Act 2002 (NSW) has been fulfilled in respect of the Club. The risk of harm, being the risk of injury from the latent stability of the monument, was not foreseeable in that it was not a risk of which the Club knew or ought to have known. The risk was not significant since, had the monument been properly constructed, it would have retained its structural integrity for at least as long as there was no visible defect. A reasonable person in the Club's position would not have taken the precautions for which the plaintiffs contended: [125].
The push test precaution
(3) A push test was not a reasonable precaution that the Club should take at the outset of construction or after 10 years as there was no evidence that pushing the monument would have been more likely than not to reveal the defect. The Club was not put on notice by any observable sign that the monument was structurally unsound. The exercise of reasonable care by the Club did not require the application of the "push test": [43]-[44], [46] (Payne JA and Simpson AJA).
(4) The primary judge's finding that a duty to perform a push test was owed was based on an erroneous application of the effect of the evidence of the plaintiffs' expert witness. His Honour's finding that conducting a push test would have avoided the harm was erroneous having regard to the terms of the evidence, the means by which it was elicited and its failure to take account of the other forces to which the monument was subjected: [115] (Adamson JA).
Liability of Mr Edstein (the cross-appeal)
(5) The primary judge's finding of scope of liability was erroneous and there was no reason (including Mr Edstein's insurance status or because the primary judge found the Club liable) why responsibility for the harm should not have been imposed on the negligent party. A designer and installer of a structure is liable for injuries sustained by persons as a result of defects in its design or construction. Mr Edstein was a qualified and experienced stonemason who should be found liable because the monument, if constructed properly, could be expected to remain in place for many years and last without maintenance for over a century: [159] (Adamson JA, Payne JA and Simpson AJA agreeing at [2]-[4]).
Voli v Inglewood Shire Council (1963) 110 CLR 74; [1963] HCA 15, applied.
Contribution between tortfeasors
(6) Mr Edstein's culpability is equivalent to the culpability of the Club: [54] (Payne JA and Simpson AJA).