1 SPIGELMAN CJ: The facts, issues and submissions are outlined in the judgment of Grove J which I have read in draft. I agree with his Honour's conclusions and, subject to the following observations, with his Honour's reasons.
2 The liability sought to be imposed upon the licensee of a hotel does not arise in the context of a relationship in which the existence and incidents of a duty of care have been well established by a long line of authority. In this case, the following observations of Gleeson CJ, with whom Gaudron and Hayne JJ agreed, in Modbury Triangle Shopping Centre Pty Ltd v Anzil [2000] 75 ALJR 164 at [14], are pertinent:
"In some cases, where there is a problem as to the existence and measure of legal responsibility, it is useful to begin by identifying the nature of the harm suffered by a plaintiff, for which a defendant is said to be liable."
3 Harm in the present case was personal injury, of which the immediate cause was negligent driving, suffered by a patron of a hotel when walking home from the hotel. Issues of duty, breach and causation arise.
4 It is not necessary in the present case to identify the boundary of the duty owed by a licensee of a hotel to patrons of the hotel. It is sufficient to say that I agree with Grove J that that boundary cannot be confined to the curtilage of the property of the hotel, as suggested by the trial judge.
5 I am prepared to assume that the scope of the duty extends to an obligation to refuse to continue to serve a client of the hotel, when that client passes a certain state of inebriation, a state perhaps not capable of definition, but capable of assessment. For the reasons indicated by Grove J, the Appellant did not establish a breach of any such duty. The injured Plaintiff was in a shout and the Appellant failed to prove what the Plaintiff's condition was when he himself was served. It was not suggested that the duty of a licensee would extend to controlling one patron buying drinks for another.
6 Reliance was primarily placed on a duty, said to be imposed on a licensee, to take steps to ensure that an intoxicated patron does not leave the hotel in such a manner, whether by driving or walking, as to constitute a danger to himself and, presumably, to others. Mr F McAlary QC, who appeared for the Appellant, abandoned the proposition that the licensee's duty extended so far as to prevent the Plaintiff leaving the hotel. Other particulars of breach were, however, relied upon. The contention of the Appellant was that the licensee was obliged to ensure that the patron, the Plaintiff below, was driven to his home by a taxi, an employee of the hotel or another responsible person.
7 It is not necessary to decide in this case whether the duty of care owed by a licensee extends to the taking of positive steps to ensure the safety of a patron, in circumstances where the patron should be expected to do so. The law of torts has never established a firm line identifying when the principle of volenti ceases to operate and questions of contributory negligence cut in.
8 The emphasis to be given to acceptance by an individual of responsibility for his or her own conduct is a matter which differs from one society to another and, within a society, differs from time to time. In this, as in other respects, the Canadian law of torts reflects conditions of that society. Differences in statutory regimes in what is, in most societies, a regulated industry, both reflect such variations in conditions and also impinge on the determination of the scope of a common law duty. (See generally: Orr "Is an Inkeeper her Brother's Keeper? The Liability of Alcohol Servers" (1995) 3 Torts LJ 239; Solomon and Payne "Alcohol Liability in Canada and Australia: Sell Serve and be Sued" (1996) 4 Tort LR 188; Fridman "Non-Vicarious Liability for the Acts of Others" (1997) 5 Tort LR 102).
9 The Canadian cases relied upon by the Appellant need to be treated with considerable caution. (Jordan House Ltd v Menow (1973) 38 DLR (3rd) 105, Mayfield Investments Ltd v Stewart (1995) 121 DLR (4th) 222). It is not necessary to decide whether the application of those cases by Derrington J in Johns v Cosgrove (1997) 27 MVR 110, was correct. The decision in that case was set aside in subsequent proceedings based on the Plaintiff's fraud at the trial (Cosgrove v Johns [2000] QCA 157). A new trial was ordered in circumstances in which the reasons of Derrington J were not directly in issue. However, Thomas JA, with whom de Jersey CJ and McMurdo P agreed, said at [99]:
"Needless to say, upon such trial the court will not be bound to reach the same conclusions on fact or law as those reached by Derrington J."
10 In the present case, the Appellant did not establish that the Plaintiff had reached such a state of inebriation as rendered him incapable of making reasonable decisions on his own account. One of his friends, with whom he had been drinking, indicated that they would arrange to take him home. Taxis were available outside the hotel. The Plaintiff could walk home, without crossing the road, over a short distance, a significant proportion of which was not next to the road. This combination of circumstances does not suggest that this was a case in which any of the steps propounded by the Appellant, each of which involved, effectively, the incurring of costs by the licensee, were steps which a reasonable person ought to have taken to avert the risk of injury to the Plaintiff in this case.
11 As Mason J said in Wyong Shire Council v Shirt (1979-1980) 146 CLR 40 at 47-48:
"In deciding whether there has been a breach of the duty of care the tribunal of fact must first ask itself whether a reasonable man in the defendant's position would have foreseen that his conduct involved a risk of injury to the plaintiff or to a class of persons including the plaintiff. If the answer be in the affirmative, it is then for the tribunal of fact to determine what a reasonable man would do by way of response to the risk. The perception of the reasonable man's response calls for a consideration of the magnitude of the risk and the degree of the probability of its occurrence, along with the expense, difficulty and inconvenience of taking alleviating action and any other conflict to responsibilities which the defendant may have. It is only, when these matters are balanced out that the tribunal of fact can confidently assert what is the standard of response to be ascribed to the reasonable man placed in the defendant's position."
12 Conducting the requisite balancing exercise in the present case leads me to the conclusion that the steps which the Appellant contends the licensee should have taken were not steps that a reasonable person in the position of a licensee ought to have taken, in all of the circumstances to which I have referred. There was, in my opinion, no breach, even if the duty extended, as the Appellant contended, to take positive steps to ensure the safety of the Plaintiff.
13 I also agree with Grove J that the Appellant fails on the issue of causation. The evidence relating to the connection between the Plaintiff's state of inebriation and the injury he suffered, never rose above the level of a mere possibility. The fact that he was walking home in a state of intoxication was not shown to have made a material contribution to the injury he suffered The Appellant had to show a material contribution at the level of probability, not possibility. (See the authorities collected in Seltsam Pty Ltd v McGuinnes (2000) 49 NSWLR 262 at [80]-[83]). It did not do so. For this reason also the appeal should be dismissed.
14 YOUNG CJ in Eq: I agree with Grove J and also with the additional observations of the Chief Justice.
15 GROVE J: This is an appeal from the judgment of Taylor DCJ in favour of a third party joined in an action by a defendant.
16 Richard John Gloyn (the plaintiff) sought damages to compensate him for injuries and losses sustained when, as a pedestrian, he was struck by a motor vehicle driven by Peter John Desmond (the defendant/the appellant) in Fishery Point Road, Bonnells Bay shortly after 1 am on 3 September 1994. The appellant joined Peter John Cullen the licensee of the Bay Hotel (the respondent) by a third party notice filed in accordance with the District Court Rules. The notice specified a claim for "contribution towards or indemnity" for any verdict in favour of the plaintiff against the respondent. It was pleaded as follows:
"1. At all material times the Respondent was the licensee of the Bay Hotel Motel situated in Fishery Point Road, Bonnells Bay in the State of New South Wales ("the Hotel").
2. The Respondent by his employees servants and/or agents served alcohol to the Plaintiff on 3 September 1994.
3. The Respondent knew or ought to have known that when the Plaintiff left the hotel on 3 September 1994, he was under the influence of alcohol.
4. The Plaintiff claims that whilst walking in a southerly direction beside Fishery Point Road, Bonnells Bay, he was injured by a car being driven by the Defendant in a southerly direction upon the same street, which is denied by the Defendant.
5. The Defendant says that any loss and damage allegedly suffered by the Plaintiff, which is denied by the Defendant, was caused by the negligence of the Respondent by his employees servants and/or agent.