Introduction
The six appeals before the Court, argued over five days, arise from a judgment of Schmidt AJ (the primary judge) in which her Honour awarded damages to each of the four Respondents (referred to by the pseudonyms A, B, C and D) in the sums of $1,008,378.55, $465,000, $508,677.71 and $455,000 respectively against each of the Defendants (who are the Appellants in this Court). Those damages arose from what her Honour found were sexual assaults committed by Mr Rodney Raymond Bird (Mr Bird) against B and D at a childcare centre between 2008 and 2010: Plaintiff A and B v Bird; Plaintiff C v Bird; Plaintiff D v Bird [2020] NSWSC 1379 (the primary judgment or PJ). The Defendants were Ms Lisa Maree Clancy (Ms Clancy), Little Pigeon Pty Ltd (Little Pigeon) t/as Footprints Childcare Centre (Footprints) and Mr Bird who was Ms Clancy's father.
It must be stated at the outset that these appeals raised a vast array of issues of both considerable complexity and acute sensitivity, given the nature of the allegations and their gravity. One cannot gainsay the impact that the allegations and their litigation has had on all concerned in the proceedings including very young children, their parents as well as the Appellants who were the subject of serious allegations and findings made by the primary judge.
The primary judge and all counsel, both at first instance and on appeal, were properly conscious of the sensitivity of the subject matter of the events in dispute and the potential psychological and emotional impacts that the litigation of the events in question could have on all concerned.
Footprints was the trading name of a childcare centre, the licensee of which was Little Pigeon. Ms Clancy was the 99% shareholder of Little Pigeon. The remaining 1% shareholder was her father, Mr Bird, although he described himself in a statement to the police in late 2010 as a "silent partner" in the business. Ms Clancy was the director of Little Pigeon and Mr Bird worked at Footprints as a cook, occupational health and safety officer, first aid officer and maintenance person. Whether or not he was an employee of Footprints or simply a volunteer was an issue in the proceedings. It was of particular relevance to questions of vicarious liability at first instance.
B and D were young children who attended Footprints between 2008 and 2010, at the time of the events giving rise to these proceedings. A and C are the mothers of B and D respectively.
Child 1 and Child 2, who were not parties to the underlying proceedings but whose evidence was received by the primary judge as tendency evidence, admitted pursuant to s 97 of the Evidence Act 1995 (NSW), were also very young children who attended Footprints at the relevant time. B's evidence was also relied on as tendency evidence for the purposes of D's claim and vice versa.
Each of Child 1, Child 2, B and D made a series of disclosures to their mothers and then to the police in the period following 11 November 2010, when Child 1 was first interviewed by the police. [1] The police had been contacted by Child 1's mother following disclosures made to her at home on the previous day. Mr Bird was also interviewed and arrested on suspicion of the sexual assault of Child 1 on 11 November 2010.
The investigations precipitated by Child 1's disclosures resulted in disclosures by the other children and ultimately led to criminal charges being laid against Mr Bird in relation to Child 1, B and another child. The Director of Public Prosecutions (DPP) did not ultimately pursue any of these charges to trial.
Various sets of proceedings were commenced by A, B and C against the Appellants in 2013. D, the mother of C, commenced separate proceedings in 2020. All of the proceedings were heard together over a two-week period in September 2020.
Broadly speaking, it was alleged in the various sets of proceedings that B and D were assaulted by Mr Bird at, with one exception, unspecified times between 2008 and 2010 whilst attending Footprints. It was not in contest that Mr Bird had physical contact with the children at Footprints, which extended to them jumping up on him, sitting on his lap and him picking them up or patting them as a mode of comfort. What was in issue, however, and what was strenuously contested was whether Mr Bird's physical contact with the children was of a sexual nature as alleged in the pleadings. The primary judge found that it was, as summarised at [12] and [13] below.
For various reasons, none of B, D Child 1 or Child 2 could be cross-examined, although all were interviewed by the police and filmed recordings of their interviews were in evidence, as was an electronic record of interview (ERISP) between Mr Bird and the police on 11 November 2010. Mr Bird gave evidence, as did Ms Clancy and a number of former employees at Footprints. A and C also gave evidence, as did the mother of Child 1. The mother of Child 2 gave evidence by way of written statement, but she was not cross-examined.
The primary judge found that Mr Bird had repeatedly kissed B, including with an open mouth, and pulled down her pants during her time at Footprints. [2]
In relation to D, the primary judge accepted as true disclosures by D that:
1. Mr Bird tickled her on her underwear; [3]
2. Mr Bird touched her on her tummy; [4] and
3. she did not like it when Mr Bird tickled her. [5]
The primary judge reached her conclusions as to what Mr Bird had done by reference to: the disclosures each of B, D, Child 1 and Child 2 had made to the police, admitted mutatis mutandis as tendency evidence in the claims of B and D (and the corresponding claims of their respective mothers); the disclosures each child had made to their mothers; their mothers' perceptions of changes in the behaviour of the children; and various admissions which her Honour held Mr Bird to have made in the police interview on 11 November 2010 in relation to Child 1. Her Honour also expressed adverse views as to the credibility of both Mr Bird and Ms Clancy (as well as in relation to A, who was B's mother). As such, her Honour rejected Mr Bird's denials in relation to the specific allegations made on behalf of B and D as well as the disclosures of Child 1 and Child 2.
In forming an adverse view of Mr Bird's credit, the primary judge rejected as implausible his evidence, given under cross-examination, that he did not understand what he was being asked in his police interview. Further, the primary judge was unimpressed by Mr Bird's attempts in cross-examination to distance himself from the answers he gave to the police. Her Honour also rejected Mr Bird's evidence that, at the time of his police interview, he considered that there was something wrong with touching a child on the buttocks, holding that it "was plainly not what Mr Bird believed when he was working at the centre or at the time of his admissions" in the police interview. [6] Her Honour was thus satisfied that "considerable parts of Mr Bird's evidence were not honestly given" and that "overall, his evidence had to be approached with considerable caution". [7]
On the other hand, the primary judge held that: [8]
"I have concluded that Mr Bird gave police an accurate account of his conduct which at the time he considered to have been entirely appropriate because, as he explained, he was treating children at the centre as if they were his grandchildren. He then said that the acts which he described reflected what he did to his grandkids and he did not then think, for example, that a scrunch on the backside was 'a bad thing'."
The primary judge's adverse view of Mr Bird's credit was not, however, based solely on her Honour's assessment of his evidence, nor inconsistency regarding his state of mind or beliefs, as presented in the witness box. It was also affected by the view which her Honour took of what she considered to be an attempt by Mr Bird and Ms Clancy to dissipate his assets after the commencement of proceedings. [9] As shall be seen, her Honour's analysis in this respect was the subject of a strong attack which constituted a discrete ground of appeal.
The primary judge, having found that B and D had been the subject of sexual assaults by Mr Bird, went on to hold that Little Pigeon was vicariously liable for those assaults. This involved the primary judge making a finding that Mr Bird was an employee of Little Pigeon, it having been contended that he was only a volunteer. It is not clear from the terms of the primary judgment whether her Honour also held that Ms Clancy, in addition to Little Pigeon, was vicariously liable for her father's acts. The Plaintiffs (Respondents in this Court) maintain that she did.
The primary judge also held that Little Pigeon and Ms Clancy breached a duty of care which they owed to all of the Plaintiffs, i.e. the very young children and their mothers; that Little Pigeon was additionally liable for breach of contract in respect of the care of B and D; and that A, B, C and D had each suffered loss and damage in various respects. The primary judge's awards of damages to B and D included sums for exemplary damages.
An overview of the damages awarded to the Plaintiffs is set out at [225] and following below.
[2]
The appeals
The Defendants (the Appellants in this Court) have appealed on almost every aspect of the primary judgment as to both liability and damages. They have also challenged a significant number of the primary judge's factual findings on material issues, including her Honour's findings in relation to the nature and extent of admissions made by Mr Bird in the November 2010 police interview.
Other material factual findings under challenge included those in relation to Child 1, whose evidence in the form of transcripts of interviews with police was admitted and relied upon as part of the tendency evidence.
Little Pigeon and Ms Clancy were represented on appeal by Mr M Windsor SC, Ms A Horvath and Ms R McEwen. Mr Bird was represented on appeal by Mr D Hooke SC and Mr H Chiu. A, B, C and D were represented by Mr C Barry QC, Mr M Tanevski and Ms M Hamdan.
[3]
The complex nature of the proceedings and key issues on appeal
There were, and are, numerous features of the proceedings which contributed to their complexity and gave rise to the multiplicity of issues with which the primary judge needed to deal. Those issues remain alive on appeal.
One such feature related to the fact that B and D had no memory of the events in question, which occurred more than 10 years before the trial when they were aged between three and four years. Thus, although available, they could not be cross-examined in the sense that it was accepted that there would be no utility in doing so. The same was the case with Child 2. [10] Child 1 was in a slightly different category, her evidence being admitted over objection on the basis that, in the trial judge's assessment, Child 1 was "not available" within the meaning of s 63 of the Evidence Act. [11]
Putting that matter to one side for the moment, the consequence was that all of the primary evidence in support of the alleged interferences with B, D, Child 1 and Child 2 was unable to be tested by cross-examination. That evidence was also non-specific as to time and, to some extent, as to place. These considerations, which were understandable given the age of the children at the relevant time, were nonetheless somewhat problematic in circumstances where the allegations against Mr Bird were of particular gravity and the Briginshaw standard, as reflected in the terms of s 140(2) of the Evidence Act, applied: see also Neat Holdings Pty Ltd v Karajan Holdings Pty Ltd (1992) 67 ALJR 170; [1992] HCA 66; Amalgamated Television Services Pty Ltd v Marsden [2002] NSWCA 419 at [61], where it was said that " [i]t is well accepted that the test to be applied under s140(2)(c) is the Briginshaw test"; and New South Wales v Hathaway [2010] NSWCA 184 at [263], where it was said that in a case involving allegations of serious misconduct with grave consequences, "clear or cogent or strict proof" [12] is required.
In Briginshaw v Briginshaw (1938) 60 CLR 336 at 362; [1938] HCA 34 (Briginshaw), a case involving a charge of adultery, Dixon J said that:
"In such matters 'reasonable satisfaction' should not be produced by inexact proofs, indefinite testimony, or indirect inferences",
and (at 368-369) that:
"[u]pon an issue of adultery in a matrimonial cause the importance and gravity of the question make it impossible to be reasonably satisfied of the truth of the allegation without the exercise of caution and unless the proofs survive a careful scrutiny and appear precise and not loose and inexact. Further, circumstantial evidence cannot satisfy a sound judgment of a state of facts if it is susceptible of some other not improbable explanation. But if the proofs adduced, when subjected to these tests, satisfy the tribunal of fact that the adultery alleged was committed, it should so find."
In the same case at 350, Rich J had said:
"In a serious matter like a charge of adultery the satisfaction of a just and prudent mind cannot be produced by slender and exiguous proofs or circumstances pointing with a wavering finger to an affirmative conclusion."
Justice Dixon's observations in Briginshaw were referred to with approval by the High Court in M v M (1988) 166 CLR 69 at 76; [1988] HCA 68, in the context of an allegation of sexual abuse. There, the Court said that Dixon J's "remarks have a direct application to an allegation that a parent has sexually abused a child, an allegation which is often easy to make, but difficult to refute." In WK v SR (1997) 22 Fam LR 592 at [26], in the context of allegations of sexual abuse of children, the Full Court of the Family Court said that the central evidence of a child in that case needed to be "very carefully evaluated" and (at [47]) that:
"In children's matters under Pt VII of the Family Law Act, where the issue is a child's contact or residence with a significant person in his or her life, the grave consequences of a finding of sexual abuse cannot be overstated. Accordingly, before trial judges find themselves impelled to make a positive finding of sexual abuse, as opposed to a finding of unacceptable risk, the standard of proof they are required to apply must be towards the strictest end of the civil spectrum as set out in Briginshaw and s 140 of the Evidence Act 1995 (Cth). Inexact proofs, indefinite testimony, or indirect inferences are insufficient to ground a finding of abuse."
The primary judge was alive to the forensic challenges presented by the fact that neither of B and D (nor Child 1 and Child 2) was able to be cross-examined. Her Honour observed that: [13]
"Because B and D had no memory of what had happened, they could not be cross examined. In this case that did not preclude evidence of their disclosures being received. Given the gravity of Mr Bird's alleged acts it was thus necessary to pay very close attention to what they had each disclosed, in light of all of the other evidence, to determine whether the plaintiffs had satisfied the obligation to prove their cases, on the balance of probabilities." (emphasis added)
The primary judge was correct to say that it was "necessary to pay very close attention" to what each of B and D (as well as Child 1 and Child 2) had disclosed. It was also necessary to pay close attention to:
1. the timing and sequence of the respective disclosures, i.e. when they were made relative to the events in question, and in which of the various interviews each child participated in specific disclosures were made (in some cases, for example, initial interviews did not result in disclosures of any inappropriate conduct of a sexual nature by Mr Bird);
2. how and to whom those disclosures were made, i.e. whether they were prompted or ideas were suggested to the children; and
3. any inconsistencies in the disclosures, either internally or over time (noting that all of the children other than Child D were interviewed on more than one occasion by police in the Joint Investigation Response Team, a tri-agency program also comprising members of the Department of Communities and Justice and New South Wales Health (JIRT)).
This called for a close analysis of the evidence of each of the children. The primary judge did this and, in so doing, at least in relation to D, drew in part on the expert evidence of an Associate Professor Quadrio (a forensic and child psychiatrist), whose report was admitted subject to a limitation under s 136 of the Evidence Act, which limited its use to the Plaintiffs' claims for damages. [14] Associate Professor Quadrio was cross-examined and, whilst her evidence elicited under cross-examination was not subject to any limitation, the primary judge's use of and reliance on her evidence in relation to B and D's original disclosures was inconsistent with the s 136 ruling. This is a matter of quite legitimate complaint by the Appellants.
Another apparent complexity (and difficulty) in relation to s 136 flowed from what is recorded at PJ [34]-[36]. There, the primary judge said that:
"34 When the final hearing commenced the admissibility of A and C's evidence about the disclosures which B and D had made to them and the admissibility of B and D's police statements, under either s63 or s64 of the Evidence Act, remained in issue.
35 Statements made by B and D had been served. There was then no issue that neither still had a memory of what had happened to them while at Footprints. B and D were thus not finally required for cross-examination.
36 After argument it was also finally conceded that A and C's disputed evidence was admissible under s64(3) of the Evidence Act, because B and D were both to be called to give evidence. Consent orders under s136 were made, limiting the disclosures to evidence of what was said, rather than as evidence of the truth of what was said." (emphasis added)
Paragraph 36 of the judgment is problematic for a number of reasons, not least of which is that, as was common ground and contrary to what was said by the primary judge, no s 136 order was ever in fact made in respect of the evidence of A and C in relation to the disclosures made to them by B and D respectively. The paragraph is also problematic because it is clear from her Honour's reasons that her Honour did not in fact treat A and C's evidence as subject to limitation of the kind described. Rather, the primary judge relied upon it to support the veracity of B and D's allegations. [15] This was not in error as, although B and D did not actually enter the witness box, they were nonetheless "available", they were "called" (in the sense that their statements were tendered) and they could have been, but were not, required for cross-examination. In those circumstances, their previous representations, of which evidence was given by their respective mothers and contained in their police statements, were admissible under s 64(3) of the Evidence Act.
The next complexity arose because of the fact that the evidence of B, Child 1 and Child 2 was admitted and relied on as tendency evidence in respect of the allegations made by D, as were what were described as Mr Bird's admissions in relation to Child 1. Similarly, the evidence of Child 1, Child 2 and D, and Mr Bird's admissions, were admitted as tendency evidence in support of the allegations made by B. The primary judge said that she had considered whether the disclosures made by B and D were truthful "in light of all of the other evidence". [16]
A tendency notice said to be issued pursuant to s 97(1)(a) of the Evidence Act (the Tendency Notice) purported to describe the tendency arising from the evidence of Child 1, Child 2, B and D (together with two other children whose evidence was not ultimately adduced) "as to":
"a) The location; the sexual abuse occurred at the childcare premises.
b) The timing; the sexual abuse occurred during the course of the business' operation.
c) The sexual abuse happened in circumstances where no other adults were present.
d) The sexual abuse happened when Mr Bird was in a supervisory role and the children were in his care.
e) The victims were female and of a similar age.
f) Similarities in the sexual abuse."
As a statement of tendency derived from the evidence identified therein, the Tendency Notice was sub-optimal. It did not in truth identify or articulate any tendency, leaving the party put on notice to seek to understand what was being asserted.
The requirement under the Evidence Act for notice of the asserted tendency to be provided is not a mere formality. It serves to give the party in respect of whom the tendency is asserted fair notice of the tendency that is sought to be established. That tendency needs to be articulated with clarity and precision because it supplies the framework for the Court's determination of whether the evidence will, either by itself or having regard to other evidence adduced or to be adduced, have significant probative value. [17]
As the High Court has explained in Hughes v The Queen (2017) 263 CLR 338; [2017] HCA 20 at [41] (Hughes), to have significant probative value, the evidence sought to be adduced must strongly support (whether by itself or having regard to other evidence adduced or to be adduced) the existence of the tendency asserted, and that tendency must strongly support the proof of a material fact in issue.
In oral address before the primary judge, senior counsel for the Plaintiffs formulated the tendency as a "sexual interest in young children, and in particular in young female children". [18] This was in turn different to the tendency said to be manifested by Mr Bird's alleged "admissions" in relation to Child 1, namely a "tendency for inappropriate sexual dealing with children in his care". [19] The Tendency Notice in this respect described the admissions as disclosing a tendency to:
"a) pat children's bottoms;
b) cuddle children in his care;
c) permit children to show their chests and vaginas;
d) rub children's bare stomachs;
e) sit children on his lap;
f) rub children underneath their shirt;
g) massage children and massage the lower part of their stomach;
h) pat, squeeze and 'scrunch' children's bottoms;
i) unintentionally touching child's vagina; and,
j) put his hand down in front of child's underwear."
Although, for the purposes of admissibility and determination as to whether the tendency evidence relied upon is of significant probative value within the meaning of s 97 of the Evidence Act, it is to be assumed that the evidence will be accepted as correct, [20] that does not mean that, for the purposes of its ultimate use by the trier of fact, the evidence or aspects of the evidence adduced as tendency evidence must be accepted. Acceptance of the tendency evidence relied upon by the Plaintiffs needed to have regard to Briginshaw principles because of the nature of what was being claimed in that evidence. If the evidence should not have been accepted taking into account Briginshaw, then it could not be used to support the tendency asserted either by itself or in conjunction with other evidence.
For present purposes, if the evidence of any of the other children which was relied upon as part of the tendency evidence in support of the allegations made by B or D should not have been accepted, or, as is put with regard to Child 1, should not have been admitted in the first place, that will necessarily impact whether the tendency was supported or supportable by the tendency evidence that remained.
So, too, with the evidence said to be derived from the alleged admissions. The analysis required was, first, to consider whether Mr Bird's answers in his police interview amounted to admissions which demonstrated each of the tendencies as set out at [39] above. Secondly, if they did, it was necessary to consider whether each particular tendency established an overarching tendency for "inappropriate sexual dealing". Thirdly and finally, there was to be consideration of whether that tendency in turn strongly suggested that the specific allegation in respect of which the tendency evidence was being deployed in fact occurred.
Although we will return to this in more detail below, a number of the matters referred to in [39] above are simply not strongly suggestive of a tendency for inappropriate sexual dealing with children, for example, cuddling them, patting their backs or tummies, sitting them on one's lap or unintentionally touching their genitalia. Whilst "putting his hand down in front of [a] child's underwear" undoubtedly would be suggestive of such a tendency, as shall be seen, Mr Bird made no admission of that kind in his police interview.
The primary judge gave particular prominence to the evidence of Child 1, and there is no doubt that on its face it was very damaging to Mr Bird. It was Child 1's complaint that had led to his arrest and interview with the police on 11 November 2010. Child 1 had been interviewed by the police on the same day, having made disclosures to her mother on the previous day about her interactions with Mr Bird. Child 1's evidence was considered by the primary judge at PJ [348]-[376], with extensive portions set out over several pages at PJ [352]-[362] and [369]-[370].
The primary judge found that Child 1 had been sexually assaulted by Mr Bird in the ways she had disclosed in her police interview. [21] Child 1's evidence was also referred to and relied upon by the primary judge in reaching her conclusions that the claims made by B and D were sustained. [22] It was also relied upon for the purposes of the admission of the other tendency evidence. Thus, the primary judge said: [23]
"That there were issues as to the children's understanding of the concepts of truth and lies at the time they made their disclosures and that they could not be cross-examined did not detract from the conclusion that having regard to other evidence adduced or to be adduced, the disputed evidence did have significant probative value and was thus admissible as tendency evidence." (emphasis added)
The admissibility of Child 1's evidence was hotly contested. It was ultimately admitted by the primary judge for the reasons supplied at PJ [63]-[84]. That reasoning, and the admission of Child 1's evidence, are the subject of several grounds of appeal which are dealt with at [58]-[79] below. It was common ground that part of that reasoning was flawed insofar as the primary judge mistakenly attributed to Child 1 evidence as to Child 2's state of mental health and the impact upon Child 2 of the matters she disclosed, as well as the attitude of Child 2's mother to Child 2 giving evidence. This is also considered at [63]-[65] and [71] below and is one of the challenged factual findings to which we have already made reference.
If Child 1's evidence was wrongly admitted (and for the reasons given later in this judgment, we consider that it was), then it could not have been used as part of the body of evidence relied upon in support of the asserted tendency, which was the only basis upon which it was admitted. But it plainly was so used and thus impaired the reasoning process.
It is also difficult to assess the extent (if any) to which the admission of Child 1's evidence and the evidence of B (if it should not have been accepted), for example, may have influenced the primary judge's adverse assessment of Mr Bird's credibility, including her Honour's rejection of his denials in cross-examination.
The adverse assessment of Mr Bird's credit was also affected by a matter the primary judge described as relevant to her assessment of both Mr Bird and Ms Clancy's credit, namely a breach by Mr Bird of an inter partes undertaking to the Plaintiffs. This has been touched upon at [17] above. According to her Honour: [24]
"it was relevant to take into account that the evidence established that Mr Bird, with the assistance of Ms Clancy, breached an undertaking not to dissipate his assets, pending resolution of these proceedings. It appears that proceeds of the sale of his house have been used to fund the defence."
Contrary to the primary judge's view, which was not elaborated on beyond PJ [129], we do not agree that this matter was relevant and, when the short facts are considered, the matter her Honour was evidently referring to in fact shows Ms Clancy and Mr Bird in a positive light. It is convenient to provide a short explanation, at this juncture, for this conclusion.
On 7 April 2015, the Plaintiffs' solicitors wrote to Garling & Co Lawyers (which then represented Mr Bird) stating: [25]
"Given that these proceedings are brought against your client personally, we require an undertaking from him that he will not remove or dispose of any assets, including real property, prior to the hearing of this matter. Would you please provide us with this undertaking within 7 days.
If your client refuses to provide this undertaking we will need to consider retaining an order under Part 25.11 of the UCPR."
By letter dated 29 April 2015, Garling & Co Lawyers confirmed an undertaking by Mr Bird to that effect. The letter was signed by Mr Matthew Garling.
More than three years later, by email dated 18 July 2018, Ms Clancy wrote to Mr Garling stating that:
"We are preparing our house for sale and I just want to check that there is no legal reason why we can not sell with this matter still continuing?
We want to be sure we have more than enough funds to defend Rod."
Mr Garling responded to this email shortly thereafter stating that there was "[n]o legal reason why you can[']t sell your house, it is up to you and Rod." [26] It is plain that Mr Garling had overlooked or forgotten about his letter of 29 April 2015 when giving his advice to Ms Clancy on the morning of 18 July 2018.
Whilst that was unfortunate, it is extremely difficult to see how this sequence of correspondence could redound to the discredit of either Mr Bird or Ms Clancy. Indeed, to the contrary, it shows a consciousness on Ms Clancy's part of an issue as to whether the house could be sold whilst the proceedings were ongoing. This is why she sought legal advice, and it bespeaks a consciousness of wanting to act lawfully and properly. The fact that the legal advice was not correct should not have told against the credit of either Ms Clancy or Mr Bird, contrary to what was suggested in PJ [129].
Enough has been said on this point to highlight the complexities thrown up by the proceedings and the interrelationships between various matters. It is convenient at this point to summarise our principal conclusions before dealing with each matter individually.
[4]
Summary of key conclusions on appeal
For the reasons set out in the body of this judgment, we are of the view that:
1. the primary judge erred in admitting Child 1's evidence;
2. Child 1's evidence was an important component of the corpus of tendency evidence relied upon by the primary judge;
3. the primary judge also erred in greatly overstating the extent of the admissions made by Mr Bird in his police interview on 11 November 2010 in the context of her analysis as to whether the disclosures by B and D in relation to Mr Bird's contact with them should be accepted. In particular, her Honour was wrong to have held that Mr Bird admitted to:
1. kissing children; and
2. putting his hand down the front of Child 1's pants;
1. putting to one side the wrongful admission of Child 1's evidence and the overstatement of Mr Bird's admissions, the primary judge erred in concluding that the disclosure by B that Mr Bird had pulled down her pants was made out, bearing in mind s 140(2) of the Evidence Act. That disclosure, which supplied a key element of the primary judge's conclusions in relation to B (see [12] above), was not only untested and untestable but was strongly undermined by inconsistencies and apparent retractions in B's interviews with the authorities in 2011;
2. especially in light of the Briginshaw standard, A and B's claims could not be sustained in light of the evidence that should have been excluded, the related problematic nature of the tendency findings, the proper characterisation of the so-called "admissions" and the unreliability of and inconsistencies in the disclosures made by B. The judgments in favour of A and B should be set aside and their claims dismissed;
3. in respect of the claims by C and D, the wrongful admission of Child 1's evidence, the wrongful acceptance of B's disclosures as true and the reliance placed upon them as tendency evidence, and the overstatement of Mr Bird's admissions meant that the only evidence potentially available to support the asserted tendency of Mr Bird was the evidence of Child 2;
4. Child 2's evidence was not sufficiently probative to support the asserted tendency and thus to support D's claim;
5. by reason of the primary judge's errors as noted above, the judgments in favour of C and D against Mr Bird, Ms Clancy and Little Pigeon must be set aside;
6. unlike A and B's claims, C and D's claims against Mr Bird, Ms Clancy and Little Pigeon should not be dismissed. There should be a new trial of these claims, although there would be obvious merit in the parties engaging in a mediation in an attempt to resolve them;
7. if, and to the extent that, the primary judge found that Ms Clancy, together with Little Pigeon, was vicariously liable for Mr Bird's conduct (a matter that is not wholly clear on the primary judgment), Ms Clancy's appeal in that respect should be upheld in any event; and
8. the primary judge's conclusion that Ms Clancy and Little Pigeon were directly liable in negligence should also be set aside.
These conclusions mean that the appeals in relation to the findings of liability against Mr Bird, Ms Clancy and Little Pigeon and the awards of damages in favour of A, B, C and D must succeed.
[5]
Structure of balance of reasons
The balance of these reasons adopts the following structure:
1. should Child 1's evidence have been admitted?
2. significance of the wrongful admission of the evidence of Child 1;
3. errors in findings as to Mr Bird's admissions;
4. admissibility of Mr Bird's admissions against Ms Clancy and Little Pigeon;
5. did the primary judge err in her conclusion that the disclosures by B were made out and thus that Mr Bird committed assault, battery, sexual assault and/or trespass upon B?
6. did the primary judge err in her conclusion that the disclosures by D were made out and thus that Mr Bird committed assault, battery, sexual assault and/or trespass upon D?
7. did the primary judge err in concluding that disclosures made by Child 2 were established to the Briginshaw standard?
8. should there be a re-trial of D's claim (and C's related claim) or should those claims be dismissed?
9. taking stock;
10. vicarious liability;
11. liability of Ms Clancy and Little Pigeon;
12. overview of damages awarded; and
13. attacks on various aspects of damages awarded.
[6]
Should Child 1's evidence have been admitted?
The tendency evidence insofar as it comprised the evidence of Child 1 was admitted over the strenuous objection of the Defendants. Child 1's evidence was strongly adverse to Mr Bird in terms of the disclosures it contained.
The admission of Child 1's evidence is a ground of appeal common to all of the Appellants and is expressed as an error in the primary judge's finding that Child 1 was unavailable to give evidence. This ground of appeal turns on the proper construction and application of s 63 of the Evidence Act and the definition of "unavailability" in cl 4 of pt 2 of the Dictionary in the Evidence Act. It is also affected by what the Appellants assert (and the Respondents accept) was a significant factual error made by the primary judge in relation to Child 1 and the impact of Mr Bird's alleged interference with her. [27]
The background to the admission of Child 1's evidence is as follows.
The Tendency Notice served by the Plaintiffs gave notice of their intention to adduce evidence of disclosures made by six children, including B and D, to prove an alleged tendency of Mr Bird "for inappropriate sexual dealing with children in his care". [28] Although the Notice referred to information provided by four children in addition to the two Plaintiffs, ultimately only Child 1 and Child 2 were relied on. No statement of Child 1 or Child 2 was served and, apart from the Tendency Notice, there was no indication that they would be called as witnesses until shortly before the trial, when it was indicated that it was proposed to issue a subpoena to Child 1 requiring her to give evidence. The Defendants objected that it was too late, and the application for leave to serve the subpoena (which was required because it was late) was not pressed. However, the primary judge did not foreclose the issue of a subpoena to Child 1. [29]
The primary judge admitted hearsay evidence of disclosures made by Child 1 to her mother and in her recorded police interviews, pursuant to s 63 of the Evidence Act, on the basis that Child 1 was relevantly "unavailable" to give evidence. Her Honour gave short reasons for this in the course of the hearing, as follows: [30]
"I have, again, decided that the objections can't be upheld and I will give reasons for that in due course when giving judgment. Just for the moment, let me say this, the evidence of Ms Buchanan does suggest from something that the mother said to her at one point that the child may have some memory of what happened to her, but that in terms of the definition of unavailability, there's a distinction drawn between reasonable steps to secure attendance and reasonable steps to compel attendance and I don't think you can approach the construction of the legislative scheme in such a way that leads to the conclusion that reasonable steps to secure attendance must include steps to compel attendance and, hence, I think the objection can't be upheld. Yes."
As her Honour there foreshadowed, more elaborate reasons were provided in the primary judgment. In essence, they were that the combination of the evidence of Child 1's mother and that of a psychiatrist, Associate Professor Quadrio, established that: Child 1 was psychologically affected by the events about which she would be asked if required to give evidence, such that she may well be re-traumatised by the experience; that her mother would do everything in her power to prevent Child 1 giving evidence; and that Child 1 had no memory of the relevant events (which finding was founded on her mother's evidence that she had not spoken about them for nine years).
The primary judge dealt with the matter at PJ [37]-[84] and in particular at [63]-[84]. At PJ [63]-[68], her Honour said:
"63 The position in relation to the disputed evidence about child 1's disclosures was different.
64 It was not accepted that it was admissible, there being no evidence from child 1 that she had no memory of what had happened to her at Footprints and no evidence from any medical expert about adverse consequences of calling her to give evidence.
65 To establish that child 1 was unavailable, the plaintiffs relied on her mother's evidence, that of their solicitor Ms Buchanan and an opinion of Associate Professor Quadrio, an expert who had provided reports in relation to B.
66 Child 1 was aged 4 at the time of her first disclosures in 2010 and 5 when last interviewed by police. Whether she still has any memory of what happened is not clear.
67 Ms Buchanan described the steps taken to call evidence from child 1. Amongst other things her mother initially told Ms Buchanan that she did not wish child 1 to be involved in the proceedings, because there had been long lasting impacts from what had happened and she did not want child 1 traumatised further; that child 1 had mental health issues; and that she was undergoing counselling for trauma, stress, anxiety and depression.
68 In August 2020 the mother also told Ms Buchanan that child 1's therapist had advised that if child 1 was given free rein, all she would talk about was what had happened to her at Footprints. Thus she still would not permit child 1 to be involved in any way. This advice suggested that child 1 did have some memory of the events." (emphasis added)
The parts of the above paragraphs which have been emphasised found no support whatsoever in the evidence and, as noted above, were accepted by senior counsel for the Respondents to be erroneous. The primary judge appears to have conflated evidence in relation to Child 2 with evidence in relation to Child 1. The error was also illustrated by reason of the evidence of Child 1's mother, given through the Respondents' solicitor, that Child 1 had not spoken of Footprints or what had occurred there for the nine years prior to 2020. [31]
Clause 4 of pt 2 of the Dictionary in the Evidence Act defines the circumstances in which a person is unavailable to give evidence, as follows:
"4 Unavailability of persons
(1) For the purposes of this Act, a person is taken not to be available to give evidence about a fact if -
(a) the person is dead, or
(b) the person is, for any reason other than the application of section 16 (Competence and compellability: judges and jurors), not competent to give the evidence, or
(c) the person is mentally or physically unable to give the evidence and it is not reasonably practicable to overcome that inability, or
(d) it would be unlawful for the person to give the evidence, or
(e) a provision of this Act prohibits the evidence being given, or
(f) all reasonable steps have been taken, by the party seeking to prove the person is not available, to find the person or secure his or her attendance, but without success, or
(g) all reasonable steps have been taken, by the party seeking to prove the person is not available, to compel the person to give the evidence, but without success.
(2) In all other cases the person is taken to be available to give evidence about the fact."
In holding that Child 1 was not available to give evidence, the primary judge took the view that cl 4(1)(f), insofar as it refers to securing the attendance of a witness, does not refer to compelling the attendance of a witness by subpoena, which her Honour considered was the subject of cl 4(1)(g). Indeed, her Honour misquoted cl 4(1)(g) as if it referred to "compelling attendance", when in fact it refers to "compel[ling] the person to give the evidence", stating: [32]
"The definition of 'unavailable' draws a distinction between 'reasonable steps to secure attendance' and 'reasonable steps to compel attendance': paragraphs (f) and (g) of the definition. It follows that the legislative scheme does not envisage that to establish that reasonable steps have been taken to secure attendance, that it must be shown that steps to compel attendance have been taken."
However, cl 4(1)(f), in referring to "securing the attendance of the person", is concerned with steps taken to get the witness to court physically (or remotely), while cl 4(1)(g), in referring to "compel[ling] the person to give the evidence", is concerned with steps taken to compel answers from the witness once their attendance at court has been secured. [33] It follows that her Honour applied an incorrect test.
Reasonable steps to secure the attendance of a witness, where the whereabouts of the witness are known, will, at least usually, involve the issue of a subpoena to attend. [34] In the case of a child, a subpoena can be served on the child's parent. [35] In the present case, nothing was done to secure Child 1's attendance, beyond asking her mother. The fact that the mother stated that she would resist any subpoena to compel Child 1 to attend does not demonstrate that it is not a reasonable step to serve a subpoena. It was not for the Plaintiffs to determine whether the risk to Child 1's health and welfare was such as to render it unreasonable for her to be required by subpoena to attend court to give evidence. That was a matter for the Court.
Her Honour considered that the risk to Child 1's health rendered it unreasonable to compel her to attend, such that Child 1 was "unavailable" to give evidence. [36] However, the fact that giving evidence may be detrimental to a witness' psychological health and welfare does not render the witness unavailable within the meaning of s 63 of the Evidence Act. While her Honour speculated that, had a subpoena been issued, an application to set it aside might have been supported by psychiatric evidence and therefore succeeded, [37] that could not be foretold and the Defendants were entitled to be heard in respect of any such application.
Moreover, as already observed, insofar as her Honour supposed that there was evidence, either from the mother or from a psychiatrist, that Child 1 was psychologically adversely affected by the relevant events, her Honour was in error. There was no such evidence. In this respect, her Honour appears to have confused evidence relating to Child 2 with Child 1. [38]
The Respondents submitted that the primary judge's conclusion that Child 1 was unavailable was a discretionary judgment, to which the well-known strictures of House v The King (1936) 55 CLR 499; [1936] HCA 40 applied; for this proposition, the judgment of this Court in Longhurst v Hunt [39] was cited. In that case, Stein AJA appears to have proceeded on the basis that satisfaction of the criteria in cl 4(1)(f) involved a discretionary judgment to which House v The King applied. [40] However, that was not the sole basis of his Honour's decision that the trial judge in that case had not erred in rejecting certain evidence under s 63 of the Evidence Act, as it was held that its rejection was also supported under s 135(a). [41] Justice Sheller does not appear to have shared the view of Stein AJA in respect of cl 4(1)(f). [42] Justice Santow agreed with the judgment of Stein AJA, but did not expressly address the question. [43] The view of Stein AJA that the application of cl 4(1)(f) involved a discretionary judgment was not essential to the outcome.
There is nothing discretionary about a conclusion that a witness is unavailable within the definition in cl 4(1)(f). The question is whether the circumstances satisfy a test. Although evaluation may be required, no exercise of discretion is involved. The constraints on appellate intervention imposed by House v The King are not applicable.
It follows that her Honour erred in holding that Child 1 was unavailable to give evidence, and thus in admitting the hearsay evidence of her disclosures to her mother and to police. There was legal error in the conclusion that cl 4(1)(f), insofar as it refers to reasonable steps to "secure the attendance" of a witness, did not refer to compelling the attendance of a witness by subpoena; there was factual error in finding that there was evidence that Child 1 was psychologically adversely affected by the relevant events; and there was an erroneous conclusion that all reasonable steps had been taken by the Plaintiffs to secure Child 1's attendance, when no more had been done than an inquiry made of her mother who was understandably protective and resistant and, critically, no subpoena had been served. The Respondents were entitled to choose not to compel Child 1 to give evidence. But if they so chose, they could not then have the benefit of hearsay of her disclosures on the basis that she was unavailable.
The Respondents submitted that such errors were not material, as if Child 1 had no recollection of the relevant events, then there was no point in requiring her to give evidence and risk re-traumatisation. However, the evidence that she had no recollection amounted to no more than her mother's belief to that effect, derived only from the circumstance that she had not spoken about the relevant events for nine years. On the other hand, the disclosures attributed to Child 1 were perhaps the most specific and compelling of those made by all four children. Her disclosures alone were the subject of the ERISP of Mr Bird. The significance to the proceedings of the evidence of Child 1's disclosures was, therefore, very great. Evidence of the disclosures of Child 1 ought not to have been admitted.
However, it is not correct that, as Mr Hooke submitted, if Child 1's disclosures are excluded, questions then arise concerning the admissibility of Mr Bird's "admissions" in his ERISP of 11 November 2010. The admissibility of the interview, though it related to Child 1 and covered the allegations made in her disclosures, does not depend upon the admissibility of those disclosures. The ERISP is admissible, not as evidence of what Child 1 alleged, but as evidence of what (if anything) Mr Bird admitted. Mr Bird's answers relating to Child 1 are in evidence, regardless of the "availability" point concerning Child 1.
[7]
Significance of wrongful admission of evidence of Child 1
Child 1's wrongfully admitted evidence played a key role in the success of B and D's cases, and therefore A and C's cases which were dependent upon them. The primary judge, as has been explained earlier in these reasons, drew on Child 1's disclosures as an important part of the tendency evidence upon which she relied for the purposes of making findings as to the truth of B and D's disclosures regarding Mr Bird's conduct.
It is a very difficult, if not impossible, exercise to separate the significance of Child 1's evidence from her Honour's overall reasoning process. It would be a matter of speculation as to whether her Honour would have reached the same conclusions had that evidence not been admitted. The trial may also have taken a different course in that Mr Bird may have made different forensic decisions and/or his cross-examination may have taken a different course had that material not been admitted.
However, it is not necessary to speculate since the admission of Child 1's evidence was not the only error which infected the primary judge's reasoning process. As explained below, for example, her Honour overstated Mr Bird's admissions in key respects and also should have rejected the evidence of B because of significant inconsistencies in it and retractions made by B. Both Mr Bird's admissions and B's disclosures were also received as part of the tendency evidence in D's case. Critical planks, therefore, on which the primary judge rested all of her key conclusions were unable to support them.
[8]
Errors in findings as to Mr Bird's admissions
The primary judge took the view that Mr Bird had made extensive admissions in his police interview on 11 November 2010. Her Honour obviously considered them to be very significant and they played a central part in her reasoning. Indeed, she stated that "[t]he starting point for [her] conclusions is Mr Bird's admissions." [44]
The primary judge said that Mr Bird's interview gave police an "accurate account of his conduct": [45]
"I have concluded that Mr Bird gave police an accurate account of his conduct which at the time he considered to have been entirely appropriate because, as he explained, he was treating children at the centre as if they were his grandchildren. He then said that the acts which he described reflected what he did to his grandkids and he did not then think, for example, that a scrunch on the backside was 'a bad thing'."
For the purposes of these appeals, we have closely reviewed the transcript of Mr Bird's police interview which was in evidence before the primary judge.
It should be noted at the outset that this interview was in relation to disclosures that had been made by Child 1, as reported to the police by her mother on 11 November 2010. To the extent that admissions were made, they were not made in relation to B or D. It was for this reason that, before the primary judge, what were referred to as Mr Bird's "admissions" were relied upon as tendency evidence.
Unlike the failure satisfactorily to identify the tendency asserted to arise from the evidence of B, D, Child 1 and Child 2 (cf, [35] above), and as quoted above at [39], the Tendency Notice in respect of the admissions said to be taken from Mr Bird's police interview identified the tendency as:
"a tendency … for inappropriate sexual dealing with children in his care. [They] demonstrate a tendency to:
a) pat children's bottoms;
b) cuddle children in his care;
c) permit children to show their chests and vaginas;
d) rub children's bare stomachs;
e) sit children on his lap;
f) rub children underneath their shirt;
g) massage children and massage the lower part of their stomach;
h) pat, squeeze and 'scrunch' children's bottoms;
i) unintentionally touching child's vagina; and,
j) put his hand down in front of child's underwear."
As noted at [14]-[16] and [42] above, a large issue on appeal relates to the primary judge's identification and treatment of Mr Bird's admissions. References to Mr Bird's admissions permeate the primary judgment but they are, for the most part, expressed in very general terms and the first point at which they are actually listed (albeit non-exhaustively) is some 70 pages into the judgment. [46] It is convenient to reproduce that list of admissions as identified by the primary judge, noting that her Honour prefaced this list by saying that "[w]hat Mr Bird admitted about child 1 included that":
"• she often said 'rub me tummy, so I'm assuming this is part of the allegation' and he also volunteered 'or rub her back or pat her bottom or whatever'.
• 'Probably that may be patting her bottom may be what people could classify as assault';
• child 1 'likes a cuddle' and that she comes up and says 'I love you' and 'climbs all over you';
• she had 'flashed the, she lifted her T-shirt up and showed the chest, she's showed the winkie' in the yard, by which he explained he meant her vagina;
• when on her bed she would say 'Roddy, rub me tummy, or pat me back' and so he would pat her;
• the last time he had touched child 1 was a couple of weeks ago when he came upstairs and she asked him to rub her tummy or pat her back and he had a couple of minutes so he gave her a rub;
• when he patted her she pulled her shirt up and he rubbed her bare tummy or her forehead or back, but nothing inappropriate;
• when informed that child 1 had told police he gave her massages, he agreed he gave her back massages, when she said 'give me a massage';
• when told that child 1 had said he gave her massages underneath her clothes and her wee wee, he said 'this is serious stuff' and 'um, no, maybe, no, the lower part of the tummy, but no';
• that he had not massaged her wee wee with his hands, but that 'I've maybe patted her butt or scrunched her butt';
• that he had never touched her vagina intentionally, but 'I might have hiked her up in the yard or something like that;'
• he might have 'massaged to the top, right of her bum' and 'I've scrunched her butt';
• he might have rubbed her tummy to the top of a dress or skirt or shorts;
• in the yard he might have 'picked her up, like, something put a hand, put me hand down there and picked them up throwing them around the yard;'
• he couldn't see anything wrong with giving her a massage;
• she sat on his lap and he massaged her shoulders;
• he probably should not have massaged her, but 'I don't think it's a big thing';
• she's not a smart kid, not the brightest kid in the class so to make something up 'like that', by which he was referring to touching her vagina, is not something 'that really comes into her head;'
• that he had rubbed her tummy, squeezed her butt, rubbed her back and massaged her neck in the yard." (emphasis added)
The Appellants' complaint is that, in various critical parts of the primary judgment, and in particular her Honour's analysis as to whether B and D's disclosures should be accepted, the primary judge conspicuously overstated the extent of Mr Bird's admissions. For example, at PJ [333], her Honour said that "Mr Bird himself gave an account to police that he had acted inappropriately towards children, including the child who he was being questioned about".
In relation to B, the primary judge held that Mr Bird had admitted to kissing the children: "the account which he volunteered to police about how he treated children at the centre, including kissing them"; [47] and "Mr Bird's admissions that he kissed and touched the children partly corroborated [B's disclosures]". [48] Earlier in the judgment is a section of analysis under the sub-heading "Mr Bird admitted kissing children". [49] In PJ [342], the primary judge stated that "[a]t the time Mr Bird was interviewed by police in November 2010 he was not then asked anything about kissing children. But amongst the things which he volunteered was that he kissed, hugged and cuddled them".
We are of the view that no admissions as to kissing children were made, either in relation to Child 1 (the subject of the police interview), B or "the children" more generally. Indeed, the Tendency Notice did not assert such a tendency [50] nor did the primary judge's list of admissions said to have been made in relation to Child 1. [51]
In addition to PJ [342], which is extracted in full at [87] above, the basis for the primary judge's erroneous conclusion that Mr Bird admitted to "kissing the children" when interviewed by the police appears at PJ [343]-[344] as follows:
"343 When Mr Bird said that maybe he shouldn't throw them around as he did, because if he was a school teacher, he would 'probably get busted', he was asked to explain what he meant. Mr Bird said:
'O.K. Well, the rules of school teachers is that they can't touch kids. If a kid falls over they can't pick them up and kiss and cuddle because they hurt themselves. That's to, and by the school regulation, I know a lot of school teachers, they can't do it. We can because you pick them up because they are only babies, right, you cuddle them and give them, put a cold wash or whatever they, on their hurt, away they go.'
344 On that account I am satisfied that there can be no question that Mr Bird kissed children when he worked at the centre. He also plainly considered that he did not have to be constrained in his behaviour, in the way that the teaching staff with whom he worked did, when he interacted with the children." (emphasis added)
Nowhere in the extracted passage from the ERISP does Mr Bird admit to kissing the children at Footprints. As the primary judge noted at PJ [342], he was not asked about kissing children. In the extracted answer, Mr Bird refers to his understanding of what school teachers cannot do and what "we" (presumably referring to those working Footprints) "can do" if a child hurts themselves or falls over. He says that what "you" (referring to himself and the childcare workers) "do" is "pick [the children] up because they are only babies, right, you cuddle them and give them, put a cold wash or whatever they, on their hurt, away they go."
The primary judge may well have believed that Mr Bird kissed the children, but it is altogether another thing to say, in a case where s 140(2) of the Evidence Act applies, that he admitted to doing so when this conclusion cannot be fairly or clearly spelt out of an answer to a question that did not even concern the kissing of children. The primary judge's reasoning appears to have been that because Mr Bird said that he could "pick [the children] up and kiss and cuddle [them] because they hurt themselves", it followed that this is what Mr Bird admitted to having done. But this does not follow nor is it supported by the conduct to which Mr Bird in fact admitted.
At its highest, Mr Bird's response to the question he was asked, upon which the primary judge relied, was ambiguous as to whether he kissed either Child 1 or the children more generally. The primary judge's conclusion that there could "be no question that Mr Bird kissed children" was not justified on the basis of the passage of the police interview relied upon by her Honour. Moreover, the primary judge's conclusion as to what Mr Bird had admitted relied upon an "indirect inference" and a "slender and exiguous proof" of the kind deprecated by both Dixon J and Rich J in Briginshaw. [52]
The immediate context of Mr Bird's response, in which the primary judge discerned an admission to kissing children, also tends strongly against that conclusion. What Mr Bird actually admitted to doing in the passage extracted by the primary judge, namely picking up and cuddling the children, was consistent with his answers to a number of other questions which he had been asked immediately beforehand and in which he freely volunteered that he had hugged or cuddled some of the children. Thus, in answer to question 184, he said: [53]
"Yeah, I know, I'm, I'm trying to give you my picture that um, kids to me are, yeah, they're great little kids, great people, and they love to be hugged and cuddled and thrown around um, probably maybe I shouldn't throw them around like I do. Um, if I was a school teacher I'd probably get busted - - -
…
- - - but they're little kids and they like, you know, sit on you and jump on you."
In answer to question 195, about a child other than Child 1, he said:
"He'll come up and sit on your lap, but he's a big kid to be sitting on your lap, you know what I mean, he's a bit of a lump, but, you know, he'll have a hug and a cuddle."
Those parts of the primary judgment referring to the overstated and erroneous admissions to kissing [54] formed a central part of the primary judge's analysis of B's disclosures, which included the alleged kissing of B by Mr Bird. We will return to the significance of that analysis when considering the primary judge's acceptance of B's allegations. [55]
As to D, the primary judge recorded that: [56]
"While D was not cross-examined, given Mr Bird's admissions that he had tickled children and touched them in inappropriate places, including low on the tummy and that he may have even touched child 1 on the vagina, albeit unintentionally and also put his hand down the front of her pants, when considered together with the tendency evidence and other evidence I have discussed, I am also satisfied that this disclosure must be accepted as true." (emphasis added)
There was no basis for a conclusion that Mr Bird had admitted to having "put his hand down the front of [Child 1's] pants" or that he had "touched them in inappropriate places". No such admissions appear in the ERISP nor in the primary judge's list of admissions at PJ [366]. Whilst it is true that the last of the tendencies asserted in the Tendency Notice was to "put his hand down in front of child's underwear", the reference given in support of that asserted tendency was Mr Bird's answer to question 243 in his police interview. That answer did not, in our opinion, support that assertion. Even less so did it constitute an admission that Mr Bird "put his hand down the front of [Child 1's] pants". To provide the full context of the answer to question 243, it is necessary to reproduce the transcript of interview from question 225: [57]
"Q225 - - - touch her back. But she also told us that you massage with your hand underneath her undies on her wee wee.
A No, so, no. I don't know, no.
Q226 Are you saying that you never - - -
A No.
Q226 - - - touched her wee wee or her vagina?
A Not intentionally. I might have picked her up in the yard or something like that but it would - - -
Q227 No, she was talking about inside - - -
A Yeah, no.
Q227 - - - at sleep time
A No .....
Q228 And you can see it wouldn't, like, she said underneath her undies, so - - -
A No, you're talking about putting a hand down her pants?
Q229 Yeah, under her undies and touching her wee wee.
A No, no, I don't like the idea of this. This is, this is, this is - - -
Q230 Yes.
A - - - serious shit, this.
Q231 Well, that's why we're here.
A You're not wrong.
Q232 Yeah.
A O.K.
Q233 So what do you think when, when I say that?
A Well, no, I'm wondering why, why would she say something like that?
Q234 Well, that's right. 'Cause then what she's told us is that you said not to tell anybody 'cause it's a secret.
A No, uh-uh, no, I don't like this one. Well, O.K. I haven't got, all I can say is no, that didn't happen. I've massaged her um, you know, you massage but you don't, no, maybe to the top, right, or her bum and then scrunched her butt.
Q235 I'm talking about ..... - - -
A Yeah, no, I know what you're talking about - - -
Q235 - - - her wee wee.
A - - - you're talking about, you're talking about - - -
Q236 It was the word you used before as winkie.
A - - - fondling, yeah.
Q237 Yeah.
A Well, why didn't she use winkie then if she was talking, relating to me?
Q238 Because she uses, she was using it as a part of her body and she calls her vagina her wee wee.
A Oh, O.K.
Q239 Yeah.
A No, no, well, I don't like that at all. No, sorry.
DETECTIVE SERGEANT MALONEY
Q240 Get your hand off the microphone there.
A Oh, sorry, I didn't know what it was.
DETECTIVE SENIOR CONSTABLE DONAGHY
Q241 Why do you think [Child 1] would say that if it wasn't true?
A I don't know, I don't know. It wouldn't be, it wouldn't be attention, intentionally ah - - -
Q242 Are you talking about you wouldn't do it intentionally?
A Well, yeah, if I was rubbing her tummy um, no, to the top of her, say to the top of a, of a dress or a skirt or shorts. 'Cause most, she mostly wore trousers, longies, like not, not um, like a skirt and underwear.
Q243 Yeah. But she said down the front of her underwear, so you could put your hand down the front of somebody's underwear.
A Oh, yeah, well, that's a point. No, sorry, no. I might have in the yard picked her up, like, something put a hand, put me hand down there and picked them up throwing them around the yard." (emphasis added)
The primary judge's statement at PJ [407(6)] that Mr Bird had admitted that he put his hand down the front of Child 1's pants was not warranted. Indeed, it was consistently denied by Mr Bird. No such admission was made and this error cannot be explained away as peripheral; it appears in the central part of her Honour's reasoning in respect of Mr Bird's liability for the alleged conduct underpinning Child D's case. If such an admission had been made, it would have been of powerful forensic significance and self-evidently damning. We are satisfied that no such admission was, however, made and that the primary judge committed a significant error in so finding.
We also note in this context that Mr Bird's admission that he "may have touched Child 1 on the vagina, albeit unintentionally", could scarcely found an inference of a tendency "for inappropriate sexual dealing with children in his care". [58] Still less could it have strongly supported the existence of a material fact in issue, namely that Mr Bird had intentionally "tickled [D] on her underpants", [59] an allegation which the primary judge upheld by reference, in significant part at least, to what her Honour considered to be Mr Bird's admissions in relation to Child 1.
Many of the other "admissions" listed at PJ [366], as reproduced at [85] above, were not admissions at all. Many were no more than descriptions of what the very young children did or said to Mr Bird, for example, that they would climb or jump on him and that one child had lifted up her t-shirt, showing her chest and "winkie". At their highest, the only "admissions" made by Mr Bird were that he had picked a child up, given a child a cuddle, rubbed a child's tummy or patted a child's back or bottom when asked to do so.
The context of many of the so-called admissions was also important and, it was submitted on appeal, disregarded or discounted by the primary judge. In relation to the notion that some children pulled up their t-shirts, for example, Mr Bird's evidence was that: [60]
"they do little shock things to you, I don't know why but that's, that's um, that's what they do. I don't treat it as a big deal because I think if you, if you know you've been shocked then they keep going back at you. Um, it's not unusual all of them to start this lifting the T-shirts up and you get a run on it and then all of a sudden it will disappear, you just treat it as nothing, just say young ladies don't do that, end of story."
Mr Bird was quite candid in the police interview, as his answer to question 271 makes plain: [61]
"Q I'll just go back to what we said before and you were relating yourself and teachers on a level. Do you think it's appropriate given what you've told us to, to squeeze a child on the backside?
A Oh, probably not. I do my grandkids too, it's probably not even for them. Um, I'm, I just, kids are kids and you play with them and you throw them around and let them have fun. Right. Um, O.K., but I don't think a scrunch on the backside is, I don't think it's a bad thing. Right. Um, but in this day and age dah dah, it's probably gone, you shouldn't do that. Right. I shouldn't pick the kids up and throw them around, put them on me shoulders and all that um, and I shouldn't probably put them on the swing or let them swing on a rope. But I make things for them in the kindy so they have fun and I think that's what kids do, have fun."
More context was supplied by the answers to questions 180-185: [62]
"Q And what about any of the other kids, do you rub any of the other kids' backs or tummies underneath their shirts?
A Yeah, I'd rub their back - - -
Q Yeah.
A - - - um, they might be laying down, so you rub their back.
Q Are there specific kids that you only rub their backs or - - -
A No, no, any kid, any kid that comes up for a bi[t] of a hug or a bit of a cuddle.
Q Yeah. And - - -
A … just so you generally do with any kid, as I would do with me grandkids.
Q Yeah. I'm just asking - - -
A Yeah, I know, I'm, I'm trying to give you my picture that um, kids to me are, yeah, they're great little kids, great people, and they love to be hugged and cuddled and thrown around um, probably maybe I shouldn't throw them around like I do. Um, if I was a school teacher I'd probably get busted - - -
Q Yeah.
A - - - but they're little kids and they like, you know, sit on you and jump on you."
Earlier, Mr Bird had said that all of the kids, including the boys, "come up and jump all over you and have a hug and then run off". [63]
Touching of the kind Mr Bird admitted, namely picking children up, cuddling them, rubbing their tummies or massaging their shoulders, may be quite innocuous or it may be the opposite if accompanied by intent or involving the deliberate touching of sexual organs. As the primary judge stated, "[t]here was no issue that some of these acts could have involved inappropriate sexual dealing" (emphasis added). [64] No admission of this kind, however, was made, namely that they involved such inappropriate dealing. Indeed, sexualised conduct was strongly denied by Mr Bird throughout his interview. The primary judge nevertheless characterised Mr Bird's evidence as involving admissions of that kind.
Because the primary judge concluded (erroneously in our view for reasons already given) that Mr Bird had admitted to "kissing the children" and putting his hand down Child 1's pants, it may be that her Honour attributed a far more sinister and sexualised character to what was morally equivocal behaviour that on one view was quite innocuous and, indeed, very human, i.e. patting a child's back or rubbing their tummy when upset. We are unable to make a similar attribution and Mr Bird certainly made no admissions to that effect.
Again, taking into account the language of Briginshaw, given that Mr Bird did not admit to "kissing the children" or putting his hand down Child 1's pants, his statements in the police interview on 11 November 2010 should not have been treated as demonstrating a tendency for "inappropriate sexual dealing with children in his care". [65]
That the primary judge may not have taken a favourable view of Mr Bird's credit did not have the effect of translating what he said in his police interview into admissions. Indeed, the primary judge was of the view that Mr Bird was being honest in his police interview. [66] None of the activity to which he admitted in that interview could fairly be characterised as sexual assault of the kind alleged and for which the Plaintiffs were awarded very substantial damages. The primary judge erred in relying on Mr Bird's so-called "admissions" as tendency evidence.
[9]
Admissibility of Mr Bird's admissions against Ms Clancy and Little Pigeon
This issue is raised in the appeals brought by Ms Clancy and Little Pigeon, and concerns the extent to which Mr Bird was expressly or impliedly authorised to make admissions on their behalf. Of course, to the extent that either or both of Ms Clancy and Little Pigeon were vicariously liable for Mr Bird's conduct (a matter considered at [185]-[199] below), such admissions as were made by Mr Bird would "bite" against them not because they were admissible against those parties, but by virtue of their vicarious responsibility for the acts or omissions of their employee within the scope of his authority.
It is necessary to differentiate between Little Pigeon and Ms Clancy.
In relation to Little Pigeon, the primary judge said that it "finally" conceded that "Mr Bird's admissions were also admissible against it". [67] This was not accepted on appeal by Little Pigeon, whose counsel pointed to the more limited concession which had been made: [68]
"the admissions, if they are admissions, that he made would bind or could reasonably bind Little-Pigeon to the extent that it's talking about the scope of his role and what he was and wasn't doing in his role.
… in terms of Little-Pigeon to the extent that the admissions are to do with the scope of his role at the centre, I would have to accept that the admissions bind Little-Pigeon." (emphasis added)
In closing submissions at trial, Ms Horvath (for Ms Clancy and Little Pigeon) put that a further concession had been made, namely that "[a]ny admissions … that he [Mr Bird] made at most bind Little Pigeon because of the quasi-employment relationship". [69] Reference was made in that context to s 87(1)(b) of the Evidence Act, which renders admissions made by an employee relating to a matter within the scope of their employment or authority admissible against their employer, and to s 87(1)(c) (see [113] below). Little Pigeon did not take issue with that proposition per se but emphasised that the primary judge was obliged in relation to each "admission" to consider whether it was an admission at all and then to consider whether any of the criteria in s 87(1) of the Evidence Act was satisfied and, if so, whether it was adverse to Little Pigeon's interests.
The submissions of both parties in relation to this aspect of the case were made at a very high level of generality and the Court was not favoured with any detailed analysis. Given what we have held about Mr Bird's admissions relied upon by the primary judge, it is not necessary to delve into any further detail on this aspect of the appeal by Little Pigeon.
In relation to Ms Clancy, not only was no concession made (even of a limited kind) that Mr Bird's admissions were admissible against her, but the attack on the primary judge's reasoning that they were was more pointed. That reasoning was as follows: [70]
"27 Ms Clancy was not only Little Pigeon's 99% shareholder and its controlling mind, on her evidence she had the regulatory responsibilities of both the licensee and of the centre's authorised supervisor from the time Ms Hillman resigned from that position in late 2008, until Ms Kasim was appointed to the position in October 2010. It was Ms Clancy who sought approval in 2008 for Mr Bird to be involved in the management of the centre; who directed Mr Bird to conduct himself with affection towards the children, as if he were their grandfather; and who, it may be inferred, was the author of the documents in which Mr Bird's role in the centre was disclosed to be as part of its management team.
28 In all of those circumstances I am also satisfied that Mr Bird's admissions were admissible against Ms Clancy. Even if Mr Bird did not have express authority to make statements about his role on her behalf, Mr Bird and Ms Clancy clearly had a common purpose in defending the charges which had been laid against Mr Bird: s87(1)(c).
29 That conclusion rests not only on their joint ownership of Little Pigeon, but also from the unpaid work which he performed for it, which Ms Clancy agreed supported its business and it follows, the profits it generated, which it may be inferred they shared. Ms Clancy's communications to parents about Mr Bird's arrest and the ongoing operation of the centre, shortly after Mr Bird made his admissions, also establish their common purpose in him successfully defending the charges, given their significance to the continued successful operation of the centre.
30 The evidence establishes that Ms Clancy not only supported Mr Bird in his defence of those charges, but communicated to parents about that defence about the support which he enjoyed from her and other staff and her belief that they were both the victim of a vendetta. That communication followed enquiries from parents, including A, and children such as B and D being withheld or withdrawn from the centre.
31 In the result I am satisfied that Mr Bird's admissions were also admissible against Ms Clancy."
The reference to s 87(1)(c) in the above extract (PJ [28]) is to the Evidence Act, which provides:
"For the purpose of determining whether a previous representation made by a person is also taken to be an admission by a party, the court is to admit the representation if it is reasonably open to find that -
…
(c) the representation was made by the person in furtherance of a common purpose (whether lawful or not) that the person had with the party or one or more persons including the party."
It was submitted that the relevant time at which the relationship between Mr Bird and Ms Clancy fell to be considered was when the representations were made on 11 November 2010. Ingot Capital Investments Pty Ltd v Macquarie Equity Capital Markets Ltd (No 4) [2006] NSWSC 90 at [9], [18]-[20] supports that submission. It follows that s 87(1)(c) requires one to identify the existence of a common purpose at the time of the making of the representations. The primary judge identified the common purpose as the defending of the charges against Mr Bird. The difficulty with this is that Mr Bird had not been charged at the time of the making of the representations said to amount to admissions. As was submitted on Ms Clancy's behalf, when Mr Bird was arrested and interviewed on 11 November 2010, Ms Clancy had not spoken to him about the allegations and it was likely that she was not even aware of them. This was because, on 7 November 2010, Ms Clancy had flown to Ethiopia for a two-week holiday and only found out about the charges on 11 November 2010, when she phoned Mr Bird to tell him that she would be going to a remote part of Ethiopia and would be out of phone contact. This was after the police interview. The key point from this sequence of events is that Ms Clancy learned of the charges after the occasion on which the admissions were said to have been made by Mr Bird. [71]
The admission into evidence of a representation made by a person who shares a common purpose with a party to proceedings, as an admission against that party, is confined to representations made "in furtherance of" the common purpose alleged in those proceedings. [72] A representation cannot have been made in furtherance of a common purpose before that alleged common purpose had come into existence.
In the absence of any express authorisation to make admissions on her behalf, the admissions, such as they were, were not admissible against Ms Clancy, and the primary judge erred in admitting them against her.
The Respondents' submission that it was not open to Ms Clancy to raise this point on appeal because it had not been taken at first instance was also without factual foundation. The point had been taken during the trial and in closing addresses. [73] So, too, the Respondents' reliance upon Australian Competition and Consumer Commission v Mayo International Pty Ltd (1998) 85 FCR 327 was misplaced, not least because Kiefel J's observations in that case concerned admissions being attributed to a principal who was the employer of the person making the admissions. That was not Ms Clancy.
[10]
Did the primary judge err in her conclusion that the disclosures by B were made out and thus that Mr Bird committed assault, battery, sexual assault and/or trespass on B?
It will be recalled that the primary judge held that Mr Bird assaulted B, who was aged between two and three years during her time at Footprints, by repeatedly kissing her, including with an open mouth, and pulling down her pants. [74] B turned four years of age in February 2011. [75]
It is also to be recalled that the primary judge said: [76]
"Because B and D had no memory of what had happened, they could not be cross examined. In this case that did not preclude evidence of their disclosures being received. Given the gravity of Mr Bird's alleged acts it was thus necessary to pay very close attention to what they had each disclosed, in light of all of the other evidence, to determine whether the plaintiffs had satisfied the obligation to prove their cases, on the balance of probabilities." (emphasis added)
On the other hand, at PJ [333], the primary judge observed that B and D's disclosures had to be approached in a context where:
"… they were very young to have fabricated their disclosures; their mothers, who knew them well and had seen how Mr Bird interacted with the children, believed what they each disclosed; a number of other children made disclosures about him, without any suggestion of planned concoction between them; their behaviour later changed, consistent with having endured traumatic events; and Mr Bird himself gave an account to police that he had acted inappropriately towards children, including the child who he was being questioned about."
We note, parenthetically, that this last sentence is an example of the way in which the primary judge drew upon what she described as Mr Bird's "admissions" as a central part of her reasoning process. We have already explained at some length why we consider that her Honour's treatment of Mr Bird's so-called admissions was seriously flawed: see [80]-[106] above.
In considering the appeal in respect of B (and, indirectly, her mother A, whose case depended for its foundation upon B's disclosures being accepted as true), it is first necessary to identify the actual and underlying evidence relied upon by the primary judge to support her conclusion that Mr Bird "repeatedly kissed" B, including with an open mouth, and pulled down her pants.
The starting point is the evidence of B herself and of A, in particular regarding the conduct in relation to B for which the primary judge found Mr Bird liable. The relevant sequence and content of disclosures concerning B was as follows:
1. On 13 May 2009, A observed Mr Bird kiss B on her forehead as she entered the yard area of Footprints, following which B wiped her forehead and said "yuck"; [77]
2. from time to time thereafter, B would tell A that on "a number of occasions" Mr Bird was "spicy" while rubbing her face. On one such occasion, A enquired whether B intended to say "spiky" and received an affirmative response, although B "was [not] able to explain exactly what she meant"; [78]
3. A, on being notified that Mr Bird had been arrested and charged with indecent assault, took B to the Sutherland Community Services Centre to be interviewed on 12 November 2010. Following this interview, staff of the Centre informed A that nothing was disclosed in the interview that "would raise [their] concerns"; [79]
4. on 13 November 2010, B disclosed to A that "Nat", a teacher at Footprints, had kissed her with an open mouth; [80]
5. on 18 November 2010, A made a statement to police at the Kogarah office of JIRT describing B's disclosure of 13 November 2010 and the kiss that she observed on 13 May 2009; [81]
6. on 3 December 2010, A sent an email to a JIRT officer expressing her concern about B's assertion that she had learned to kiss with an open mouth at Footprints; [82]
7. on 22 December 2010, A attended a child and family assessment session with a social worker and expressed her concern regarding B's "unusual sexual behaviour", including kissing with an open mouth, in light of her disclosures regarding Footprints and "Nat". The social worker noted that "[A] wants [B] to be interviewed again to see if she will make a disclosure"; [83]
8. on 5 January 2011, A and B attended a follow-up appointment with the same social worker. B did not disclose any detail of abuse committed at Footprints. The social worker's note was that B "did not disclose anything she didn't like at preschool other than the babies annoyed her"; [84]
9. during January 2011, during a conversation with A regarding circumstances in which B could say "no" to a teacher, B stated that "[n]o one at school touches any of the kids because all the teachers are watching"; [85]
10. around 20 February 2011, B disclosed to A that Mr Bird had kissed her on the lips near the sandpit at Footprints and that this had occurred "lots of times"; [86]
11. on 28 February 2011, A attended the Kogarah office of JIRT accompanied by B, who subsequently participated in an interview with a community services worker and a police officer. [87] It was put to B that she had told A "about someone kissing [her]", to which B responded that Mr Bird had kissed her on the lips. B was queried as to what "[she was] doing when Mr Bird kissed her on the lips" and replied that she was "trying to stop him kissing [her]". Later during the interview, as the interviewers enquired as to the circumstances of the kissing, B disclosed that Mr Bird had tried to kiss her on the lips while he was relaxing in his blue chair. When asked what made her think that Mr Bird was trying to kiss her, B replied repeatedly that she did not know; [88]
12. at approximately 11.00am on 2 March 2011, B disclosed to A that Mr Bird had kissed her on the lips with an open mouth "near the sandpit" at Footprints and had pulled her pants and underpants down; [89]
13. on 4 March 2011, A attended the Kogarah office of JIRT, met with a police officer and provided a further statement to police describing B's disclosures on or around 20 February 2011 and 2 March 2011; [90]
14. on 5 May 2011, Mr Bird was charged with offences relating to B; [91]
15. on 10 August 2011, A and B attended a counselling session with a senior social worker (Ms Ly) at the Sydney Children's Hospital Child Protection Unit (CPU). In her clinical notes, Ms Ly recorded that "B started to talk about weird feeling in reference to [Mr Bird] - that he kissed her on the lips and that she didn't like it. It was 'spicy' and that she knows that he broke the rules"; [92]
16. on 17 August 2011, A and B attended a further counselling session with Ms Ly, during which B asked how Ms Ly "knew what [Mr Bird] did" following the previous session; [93]
17. on 24 August 2011, A and B attended a further counselling session with Ms Ly, during which A mentioned that B had disclosed to her that Mr Bird had pulled her pants and underpants down, only to inform her later that this had not happened. A asked Ms Ly whether it was likely that B had concocted this event or whether she had retracted her account "out of fear"; [94]
18. on 14 September 2011, A and B attended another counselling session at the CPU with Ms Ly. During the course of the session, B disclosed that Mr Bird had pulled her pants down but then laughed and said that she had tricked A and Ms Ly and that Mr Bird had not done so. B then repeated her disclosure that Mr Bird had kissed her on the lips albeit that she said, for the first time, that Mr Bird had followed her to the shed to do so; [95]
19. on 13 January 2012, B was again interviewed by an officer of JIRT at Kogarah. B had difficulty recounting details regarding Footprints but accepted the interviewing police officer's summary that Mr Bird had kissed B only on one occasion, and nobody else was present at the time. [96]
It is necessary to identify with more precision from the above events precisely what B's disclosures were in relation to the allegations of repeated open-mouth kissing and the pulling down of her pants. These two matters will be dealt with separately.
[11]
Repeated open-mouth kissing
In relation to the allegation of repeated kissing with an open mouth by Mr Bird, no such disclosure was made by B during her interview on 12 November 2010, when she told A the next day that Nat had kissed her with an open mouth or at her appointment on 5 January 2011. The interview was conducted by staff at the Sutherland Community Services Centre, and the appointment was held with a social worker with the South Eastern Sydney Illawarra Health Service.
On the evidence, the first such disclosure by B (that Mr Bird had kissed her) was made to her mother on 20 February 2011, some 16 days after B had turned four years of age and some three months after Mr Bird had been arrested in relation to the matters disclosed by Child 1. According to A's evidence, she had the following conversation with B: [97]
"[A]: Has anything ever happened that's made you feel yucky?
[B]: Nup.
[A]: Do you remember when you used to say that Rod is spicy?
[B]: Yep.
[A]: What does that mean?
[B]: It means Rod has spicy lips.
[A]: How do you know Rod's lips are spicy?
[B]: Because I've kissed them.
[A]: Where have you kissed them?
[B]: On the lips.
[A]: Where would you be when Rod would kiss you on the lips?
[B]: Where Rod relaxes near the sandpit."
It may be noted that in the last question, A has transposed B's earlier answer that she (B) would kiss Mr Bird on the lips to Mr Bird kissing B on the lips. In relation to this aspect of A's evidence, the primary judge observed that: [98]
"In cross-examination A agreed that it was she who had raised the issue of B's private parts with her and that she had changed what B had told her from B having kissed Mr Bird's lips, to Mr Bird kissing B on the lips. But she denied that she understood from this conversation that it was B who had initiated a kiss on the lips with Mr Bird."
Later on 20 February 2011, A audio-recorded a conversation she had with B, which was prompted by the disclosure she had made earlier in the day. The relevant passage from the transcript of that recorded conversation was as follows: [99]
"[A]: Spicy Lips. But how do you know Rod's lips are spicy?
[B]: Because I've kissed him before.
[A]: Where have you kissed him?
[B]: On the lips.
[A]: On the lips?
[B]: Yes
[A]: And his lips were spicy?
[B]: Yep.
[A]: Oh.
[B]: Yes.
[A]: Do you know how many times you kissed Rod on the lips?
[B]: Well he kisses me. No me.
[A]: Oh ok. Did Rod kiss you just once? Or did he kiss you lots of times?
[B]: He kissed me lots of times which I didn't like.
[A]: You didn't like it.
[B]: He kissed me lots of times which I didn't like.
[A]: You didn't like it?
[B]: No".
At PJ [394(51)], after considering whether questions put to B were suggestive or whether B knew the difference between reality and non-reality and was therefore susceptible to suggestion, the primary judge said that "I am unable to conclude that what B told her mother on this occasion, was unreliable". On appeal, Mr Hooke, for Mr Bird, submitted that this was an example of the primary judge in effect reversing the onus of proof. [100]
The disclosure by B to A on 20 February 2011 resulted in an interview between B, a community services worker and a police officer on 28 February 2011. As will be seen, on that occasion, B's evidence oscillated between statements that Mr Bird had kissed her with an open mouth and simply that he had tried to do so. It is necessary to set that evidence out at some length: [101]
"Q214 … So when you were [at] baby school, did you used to spend a lot of time with Nat and Rod?
A No audible reply.
Q215 No.
A Just Nat.
Q216 Just Nat, she was, who was your favourite at your baby school?
A Nat.
Q217 Nat. O.K. So did you spend time with Nat every time you were there?
A Yes.
Q218 And did you spend time with Rod every time you were there?
A No.
Q219 No. When did you spend time with Rod?
A Never.
…
Q230 Have you talked to mummy about some things?
A No.
Q231 No. Ah, did you talk to mummy about, did you tell mummy something about a kiss?
A No.
Q232 No.
A No.
Q233 No. Did you tell mummy something about someone kissing you?
A Yep.
Q234 Yes.
A About Rod kissing me.
Q235 Ah, O.K. Can you tell me about that?
A No.
Q236 No. So what did you tell mummy?
A I don't know.
Q237 You don't know.
A No.
…
Q240 You said, you just said to me that you told mummy about, what did you tell mummy about?
A Rod kissing me.
Q241 Rod kissing you. O.K. So can you tell me about Rod kissing you, whereabouts did Rod kiss you?
A On the lips.
Q242 On the lips. O.K. So can you tell me about Rod kissing you on the lips?
A No audible reply.
Q243 O.K. Where were you when that happened?
A Where, where he sits and relaxes.
…
Q247 It is. O.K. So that was downstairs and so tell me how that happened, what were you doing when Rod kissed you on the lips?
A Um, well, I was trying to stop him kissing me.
Q248 Ah, so how did you try?
A I don't know.
Q249 What did you do, what did you [do] to try and stop him?
A No audible reply.
Q250 Did he say something to you?
A No.
Q251 No. What did you say to him, what did you say to him?
A I don't, nothing.
…
Q257 O.K. So you were sitting on the table - - -
A Ah hmm.
Q257 - - - and he was sitting on the chair - - -
A Um - - -
Q257 - - - and then what happened?
A He just tried to kiss me.
Q258 Ah, and how did he do that?
A I don't know.
Q259 You don't know. Mmm. So where was everybody else, where [w]as Nat, can you remember?
A No audible reply.
Q260 No. Was [sic] there other children around?
A No.
Q261 No. And was, can you remember whether this was, was this, what part of the day was it, was it play time or sleep time or something else?
A Play time.
Q262 It was play time. O.K.
A I already told you that it was play time.
…
Q263 - - - and you're sitting on the table and he tried to kiss you, how do you know he tried to kiss you?
A Because - - -
Q264 Because, how can you tell me that?
A I don't know.
Q265 So what did he do that made you think he was going to kiss you?
A I don't know.
Q266 What did he do that made you think he was going to kiss you?
A I don't know.
Q267 O.K. Remember a big outdoor voice.
A Yes.
Q268 Yeah, you don't know what he did.
A Yep.
…
Q280 … So you said that Rod was, you were sitting on the table and he was sitting on the chair and then, then what happened?
A I don't know.
Q281 You don't now. You said he tried - - -
A He kissed me.
Q282 He did kiss you or he tried to kiss you?
A He tried to kiss me.
Q283 He tried to kiss you, now, how do you know he tried to kiss you?
A 'Cause - - -
Q284 What did he do, what did he [do] that made you think he was going, trying to kiss you, that's excellent, can you put your name on that for me 'cause all good artists have to sign their pictures, so what did he do that you made [sic] you think he was going to kiss you?
A I don't know.
Q285 O.K. And what did you say?
A I don't know.
Q286 Did you say anything to him?
A No audible reply.
Q287 No and what did you do?
A I said, stop stare bear.
Q288 And who did you tell about this?
A Rod.
Q289 You told Rod.
A Ah hmm.
Q290 And did you tell anybody else?
A Yep.
Q291 Who?
A I don't know.
…
Q298 Yep. Has everything that you've told me been the truth today?
A No audible reply.
Q299 No.
A No.
Q300 O.K. What have you told me that isn't the truth?
A I don't know.
Q301 Pardon?
A I don't know."
Almost eight months later, on 10 August 2011, during a session with A and B at the Sydney Children's Hospital CPU, Ms Ly recorded the following: [102]
"[B] started to talk about weird feeling in reference to Rod - that he kissed her on the lips and that she didn't like it. It was 'spicy' and that she knows that he broke the rules - her rules and her mum's rule. Acknowledged that what Rod did made her feel angry and sad as well. She spoke about sad feelings come first and then angry feelings take over. We spoke about the importance of making these feelings go away and whether she would like to come back and meet with me to get rid of these feelings. [B] agreed to come back."
At the next session, one week later, Ms Ly's notes recorded that: [103]
"[B] asked me how did I know what Rod did - we spoke about what she had told me last time she was here. [B] went to her mum and sat next to her. Spoke about feeling sad and angry about what had happened. Didn't like it. We spoke about what anger does to [B] - stomping her feet, screaming and saying not true things - 'you don't love me' to [A]."
The next session with Ms Ly was held on 24 August 2011 [104] and is important in relation to the allegation that Mr Bird had pulled B's pants down (which is discussed further at [140]-[149] below). However, it did not record any further detail about the kissing.
On 14 September 2011, B said for the first time that Mr Bird had followed her to the shed to kiss her, whereas her earlier disclosures had placed the kissing on the blue chair near the sandpit. This was the same occasion on which B said that she had tricked A and Ms Ly in relation to her claim that Mr Bird had pulled down her pants.
In the 13 January 2012 JIRT interview (see [122(19)] above), B accepted that Mr Bird had kissed her only once, whereas her earlier disclosures were to the effect that he had kissed her "lots of times".
The following observations may be made:
1. A's evidence of Mr Bird kissing B on her forehead on 13 May 2009 is of little or no significance in relation to the repeated open-mouth kissing allegation and finding. It was far removed in time and innocuous, even if it might be thought to be inappropriate. It would not be considered sexual in any way. The only evidence in support of that event was from A, whose reliability as a witness was doubted by the primary judge (see [150]-[151] below);
2. no suggestion of kissing of any kind was made in B's first interview on 12 November 2010 nor in a further assessment by a social worker on 5 January 2011;
3. B's first suggestion that she was kissed with an open mouth related to kissing by "Nat" and not Mr Bird;
4. B's subsequent evidence oscillated between being kissed on the lips by Mr Bird, and Mr Bird trying to do so;
5. albeit in relation to the "pulling down pants" allegation, B volunteered that she had in fact made this up and that she had tricked A and the social worker, Ms Ly. In the same session, more than 10 months after the first interview, B suggested that Mr Bird had followed her to the shed to kiss her on the lips, where previously she had stated that the kissing occurred near the sandpit or on the blue chair at Footprints; and
6. there is a further inconsistency in the evidence as to whether Mr Bird had kissed B once or "lots of times".
Taking all of the above evidence together, B's untested and untestable allegations of being repeatedly kissed on the mouth by Mr Bird cannot, by themselves, justify the finding made by the primary judge. Nor were they supported by the tendency evidence relied upon or any admissions by Mr Bird.
Contrary to the primary judge's conclusion, Mr Bird simply did not make any admission to kissing either Child 1 or the children generally, still less kissing them with an open mouth. Also to be noted in this regard was unchallenged evidence that, at least when in the open area where it was suggested that the assaults occurred, Mr Bird was visible to other staff at Footprints. Thus, Ms Emma Jones, who commenced work at Footprints around 2009 and remained there until 2011, gave unchallenged evidence as follows: [105]
"10 I sometimes observed [Mr Bird] in the outdoor area in the afternoon. When I observed [Mr Bird] outside, he was usually just sitting in a chair in the sun, sometimes with his hat low over his head having a nap. The location of the chair was in full view of the Educators supervising outdoor activities.
11 I observed children go over to [Mr Bird] while he was sitting in the chair and I observed children climb on the chair, or on [Mr Bird]. To my observation, there were always other Educators in the garden when this occurred."
To similar effect, Ms Kasey Peterson, who worked at Footprints as a childcare educator between 2005 and 2012, gave the following evidence in respect of which she was not challenged: [106]
"[Mr Bird's] role at the Centre
6 Sometime after [Ms Clancy] took over management of the Centre, her father [Mr Bird] commenced at the Centre. To my observation, [Mr Bird] did the cooking in the kitchen, cleaning and maintenance. Once those tasks had been completed, [Mr Bird] would often leave the Centre and say that he was going home.
7 I recall that not infrequently in the afternoons, [Mr Bird] would sit on a chair in the yard near the fence which was closest to the car park area. That location was in full view of the Educators supervising the afternoon outdoor activities.
8 I saw that in the afternoons the children would sometimes go over to [Mr Bird] while he was sitting in the chair and climb on the chair, or on [Mr Bird]. I was not surprised by this as the children liked it when men were present in the Centre as the majority of Educators/staff were female.
9 I never observed [Mr Bird] interact inappropriately with any of the children at the Centre.
10 I never saw [Mr Bird] change a nappy or assist any child with toileting.
11 Specifically, I never observed [Mr Bird] kiss any of the children (on the lips or elsewhere), pat any of the children during nap time, tickle any of the children on their underpants, pull down the children's pants or touch any of the children on their genitals.
12 During nap time, the usual course was for 2 educators to remain in the pre-school room (there were 20 children in the room and 3 staff members were on shift). I recall that on occasion when a child was unsettled during nap time, [Mr Bird] said words to the effect of 'stop giving Kasey a hard time, you need to settle' either from the kitchen or if he was passing from the kitchen to outside the pre-school room. I never saw [Mr Bird] pat, touch or comfort any of the children during nap time.
13 If I had observed any inappropriate behaviour I would have reported it in accordance with my training in child protection as a Childcare Worker, and I would have had no hesitation in doing so. There are processes to make anonymous reports which I would have utilised to report any behaviour which troubled me at all.
Policies and procedures
14 The Centre's policy was that no adult could ever be alone with a child at the Centre. As such, there were always two Educators in any one area. For example, during nap time I was in the pre-school room with another Educator, and I sat in an area where I could see all sides of the room.
15 To my knowledge, [Mr Bird] was never included in any supervision ratios, and did not replace Educators if they needed to go on a break. [Ms Clancy] or another Educator would step in to replace Educators if necessary and to ensure ratios were correct.
16 The yard was an L-shape, with the sandpit slightly around a corner. During outdoor activities in the yard, there were specific points for educators to be to monitor the children - the bottom corner, the top corner and the sandpit. The layout of the yard was such that all areas of the yard (including the sandpit) could be seen at all times by the Educators. Additionally, one Educator was stationed at the sandpit at all times.
Charges against [Mr Bird]
17 In around November 2010 allegations of inappropriate conduct were made against [Mr Bird] and a police investigation took place."
The primary judge's finding that Mr Bird had repeatedly kissed B on the lips with an open mouth was not justified.
[12]
Pulling down pants
The first disclosure that Mr Bird had pulled down B's pants was made, according to A's evidence, in a conversation with B on 2 March 2011. B had not mentioned this in any of her previous interviews, conversations or assessments, including: at the Sutherland Community Services Centre on 12 November 2010; with a child and family social worker on 5 January 2011; with her mother on 20 February 2011 (which was the recorded conversation; see [127] above); and with police in the JIRT on 28 February 2011.
The conversation between A and B on 2 March 2011, according to A's evidence, was as follows: [107]
"[A]: Did Rod ever do anything else that made you feel weird?
[B]: Yes.
[A]: What?
[B]: Ripping my pants down on my bum.
[A]: Ripping your pants down? What does that mean?
[B]: It means he would pull my pants down.
[A]: When Rod would pull your pants down, would it be your pants or your pants and your underpants?
[B]: My pants and my underpants.
[A]: What would happen next?
[B]: I don't know.
[A]: What does that mean?
[B]: Means you don't know what to say."
This account, although appearing in A's Evidentiary Statement made many years after the events in question, accorded with a statement she made to police on 4 March 2011, which was in evidence as an annexure to her Statement. [108] B does not appear to have been interviewed further by the police prior to Mr Bird being charged with offences relating to her on 5 May 2011. Indeed she was not interviewed by the police again until January 2012.
At neither of the sessions with Ms Ly on 10 and 17 August 2011 did B make any reference to the pulling down of her pants by Mr Bird. Ms Ly's notes of the session on 24 August 2011, however, are of some significance. [109] They record the following during a part of the session in which only A (and not B) participated: [110]
"[A] spoke about [B] initially wanting to tell her about a time where Rod pulled her pants down - that [s]he spoke about Rod pulling both her pants and undies down. Later on, [B] told her mum that this didn't happen. [A] questioning whether it was something that she had made up or is she not saying anything further out of fear. We explored the possibility of [B] not talking further about this time out of protection of her mum - [A] spoke about her going red/in blotches when she is upset and even though she tried to remain calm and asked questions (detail oriented ones) she was going red, and [B] might have noticed this." (emphasis added)
These notes do not reveal how long after 2 March 2011 that B had told her mother that Mr Bird had not pulled her pants and underpants down. According to Ms Ly's notes, this issue was not the subject of any discussion with B during that part of the session on 24 August 2011 when she was present.
A further session with Ms Ly, held on 14 September 2011, is also of significance to the pulling down pants allegation. Ms Ly's notes record the following: [111]
"[B] talked about Rod doing bad things when he broke the rule. Said 'he pulled my pants down' and then laughed and said 'I tricked you and mummy, he didn't do this'. Asked her why she tricked us, to which [B] responded 'I don't know, I wanted to trick mum'." (emphasis added)
The primary judge held that: [112]
"But for Mr Bird's admissions and the other tendency evidence, I would not have been able to conclude that the plaintiffs had proven that Mr Bird pulled B's pants down, as she had earlier disclosed."
Given our conclusions in relation to her Honour's unwarranted findings in relation to Mr Bird's "admissions", and the wrongful admission of Child 1's evidence, this effectively contingent finding by the primary judge cannot stand. It reflects the fact that B's evidence in support of the pulling down pants allegation was brittle and of itself insufficiently reliable to meet the degree of satisfaction required by s 140(2) of the Evidence Act in relation to such a serious allegation.
In our respectful view, the evidence of B as to the pulling down pants allegation was so unreliable and insecure that, even if her Honour had not erred in relation to Mr Bird's admissions and the admission of Child 1's tendency evidence, it could not have been accepted. It emerged late but, more importantly, B had said on two separate occasions that the relevant conduct did not happen [113] and, on the latter occasion, that she was "tricking" A and Ms Ly.
Nor was B's evidence about open-mouth kissing or having her pants pulled down supported by the evidence of D or Child 2. Neither gave evidence of any such conduct of Mr Bird, and the evidence of those two children did not strongly suggest the likelihood that Mr Bird had repeatedly open-mouthed kissed B or pulled her pants down. Furthermore, Mr Bird made no admissions to "kissing the children", let alone kissing them with an open mouth: see [80]-[106] above. Notwithstanding this, the primary judge drew, amongst other matters, upon "Mr Bird's admissions" to support her conclusion that "Mr Bird's denials of having kissed B cannot be accepted". [114] Her Honour similarly and without justification relied upon "all that Mr Bird admitted" to support an acceptance of B's claim that he had pulled down her pants. [115]
Nor did the evidence of A, B's mother, support the primary judge's findings that B's disclosures had been made out. The primary judge expressed the opinion that "there is a question as to the reliability of aspects of A's evidence" and that "her evidence about the events of 2010 and 2011 and their consequences; what she did and why; and what she later told psychiatrists who examined her, [has] to be approached with some care". [116] This opinion was based upon a number of matters, including that:
A gave evidence that she had been "broken" by the DPP's decision not to pursue criminal charges against Mr Bird; [117] and
in the months after the DPP's decision "she began abusing drugs and alcohol to the point that there was strain on her marriage; she went to Ms Clancy's home and caused damage there, which resulted in her being charged with a criminal offence, for which no conviction was finally entered; and she seriously injured herself on one occasion". [118]
It is also to be recalled that A's evidence was given many years after the events in question.
It follows from the above analysis that, for a number of reasons, the appeals against the primary judge's findings in favour of B must succeed.
The foundational allegations were not reliably established by B's disclosures, and this deficit of reliability was not overcome by the other matters relied upon by the primary judge. This would have been so even if the admission or characterisation of some or all of those matters had not themselves been vitiated by error.
The consequence is that B's claim must be dismissed. It also follows that A's claim must be dismissed, as it depended upon B's claim succeeding.
[13]
Did the primary judge err in her conclusion that the disclosures by D were made out and thus that Mr Bird committed assault, battery, sexual assault and/or trespass on D?
It will be recalled that the primary judge accepted as true disclosures by D that:
1. Mr Bird tickled her on her underwear; [119]
2. Mr Bird touched her on her tummy; [120] and
3. she did not like it when Mr Bird tickled her. [121]
It will also be recalled that the primary judge reached these conclusions not solely by reference to D's own evidence as it emerged from an interview with police on 9 February 2011, but as a result of the combination of that evidence with the tendency evidence of Child 1, Child 2, B, Mr Bird's admissions and the evidence of D's mother (C) as to what she had observed about D's behaviour. [122]
Of these additional sources of tendency evidence relied upon by the primary judge, it has already been established that three, namely the evidence of Child 1, the disclosures made by B and Mr Bird's so-called "admissions", were, for differing reasons, not properly able to be relied upon in support of D's case. Given the way in which the primary judge expressed her conclusions on liability, namely that it was a combination of D's disclosures together with the other evidence her Honour referred to, [123] the appeals in respect of the verdicts in favour of D and her mother C must also be upheld.
Whether the findings of liability could be sustained by reference solely to D's disclosures and the evidence of Child 2 (assuming that it alone was capable of establishing a tendency of the kind alleged, and did so), coupled with the evidence of C as to changes in D's behaviour, and, if so, whether C and D's claims should be remitted for a new trial, are difficult questions. They first require a consideration of the nature of D's disclosures and then whether the evidence of Child 2 supported the tendency alleged so as to be available as a source of support for D's disclosures.
[14]
D's disclosures
The disclosures made by D in respect of Mr Bird's conduct are derived from a variety of sources in evidence before the primary judge, including D's interview with a police officer at the Kogarah branch of JIRT on 9 February 2011, a witness statement given to a police officer by C on 20 April 2011 and the Evidentiary Statement of C dated 14 March 2019 and relied upon in the proceedings at first instance.
As noted above at [120], the primary judge came to consider the disclosures of both B and D having recognised that: the children were "very young to have fabricated their disclosures"; those disclosures were accepted by their respective mothers as truthful; "a number of other children made disclosures" absent the suggestion of planned concoction; and the behaviour of B and D subsequently changed, supposedly in a manner "consistent with having endured traumatic events". [124]
The relevant sequence and content of disclosures concerning D was as follows: [125]
1. During or around August 2010, D told her mother that she did not like attending Footprints as "people hurt [her] there"; [126]
2. on 15 November 2010, C visited the offices of the Department of Community Services with D. D made no disclosures at her interview on that day in relation to Mr Bird; [127]
3. on or around 27 January 2011, D disclosed to C, prompted by the question "where does Rod tickle you", that Mr Bird "tickles me all over". C's evidence was that D, when asked to show her where, tickled herself on her underwear; [128]
4. notes on a Child Protection Form of a conversation with C on 3 February 2011, in relation to the disclosure by D to C in late January, recorded that D's "behaviour has changed over past couple of months - grandmother's passed away and parents separated; [129]
5. on 9 February 2011, D said to C, when prompted in relation to the disclosure referred to in (3) above, that "when we did tickling on undies, no one saw us"; [130]
6. later that same day, C attended the Kogarah branch of JIRT and made a statement containing details of D's disclosures regarding Mr Bird's conduct to that point in time; [131]
7. D also was interviewed by a police officer. [132] The relevant portion of the interview was as follows: [133]
"Q Bellybutton. And who's allowed to touch your bellybutton?
A Mummy and daddy and [brother].
Q O.K. and has anybody else touched your bellybutton apart from mummy and daddy?
A [Brother].
Q [Brother]. And apart from [brother] has anybody else touched your bellybutton.
A (NO AUDIBLE REPLY).
Q You're shaking your head no? O.K. what part of this of the body is this called?
A Leg.
Q Yep. And what part of the body is this called?
A Tummy.
Q Now I'm going to draw a circle around a part of the body and I want you to tell me what is inside the circle and what part of the body is that called?
A Tummy.
Q O.K. the part of the body that I've circled is the part of the body that you use to go to the toilet. So can you tell me what that part of the bodies [sic] called?
A Wizzie.
Q Wizzie? O.K. All right now who's allowed to touch you on the wizzie?
A Daddy and mummy and [brother].
Q O.K. All right now has anybody else touched you on the wizzie?
A (NO AUDIBLE REPLY).
Q You're nodding your head? Who's touched you on the wizzie?
A On my tummy.
Q On your tummy? Who's touched you on your tummy?
A Daddy. And momma.
Q Yep?
A And [brother].
Q O.K. And apart from your mum O.K. and apart from your dad and apart from … your brother, has anybody else touched you on your tummy?
A (NO AUDIBLE REPLY). (BACKGROUND NOISE - FOOD PACKET BEING RATTLED NEAR MICROPHONE).
…
Q O.K. now the reason why I'm talking to you today [D] is its I'm a police lady O.K. but I'm just not wearing a police uniform because I talk to kids and we wear normal clothes, did you know that?
A (NO AUDIBLE REPLY).
Q You're nodding your head. So the reason I'm asking you these questions today [D] is I just need to make sure that you're O.K. and that nobody's touched you on your wizzie or on your tummy when they shouldn't have. Do you understand?
A (NO AUDIBLE REPLY).
Q Now is there anything that you think that you should tell me or anything I need to know?
A Go see momma.
Q You want to see momma? All right well we're going to go and see momma very soon, I just want to make sure we finish talking before we go and see mum, is that O.K.?
A (NO AUDIBLE REPLY).
Q All right because somebody told me something [D] and I just want to check with you if its right, is that O.K.?
A (NO AUDIBLE REPLY).
Q So I need you to listen to the question I'm going to ask.
A My brother has these stickers.
Q Does he? O.K. can you choose two that you want to use and then come back down and sit down so I can make sure that you're listening to what I'm saying to you. There you go, all right now are you listening to my question?
A (NO AUDIBLE REPLY).
Q O.K. very good. Now I just want to make sure [D] when I spoke to you before that nobody's touched you on the tummy and the wizzie and somebody told me O.K. that you told your mum that Rod touched your tummy. What can you tell me about that?
A Cause he can touch me.
Q Can you tell me more about that?
A (NO AUDIBLE REPLY).
Q No?
A I go see momma.
Q You want to see momma? We're going to go and see her very soon O.K.? I just want to make sure that you're O.K. So you're happy at your new kindy now?
A (NO AUDIBLE REPLY).
Q You're nodding your head. Well that's good. I'm just going to ask my friend if she's got anymore questions before we finish talking today, I'm just going to write my name on this piece of paper. O.K. Do you remember telling mummy about any of this?
A (NO AUDIBLE REPLY).
Q No? O.K. All right. Well thank you very much [D] for coming and talking to me today, you did a really good job O.K.?" (emphasis added)
1. in late February 2011, C's evidence was that she recalled the following exchange with D: [134]
"[C]: Remember when you told me about Rod tickling you and how no one saw? I was wondering how that happened because there were so many people at kindy?
[D]: Yes, but we have a big backyard and we would just go far away.
[C]: Remember when you were sad on the mornings when I would take you to kindy and you kept saying you didn't want to go there? Do you remember what was making you sad?
[D]: Because I didn't like it when Rod tickled me."
1. On 27 March 2011, C gave evidence of the following exchange with D: [135]
"[C]: How many times did Rod tickle you on your underpants?
[D]: Lots.
[C]: Did you want it to happen lots?
[D]: No.
[C] Did you tell Rod you didn't want it to happen lots?
[D]: Yes, but it kept happening."
1. During or around April-May 2011 (being "[a] few months after [D's] first disclosure about [Mr Bird]" on 27 January 2011), D disclosed to C that "[s]ometimes [Mr Bird] would tickle [another child] at the same time that he tickled me, because we were all best friends" and that "[Mr Bird] would let [a third child] watch"; [136]
2. on 20 April 2011, C made a further statement to police at the Kogarah branch of JIRT which contained details of D's disclosure that Mr Bird had "tickled her on her underpants lots"; [137]
3. around 23 August 2011, D expressed to C that she missed attending Footprints but that "because of [Mr Bird], I can't go there"; [138]
4. on 10 October 2011, C and D attended a counselling session with a senior social worker at the South Eastern Sydney Local Health District CPU. During this session, according to the notes, D expressed her concern that the principal at her new school "would be like [Mr Bird]"; [139] and
5. at some unspecified point in 2011, C gave evidence that D burst into tears and told C that she did "not want to go to school because I think the principal will be like him". C took "him" to be a reference to Mr Bird. [140]
As set out above at [95], the primary judge's conclusion that D's disclosures of 27 January 2011, in relation to Mr Bird tickling her on her underpants, were made out is reflected in PJ [407(6)], as follows:
"While D was not cross-examined, given Mr Bird's admissions that he had tickled children and touched them in inappropriate places, including low on the tummy and that he may have even touched child 1 on the vagina, albeit unintentionally and also put his hand down the front of her pants, when considered together with the tendency evidence and other evidence I have discussed, I am also satisfied that this disclosure must be accepted as true." (emphasis added)
As with B, the primary judge's reasoning and ultimate state of satisfaction were achieved by means of a combination of matters, a number of which have already been highlighted as having been improperly or inappropriately taken into account.
Thus, Child 1's evidence should not have been taken into account. Secondly, Mr Bird had not admitted that he had put his hand down the front of Child 1's pants. Thirdly, B's evidence did not come up to proof in its own right, for the reasons given at [136] and [148] above, and should not have been used as evidence of tendency. It is impossible to "unscramble the egg" in respect of the primary judge's conclusion that D's disclosures about being tickled on her underwear were made out.
In addition, immediately before the passage set out at [162] above, the primary judge had drawn on Associate Professor Quadrio's evidence, stating that "Associate Professor Quadrio also considered that D[']s behaviour was highly suggestive of a child who had been traumatised, her behaviour strongly suggestive, but not specific to sexual abuse". [141] The primary judge's reliance on Associate Professor Quadrio's evidence at this part of the judgment was at odds with the s 136 limitation that her Honour had placed on that evidence, confining it to the damages case: see [31] above.
It remains necessary to assess the evidence of Child 2, which was also relied upon as tendency evidence, in order to consider whether it was capable of supporting D's case.
[15]
Child 2's disclosures
At PJ [377]-[393], the primary judge summarised the disclosures of Mr Bird's conduct as made by Child 2, which emerged from documents in evidence including: an Evidentiary Statement of Child 2's mother dated 13 August 2019 and tendered in the proceedings at first instance; [142] a Supplementary Evidentiary Statement of Child 2's mother dated 14 August 2020; [143] a witness statement given to police by Child 2's mother on 22 November 2010; [144] a second police witness statement made by Child 2's mother on 15 December 2010; [145] and the records of three interviews with Child 2 at the Kogarah branch of JIRT, conducted on 22 November 2010, [146] 15 December 2010 [147] and 11 January 2012 [148] respectively.
The relevant sequence and content of disclosures concerning Child 2 was as follows:
1. During August or September 2010, Child 2, then aged approximately five and a half years, disclosed to her mother that Mr Bird had touched himself inappropriately in her presence at Footprints. [149] No other disclosure as to Mr Bird touching Child 2 or any other child was made at that time;
2. around 17 November 2010, Child 2 was interviewed by two social workers at the Sutherland Community Services Centre, following which her mother was told that "everything was fine"; [150]
3. on 22 November 2010, Child 2 was interviewed by a police officer with JIRT at Kogarah. She said that she would sometimes sit on Mr Bird's lap, but no disclosures were made regarding inappropriate conduct. [151] Relevant extracts of this interview include the following: [152]
"Q Heather. You like Heather. What about the ones at Footprints?
A Rod. I like Rod the best.
Q You like Rod the best and how come you like Rod the best?
A I don't know. I just, I just like him the best.
Q Just like him and best and how come you like Heather the best at Heath Dean [sic]?
A Because she reads stories to us.
Q Yes, she reads stories what else?
A She plays with us.
Q Yes. That's it what about Rod, you said you don't know. Does he do certain things, what does he do?
A Sometimes he plays with me.
Q Yes? What does he play?
A Sometimes we play hide and seek.
Q Yes, what else?
A Sometimes, that's about it.
Q That's about it? O.K.
A And sometimes I sit on his lap.
…
Q … So you've told me lots of very important things today. You've told me you go to Heath Dean [sic] on Mondays and Tuesdays and you go to Footprints on Thursdays and Fridays and you've got lots of friends at Heath Dean [sic] … and at Footprints … and your favourite worker at Heath Dean [sic] is Heather because she reads you stories and she plays with you yes?
A Mmm.
Q And your favourite worker at Footprints is Rod because he plays with you, you play hide and seek and sometimes you sit on his lap, yes?
A (NO AUDIBLE REPLY)
Q When you play hide and seek where do you normally play?
A In the yard.
Q In the yard and who plays hide and seek with you?
A [Another child].
Q [Another child] does? Yes. Anyone else?
A (NO AUDIBLE REPLY)
Q No? Just you and [another child] and Rod? Yes?
A (NO AUDIBLE REPLY)
Q O.K. And so when you sit on Rod's lap does anyone else sit on Rod's lap?
A Sometimes [another child].
Q Sometimes [another child].
A Not all the time but.
Q Very good. I'll just ask Clair if she's got any questions is that O.K.?
A (NO AUDIBLE REPLY)
…
Q Does anybody touch you on your back?
A Nah.
Q No?
A Nowhere.
Q No? What about this part? What's this part here?
A The bottom?
Q The bottom, very good. Who's allowed to touch you on your bottom?
A Nobody.
Q Nobody and has anybody touched you on your bottom?
A (NO AUDIBLE REPLY)
Q No? O.K. What about this part? What is it?
A My, the vagina.
Q Very good and who's allowed to touch your vagina?
A Nobody.
Q And has anybody touched your vagina?
A (NO AUDIBLE REPLY)
Q No? That's very good. You know all of the parts where people aren't allowed to touch. So can I write your name on this [Child 2]?
A Yep.
…
Q No? And before you told me that you liked Rod because he plays hide and seek and he lets you sit on his lap. Is there anything you don't like about Rod?
A No.
…
Q Did you? Right. Because the lady that you talked to said that you told her something about Rod?
A (NO AUDIBLE REPLY)
Q No?
A Mmm.
Q Can't remember? What about mummy? Did you tell mummy anything about Rod?
A Not really, nah.
Q Not really?
A Nah.
Q Because you know you're not in trouble if you've said anything.
A No, I didn't say anything.
Q You didn't say anything?
A (NO AUDIBLE REPLY)
Q No? O.K. Is there anyone at school at either Heath Dean [sic] or Footprints that has made you feel uncomfortable?
A Nah.
Q No?
A …" (emphasis added)
1. On the same day, Child 2's mother made a statement to police describing Child 2's disclosure of August or September 2010, namely that Mr Bird had touched himself inappropriately in the presence of Child 2; [153]
2. on 12 December 2010, Child 2 disclosed to her mother that Mr Bird had touched her breasts and genitals under her dress while she was sitting on his lap at Footprints. When queried as to why she had not raised this with the police officer during her interview on 22 November 2010, Child 2 replied "I don't know. I just forgot". When queried as to whether Mr Bird had touched other children inappropriately, Child 2 replied "[n]o, he only does it to me"; [154]
3. on 15 December 2010, Child 2 was interviewed by a police officer for a second time and, consistent with her disclosure of 12 December 2010, indicated that Mr Bird had touched her "private area" while she sat on his lap, and continued to do so even after she had told him to stop. When queried by the police officer as to why she had not raised this during the first interview, Child 2 stated that "she just forgot" and "just remembered" after her mother asked her whether "anybody else touches her [chest]"; [155]
4. also on 15 December 2010, Child 2's mother made a further statement to police describing Child 2's disclosures of 12 December 2010, including that Mr Bird had touched her breasts and genitals; [156] and
5. on 11 January 2012, Child 2 was again interviewed by a police officer with JIRT at Kogarah, during which she repeated her earlier disclosure that Mr Bird had touched her genitals with his hand, having viewed audio-visual recordings of her previous two interviews. This recollection followed the officer asking the following questions: [157]
"Q - - - 5, and you're 6 now. So that's a year, isn't it? At least. Who's Rod?
A He's a person at Footprints.
Q So he's a person at Footprints?
A Ah hmm.
Q And you said, he touched my private part. Do you have a name for your private part?
A What do you mean?
Q Do you have a name for it, a body part?
A My vagina."
Child 2 was unable to recall the first and last occasions on which this contact occurred. [158]
The primary judge found that Mr Bird assaulted Child 2 by touching her in the ways she disclosed to police in the second and third police interviews (albeit not in the first) and to her mother. [159] In essence, the disclosures were to the effect that Mr Bird touched Child 2 on her breasts and genitals, under her clothing, when she was sitting on his lap at Footprints.
The primary judge's reasoning to this conclusion was as follows: [160]
"390 I do not consider that child 2 not telling police about what Mr Bird had done to her until her second interview provides a basis for concluding that the disclosures she made to her mother and then to police were untrue. There is nothing surprising about a young child being reluctant to make disclosures about such matters to a stranger.
391 Given Mr Bird's admissions and the other evidence I have discussed about his contact with children and the way he was supervised, I also consider that child 2 not being able to be cross-examined, is not a basis for concluding that her disclosures were untrue. The acts disclosed are not inconsistent with the acts which he volunteered, including scrunching and patting children on the bum, rubbing them on the skin, including low on the tummy and even on the vagina, albeit inadvertently.
392 Touching a child sitting on his lap in the way child 2 described, was plainly possible, if Mr Bird turned the child away from other staff, who were engaged with other children, as she said. On the evidence they were engaged in supervising the children, rather than Mr Bird.
393 On the balance of probabilities, I am satisfied that Mr Bird also assaulted child 2 in the ways she disclosed." (emphasis added)
This reasoning has a number of important features. First, the primary judge's reliance on Mr Bird's admissions is again to the fore. In this instance they are deployed to overcome the prejudice occasioned by the inability to cross-examine Child 2. But the admissions did not have the forensic significance the primary judge attributed to them, for the reasons we have already given. [161]
Secondly, for Mr Bird's admissions to be relied upon as tendency evidence, the primary judge was required to be satisfied that they not only supported the tendency asserted but did so "to a significant extent" by lending "strong support" to the likelihood of a fact in issue, namely that Mr Bird had tickled D on her underwear. [162] It was not a question of the "acts which [Mr Bird] volunteered" not being "inconsistent" with the disclosures of Child 2, but whether those acts strongly supported the alleged tendency. The only admission made by Mr Bird concerning the touching of genitalia was what he described as the possible but inadvertent and unintentional touching of Child 1 on the vagina when picking her up. [163] This could not have amounted to a "tendency" strongly supporting the material fact in issue. What was said by Mr Bird in his police interview on 11 November 2010 was entirely inconsistent with the allegation made by Child 2 and the tendency alleged.
As submitted by Mr Hooke and Mr Chiu, for Mr Bird, the primary judge: [164]
"transformed some examples of occasional innocent physical contact with some children (even if others might consider it inappropriate), as somehow being proof that he deliberately and repeatedly fondled the genitals of those two children for opportunistic sexual gratification.
The primary judge then misused those mischaracterisations repeatedly … to corroborate the truth of the allegations made by Plaintiff B and Plaintiff D."
Thirdly, the mode of reasoning employed by the primary judge was, with respect, unorthodox, especially in a case involving the application of Briginshaw principles and s 140(2) of the Evidence Act. What was required was a careful assessment of the strengths and weaknesses of each part of the evidence bearing upon the likelihood of the events having occurred, and a weighing up the whole of the evidence to determine where the probabilities lay. As was submitted by the Appellants, this required due recognition of the inability to test the evidence, the fact that it was given by a child of five years of age, the extent to which leading questions may have suggested answers, an assessment of internal inconsistencies in the evidence and the absence of any disclosure by Child 2 to her mother at the time of the statement that Mr Bird had touched himself inappropriately, and in the first police interview on 22 November 2010. Instead, the approach adopted by the primary judge appeared to start from the premise that Child 2's disclosures were true, and then to ask whether each individual criticism of the evidence in support of the allegations was sufficient to displace that premise. Such an approach in effect reverses the onus of proof. [165]
No doubt the matters referred to by the primary judge supported the possibility that Child 2 may have been assaulted in the ways she disclosed to her mother and claimed in her second and third interviews with the police, but the reasoning process employed by the primary judge to reach the conclusion that those disclosures had been established on the balance of probabilities was, with respect, flawed in multiple respects. Those flaws in turn infected the use that could reliably be made of Child 2's evidence as strongly supporting the tendency relied upon to establish or support Child D's disclosures.
It follows that the reasoning employed by the primary judge leading to the acceptance of Child 2's evidence as demonstrating the tendency alleged in respect of Mr Bird was flawed. It was not supported by Mr Bird's admissions nor the evidence of Child 1 or B.
In Hughes at [41], it was noted that the assessment of the significant probative value of tendency evidence involves the consideration of two "interrelated but separate" matters, being first, the extent to which the evidence strongly supports proof of the tendency asserted; and second, the extent to which that tendency strongly supports the proof of a material fact in issue. [166] This requires the clear identification of the tendency asserted, then an assessment of whether each piece of tendency evidence, considered both individually and cumulatively, supports the asserted tendency, and then whether that tendency makes more likely, by strongly supporting, the underlying allegation.
An important distinction must be drawn between the admissibility of tendency evidence (where the evidence must be taken at its highest) [167] and the use of that tendency evidence. [168] Part of the assessment as to whether the proposed tendency evidence supports the alleged tendency concerns whether the tendency evidence itself should be accepted as having "significant probative value". In this case, Ms Clancy and Little Pigeon emphasised the fact that the corpus of tendency evidence comprised "four hearsay accounts, containing unresolvable inconsistencies being used to bolster the probative value of each other hearsay account". [169]
We have difficulty in accepting as made good Child 2's disclosures in the sense that we do not consider that they can be sustained to the Briginshaw standard. Whilst it may be accepted that Child 2 made disclosures to her mother who was not cross-examined, the fact that Child 2 made no reference to the inappropriate touching of her at the time of her initial disclosure to her mother in August or September 2010 nor in her initial interview with the police (see [167(1) and (3)] above) undermines the subsequent disclosures. The evidence from the interview of 22 November 2010 is inconsistent with later disclosures. This inconsistency was reinforced by the inability to test the evidence of Child 2. Moreover, the evidence of B and Child 1 was not available to support it by way of tendency nor were any of Mr Bird's "admissions".
This being the case, Child 2's evidence was an unreliable basis for supporting the tendency asserted in support of the allegations made on behalf of D, although it may be accepted that, had it been sufficiently reliable, it would have been capable of establishing the tendency asserted.
[16]
Taking stock
A consequence of our conclusion in the previous paragraph in relation to Child 2's evidence is that D's claim is left unsupported by any tendency evidence (including as derived from the so-called "admissions"). There is no direct evidence of the alleged assaults. The only direct evidence of D's disclosures is that given in her interview with the police on 9 February 2011 (see [161(7)] above). In that interview, she was asked direct questions as to whether anyone else was allowed to or had touched her on her "wizzie" other than her mother, father and brother. Nobody else was indicated. D was then prompted by the police officer as follows:
"Q O.K. very good. Now I just want to make sure [D] when I spoke to you before that nobody's touched you on the tummy and the wizzie and somebody told me O.K. that you told your mum that Rod touched your tummy. What can you tell me about that?
A Cause he can touch me.
Q Can you tell me more about that?
A (NO AUDIBLE REPLY).
Q No?
A I go see momma.
Q You want to see momma? We're going to go and see her very soon O.K.? I just want to make sure that you're O.K. So you're happy at your new kindy now?
A (NO AUDIBLE REPLY).
Q You're nodding your head. Well that's good. I'm just going to ask my friend if she's got anymore questions before we finish talking today, I'm just going to write my name on this piece of paper. O.K. Do you remember telling mummy about any of this?
A (NO AUDIBLE REPLY).
Q No? O.K. All right. Well thank you very much [D] for coming and talking to me today, you did a really good job O.K.?" (emphasis added)
The question "[w]hat can you tell me about that?" was in relation to D having told her mother that "Rod touched [her] tummy". The answer "cause he can touch me" was not, in terms, a disclosure that he had touched her "wizzie".
What one is left with, therefore, are:
(a) on the one hand, D's disclosures to C, as recounted by C in her police statements and affidavit evidence, and some equivocal evidence as to D's change in behaviour during her time at Footprints, the significance of which (if any) was not explored in any expert evidence-in-chief and may also have been attributed to the death of D's grandmother or the separation of her parents (see [161(4)] above); and
(b) on the other hand, Mr Bird's denials of the alleged conduct.
Upon an appeal by way of rehearing, the appellate court, having found error, should (if it can) resolve the issue, in order to spare the parties and the community the economic and emotional costs of a re-trial. If resolution of the issue depends on, or may be affected by, an assessment of Mr Bird's credit and/or the course of his evidence, we cannot do so. In this context, the primary judge's assessment of Mr Bird's lack of credit cannot be drawn upon because it was vitiated by her Honour's erroneous characterisation of the nature and extent of Mr Bird's "admissions" in the police interview, as well as the significance attached to the breach of undertaking considered at [49]-[53] above, which her Honour indicated affected the assessment of Mr Bird's credit.
A majority of the Court considers that there must be a re-trial of C and D's claims, and that it would not be satisfactory simply to ignore Mr Bird's denials and then ask whether, on what remains of the evidence in support of D's claim (see [181(a)] above), the claims of C and D could be established to the Briginshaw standard. C and D are entitled to test Mr Bird's evidence, to make submissions as to his credit and to seek to obtain admissions from him by way of cross-examination, if he gives evidence. None of that can occur in a rehearing in this Court. The course of Mr Bird's evidence (and whether he is accepted as a witness of truth) may also affect whether D can make out a case for exemplary damages, if she were otherwise to succeed on liability.
For these reasons, the question of whether Mr Bird assaulted D in the manner alleged (and C's related claim) must be remitted to be determined by a judge other than the primary judge. The parties may well consider it desirable to explore resolution of this matter by way of mediation, in light of our findings (including as to damages as considered below), before embarking on any re-trial.
[17]
Vicarious liability
Our conclusion that the primary judge's findings must be set aside means that it is strictly not necessary to deal with this aspect of the appeal but, to the extent that the primary judge held that both Ms Clancy and Little Pigeon were liable for the intentional torts committed by Mr Bird, as Mr Barry for the Respondents contended that she did, that conclusion cannot stand.
In addition to the direct negligence/breach of contract case pleaded against Ms Clancy and Little Pigeon, the Plaintiffs also pleaded that both Ms Clancy and Little Pigeon were vicariously liable for Mr Bird's wrongs (strictly his acts). These allegations were denied by Ms Clancy and Little Pigeon in their defences. [170]
It is not in dispute that her Honour correctly referred to the relevant principles as to whether a wrongdoer is truly an employee (at PJ [426]), and the test for vicarious liability of an employer for the intentional wrongful acts of an employee (at PJ [449]).
After analysing the totality of the relationship between Little Pigeon and Mr Bird, consistent with Hollis v Vabu Pty Ltd (2001) 207 CLR 21; [2001] HCA 44 at [43]-[45], her Honour found that Mr Bird was an employee, even though he was not paid wages for this work and was represented to be a volunteer. [171] There is no challenge to this finding. [172]
On the issue of vicarious liability, her Honour said that there was no issue that both Little Pigeon and Ms Clancy could be vicariously liable for Mr Bird if he was found to have been an employee (at PJ [448]). After referring to the joint judgment in Prince Alfred College Incorporated v ADC (2016) 258 CLR 134; [2016] HCA 37 (French CJ, Kiefel, Bell, Keane and Nettle JJ), which considered whether an act by an employee was in the course of employment, where the act was a criminal or otherwise intentionally wrongful act, her Honour proceeded to address the case against Little Pigeon. In finding that Little Pigeon was vicariously liable for Mr Bird's conduct, her Honour summarised her reasons at PJ [450]:
"• The actual roles which Little Pigeon assigned Mr Bird, which placed him in a position of considerable power and trust, which he abused;
• That those roles gave Mr Bird the opportunity to have the close contact with children which he, Ms Clancy and other witnesses described
• The authority Mr Bird was given by effectively being left unsupervised when he had such contact, which he also abused;
• This lack of supervision permitting him to not only achieve intimacy with his young victims, but to control them while committing the wrongful acts he admitted and his victims disclosed; and
• It was Mr Bird's performance of the roles he was given, which created the occasion for his wrongful acts."
Although there was no express finding that Ms Clancy was vicariously liable for Mr Bird's conduct, Ms Clancy and Little Pigeon contended that the primary judge erred in so finding (ground 12). The premise of this submission is that her Honour's references to dual vicarious liability not being in issue, the roles Ms Clancy gave Mr Bird (PJ [451]) and that both Little Pigeon and Ms Clancy created and enhanced the risk of the abuse that materialised, [173] gives rise to a doubt whether such a finding may have been made against Ms Clancy.
Counsel for the Respondents submitted that her Honour made such a finding and the reason why there was no issue below as to dual vicarious liability was because Ms Clancy "as licensee of the premises had both the power and the duty to control what Mr Bird did". [174] According to the submission, Ms Clancy had a coextensive vicarious liability with Little Pigeon because Ms Clancy "as the licensee and authorised supervisor of the centre … was able to exert the same level of control as Mr Bird's employer, namely the centre". [175] The Respondents say that the "just outcome" must be that of dual vicarious liability. [176]
The Respondents' submissions misstated the pleadings, the way the Plaintiffs' case was run at trial, and the evidence as to who was the licensee of the centre.
As to the pleadings, the parties joined issue on the Plaintiffs' claim that Mr Bird was an employee of Ms Clancy and Little Pigeon, and that they were both vicariously liable for his conduct. Moreover, contrary to the Respondents' oral submissions, [177] the Plaintiffs' case at trial was not run or argued on the basis that Ms Clancy was vicariously liable for Mr Bird's conduct; the Plaintiffs' written opening made plain that the vicarious liability case was only advanced against Little Pigeon. [178] This remained the Plaintiffs' position in oral closing submissions, where no vicarious liability case was advanced against Ms Clancy. [179]
As to the evidence, the authorised supervisor of the centre was initially Ms Annette Hillman, as confirmed in a letter from the Department of Community Services dated 30 September 2008. [180] Ms Hillman resigned as authorised supervisor on 8 October 2008. After a substantial delay, Little Pigeon made application on 1 May 2009 for approval of Ms Lissa Kasim as authorised supervisor; this application was approved by the Department by letter dated 31 August 2010. [181] In the period between 8 October 2008 and 31 August 2010, when there was no authorised supervisor, the functions of an authorised supervisor reverted to the licensee of the centre, pursuant to the terms of cl 104 of the Children's Services Regulation 2004 (NSW) (the Regulation):
"104 Application of licence conditions if no authorised supervisor
While a children's service has no authorised supervisor, the licence conditions for the service that apply to an authorised supervisor extend to the licensee."
The licensee of the centre was Little Pigeon, not Ms Clancy. Hence, in the absence of an authorised supervisor between 8 October 2008 and 31 August 2010, Little Pigeon had the functions of authorised supervisor during that period. To the extent that her Honour made findings as the roles Ms Clancy gave Mr Bird and that Little Pigeon and Ms Clancy both created and enhanced the risk of the abuse that materialised, Ms Clancy was acting in her capacity as a director of Little Pigeon, not as licensee, which she was not. The Respondents' submissions that Ms Clancy had both the power and the duty to control what Mr Bird did, conflated the power and control exercised by Little Pigeon, as the licensee of the centre and the employer of Mr Bird, with Ms Clancy's conduct on behalf of Little Pigeon in giving instructions to its employees, including Mr Bird.
Although the statement by her Honour that the possibility of dual vicarious liability was not in issue was incorrect, that error was not material. On a fair reading of the reasons, including at PJ [451] and [458], her Honour did not find Ms Clancy vicariously liable for Mr Bird's conduct.
One further matter should be mentioned. At a level of principle, the Respondents' contention as to dual vicarious liability is contrary to authority. Counsel for the Respondents did not refer to any Australian authority approving the principle of dual vicarious liability. Nor was any attempt made in submissions to cast doubt on the statements by the High Court inconsistent with the possibility of dual vicarious liability in Oceanic Crest Shipping Company v Pilbara Harbour Services Pty Ltd (1986) 160 CLR 626 at 641 (Gibbs CJ), 646 (Wilson J), 685 (Dawson J); [1986] HCA 34; compare the different position now taken in England: Viasystems (Tyneside) Ltd v Thermal Transfer (Northern) Ltd [2006] QB 510; [2006] 2 WLR 428; [2005] 4 All ER 1181.
The Respondents' submission also ignored the statement in this Court that it is not possible for any court, other than the High Court, to adopt the theory of dual vicarious liability where two different persons had control over a tortfeasor: Day v The Ocean Beach Hotel Shellharbour Pty Ltd (2013) 85 NSWLR 335; [2013] NSWCA 250 at [25]-[33] (Leeming JA, Meagher and Emmett JJA agreeing) (Ocean Beach Hotel).
Finally, and contrary to the Respondents' submission seeking to distinguish Ocean Beach Hotel on the facts, the observations of Leeming JA in Ocean Beach Hotel at [33] are apposite to this case. Like in Ocean Beach Hotel, there is a well-established basis of vicarious liability in this case, being that of the employer (Little Pigeon) for the tortious conduct of its employee (Mr Bird) in the course of his employment, and there is no sound basis for imputing vicarious liability to another person, such as Ms Clancy, who did not have a contractual relationship with the wrongdoer, Mr Bird.
[18]
The liability of Ms Clancy and Little Pigeon
The following proceeds on the assumption, contrary to the view expressed above, that it was established that Mr Bird committed the alleged assaults.
[19]
Duty of care
On the pleadings, it was admitted that Little Pigeon and Ms Clancy owed a duty of care to B and D, though not to A and C. [182]
In circumstances where Little Pigeon was the proprietor and licensee of Footprints, and Ms Clancy was merely its majority shareholder and director, it is not self-evident why Ms Clancy (as distinct from Little Pigeon) would owe that duty. It may be that she was fulfilling the duty of the "authorised supervisor", at least during the "interregnum" between the departure of Ms Hillman on 8 October 2008, [183] and the appointment of Ms Kasim on 31 August 2010 (see [194]-[195] below). However, that Ms Clancy owed a duty of care to B and D was not in issue at the trial.
A and B's Amended Statement of Claim pleaded that Ms Clancy was "responsible for the running of the Centre, including but not limited to staffing, administration, supervision, as well as developing and overseeing the policies and procedures under which the Centre operated". [184] That allegation was admitted. [185] A and B also pleaded that the Ms Clancy and Little Pigeon owed a duty of care "that they would not cause reasonably foreseeable harm to [A] and/or [B] through any act or omissions on their part whilst [B] was in attendance at the Centre". [186] By their Defence, Ms Clancy and Little Pigeon admitted that they owed "a duty of care to avoid reasonably foreseeable harm to [B] while [B] was in attendance at the Centre", and otherwise denied the alleged duty of care. [187] Ms Clancy's alleged and admitted duty of care thus arose not from an interim role as authorised supervisor of Footprints, but from her general oversight and superintendence of the Centre.
The primary judge found that the duty extended to A and C, on the basis that, pursuant to s 32 of the Civil Liability Act 2002 (NSW), it was foreseeable that a person of normal fortitude, in their circumstances, might suffer a recognised psychiatric illness if reasonable care was not taken to prevent their daughter from being sexually abused. [188]
[20]
The requirement to be accompanied
The applicable statutory requirements governing the conduct of a childcare centre, including the employment and supervision of staff, were to be found in the Regulation (see [194] above). Clause 51 concerned the employment of "primary contact staff", defined in the Dictionary to the Regulation as follows:
"primary contact staff, in relation to a centre based or mobile children's service, means:
(a) any member of the staff of the service who is directly involved in educating or caring for children at the service, or
(b) the licensee of the service at any time while the licensee is directly involved in educating or caring for children at the service, or
(c) a trainee who is at the service as a formal part of studies at an educational institution,
but does not include:
(d) a person who is engaged solely in administrative, clerical or domestic duties at the service, or
(e) a person who is at the service for the purpose of work experience, or
(f) a volunteer who is assisting in the provision of the service."
Mr Bird was not a member of Footprints' "primary contact staff". Instead, it was argued that Mr Bird was properly characterised as a "volunteer", the use of whom was regulated by cl 57, as follows:
"57 Use of volunteers
A licensee of a children's service may provide a children's service with the assistance of volunteers, but only if the volunteers:
(a) in the case of a centre based or mobile children's service, supplement the Part 4 staffing requirements and are not counted (except for the purposes of clauses 78 and 79) in determining whether the required staffing levels have been met, and
(b) are accompanied by primary contact staff whenever they are in the presence of children, and
(c) are covered by appropriate insurance arrangements."
The primary judge held that cl 57 required a volunteer not merely to be "supervised" but to be "accompanied" by primary contact staff when in the presence of children, [189] such that being "supervised" did not necessarily equate to being "accompanied". [190] Her Honour held that the use of the word "accompanied" in cl 57 required a member of the primary contact staff always to be together with the volunteer when the latter was in the presence of children, and that this was not satisfied by a primary contact staff member merely being in the vicinity of a volunteer. [191] Her Honour took the view that cl 57 required more than the "supervision" of Mr Bird when he was in the presence of children and, apparently, took the view that it required a primary contact staff member to be in his immediate presence:
"256 If Mr Bird was truly a volunteer, reg 57 required that another member of the primary contact staff accompany him, that is always be together with him, when he was in the presence of children. A staff member merely being in his vicinity could not satisfy this requirement.
257 I am satisfied that the evidence establishes that he was not always so accompanied." (emphasis added)
The primary judge gave content to the words "supervise" and "accompany" by reference to their definitions in the Macquarie Dictionary. "Supervise" is defined as "to oversee (a process, work, workers, etc) during execution or performance; superintend; have the oversight and direction of". "Accompany" is defined as "to go in company with; join in action; to accompany a friend on a walk". [192]
The meaning of "accompany" in cl 57 is informed by the purpose of the provision, which is directed to the supervision and care of children, rather than the supervision of volunteers. The requirement that a volunteer be "accompanied" when in the presence of children is directed to ensuring that children are always under the supervision of a member of the primary contact staff, even if a volunteer is present, and are not left under the supervision of a volunteer alone. A volunteer alone cannot discharge the function of supervising children, and so must be accompanied by a member of the primary contact staff. Thus, when a volunteer is in the presence of children, a member of the primary contact staff must also be in their presence. This means no more than that children are not to be under the supervision of a volunteer alone. It does not mean that a primary contact staff member must be "alongside" the volunteer.
It follows that the primary judge erred in holding that the requirement that a volunteer be "accompanied" by a member of the primary contact staff, when in the presence of children, involved more than that a member of the primary contact staff also be in the presence of the children.
[21]
Supervision of Mr Bird
The primary judge concluded that there was in reality no supervision of Mr Bird's contact with children, and that the mere presence of other staff members in his vicinity was not only insufficient to deter him from acting, but insufficient for his acts to be observed and reported. [193] Her Honour said: [194]
"On all of the evidence I am satisfied that that there was in reality no supervision of Mr Bird's contact with children. The mere presence of other staff members in his vicinity was not only insufficient to deter him from acting as he did, it was also insufficient for his acts to be observed and reported to DOCS [Department of Community Services], as they should have been."
There was a substantial body of evidence of the policies in place at Footprints, including the arrangements for supervision, and the role of Mr Bird. [195] This evidence established that Little Pigeon had in place policies and staff ratios substantially in compliance with, if not in excess of, the regulatory requirements. [196]
Relevantly, the evidence established that volunteers were not permitted to be unaccompanied, as contemplated by cl 57 of the Regulation, when having contact with children. It was not put to the Appellants' witnesses that these policies, though promulgated, were not in operation.
In particular, there was substantial evidence to the effect that it was known and understood by the staff of Little Pigeon that Mr Bird was a volunteer and thus was not to be left alone with children, and that the arrangements for the supervision of children by primary contact staff were such that Mr Bird was never in fact left alone with children. There was a significant body of evidence, much of it unchallenged, as to the visibility and supervision of Mr Bird, in particular from Ms Peterson (who was not cross-examined on this subject matter), [197] Ms Jones (who was not cross-examined), [198] and Ms Kasim (who also was not cross-examined on this subject matter), [199] as well as Ms Clancy and Mr Bird.
The primary judge noted that the primary contact staff described the L-shaped outdoor area "where Mr Bird and other staff were stationed and could always see each other", and that many photographs showed Mr Bird, children and other staff inside and outside at Footprints. [200] But, according to her Honour: [201]
"291 Mr Bird's admissions establish that the mere presence of other members of staff in his vicinity was not enough to deter him, or for his admitted reportable acts to be observed.
…
293 When describing how he hugged, cuddled and threw children around, Mr Bird also said 'probably maybe I shouldn't throw them around like I do. Um if I was a school teacher I'd probably get busted.' Yet no-one 'busted' him, as they would have, if they had been accompanying or supervising him.
294 What other staff were in fact required to do was to care for the children and to observe and interact with them, matters which were discussed at staff meetings". (emphasis added)
It will be apparent from the words we have emphasised in the above passage (and similar expressions emphasised in the passages extracted in the next two paragraphs) that her Honour's (erroneous) characterisation of Mr Bird's admissions contributed significantly to her finding of negligence on the part of Ms Clancy and Little Pigeon.
The primary judge concluded that the policies described at [212]-[214] above could not have been in operation, on the basis that, if they had been, it would not have been possible for Mr Bird repeatedly to have acted in the various inappropriate ways that he was said to have admitted to police, without at least some of them being reported. [202] Her Honour said: [203]
"232 The defence case was that neither Ms Clancy nor the other staff members had been taken to the child protection policy in cross examination, or had it put to them that it was not in effective operation and so it could not be concluded that the policy was not being enforced.
233 I am satisfied that this cannot be accepted, because other evidence establishes that the child protection policy was not in effective operation, at least so far as Mr Bird was concerned. That had the result that Mr Bird had the opportunity to pursue the inappropriate contact with children at the centre, which he admitted to police.
234 If the policy had been in effect, as the licence and regulations required, it would simply not have been possible for Mr Bird to have repeatedly acted in the various inappropriate ways that he admitted, without at least some of them being notified to DOCS.
235 Had that occurred Mr Bird's assaults may well have been prevented." (emphasis added)
Later, her Honour concluded: [204]
"There is no question that Mr Bird had contact with children at those and other times, including child 1. Even Ms Clancy and Ms Kasim, who worked in the downstairs nursery, had seen him touching children on occasions, including child 1, who while not isolated, was kept some distance from the other children, because she did not sleep. None of those who gave evidence had seen Mr Bird engage in the inappropriate massaging and touching that he admitted. That reflects that he was neither accompanied when he had this interaction with the children, nor being supervised." (emphasis added)
Thus, her Honour's reasoning was essentially that, although the evidence about the policies and their application was not challenged, that they could not have been in effective operation was demonstrated by their failure to result in the reporting of Mr Bird's various "inappropriate" acts, whether he admitted or denied them. In particular, this was said to be supported by Mr Bird's "admission" that girls sometimes "flashed" at him, [205] considered against Ms Clancy's evidence that no-one ever mentioned to her that children had showed their private parts; [206] that she would have asked Mr Bird to leave Footprints had a staff member told her that he was inappropriately touching a child; [207] that it was not reported to her that Mr Bird had patted children on the bottom as he had admitted to police; [208] and that she did not ensure her father's completion of child protection training. [209]
However, the theory that conduct admitted by Mr Bird and involving children was not observed and reported to the Department of Community Services as it "should have been" [210] appears to be founded not only upon the primary judge's characterisation of what Mr Bird had in fact admitted, but also on opinions as to what was reportable. The mandatory reporting obligation is contained in s 27 of the Children and Young Persons (Care and Protection) Act 1998 (NSW), and is engaged when an applicable person (i.e. a primary contact staff member) "has reasonable grounds to suspect that a child is at risk of significant harm". Ms Clancy quite reasonably disputed that patting a child on the bottom was necessarily "an overtly sexual kind of act" which she would have expected to be reported to her. [211] Certain types of acts which her Honour found ought to have been reported (i.e. patting a child on the bottom or a child "flashing" his or her private parts) were not reportable matters. Ms Clancy's statement that she would have asked her father to leave Footprints had a staff member told her that he was inappropriately touching a child was plainly made in response to an insinuation of sexual misconduct, as she had earlier accepted that she encouraged him to have physical contact with the children at Footprints, including by giving them massages on their shoulders. [212]
Clause 51(4) of the Regulation requires that members of the primary contact staff "understand their responsibilities under the child protection legislation", but there is no such requirement for volunteers. Little Pigeon's Students and Volunteers Policy did not require that volunteers undergo such training. [213] The Child Protection Policy, which required staff to have child protection training, applied to "staff". Consistent with the Regulation, this should be taken to be a reference to staff as defined therein - being "persons employed for remuneration … who are engaged in the provision of the service" - and not to volunteers. [214]
Thus, only the alleged sexual assaults, denied by Mr Bird, provided a basis for concluding that, despite the substantial evidence of their application, the policies were not in operation. The primary judge referred to evidence that the system of supervision was not working properly, [215] including minutes of staff meetings held between November 2008 and August 2010, which were said to be suggestive of flaws in compliance with the system from time to time. Her Honour observed that these minutes shed light on how, despite Little Pigeon's policies and procedures, it was possible that the acts found to have been admitted by Mr Bird were not observed, and concluded: [216]
"299 What is so recorded is consistent with ongoing concerns about staff attendance to the supervision and observation of the children, when on duty in the outdoor area. Such inattention helps explain how Mr Bird could have assaulted children as he admitted, including by positioning children on his lap in such a way that when he touched them inappropriately in the ways that they disclosed, what he was doing could not readily be seen by other staff.
300 This explains how it was that Mr Bird was able to act outside, in the inappropriate ways that he described, without those acts being observed or reported to DOCS, as they should have been." (emphasis added)
Once again, the emphasised words show how critical her Honour's characterisation of Mr Bird's "admissions" was to her reasoning process.
It is inherent in the Respondents' submission that proper supervision of the children involved sufficiently close surveillance of Mr Bird so as to detect such assaults. However, assuming that those acts - involving touching a girl on her "private parts" over the exterior of her clothing - were performed, it does not follow that the children were not also under the supervision of a member of the primary contact staff at the relevant time. The staff may not have noticed those acts, due to their transient and potentially ambiguous character. On another view, the staff meeting minutes describe a licensee using its very best endeavours to have its staff comply with rigorous and stringent policies.
The primary judge's conclusion that "there was in reality no supervision of Mr Bird's contact with children", [217] is not supportable, having regard to the substantial body of unchallenged evidence of the policies and procedures of Little Pigeon, including the arrangements for supervision when Mr Bird was in the presence of children. It cannot be inferred from the non-reporting of his admitted interactions with children that the policies and procedures were not in operation.
Insofar as the primary judge held that Ms Clancy and Little Pigeon acted in breach of their duty of care, the appeals should be upheld and the claims of each of the Respondents in negligence, brought directly against Ms Clancy and Little Pigeon, should be dismissed.
[22]
Plaintiff A
Having found that Ms Clancy, Little Pigeon and Mr Bird were liable to A in tort, and that Ms Clancy and Little Pigeon were also liable for breach of contract, the primary judge awarded $1,008,378.55 in damages to A. The primary judge calculated this sum under various heads of damage, including (PJ [529]-[633]): non-economic loss for psychiatric injury; past out-of-pocket expenses; future out-of-pocket expenses; past economic loss; past superannuation; future economic loss and superannuation; past domestic assistance; and future domestic assistance.
In respect of non-economic loss, the primary judge was satisfied on the body of concurrent expert medical evidence that A had developed post-traumatic stress disorder as a result of B's disclosures about Mr Bird's alleged assaults. At PJ [585], her Honour assessed the quantum of A's non-economic loss in the sum of $158,000, accounting for the chronic nature of the psychiatric condition, A's guarded prognosis, considerable progress in her pursuit of recovery and her vulnerability to relapse and further injury.
The primary judge accepted the submission advanced by the Appellants that no more than 35% of a most extreme case (under s 16 of the Civil Liability Act) should be awarded, reflecting the outcome in Sorbello v South Western Sydney Local Health Network [2016] NSWSC 863. A's damages for non-economic loss represented 30% of a most extreme case.
No exemplary damages were awarded to A. The primary judge reasoned (at PJ [588]-[589]) that as B was the victim of the alleged assaults, the award of exemplary damages to A would create a risk of "double punishment": Gray v Motor Accident Commission (1998) 196 CLR 1; [1998] HCA 70 at [43]-[49] (Gray).
The nature and seriousness of A's injury were held by the primary judge to warrant the award of the full amount of out-of-pocket expenses claimed, in the sum of $63,313.85. A was also awarded the full value of past economic loss as claimed, in the sum of $187,482.50. The primary judge held that, on the evidence, but for the negligence of Ms Clancy and Little Pigeon, and the conduct of Mr Bird, A would have completed her ongoing studies and returned to full time work. Consequently, A's claim for $17,810.84 in damages, reflecting past superannuation, was also established.
The primary judge then turned to consider the allowance to be made for any future economic loss suffered by A, in accordance with s 13 of the Civil Liability Act (PJ [598]-[604]). Her Honour considered that although A had not returned to full time work, this was not likely to persist for the remainder of her working life. This was weighed against the chronic nature of A's psychiatric condition and her risk of relapse or exacerbation. In balancing these factors, as prescribed by Rabay v Bristow [2005] NSWCA 199 (Rabay) and Fegan by her tutor Rozenauers v Lane Cove House Pty Ltd [2007] NSWCA 88 at [27] (Fegan), the primary judge awarded $110,000 to A for future economic loss, including superannuation.
A sought damages for past domestic assistance in the sum of $195,042.40, reflecting the value of assistance provided by carers and cleaners until February 2017. The primary judge relied heavily on a report prepared by an occupational therapist (Ms Lausch) for the purposes of the inquiry as to whether the domestic services received by A were reasonable and referable to her injury in accordance with s 15(2) of the Civil Liability Act. It was consequently held that A was entitled to the full sum claimed under this head of loss, as the report of the occupational therapist constituted sufficiently compelling evidence: Avopiling Pty Ltd v Bosevski (2018) 98 NSWLR 171; [2018] NSWCA 146 at [115]-[116]; cf, Gordon v Truong [2014] NSWCA 97; (2014) 66 MVR 241 at [30].
The primary judge also relied upon Ms Lausch's report for the purposes of awarding $258,030.40 in damages for future domestic assistance, calculated at a rate of $265.60/week for life. This was said to reflect an approach consistent with that set down by the High Court in Malec v JC Hutton Pty Ltd (1990) 169 CLR 638; [1990] HCA 20.
[23]
Plaintiff B
B was awarded damages in the total sum of $465,000 under the heads of non-economic loss for psychiatric injury; exemplary damages; and future out-of-pocket expenses, economic loss and superannuation: PJ [634]-[679]. The primary judge commenced the damages inquiry by reviewing two separate psychiatric reports in respect of B, the first of which was prepared in 2014 followed by the second in 2019. On the basis of these two reports, the primary judge concluded that B had suffered post-traumatic stress disorder as a result of the alleged assaults. Although this condition had since entered effective remission, B was held to be "vulnerable to relapse" (PJ [648]).
In view of this ongoing vulnerability, the necessity of an allowance for aggravated damages in a case of this nature (Lamb v Cotogno (1987) 164 CLR 1; [1987] HCA 47 at [8] (Lamb); Gersbach v Gersbach [2018] NSWSC 1685), the pain and suffering caused by the assaults (Varmedja v Varmedja [2008] NSWCA 177 at [154]) and the gravity of Ms Clancy, Little Pigeon and Mr Bird's breaches of their duties, the primary judge awarded $270,000 in damages for B's non-economic loss.
On the question of exemplary damages, the primary judge stated that "[a] more important case for the Court to express its own view about such conduct was argued to be difficult to imagine": PJ [664]. Her Honour referred to the decision of the High Court in Gray at [31] as authority for the proposition that exemplary damages are "awarded to punish wrongdoers and to deter others from such conscious wrongdoing, in contumelious disregard of other's rights": PJ [667]. In view of this overarching principle, B was awarded exemplary damages in the amount of $70,000.
Turning to the last of B's heads of loss, namely, future out-of-pocket expenses and economic loss, the primary judge accepted the submission that the award of pecuniary buffers under these heads was necessary given that B was a child and the course of her future was a matter of speculation. Taking account of the risk of the re-emergence of B's post-traumatic stress disorder pursuant to certain triggers, the primary judge awarded $25,000 for future out-of-pocket expenses and $100,000 for B's future economic loss.
[24]
Plaintiff C
C was awarded damages in the total sum of $508,677.71 under the heads of non-economic loss for psychiatric injury; past out-of-pocket expenses; future out-of-pocket expenses; past economic loss; past superannuation; and future economic loss and future superannuation: PJ [680]-[716].
The primary judge received two expert psychiatric reports prepared in respect of C, both of which disclosed that she was suffering an adjustment disorder accompanied by depressive and anxious moods. As neither psychiatrist was able to identify evidence of pre-existing conditions or prior traumas, it was accepted that C's conditions were the result of D's disclosures regarding Mr Bird's conduct. The key point of difference between the expert reports concerned C's prospects for the future management of her condition.
At PJ [696], the primary judge accepted the evidence of a Dr Allnutt, which indicated that C's prognosis was guarded, such that her condition was at risk of exacerbation subject to certain triggers. When balanced against C's pursuit of a return to full-time employment, the primary judge held that the evidence warranted an assessment of damages for non-economic loss in the sum of $96,000, representing 28% of a most extreme case under s 16 of the Civil Liability Act.
For the same reasons as were given in respect of A, that is, to avoid the risk of "double punishment" (Gray at [43]-[49]), the primary judge declined to award exemplary damages to C: PJ [698].
As to out-of-pocket expenses, both past and future, the primary judge accepted, without qualification, C's claim for $78,172.71. The quantum of future out-of-pocket expenses was itemised as comprising psychology and psychiatry consultations for 12 months buffered by an allowance, on an as-needed basis, for the remainder of C's life; quarterly consultations with a general practitioner for five years; and medication costs over that period.
The primary judge did not make any further discounts to the amount as claimed in view of her satisfaction that C was likely to require ongoing psychological and psychiatric treatment for an indeterminate period.
In respect of past economic loss, the primary judge relied upon the uncontested report of a forensic accountant, which calculated C's accrued economic loss in the sum of $225,333.50. The Appellants contended that this figure ought to have been reduced to reflect extraneous financial stressors unrelated to D's disclosures of Mr Bird's conduct. Her Honour found no bases for such a reduction, instead concluding that, but for D's disclosures, C's annual income would have increased so as to found damages in the sum as claimed. In light of the sum of damages for past economic loss, $21,406.68 was awarded to C for past superannuation.
The final head of loss under which C was awarded damages was future economic loss and superannuation. For the purposes of this inquiry, the primary judge had regard to C's part-time work (since 2016) as a Senior Consultant assisting families dealing with trauma: PJ [686]. The Appellants argued that it followed from C's evident capacity for gainful employment (as accepted by the primary judge at PJ [715]) that no future economic loss could be established. However, the primary judge rejected this argument (PJ [715]-[716]), accounting for the application of s 13 of the Civil Liability Act, and Rabay and Fegan (see [230] above), and held that C was entitled to $111,000 in damages for future economic loss and superannuation, in view of the nature of her ongoing work and the risk of exacerbated psychiatric injury that it posed, given its frequent encounter with family trauma.
[25]
Plaintiff D
D was awarded damages in the total sum of $455,000 under the heads of non-economic loss for psychiatric injury; exemplary damages; and future out-of-pocket expenses, economic loss and superannuation: PJ [717]-[741].
D was assessed by two psychiatrists in 2020 (at which time she was 13 years of age), each of whom prepared a report in respect of her condition. The psychiatrists were not called to give concurrent oral evidence. They agreed that D had developed a diagnosable (albeit unspecified) psychiatric disorder as a result of Mr Bird's conduct, which was subject to the risk of exacerbation upon exposure to certain triggering stimuli. The psychiatrists also agreed that D did not display any symptoms of psychopathology at the time of her examination, such that she did not require any treatment.
The primary judge acknowledged that although it was very difficult to assess the comparative seriousness of B and D's psychiatric injuries, the evidence indicated that D had demonstrated significant resilience in her recovery, to the extent that there was "no immediate concern about her overall state of health": PJ [729]. Having taken into account the necessity for a component of aggravated damages (Lamb at [8]), the primary judge awarded $260,000 to D for non-economic loss.
In respect of exemplary damages, the primary judge awarded $70,000 to D for the same reasons as applied to B.
The primary judge also applied the same considerations as her Honour had to B in determining that D was entitled to $25,000 for future out-of-pocket expenses and $100,000 for future economic loss and superannuation.
[26]
Attacks on various aspects of damages awarded
Turning to the appeals against the damages awarded to each of the Respondents, our conclusion that not only should the appeals against the verdicts in favour of A and B succeed but that their claims should be dismissed means that it is not necessary to address discrete attacks made upon components of the award of damages to them, although it may be noted that, to the extent that B was awarded exemplary damages (in the sum of $70,000), the quantum of that award was inherently tied up with the primary judge's assessment of the nature, extent and seriousness of Mr Bird's wrongdoing. This aspect of B's damages could not have been sustained even if the Court had been minded to remit A and B's claims for a new trial, as opposed to dismissing the claims.
There is utility in dealing with the specific attacks on the damages awarded to C and D given that, although those awards must be set aside, the Court considers that their claims should be remitted for re-trial. Dealing with aspects of the attacks on their damages should also inform and assist any mediation that the parties may choose to undertake.
[27]
Damages awarded to C
In relation to past economic loss, C was awarded damages in the sum of $225,333.50, which was the total amount claimed.
The primary judge addressed this head of loss in the following terms: [218]
"703 $225,333.50 was claimed on the basis of an unchallenged forensic accountant's report, or in the alternative a buffer. Mr Bird contended for a $50,000 buffer and the other defendants for a $75,000 buffer.
704 The $75,000 figure was submitted to reflect the impact of a number of other stressors on C, unrelated to B, such as the breakup of her relationships and problems with her son.
705 I do not accept that this is established by the evidence, which suggests that the interruptions to C's career were the result of her reaction to D's disclosures and their aftermath and the injury which she suffered as a result, not the other matters relied on by the defendants. I am satisfied that but for her injury, C would not have suffered the losses she established.
706 Mr Bird's figure was calculated on the basis that up until the 2013 tax year when C's net income dropped to $13,905, there had been no loss and that her earnings in the years that followed were lower than her 2012 earnings of almost $50,000, for 5 years until 2018, when they became $62,503. That was said to have resulted in total loss of earnings over 5 years, of $75,209, that being the difference between an assumed total income of $250,000 over that period, less what C actually earned, in total $174,791.
707 Thus the $75,209 figure, it was submitted, should form the basis of the calculation of a buffer. It was accepted, however that the calculation proceeded on the assumption that between 2012 and 2017, C's income would not have increased beyond $50,000. It also assumed that without the career interruptions she had repeatedly suffered, C would have earned no more than she actually earned in the years since 2018.
708 I can see no basis in the evidence for these assumptions. They do not accord with how C's income increased either before 2012, or from 2018. Had she not been injured as she was, I am satisfied that it is also likely that her income would have increased beyond $50,000 after 2012, as it did after 2018.
709 The accountant's report explains the basis upon which the calculations relied on were made. They were not challenged by evidence, nor addressed in submissions. That being so I am satisfied that the damages claimed must be awarded." (emphasis added)
The errors alleged to have been made by the primary judge in awarding damages to C for past economic loss were said to flow almost entirely from her Honour's reliance upon a report by a forensic accountant (the Vincents Report) which purported to quantify that head of loss.
In summary, Ms Horvath (for Ms Clancy and Little Pigeon, her submissions being adopted by counsel for Mr Bird) contended that "the basis on which [the primary judge awarded those damages] was factually, completely erroneous, because the material on which her Honour relied didn't support the conclusion reached". [219] That the Vincents Report formed a critical part of the relevant material was made clear by the primary judge at PJ [709].
The principal error alleged by Ms Horvath was the primary judge's "projection forward" of the figures in the Vincents Report, absent any explanation as to the mechanics of such a projection and in circumstances where the Report was "prepared in 2014 [and] … did not have regard to C's earnings to 2020, which were in evidence". [220]
Ms Horvath summarised the evidence of C's annual income as disclosing that "by 2018 it was at $80,000, 2019, $98,000, and 2020, $109,000, which was all a fairly significant increase over her salary in the 2010 to 2012 period". [221] These figures were to be contrasted with Notices of Assessment issued to C by the Australian Taxation Office for the years ended 30 June 2010 to 30 June 2017 (excluding 30 June 2015), which respectively disclosed annual taxable income of $49,933; $55,505; $61,354; $13,905; $50,820; $29,604; and $49,574. [222]
In order fully to understand the primary judge's process of reasoning to a quantum of $225,333.50, the relevant portion of the schedule of damages put forward by C at trial is reproduced as follows: [223]
"(a) As per the Amended Statement of Particulars and the Forensic Accountant report, between 30 November 2010 and 31 December 2012 (109 weeks) a net loss of $137 per week is claimed, totalling $14,933
(b) As per the Amended Statement of Particulars and the Forensic Accountant report, between 1 January 2013 and 1 August 2013 (30 weeks) a net loss of $1448.39 is claimed, totalling $43,451.70
(c) As per the Amended Statement of Particulars and the Plaintiff's evidence, between 2 August 2013 and 17 March 2020 (345 weeks) a net loss of $450 per week is claimed, totalling $155,250.
(d) In addition, the Plaintiff was required to use her sick leave and annual leave at Ross Beaton as a result of her subject injuries including 19 sick days ($6,350.75) and at least 16 annual leave days ($5,348), totalling $11,698.75
$225,333.50". (emphasis added)
In respect of paragraph (c) in the schedule of damages, C deposed that she estimated "the weekly net loss to [her] income as being approximately $450 per week". [224] It was put to Ms Horvath that the quantum of damages awarded to C "coincide[d] broadly with a calculation of the $450 figure by the number of weeks involved". [225]
C's income was increasing between 2010 and 2012, no doubt with her growing experience. It increased in increments of approximately $5000 per annum. It increased in 2019 and 2020 by increments of $18,000 and $11,000 respectively. There were years following the charging of Mr Bird in which C took extended leave and her annual income dropped significantly as a result.
The figure of $155,250, in paragraph (c) of the extract from the schedule of damages, is simply the result of the multiplication of $450 in estimated weekly lost income by 345 weeks between August 2013 and March 2020. That calculation was undertaken in 2014, when the Vincents Report was prepared. If C had continued to work without the impact of the events the subject of these proceedings, it is likely that her annual income would have continued to rise by increments of at least $5000 per year and maybe more, as her experience between 2018 and 2020 suggested. On that basis, her salary by 2018 would have been closer to $90,000 per annum than $80,000. Although the reasoning in respect of this head of loss is sparse, the awarded quantum of damages, on the assumption of liability, was open to the primary judge.
C was also awarded a buffer against future economic loss in the sum of $111,000. The primary judge reached that conclusion for the following reasons: [226]
"712 $150,000 was claimed as a buffer and the defendants contended that nothing could be awarded.
713 Given that no past economic loss was claimed after 17 March 2020 and what was disclosed in C's last tax return, it was the defence case that no ongoing loss in the future was established.
714 Section 13 is again relevant to assessment of damages for future economic loss …
715 C has recovered sufficiently to be working full time, but also performing work that exposes her to triggering events, which she cannot leave for good reason. I am thus satisfied that C's future economic loss must be assessed on the basis that the evidence also establishes in her case that there is also a real risk that given the nature of her injury, her work and what it exposes her to, that her capacity to perform that work will also at times in the future be adversely affected.
716 Contrary to C's situation before she was so significantly damaged by Mr Bird's acts, given the nature of her still ongoing ill health, her guarded prognosis and vulnerability to exacerbation of that condition, she must also be awarded a buffer, which I also assess at $111,000." (emphasis added)
The Appellants' overarching challenge to the buffer awarded to C for future economic loss was advanced on the basis that "it doesn't at all accord with s 13 [of the Civil Liability Act]; doesn't state the assumptions; doesn't explain really at all why her Honour reached the conclusion that C ought be awarded a buffer of $111,000". [227]
The principles governing the award of buffers for future economic loss are not controversial and were not put in issue in the parties' respective submissions. In Allianz Australia Insurance Ltd v Cervantes [2012] NSWCA 244; (2012) 61 MVR 443, Basten JA summarised those principles as follows (at [33]-[38]):
"33 The calculation of economic loss, whether in the past or for the future, involves a comparison between the actual circumstances of the claimant, as a result of the accident, and the circumstances which would probably have continued or come to pass but for the accident … the Court must also consider whether such a loss might have occurred independently of the accident.
…
35 The conventional approach to such an exercise is to assess the earning capacity of the claimant in monetary terms prior to the accident (usually on the basis of net weekly or annual earnings) and, where there is evidence of unemployment or employment at a reduced income thereafter, to assess the quantum of the difference up to the date of hearing (past economic loss) and to project the calculation into the future (future economic loss). The latter exercise will, again conventionally, be discounted by 15% on account of vicissitudes.
36 Such calculations produce precise figures, often resulting in awards expressed in dollars and cents. However, such precision is fallacious. Varying degrees of uncertainty will attend the hypothetical aspects of the calculation, rendering any degree of precision misleading.
37 Additionally, with respect to future economic loss, the exercise requires a discounting of the calculation in order to achieve a present monetary value for the assessed loss which, it is assumed, will accrue steadily over the remaining working life of the claimant.
38 Under the general law, it has long been accepted that, at least in some cases, the assessment will involve such a degree of speculation as to render a calculation by the conventional techniques inappropriate. In those cases, a lump sum is awarded by way of 'buffer', the court being satisfied on the probabilities that a loss will be suffered or, indeed, has been suffered."
Also relevant to the award of buffers for future economic loss is s 13 of the Civil Liability Act, which provides that:
"(1) A court cannot make an award of damages for future economic loss unless the claimant first satisfies the court that the assumptions about future earning capacity or other events on which the award is to be based accord with the claimant's most likely future circumstances but for the injury.
(2) When a court determines the amount of any such award of damages for future economic loss it is required to adjust the amount of damages for future economic loss that would have been sustained on those assumptions by reference to the percentage possibility that the events might have occurred but for the injury.
(3) If the court makes an award for future economic loss, it is required to state the assumptions on which the award was based and the relevant percentage by which damages were adjusted."
At the time of the hearing at first instance, C was employed as a Senior Consultant with the firm Insight Consulting, a role which involved "working with families who are dealing with trauma". She was earning "approximately $1,337.00 net per week", compared to net weekly salaries of $1206.00 in 2010 and $1210.00 in 2017. [228] Although the primary judge accepted that "C has recovered sufficiently to be working full time", her Honour reasoned that it was appropriate to award the buffer as C's employment would "expose her to triggering events" which would, in turn, adversely affect her capacity to perform in that employment. [229]
On the Appellants' argument, the finding as to C's recovery was entirely incompatible with the buffer as awarded. It was said that if the primary judge had properly undertaken the exercise contemplated by s 13 of the Civil Liability Act, it would have become evident that "from at least financial year 2018, C had significantly recovered from her condition and was working at a high capacity". [230] This was said to be supported further by the fact that on the pleadings, C's claim for past economic loss did not extend beyond 17 March 2020. [231]
It was the Appellants' case that the primary judge had reached these purportedly incompatible findings in reliance upon the expert evidence of Dr Stephen Allnutt, a consultant psychiatrist, who participated in an expert conclave with Dr Selwyn Smith on 25 August and 1 September 2020. During that conclave, both psychiatrists diagnosed C with an "adjustment disorder", although Dr Allnutt considered that it was chronic. It was agreed that C also lived with a generalised anxiety disorder and an alcohol use disorder.
As to the effect of that prognosis upon C's future earning capacity, the following answers were given: [232]
"E. What is [Plaintiff C's] prognosis?
DR SMITH: I am of the opinion that her prognosis, particularly with early resolution of this matter, is good.
DR ALLNUTT: Given the persistent symptoms many years after the index injury the prognosis is guarded for the foreseeable future.
…
F. Has Plaintiff C's earning capacity been diminished as a result of any psychiatric illness that you have identified.
DR SMITH: Her earning capacity has not been diminished as a result of any psychiatric illness.
DR ALLNUTT: Her performance at work was impacted by difficulties with concentration, anxiety which affects her pace of work and need to take time off, which results in lost income.
G. If so, what is the prognosis for her return to an undiminished earning capacity?
DR SMITH: Her prognosis for return to a[n] undiminished earning capacity is good.
DR ALLNUTT: The prognosis is dependent on her recovery. Given that her prognosis is guarded for recovery for the foreseeable future, the return to undiminished earning capacity is guarded for the future." (emphasis added)
The Appellants contended that this body of expert evidence provided an insufficient basis for the award of C's buffer on three bases. First, C's Income Tax Return for the financial year ended 30 June 2020 disclosed total income in the sum of $98,390.00, [233] while a payslip received during the subsequent financial year stated that C's annual salary was to be $109,999.97. [234] Those figures significantly exceeded her pre-injury earnings.
Secondly, in his oral evidence, Dr Allnutt responded to a question from the primary judge as to C's prognosis by stating that it was "guardedly positive". [235] This was in contrast to his answer in conclave that the prognosis was "guarded for the foreseeable future".
Thirdly, the buffer awarded to C was precisely the same as the buffer awarded to A, notwithstanding: a 14-year difference in their respective ages, and therefore in the expected durations of their future working lives; the fact that C earned a higher income than A; and that "on the evidence, [C] seems to have a more optimistic prognosis". [236] Mr Barry submitted that the apparently coincidental parity of the buffers awarded to A and C was not unilaterally demonstrative of error in the primary judge's assessment of them, [237] following this exchange in argument on the appeals: [238]
"BELL P: [Dr Allnutt] is dealing with plaintiff C, and he's saying that plaintiff C … is guardedly positive, by way of contrast to plaintiff A. Now, it's very odd that you get the same buffer for plaintiff A and plaintiff C, in circumstances where plaintiff A, Allnutt's evidence is more pessimistic, i.e. a higher potential for interruption to her earning capacity, and she's got more than twice the number of years in which she can continue to work.
GLEESON JA: $5 an hour; it's material.
BELL P: $5 an hour less, and presumably, partly reflecting comparative levels of experience, especially given what you've said about A's greater qualifications.
BARRY: The primary judge had the advantage of seeing and hearing both witnesses, and presumably took a view in relation to that advantage.
BELL P: It's not something that really can be invoked on an economic loss claim, can it? … Assessments of economic loss really don't depend on demeanour.
BARRY: It can depend upon an assessment made in relation to how the judge believes that the witness is coping with the disabilities from which they are suffering.
BELL P: That's why we've got expert evidence in the area, isn't it, because it's outside the judge's expertise? The difficulty on this head of damages is the one of - the identical figures don't instil one with any confidence as to the basis on which they've been arrived at, because there are all sorts of reasons why they should've have been very different, by reference to the very evidence you've taken us to. That's the difficulty.
…
BRERETON JA: Exactly, and isn't what was required - going back to what the President put to your earlier about s 13, if her Honour had found 'Well, I think it's probable that over the remainder of her working life, plaintiff A will have periods totally roughly a year over the remaining 29 years that she won't be able to work, and on that basis I allow a year's salary.' Now, that would make perfect sense and be unimpugnable, and that would comply with s 13 by showing the basis of her future circumstances, or the assumptions as to her future circumstances, that founded it. But in the absence of something like that, it's just impossible to see how these figures would arise, isn't it?
BARRY: It's not impossible, but if one can look at what the capacity to earn is, working out how many hours a week a person might be likely to lose, work out a percentage in terms of the weekly salary in relation to that particular person's earnings, but some judges do it in terms of a 5 per cent or 10 per cent diminution [of] earning capacity and then work that out over a period of the balance of a person's working life to come up with the kind of buffers that arise in this case. There are a numerous ways in which the task can be undertaken, but at the end of the day it's a question of whether the figure is correct or incorrect or whether the figure is appellably [sic] wrong. Our submission is [that] it isn't."
The reference by Brereton JA to s 13 of the Civil Liability Act (see [265] above) picked up the contention that the primary judge's assessment of buffers for future economic loss fell short of the analysis and reasoning required by that section. [239] Mr Barry's response was that, although her Honour may not have followed the process set out by s 13 word-for-word, this did not amount to a failure to undertake the relevant exercise, and that strict compliance with the statutory language was not necessary for the award of a buffer.
Mr Barry relied upon a number of decisions of this Court as authority for the proposition that a buffer may be awarded otherwise than in accordance with s 13, namely Penrith City Council v Parks [2004] NSWCA 201 (Penrith); Sretenovic v Reed [2009] NSWCA 280 (Sretenovic); and Burton v Brooks [2011] NSWCA 175.
Reliance on these authorities was misplaced. Although they stand as authority for the propositions that "[it] is appropriate to award damages by way of a buffer, including … where damages are to be determined pursuant to the Civil Liability Act, when the impact of the injury upon … exercising earning capacity after injury is difficult to determine"; [240] and that the determination of the difference between earning capacity prior to injury and earning capacity thereafter cannot be determined "otherwise than by the broad approach of a buffer", [241] the award of a "buffer" does not displace the operation and requirements of s 13 of the Civil Liability Act.
In Penrith, Giles JA accepted that even in the context of awarding a buffer, s 13 required the statement of "the assumptions as to exercising earning capacity before injury". [242] So too, in Sretenovic, McColl JA (with whom Beazley JA agreed) made reference to the requirements set out in s 13 of the Civil Liability Act in holding that the primary judge in that matter had erred in formulating a buffer for future economic loss.
In our view, the primary judge's assessment of C's damages for future economic loss in the sum of $111,000, by way of a buffer, cannot be sustained. Not only was it non-compliant with the requirements of s 13 of the Civil Liability Act, which are directed to supplying some meaningful and transparent basis for the award of damages for future economic loss but, perhaps even more significantly, the fact that the damages awarded for this head of loss were identical to those awarded to A reinforces the perception that the figure of $111,000 was not calculated by reference to the particular circumstances of C.
In any re-assessment of damages on remittal, the buffer awarded by the primary judge could not be relied upon and would need to be re-calculated. On the evidence before the primary judge, if any buffer were to be awarded at all, it would a very modest figure.
Finally, in relation to future out-of-pocket expenses, C was awarded $52,828.61 as follows: [243]
"(a) 2x weekly consultation with a psychologist for 12 months at a cost of $300 per consultation = $31,200.00.
(b) Monthly consultations with a psychiatrist for a period of 12 months at a cost of $300 per consultation = $3,600.00
(c) Quarterly consultations with a general practitioner at a cost of $80 per consultation continuing for remainder of life expectancy = $5,328.61
(d) The sum of $45 per month for the cost of anti-depressant medication for the next 5 years = $2,700.00
(e) Buffer in sum of $10,000 to cover the costs of consultations with psychologist and psychiatrist on an as needs basis for remainder of life expectancy
$52,828.61". (emphasis added)
It was accepted that the formulation of these figures relied heavily upon an expert report prepared by Dr Allnutt on 20 July 2018. [244]
The claim for "2x weekly" consultations with the psychologist, that is, two consultations each week, was asserted to be in error on the basis of a misapprehension of the evidence of Dr Allnutt. The Appellants contended that Dr Allnutt had in fact recommended fortnightly consultations with a psychologist, that is, one consultation every two weeks, such that the quantum stood to be reduced by 75%.
As a further result of this error, on the Appellants' case, a proportionate reduction of the buffer claimed by (and awarded to) C was required. Such a reduction was also said to flow from a separate misapprehension of Dr Allnutt's evidence as recommending quarterly consultations with a general practitioner, where the Appellants contended for a notional buffer in the sum of $320. [245]
It was conceded, on behalf of C, that the schedule of damages "included a misinterpretation of Dr Allnutt's recommendation" as to the frequency of psychology sessions. However, that concession was limited to a reading of Dr Allnutt's statement as recommending weekly (cf, fortnightly) sessions for 12 months. It was also conceded, consequently, that the relevant buffer "ought to be reduced by 50%".
These concessions resulted in the re-calculation of C's damages for future out-of-pocket expenses in the sum of $32,228 (as opposed to $52,828.61).
[28]
Damages awarded to D
The damages awarded to D are summarised at [245]-[249] above.
D was awarded exemplary damages in the sum of $70,000. Consistent with our observations in respect of an equivalent award of exemplary damages to B (see [250] above), such an award, and its quantum, was bound up with and will depend, at least in part, upon the nature and extent of any sexual assaults found to have been committed by Mr Bird against D. That is a matter that can only be resolved by the judge who will determine the question of Mr Bird's liability (if any) to D. Without pre-empting any such consideration, it is difficult to see how, on the evidence, exemplary damages could be awarded against Little Pigeon and Ms Clancy (as opposed to Mr Bird) in any direct claims against them in tort or contract.
The Appellants also contended that the award of damages to D for non-economic loss ($260,000) was "beyond the reasonable range" and that the award of a buffer of $100,000 for future economic loss was "wholly speculative".
In respect of the award of $260,000 for non-economic loss, the primary judge's reasoning was as follows: [246]
"730 $400,000 was claimed. Mr Bird contended $25,000 would be awarded and the other defendants $50,000.
731 The harm which D suffered, pain and suffering and aggravated damages for injury to the [sic] her feelings caused by insult, humiliation and the like, must also be taken into account in her case, in the way that I explained in B's case.
732 It is difficult to compare the seriousness of Mr Bird's assaults on B and D, but fortunately all that D suffered before she recovered to her present position, does not seem to have been quite as serious as all that B suffered. D has also fortunately proven to be resilient enabling her also to recover well from the serious injury Mr Bird caused her.
733 Still the evidence established that D suffered a very serious injury for a child as young as her, one which she would not have suffered, but for his assaults.
734 I am satisfied that this must also result in a damages award which includes a component of aggravated damages.
735 Had D not recovered as well as she has, that award would have had to be greater. But account must also be taken of what D continues to risk during the remainder of her life, as the result of what Mr Bird did to her when she was such a young child.
736 I have thus concluded that D must be awarded damages of $260,000."
In response to these findings, the Appellants highlighted the following answers as agreed at the expert conclave between Dr John Kasinathan and Associate Professor Michael Robertson, consultant child and adolescent psychiatrists, in relation to D on 31 August 2020: [247]
"a. Please identify the psychiatric disorder (including if relevant how it has changed from time to time);
Both experts agree the psychiatric disorder is likely post traumatic stress disorder previously.
b. Please identify any other stressors, intervening events, circumstances, or pre-existing conditions which impacted upon any [sic] the development of the psychiatric disorder
Both experts agree that at age 9 the plaintiff experienced transient exacerbation of her symptoms likely attributable to her mother's contributions to the Royal Commission.
c. Has it continued to effect [sic] Plaintiff D? If so, how?
Both experts agree there was no evident psychopathology at the time of their examination and that Plaintiff D was following a normative trajectory.
d. Does Plaintiff D currently require treatment for a psychiatric condition? If so, please specify the recommended treatment and (to the extent that you can) please identify costs.
Both experts agree there was no current treatment required.
Both experts agree that Plaintiff D should undergo a process of regular monitoring of her mental health. This could be through her general practitioner (GP) on an annual basis unless a more urgent need arose through emerging psychological distress, behavioural disturbance, or declining peer relationships or academic performance, in which case more specialist review might be needed.
The experts agree it is difficult to estimate what this cost might be given the 'known unknown' of the situation." (emphasis added)
D's school reports were argued to be entirely consistent with the joint opinion of Dr Kasinathan and Associate Professor Robertson, such that she was a "happy and very confident student who was rarely absent from school". [248]
The Appellants also attacked the primary judge's statement that "injury to … her feelings caused by insult, humiliation and the like, must also be taken into account in her case", [249] in circumstances where D had no recollection as to what had occurred.
In response, Mr Barry emphasised the "quasi-discretionary" [250] nature of a general damages award and that this attracted a higher standard of appellate review which was not engaged by the primary judge's assessment, particularly where such damages ought to "compensate for the particular manner in which the particular tort was committed". [251]
The primary judge's reasoning in support of this award of damages does not explain the basis for the inclusion of a component of aggravated damages, nor does it indicate what portion of the sum was awarded for that component. It also sits uncomfortably with the joint expert conclave report as to D's disposition and normative trajectory. In our opinion, the quantum awarded for this head of loss was out of proportion to the injury apparently suffered by D. It should fall for re-assessment on any re-trial.
The primary judge's reasoning in respect of the award of damages for future economic loss and superannuation to D was very brief: [252]
"740 A buffer of $30,000 was claimed for future out of pocket expenses and a buffer of $200,000 for general diminution of D's earning capacity. Mr Bird contended that nothing should be awarded and the other defendants argued $25,000 would be awarded in respect of both future economic loss and future out of pocket expenses.
741 For similar reasons to those given in relation to B, I am also satisfied that given the nature of the injury which D suffered, her resulting susceptibility to further injury and the retriggering of her condition during the milestones in her life, I am satisfied that there must also be buffers awarded for these heads of damage of $25,000 for future out of pocket expenses and $100,000 for future economic loss and superannuation."
The $100,000 awarded for future economic loss and superannuation was the same amount as was awarded to B. The observations made above at [277] bear repeating in this regard. The primary judge's reasoning to the award of the identical amount of damages to B was as follows: [253]
"678 The plaintiffs' case was that a buffer had to be awarded, taking into account that B was a child and that what the future would hold for her was not known. That buffer should account for the risk which the psychiatrists discussed might arise over the course of a long working life ahead of her, B now being aged some 13 years that her injury would at times deteriorate.
679 Given the nature of the injury which B suffered, her resulting susceptibility to further injury and the retriggering of her condition during the milestones in her life, I am satisfied that there must be buffers awarded for these heads of damage of $25,0000 for future out of pocket expenses and $100,000 for future economic loss and superannuation."
This reasoning does not satisfy the requirements of s 13 of the Civil Liability Act. The assumptions upon which the buffer was assessed are not specified and resulted in a rolled-up and global figure which does not translate readily to the case of D, whose susceptibility to further injury was assessed very differently to B's and made the corresponding amounts for damages by way of an identical buffer for each quite problematic.
This is not to say that D was not entitled to a buffer for future economic loss, but that the assessment of a buffer in the sum of $100,000 was not satisfactory, both as to the opaque manner of its computation and its lack of an evident relationship to the evidence led in support of D's claim for such damages.
In this respect, it suffices to note that during their joint conclave, Dr Kasinathan and Associate Professor Robertson agreed that D had developed post-traumatic stress disorder and subsequently agreed upon the following conclusions: [254]
"e. What is Plaintiff D's prognosis?
Acknowledging the risk posed by child sexual abuse to later mental health, both experts agree at present the prognosis was favourable.
f. Please identify whether (and to what extent) the plaintiff's ability to study and/or work in the future has or is likely to be affected by the Abuse.
Both experts did not see any current evidence of impaired academic function and no realistic expectation of impaired work capacity.
g. Please identify whether (and to what extent), the Plaintiff is susceptible to re-lapse(s) or re-traumatization in the future, by reason of the Abuse?
Both experts agree there is theoretical risk of revictimization in any survivor of childhood sexual abuse, however, there was no current evidence of any concerns in this regard.
h. Please identify whether Plaintiff D is likely to require treatment for a psychiatric condition in the future, by reason of the Abuse.
Both experts agree were Plaintiff D to experience a relapse, though they feel this would be unlikely, it is possible, she would require treatment for the re-emergence of post traumatic stress disorder or related conditions.
i. Please identify some of the short term effects of child sexual abuse and whether the plaintiff describes experiencing some of these?
Both experts agree the plaintiff experienced symptoms of childhood post traumatic stress disorder, which is a recognised typical short term and ongoing effect of childhood sexual abuse.
j. Please comment on what some of the long term effects of child sexual abuse are and whether this impacts Plaintiff D's prognosis.
Both experts acknowledge extensive scientific literature in the area linking childhood sexual abuse with an array of psychopathological disturbances and substance use, as well as vulnerabilities to sexual revictimization and heightened risk of physical health problems. None of these appear to be an immediate concern in the case of Plaintiff D's overall state of health, however should be kept in mind by any future healthcare provider." (emphasis added)
This evidence suggests that there was little, if any, need for a buffer to be awarded to D for future economic loss.
[29]
Final orders
In proceedings 2020/310603 and proceedings 2020/311015 (Ms Clancy, Little Pigeon and Mr Bird's appeals against A and B), the following orders should be made:
1. appeals allowed with costs;
2. set aside the orders of the primary judge;
3. in lieu thereof, order that proceedings 2013/375445 be dismissed with costs.
In proceedings 2020/310609 and 2020/310590 (Ms Clancy and Little Pigeon's appeals against C and D), the following orders should be made:
1. appeals allowed with costs;
2. set aside the orders of the primary judge;
3. in lieu thereof, order that:
1. proceedings 2013/375437 and 2020/65223 against the Second Defendant (Ms Clancy) be dismissed with costs;
2. proceedings 2013/375437 and 2020/65223 against the Third Defendant (Little Pigeon) be dismissed other than in respect of the claims against Little Pigeon based upon vicarious liability, with those claims to be remitted to be determined by a judge other than the primary judge with costs of the proceedings at first instance to be costs in the cause;
1. grant C and D a certificate under the Suitors' Fund Act 1951 (NSW).
In proceedings 2020/311016 and 2020/311017 (Mr Bird's appeals against C and D), the following orders should be made:
1. appeals allowed with costs;
2. set aside the orders of the primary judge;
3. in lieu thereof, order that:
1. proceedings 2013/375437 and 2020/65223 against Mr Bird be remitted to be determined by a judge other than the primary judge with costs of the proceedings at first instance to be costs in the cause;
1. grant C and D a certificate under the Suitors' Fund Act 1951 (NSW).
[30]
Endnotes
Blue 3/1032.
PJ [326].
PJ [407(1)-(6)].
PJ [407(15)].
PJ [407(23)].
PJ [172].
PJ [173].
PJ [170].
See PJ [129].
PJ [43].
PJ [63]-[84].
(Emphasis in original).
PJ [13].
See PJ [404]-[406].
See, for example, PJ [122].
See PJ [13], quoted at [29] above.
Bryant v The Queen (2011) 205 A Crim R 531; [2011] NSWCCA 26 at [50]-[51]; Andelman v R (2013) 38 VR 659; [2013] VSCA 25 at [73]-[75]; Elomar v The Queen (2014) 300 FLR 323; [2014] NSWCCA 303 at [348]; White v Johnston (2015) 87 NSWLR 779; [2015] NSWCA 18 at [139]; Taylor v R [2020] NSWCCA 355 at [122(i)].
Black 1/259.
Orange 267.
IMM v The Queen (2016) 257 CLR 300; [2016] HCA 14 at [44], [52] (IMM).
See PJ [376].
See, for example, PJ [333], [394], [407(27)].
PJ [112].
PJ [129].
Blue 3/1186.
Blue 3/1187.
See [46] above.
PJ [92].
Black 1/36W-38F, 47R-48K, 250T-X; cf, T 137.35-40.
Black 1/250.
Blue 3/951.
PJ [76].
While this interpretation is clear on textual consideration, it is also supported by authority: see Mindshare Communications Ltd v Orleans Investments Pty Ltd [2007] NSWSC 976 at [14]-[18]; Seafood Imports Pty Ltd v ANL Singapore Pte Ltd (No 1) [2009] FCA 435 at [13]; Tim Barr Pty Ltd v Narui Gold Coast Pty Ltd (2009) 258 ALR 598; [2009] NSWSC 769 at [11]; R v Suteski (2002) 128 A Crim R 275; [2002] NSWSC 218 at [13]-[19]; R v Alchin (2006) 200 FLR 204; [2006] ACTSC 53 at [2]-[5].
R v Basanovic (No 4) [2015] NSWSC 1100 at [23]-[25]; Roo-Roofing Pty Ltd v Commonwealth (Ruling No 2) [2018] VSC 219.
Uniform Civil Procedure Rules 2005 (NSW), r 10.12(5).
PJ [67]-[68].
PJ [72]-[73].
See PJ [67]-[68].
[2004] NSWCA 91; (2004) 42 MVR 267.
Ibid at [43].
Ibid at [34], [45]-[50].
Ibid at [1].
Ibid at [9].
PJ [15].
PJ [170].
PJ [366].
PJ [394(10)].
PJ [394(21)].
See immediately before PJ [341] ff.
See [39] and [84] above.
See [85] above.
See [27] above. See, for example, Commissioner of the Australian Federal Police v Propend Finance Pty Ltd (1997) 188 CLR 501 at 576; [1997] HCA 3 per Gummow J; Bannister v Walton (1993) 30 NSWLR 699 at 718; Whitlam v Australian Securities and Investments Commission (2003) 57 NSWLR 559; [2003] NSWCA 183 at [117]-[118]; Nadinic v Drinkwater (2017) 94 NSWLR 518; [2017] NSWCA 114 at [47]; Saba v Plumb (2018) 97 NSWLR 278; [2018] NSWCA 60 at [83].
Blue 3/1082-1083.
PJ [394(10)], [394(21)].
See [118]-[139] below.
PJ [407(6)].
Blue 3/1086-1088.
See [84] above.
Red 84 at [9].
Blue 3/1092.
Blue 3/1091.
Blue 3/1081-1082.
Blue 3/1074.
PJ [96].
Cf, [84] above.
See [81] above.
PJ [24].
Black 2/701G, 702M.
Black 2/701J.
PJ [27]-[31].
Blue 2/528.
R v Dolding (2018) 100 NSWLR 314; [2018] NSWCCA 127 at [32]; Higgins v R [2020] NSWCCA 149 at [37]-[38].
Black 2/700-702.
PJ [326].
PJ [394(40)].
PJ [13].
Blue 1/3.
Blue 1/3.
Blue 1/4.
Blue 1/28.
Blue 1/26-29.
Blue 1/30-31.
Blue 3/1142-1143.
Blue 3/1144.
Blue 1/53.
Blue 1/8-9; Blue 1/36.
Blue 1/9.
Blue 1/56-62.
Blue 1/9-11.
Blue 1/63-73.
Orange 72.
Blue 4/1438.
Blue 4/1439.
Blue 4/1440.
Blue 4/1442.
Blue 3/1166-1167; 2088H.
Blue 1/8-9.
PJ [394(45)].
Blue 1/36.
T 107.25.
Blue 1/55-62.
Blue 4/1438.
Blue 4/1439.
Blue 4/1440.
Blue 2/947.
Blue 2/921-1923.
Blue 1/11.
Blue 1/63-73.
See [122(17)] above.
Blue 4/1440.
Blue 4/1442.
PJ [394(86)].
See [143]-[145] above.
PJ [394(67)].
See PJ [394(88)].
PJ [147].
PJ [142].
PJ [144].
PJ [407(1)-(6)].
PJ [407(15)].
PJ [407(23)].
See [14] above.
PJ [407(27)].
PJ [333].
See PJ [407].
Blue 1/277.
PJ [402]; Blue 1/304.
Blue 1/279-280.
Blue 1/304.
Blue 1/280.
Blue 1/287-290.
Blue 1/291-301.
Blue 1/298-301.
Blue 1/282.
Blue 1/282.
Blue 1/282-283.
Blue 1/337-346.
Blue 1/326.
Blue 1/332.
Blue 1/281.
PJ [405].
Blue 2/477-488.
Blue 2/489-490.
Blue 2/481-482.
Blue 2/483-486.
Blue 3/1102-1118.
Blue 3/1120-1136.
Blue 3/1168-1180.
Blue 2/481-482.
Blue 2/484.
Blue 3/1103-1118.
Blue 3/1110-1118.
Blue 2/481-482.
Blue 2/485-486.
Blue 3/1126-1134.
Blue 2/483-488.
Blue 3/1172-1173.
Blue 3/1174-1179.
PJ [393].
PJ [390]-[393].
See [80]-[106] above.
See Hughes at [40]-[42], cited above at [38].
See [96]-[98] above.
Orange 92 at [41(b)-(c)].
See, also, [128] above, in relation to B's disclosures.
(Emphasis added).
See IMM at [44], [52].
See the discussion at [40] above.
Orange 28 at [42].
Blue 40S, 77P, 108D.
PJ [446].
T 73.44-46, 98.25-28, 103.46-50.
PJ [458].
Orange 117D.
Orange 117J.
Orange 117L.
T 26-30.
Black 2/733G-I.
Black 2/671P-S.
Blue 3/993.
Blue 3/996-997, 999-1001, 1024-1025.
See, for example, Defence to Amended Statement of Claim [14]; Red 40.
Blue 3/996.
Amended Statement of Claim [10]; Red 4.
Defence to Amended Statement of Claim [10]; Red 38.
Amended Statement of Claim [14(a)]; Red 7.
Defence to Amended Statement of Claim [14]; Red 40.
PJ [490]-[507].
PJ [253].
PJ [255].
PJ [256].
PJ [254].
PJ [304].
Ibid.
See Blue 2/524G-H; 526H-R (Ms Clancy); Blue 2/931, Black 2/454-455 (Ms Kasim); Blue 2/921-923 (Ms Peterson); Blue 2/947 (Ms Jones); Blue 2/512I, 513F, 542M, 704, 741; Blue 3/1004, 1007; Black 1/195; Black 2/319, 383U, 454 (Child Protection Policy); Blue 3/1002H (Students and Volunteers Policy); Blue 2/555 (Occupational Health & Safety Audit 2010).
Reference was made to non-compliance with the requisite staff ratios, involving a breach of cl 58(1) of the Regulation: see Blue 2/866F; Blue 3/1028. However, this must be seen in the light of the validator's comment at Blue 2/867. It was also submitted that there was no-one effectively performing the functions of an authorised supervisor from 8 October 2008 until August 2010, based on Ms Clancy's evidence: Black 2/379U. However, the effect of cl 104 of the Regulation was that where there was no authorised supervisor, the responsibility devolved on to the licensee, in this case Little Pigeon.
Blue 2/921-922; Black 2/415.
Blue 2/946-948.
It was never put to Ms Kasim that she was not in a position to make the observations she made (at Blue 2/943-944). Ms Kasim gave evidence as to where Ms Clancy was primarily located (not where she, Ms Kasim, was located, as counsel for the Respondents submitted): Black 2/454E-K.
PJ [291].
PJ [291]-[294].
PJ [234].
PJ [232]-[235].
PJ [302].
Black 1/316-319; Black 2/396E-397E.
Blue 2/513F.
Black 2/402Q-403M.
Black 2/404G-405I.
Black 2/393L-O.
PJ [304]; see [211] above.
Black 2/404.34-43.
Black 2/402.32-404.29.
Blue 3/1002.
Blue 2/705K.
PJ [289]-[299].
PJ [299]-[300].
PJ [304].
PJ [703]-[709].
T 220.46.
Orange 37 at [74].
T 218.19.
Blue 1/402-408.
Black 2/750-751.
Blue 1/285 at [70].
T 220.40.
PJ [712]-[716].
T 233.35.
Blue 1/286.
PJ [715].
T 233.28.
PJ [715].
Blue 5/1851-1852.
Blue 5/1883.
Blue 5/1890.
Black 2/493.
T 234.7.
T 264.50.
T 263-264.
T 259.33; see, also, [263] above.
Sretenovic at [81].
Sretenovic at [81]; Penrith at [3]-[5].
Penrith at [5].
Black 2/749.
Blue 5/1780.
Black 2/750.
PJ [730]-[736].
Blue 5/1936-1937.
T 244.18.
PJ [731].
T 270.32.
T 270.15.
PJ [740]-[741].
PJ [678]-[679].
Blue 5/1937.
DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision. The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated.
Decision last updated: 06 July 2022
missions were made - where co-defendant learned of occasion of alleged admissions after the fact - whether alleged admissions were admissible against co-defendant
EVIDENCE - hearsay - exceptions - witness unavailable - within the meaning of cl 4(1)(f) of pt 2 of the Dictionary in the Evidence Act 1995 (NSW) - where that definition properly encompasses the issue and service of a subpoena - where no subpoena had been served on the relevant witness - where the determination of the unavailability of a witness does not involve the exercise of direction - whether witness was unavailable to give evidence so as to render hearsay of disclosures admissible as tendency evidence
EVIDENCE - standard of proof - civil cases - torts - trespass to the person - battery - sexual assault against children - at childcare centre - allegations of such gravity as to attract Briginshaw principles - s 140(2) of the Evidence Act 1995 (NSW) - where plaintiffs relied on substantial body of tendency evidence as to inappropriate sexual dealing with children - where certain witnesses as to tendency unable to be cross-examined - whether tendency evidence was admissible against defendant - where trial occurred some 10 years after events in question - whether allegations established to the requisite standard
EVIDENCE - tendency evidence - civil proceedings - tendency rule - significant probative value - where evidence taken at its highest individually or cumulatively must strongly support existence of tendency asserted - where tendency must strongly support proof of material fact in issue - where distinction to be drawn between admissibility of tendency evidence and its use - where use of tendency evidence must have regard to Briginshaw principles
EVIDENCE - tendency evidence - civil proceedings - torts - trespass to the person - battery - sexual assault against children - where plaintiffs relied upon substantial body of tendency evidence as to inappropriate sexual dealing with children - including disclosures of plaintiffs and two other children and certain answers given by defendant in police interview - where tendency evidence required to be of significant probative value of tendency - where tendency required to strongly support proof of material fact in issue - where some of the tendency evidence marked by inconsistency and unreliability - where certain witnesses as to tendency not able to be cross-examined - whether tendency evidence was admissible against defendant - where admissibility of one piece of tendency evidence affects probative value of all others and of asserted tendency - where judge's reliance on one piece of tendency evidence unable to be separated from remainder of tendency evidence
NEGLIGENCE - duty of care - owed by corporate licensee of childcare centre and its director to attendees of centre - where volunteer alleged to have committed sexual assaults against children at the centre - where regulation required volunteer to be "accompanied" by member of primary contact staff when in the presence of children - where that regulation required no more than that children not to be under supervision of volunteer alone - where no internal complaints made regarding conduct of volunteer - where policies and procedures of childcare centre substantially in accordance with regulation - whether licensee and director breached duty of care
NEGLIGENCE - vicarious liability - employer and employee - where employer was corporate licensee of childcare centre - whether director of licensee also vicariously liable for conduct of employee - principle of dual vicarious liability not adopted in the common law of Australia
NEGLIGENCE - damages - economic loss - earning capacity - future economic loss - by way of a buffer - requires compliance with s 13 of the Civil Liability Act 2002 (NSW) - where assumptions on which buffer is based must be stated - where identical buffers awarded to different plaintiffs - whether proper account taken of plaintiffs' particular circumstances
TORTS - general principles - damages - trespass against the person - battery - sexual assault - against child - damages awarded to child and parent - for future economic loss - by way of a buffer - requires compliance with s 13 of the Civil Liability Act 2002 (NSW) - where assumptions on which buffer is based must be stated - where identical buffers awarded to different plaintiffs - whether proper account taken of plaintiffs' particular circumstances
TORTS - trespass to the person - battery - sexual assault - against two children - at childcare centre - by defendant volunteer - alleged that defendant kissed one child with open mouth and pulled down child's pants - alleged that defendant tickled other child on underwear - defendant alleged to have tendency for inappropriate sexual dealing with children - substantial body of tendency evidence admitted - including disclosures of plaintiffs and two other children and certain answers given by defendant in police interview - whether certain tendency evidence was admissible against defendant - where certain witnesses unable to be cross-examined - where trial occurred some 10 years after events in question - whether claims established to the requisite standard per s 140(2) of the Evidence Act 1995 (NSW)
WORDS AND PHRASES - "accompanied" - Children's Services Regulation 2004 (NSW), cl 57(b)
Legislation Cited: Children and Young Persons (Care and Protection) Act 1998 (NSW) s 27
Children's Services Regulation 2004 (NSW) cll 51, 57, 58, 104, Dictionary
Civil Liability Act 2002 (NSW) ss 13, 15(2), 16, 32
Evidence Act 1995 (NSW) ss 63, 87(1), 97, 135(a), 136, 140(2), Dictionary pt 2 cl 4
Suitors' Fund Act 1951 (NSW)
Uniform Civil Procedure Rules 2005 (NSW) r 10.12
Cases Cited: Allianz Australia Insurance Ltd v Cervantes [2012] NSWCA 244; (2012) 61 MVR 443
Amalgamated Television Services Pty Ltd v Marsden [2002] NSWCA 419
Andelman v R (2013) 38 VR 659; [2013] VSCA 25
Australian Competition and Consumer Commission v Mayo International Pty Ltd (1998) 85 FCR 327
Avopiling Pty Ltd v Bosevski (2018) 98 NSWLR 171; [2018] NSWCA 146
Bannister v Walton (1993) 30 NSWLR 699
Bazley v Curry [1999] 2 SCR 534
Briginshaw v Briginshaw (1938) 60 CLR 336; [1938] HCA 34
Bryant v The Queen (2011) 205 A Crim R 531; [2011] NSWCCA 26
Burton v Brooks [2011] NSWCA 175
Commissioner of the Australian Federal Police v Propend Finance Pty Ltd (1997) 188 CLR 501; [1997] HCA 3
Day v The Ocean Beach Hotel Shellharbour Pty Ltd (2013) 85 NSWLR 335; [2013] NSWCA 250
Deatons Pty Ltd v Flew (1949) 79 CLR 370; [1949] HCA 60
Elomar v The Queen (2014) 300 FLR 323; [2014] NSWCCA 303
Fegan by her tutor Rozenauers v Lane Cove House Pty Ltd [2007] NSWCA 88
Gersbach v Gersbach [2018] NSWSC 1685
Gordon v Truong [2014] NSWCA 97; (2014) 66 MVR 241
Gray v Motor Accident Commission (1998) 196 CLR 1; [1998] HCA 70
Higgins v R [2020] NSWCCA 149
Hollis v Vabu Pty Ltd (2001) 207 CLR 21; [2001] HCA 44
House v The King (1936) 55 CLR 499; [1936] HCA 40
Hughes v The Queen (2017) 263 CLR 338; [2017] HCA 20
IMM v The Queen (2016) 257 CLR 300; [2016] HCA 14
Ingot Capital Investments Pty Ltd v Macquarie Equity Capital Markets Ltd (No 4) [2006] NSWSC 90
Lamb v Cotogno (1987) 164 CLR 1; [1987] HCA 47
Longhurst v Hunt [2004] NSWCA 91; (2004) 42 MVR 267
M v M (1988) 166 CLR 69; [1988] HCA 68
Malec v JC Hutton Pty Ltd (1990) 169 CLR 638; [1990] HCA 20
Mindshare Communications Ltd v Orleans Investments Pty Ltd [2007] NSWSC 976
Nadinic v Drinkwater (2017) 94 NSWLR 518; [2017] NSWCA 114
Neat Holdings Pty Ltd v Karajan Holdings Pty Ltd (1992) 67 ALJR 170; [1992] HCA 66
New South Wales v Hathaway [2010] NSWCA 184
New South Wales v Lepore (2003) 212 CLR 511; [2003] HCA 4
Oceanic Crest Shipping Company v Pilbara Harbour Services Pty Ltd (1986) 160 CLR 626; [1986] HCA 34
Penrith City Council v Parks [2004] NSWCA 201
Prince Alfred College Incorporated v ADC (2016) 258 CLR 134; [2016] HCA 37
R v Alchin (2006) 200 FLR 204; [2006] ACTSC 53
R v Basanovic (No 4) [2015] NSWSC 1100
R v Dolding (2018) 100 NSWLR 314; [2018] NSWCCA 127
R v Suteski (2002) 128 A Crim R 275; [2002] NSWSC 218
Rabay v Bristow [2005] NSWCA 199
Roo-Roofing Pty Ltd v Commonwealth (Ruling No 2) [2018] VSC 219
Saba v Plumb (2018) 97 NSWLR 278; [2018] NSWCA 60
Seafood Imports Pty Ltd v ANL Singapore Pte Ltd (No 1) [2009] FCA 435
Sorbello v South Western Sydney Local Health Network [2016] NSWSC 863
Sretenovic v Reed [2009] NSWCA 280
Taylor v R [2020] NSWCCA 355
Tim Barr Pty Ltd v Narui Gold Coast Pty Ltd (2009) 258 ALR 598; [2009] NSWSC 769
Varmedja v Varmedja [2008] NSWCA 177
Viasystems (Tyneside) Ltd v Thermal Transfer (Northern) Ltd [2006] QB 510; [2006] 2 WLR 428; [2005] 4 All ER 1181
White v Johnston (2015) 87 NSWLR 779; [2015] NSWCA 18
Whitlam v Australian Securities and Investments Commission (2003) 57 NSWLR 559; [2003] NSWCA 183
WK v SR (1997) 22 Fam LR 592
Category: Principal judgment
Parties: In proceedings 2020/310603
Norton Rose Fulbright (Ms Clancy and Little Pigeon)
Moray & Agnew (Mr Bird)
Shine Lawyers (Plaintiffs A, B, C and D)
File Number(s): 2020/310603; 2020/310609; 2020/310590; 2020/311015; 2020/311016; 2020/311017
Publication restriction: Non-publication order regarding the names of each of Plaintiffs A, B, C and D in these proceedings, together with the names of Child 1 and Child 2, and their respective parents.
Decision under appeal Court or tribunal: Supreme Court of New South Wales
Jurisdiction: Common Law
Citation: [2010] NSWSC 1379
Date of Decision: 9 October 2020
Before: Schmidt AJ
File Number(s): 2013/375445; 2013/375437; 2020/65223
HEADNOTE
[This headnote is not to be read as part of the judgment]
On 9 October 2020, damages were awarded to four parties (referred to by the pseudonyms A, B, C and D; collectively the Respondents) in the sums of $1,008,378.55; $465,000; $508,677.71 and $455,000 respectively against Ms Lisa Maree Clancy (Ms Clancy), Little Pigeon Pty Ltd (Little Pigeon) t/as Footprints Childcare Centre (Footprints) and Mr Rodney Raymond Bird (Mr Bird). Ms Clancy, Little Pigeon and Mr Bird are collectively referred to as the Appellants. The Respondents' damages arose from what the primary judge found were sexual assaults committed by Mr Bird against B and D at Footprints between 2008 and 2010.
Little Pigeon was the licensee of Footprints. Ms Clancy held 99% of the shares in Little Pigeon and was its director, whilst her father, Mr Bird, held the remaining 1% of shares, worked at Footprints as a cook, occupational health and safety officer and first aid officer, and performed maintenance works at the Centre. B and D were very young children who attended Footprints between 2008 and 2010. A was the mother of C, and B was the mother of D. Another two very young children (Child 1 and Child 2) attended Footprints at the relevant time and, although they were not parties to the underlying proceedings, gave evidence which was received and relied upon by the primary judge.
On 10 November 2010, Child 1 disclosed to her mother that Mr Bird had engaged in inappropriate conduct of a sexual nature at Footprints. The following day, Child 1 was interviewed by police and repeated those disclosures. On that same day, Mr Bird was also interviewed by police and arrested on suspicion of the sexual assault of Child 1. The primary judge held that Mr Bird made various admissions to inappropriate sexual conduct during his interview with police on 11 November 2010, including that he had kissed children at Footprints and had put his hand down Child 1's pants. The investigations and notifications precipitated by Child 1's disclosures and Mr Bird's arrest resulted in Child 2, B and D making similar disclosures to their respective mothers and to the police during recorded interviews which occurred up until January 2012.
Criminal charges were laid against Mr Bird in relation to Child 1, B and another child, although none of those charges were pursued to trial. The underlying proceedings were thereafter commenced by A, B, C and D against the Appellants, alleging that Mr Bird had sexually assaulted B and D at Footprints and that A and C had also suffered compensable loss.
On the Respondents' case at first instance, Mr Bird's "admissions" in his police interview and the evidence of Child 1, Child 2, B (as to D's claim) and D (as to B's claim) respectively demonstrated a tendency, pursuant to s 97 of the Evidence Act 1995 (NSW), for Mr Bird to have "inappropriate sexual dealings with children in his care". The primary judge admitted that body of evidence mutatis mutandis as tendency evidence in the proceedings brought by each of the Respondents respectively.
None of Child 1, Child 2 (and her mother), B or D was cross-examined, although audio-visual recordings and transcripts of their police interviews were in evidence. In respect of Child 1, the primary judge held that she was "unavailable to give evidence" for the purposes of s 63 of the Evidence Act. A transcript of Mr Bird's police interview was in evidence, and Mr Bird was cross-examined before the primary judge. It was not in dispute that Mr Bird had physical contact with the children at Footprints. Whether that contact was of a sexual nature was, however, strenuously contested, and denied by Mr Bird in cross-examination.
The primary judge held that Mr Bird had repeatedly kissed B, including with an open mouth, and pulled down her pants whilst at Footprints. In relation to D, the primary judge accepted as true D's disclosures that Mr Bird had tickled her on her underwear, over her objection, and touched her tummy. In addition to the body of tendency evidence, the primary judge reached these conclusions in reliance upon the evidence of B and D on their own claims, the evidence of A and C as to perceived changes in the behaviour of their children and adverse findings as to the credibility of Mr Bird and Ms Clancy.
The primary judge also held that Little Pigeon and Ms Clancy were vicariously liable for Mr Bird's conduct, on the basis that Mr Bird was an "employee" at Footprints, and had therefore breached a duty of care owed to all of the Respondents. Ms Clancy and Little Pigeon were also held directly liable to each of the Respondents in negligence, on the basis that they had failed to ensure that Mr Bird was "accompanied" by primary contact staff when in the presence of children at Footprints, in accordance with Little Pigeon's internal policies as well as cl 57 of the Children's Services Regulation 2004 (NSW) (the Regulation). It was held that, if they had done so, then the sexual assaults of B and D would not have occurred or would have been reported. Little Pigeon was additionally held liable to A and C for breach of contract.
The Appellants appealed almost every aspect of the primary judge's decision as to both liability and damages, including a significant number of material factual findings. It was not in contention on appeal that the allegations levelled against Mr Bird were of such gravity as to attract the application of the principles in Briginshaw v Briginshaw (1938) 60 CLR 336; [1938] HCA 34, as reflected in s 140(2) of the Evidence Act (the Briginshaw standard).
The principal issues on appeal were:
whether the disclosures of Child 1 should have been admitted as tendency evidence (Child 1's evidence);
whether the alleged "admissions" in Mr Bird's police interview should have been admitted as tendency evidence (Mr Bird's admissions);
whether Mr Bird's alleged "admissions" were admissible against Ms Clancy (vicarious admissions);
whether the primary judge erred in concluding that the disclosures by B were established to the Briginshaw standard (B's disclosures);
whether the primary judge erred in concluding that the disclosures made by Child 2 were established to the Briginshaw standard, so as to support the tendency asserted in support of D's claim (Child 2's disclosures);
whether the primary judge erred in concluding that the disclosures by D were established to the Briginshaw standard (D's disclosures);
whether Ms Clancy and Little Pigeon were directly liable in negligence (negligence);
whether Ms Clancy was vicariously liable for Mr Bird's acts (vicarious liability); and
whether the primary judge erred in assessing the damages to be awarded to C and D (C and D's damages).
The Court held (Bell CJ, Gleeson and Brereton JJA), allowing the appeals, setting aside the orders of the primary judge, dismissing the proceedings brought by A and B, and remitting the proceedings brought by C and D to the Common Law Division to be determined by a judge other than the primary judge.
As to Child 1's evidence
1. The primary judge erred in concluding that Child 1 was unavailable to give evidence within the meaning of cl 4(1)(f) of pt 2 of the Dictionary in the Evidence Act, and therefore in admitting her disclosures as tendency evidence. Clause 4(1)(f), in contemplating reasonable steps to "secure the attendance" of a witness, properly encompasses the issue and service of a subpoena. It followed that by failing to issue or serve a subpoena on Child 1, the Respondents had not taken "all reasonable steps" to secure her attendance. Further, there was no evidence that Child 1 was psychologically adversely affected by her disclosures: [74].
Mindshare Communications Ltd v Orleans Investments Pty Ltd [2007] NSWSC 976; Seafood Imports Pty Ltd v ANL Singapore Pte Ltd (No 1) [2009] FCA 435; Tim Barr Pty Ltd v Narui Gold Coast Pty Ltd (2009) 258 ALR 598; [2009] NSWSC 769; R v Suteski (2002) 128 A Crim R 275; [2002] NSWSC 218; R v Alchin (2006) 200 FLR 204; [2006] ACTSC 53; R v Basanovic (No 4) [2015] NSWSC 1100; Roo-Roofing Pty Ltd v Commonwealth (Ruling No 2) [2018] VSC 219, cited with approval.
1. The determination of whether a witness is "unavailable" within the terms of cl 4(1)(f) does not involve the exercise of a discretion. It properly involves the evaluative application of a test: [73].
Longhurst v Hunt [2004] NSWCA 91; (2004) 42 MVR 267, disapproved.
1. Child 1's evidence should not have been admitted or used as tendency evidence to support B and D's claims: [75].
As to Mr Bird's admissions
1. The answers given by Mr Bird in his police interview on 11 November 2010 should not have been admitted as evidence in support of a tendency for Mr Bird to have "inappropriate sexual dealing with children in his care". Mr Bird did not admit in the interview to "kissing the children" nor putting his hand down Child 1's pants, contrary to the primary judge's findings. In respect of the alleged admission to kissing, no such tendency was asserted, such that the primary judge's affirmative conclusion relied upon an "indirect inference" of "slender and exiguous proof". Regarding the alleged admission to putting his hand down Child 1's pants, no such admission was made: [88], [92], [103], [105].
Commissioner of the Australian Federal Police v Propend Finance Pty Ltd (1997) 188 CLR 501; [1997] HCA 3; Bannister v Walton (1993) 30 NSWLR 699; Whitlam v Australian Securities and Investments Commission (2003) 57 NSWLR 559; [2003] NSWCA 183; Nadinic v Drinkwater (2017) 94 NSWLR 518; [2017] NSWCA 114; Saba v Plumb (2018) 97 NSWLR 278; [2018] NSWCA 60, cited.
As to vicarious admissions
1. In the absence of any express authorisation for Mr Bird to make admissions on Ms Clancy's behalf, and in circumstances where Ms Clancy learned of the charges against her father after his police interview, Mr Bird's alleged "admissions" were not admissible against Ms Clancy. Section 87(1)(c) of the Evidence Act required the identification of the existence of a "common purpose" at the time that the impugned admissions were made. Those admissions could not have been made "in furtherance of" a common purpose which had not yet come into existence: [114]-[116].
Ingot Capital Investments Pty Ltd v Macquarie Equity Capital Markets Ltd (No 4) [2006] NSWSC 90; R v Dolding (2018) 100 NSWLR 314; [2018] NSWCCA 127; Higgins v R [2020] NSWCCA 149, applied.
As to B's disclosures
1. The primary judge erred in concluding that B's disclosures were established to the Briginshaw standard. The evidence given by B was brittle and, of itself, insufficiently reliable or secure to meet the degree of satisfaction required by s 140(2) of the Evidence Act in relation to such serious allegations against Mr Bird. This deficit of reliability and security was not overcome by the other matters relied upon by the primary judge, including the evidence of A (B's mother), the reliability of which was itself called into question by the primary judge. It followed that B's claim (and A's related claim) should have been dismissed and that B's evidence could not be relied upon as tendency evidence to support D's claim: [136], [147], [153].
As to Child 2's disclosures
1. The primary judge erred in concluding that Child 2's disclosures were sustained to the Briginshaw standard, such that they were an unreliable basis for supporting the tendency asserted in support of D's claim. Those disclosures were marked by inconsistency, which was reinforced by the inability to cross-examine Child 2, and the inadmissibility of the body of cross-tendency evidence relied upon in relation to it: [178]-[179].
Hughes v The Queen (2017) 263 CLR 338; [2017] HCA 20; IMM v The Queen (2016) 257 CLR 300; [2016] HCA 14, applied.
As to D's disclosures
1. As with B's claim, the primary judge's reasoning was vitiated by the wrongful admission of Child 1's evidence and the erroneous characterisation of Mr Bird's "admissions". In addition, it drew upon the evidence of B and Child 2 as evidence of tendency. In those circumstances, the appeal against the award of damages to C and D had to be upheld: [162]-[163], [183]-[184].
2. A majority of the Court considered that it was not in a position to determine whether D's disclosures were established to the requisite standard, because this question would be affected by considerations of credibility. It followed that C and D's claims must be remitted to the Common Law Division for determination by a judge other than the primary judge: [182]-[184].
As to negligence
1. The requirement, in cl 57 of the Regulation, that a volunteer be "accompanied" when in the presence of children is directed to the supervision and care of children, rather than the supervision of volunteers. Thus, when a volunteer is in the presence of children, a member of the primary contact staff must also be in their presence. This means no more than that children are not to be under the supervision of a volunteer alone. The primary judge therefore erred in construing cl 57 as requiring that a primary contact staff member be "alongside" Mr Bird: [209]-[210].
2. The primary judge erred in concluding that there was insufficient supervision of Mr Bird's contact with children at Footprints, having regard to the substantial body of unchallenged evidence of Little Pigeon's policies and procedures, and the lack of any internal complaints regarding Mr Bird's conduct. It followed that Ms Clancy and Little Pigeon were not directly liable to the Respondents in negligence: [223]-[224].
As to vicarious liability
1. On a fair reading of the primary judge's reasons, her Honour did not find that Ms Clancy was vicariously liable for Mr Bird's conduct at Footprints. In any event, there was no sound reason for imputing vicarious liability to Ms Clancy in circumstances where Little Pigeon's status as Mr Bird's employer was a well-established basis for its vicarious liability: [196], [199].
2. The principle of dual vicarious liability has not been adopted in the common law of Australia: [197]-[198].
Oceanic Crest Shipping Company v Pilbara Harbour Services Pty Ltd (1986) 160 CLR 626; [1986] HCA 34; Viasystems (Tyneside) Ltd v Thermal Transfer (Northern) Ltd [2006] QB 510; Day v The Ocean Beach Hotel Shellharbour Pty Ltd (2013) 85 NSWLR 335; [2013] NSWCA 250, discussed.
As to C and D's damages
1. The primary judge's assessment of C's damages for future economic loss, by way of a buffer, could not be sustained on the evidence. It was non-compliant with s 13 of the Civil Liability Act 2002 (NSW), which expressly requires the statement of the assumptions on which the buffer is based, and did not take proper account of C's particular circumstances: [277].
Allianz Australia Insurance Ltd v Cervantes [2012] NSWCA 244; (2012) 61 MVR 443; Penrith City Council v Parks [2004] NSWCA 201; Sretenovic v Reed [2009] NSWCA 280; Burton v Brooks [2011] NSWCA 175, discussed.
1. The primary judge's assessment of D's damages for non-economic loss was out of proportion to the injury she apparently suffered, and should fall for re-assessment on any re-trial. As to damages for future economic loss, D's buffer was assessed on a basis which did not accord with s 13 of the Civil Liability Act, nor did it translate readily to the evidence of her particular circumstances: [293], [296].
Discussion
1. Of the principles governing the formulation of a tendency and the admissibility of tendency evidence under s 97 of the Evidence Act: [35]-[42].
Hughes v The Queen (2017) 263 CLR 338; [2017] HCA 20; Bryant v The Queen (2011) 205 A Crim R 531; [2011] NSWCCA 26; Andelman v R (2013) 38 VR 659; [2013] VSCA 25; Elomar v The Queen (2014) 300 FLR 323; [2014] NSWCCA 303; White v Johnston (2015) 87 NSWLR 779; [2015] NSWCA 18; Taylor v R [2020] NSWCCA 355; IMM v The Queen (2016) 257 CLR 300; [2016] HCA 14, referred to.