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[2004] VSCA 152
Court of Appeal (Vic)
2004-09-01
CALLAWAY and BUCHANAN, JJ.A. and DODDS-STREETON, A.J.A.
Original judgment source is linked above.
[ 2004] VSCA 152
Negligence - Personal injuries - Successful claim by plaintiff -Apportionment of responsibility between defendants - Whether numerous defendants may be grouped - Respective roles of culpability and causation - Whether allocation of 50% of responsibility to appellants vitiated by specific error or manifestly excessive - Whether apportionment should be remitted to Trial Division - Wrongs Act 1958, s.24(2) - Corporations Act 2001, s.471B.
"5. (a) On the contribution proceedings between the first, second, third, fourth, sixth, seventh, eight, ninth and tenth defendants, the apportionment pursuant to s.24 Wrongs Act 1958 is as follows: (i) the first defendant is liable to contribute 10% to the plaintiff's damages ordered by me on 29 August 2001 herein and contribute 10% to the plaintiff's taxed costs as ordered; (ii) the second defendant and the sixth defendant are jointly and severally liable to contribute 10% to the plaintiff's damages ordered by me on 29 August 2001 herein and contribute 10% to the plaintiff's taxed costs as ordered; (iii) the third defendant is liable to contribute 10% to the plaintiff's damages ordered by me on 29 August 2001 herein and contribute 10% to the plaintiff's taxed costs as ordered; (iv) the fourth defendant is liable to contribute 10% to the plaintiff's damages ordered by me on 29 August 2001 herein and contribute 10% to the plaintiff's taxed costs as ordered; (v) the seventh defendant and the tenth defendant are jointly and severally liable to contribute 10% to the plaintiff's damages ordered by me on 29 August 2001 herein and contribute 10% to the plaintiff's taxed costs as ordered; (vi) the eighth defendant is liable to contribute 25% to the plaintiff's damages ordered by me on 29 August 2001 herein and contribute 25% to the plaintiff's taxed costs as ordered; (vii) the ninth defendant is liable to contribute 25% to the plaintiff's damages ordered by me on 29 August 2001 herein and contribute 25% to the plaintiff's taxed costs as ordered. If any of the first, second, third, fourth, sixth, seventh, eighth, ninth and tenth defendants pays more than the percentage it has been ordered to contribute, such defendant may recover from any other defendant to the extent of such other defendant's liability to contribute. (b) As to the 10% contribution of the second defendant and the sixth defendant referred to in paragraph 5(a)(ii), the second defendant is liable to contribute 41.7% and the sixth defendant is liable to contribute 58.3%. If either of the second or sixth defendant pays more than the percentage it has been ordered to contribute, under this sub-paragraph, such defendant may recover from the other defendant to the extent of such other defendant's liability to contribute. (c) As to the 10% contribution of the seventh and tenth defendants referred to in paragraph 5(a)(v), the seventh defendant and the tenth defendant are each liable to contribute 50%. If either of the seventh or tenth defendant pays more than the percentage it has been ordered to contribute, under this sub-paragraph, such defendant may recover from the other defendant to the extent of such other defendant's liability to contribute. 6. That the first, second and fourth defendants are each severally liable to indemnify the seventh defendant to the extent of 20% each of the seventh defendant's 5% contribution."
"The making of an apportionment as between a plaintiff and a defendant of their respective shares in the responsibility for the damage involves a comparison both of culpability, i.e. of the degree of departure from the standard of care of the reasonable man (Pennington v. Norris [1956] HCA 26; (1956) 96 C.L.R. 10 at 16) and of the relative importance of the acts of the parties in causing the damage: Stapley v. Gypsum Mines Ltd. [1953] UKHL 4; [1953] A.C. 663 at p 682; Smith v. McIntyre [1958] Tas.S.R. 36, at 42-49 and Broadhurst v. Millman [1976] VicRp 15; [1976] V.R. 208 at p 219 and cases there cited. It is the whole conduct of each negligent party in relation to the circumstances of the accident which must be subjected to comparative examination. The significance of the various elements involved in such an examination will vary from case to case; for example, the circumstances of some cases may be such that a comparison of the relative importance of the acts of the parties in causing the damage will be of little, if any, importance."
"A finding on a question of apportionment is a finding upon a `question, not of principle or of positive findings of fact or law, but of proportion, of balance and relative emphasis, and of weighing different considerations. It involves an individual choice or discretion, as to which there may well be differences of opinion by different minds': British Fame (Owners) v. Macgregor (Owners) [1943] A.C. 197, at p 201. Such a finding, if made by a judge, is not lightly reviewed. The task of an appellant is even more difficult when the apportionment has been made by a jury: Zoukra v. Lowenstern [1958] V.R. 594."[9]
"455 Notwithstanding the able arguments addressed to me on behalf of Moore and Spreadborough to the effect that the roles of their clients should be regarded as being less responsible for the plaintiff's injury than the combined roles of the building defendants, I am firmly of a different opinion. The wrestling and the inadequate height of the balustrade can not be distinguished as to their contribution; one factor without the other would have meant that the injury was not caused to the plaintiff. 456 In my opinion, therefore, the conduct of the two defendants Moore and Spreadborough, together, on the one hand, and the omissions and acts of negligence of the building defendants, on the other hand, were equally the cause of the plaintiff's injury. In other words, Moore and Spreadborough were together 50% responsible for his injuries, and the builder defendants were also 50% responsible as between themselves. For the purpose of this discussion, lest there be any doubt as to this, I ignore the question of the plaintiff's own contributory negligence."
2. Vary paragraph 5 of the judgment given on 11th December 2001 by substituting -
(a) "14%" for "10%" in each of sub-paragraphs (a)(i) to (a)(v), (b) and (c); and
(b) "15%" for "25%" in each of sub-paragraphs (a)(vi) and (a)(vii).
3. Vary paragraph 6 of the said judgment by substituting "7%" for "5%".
The findings in relation to this defendant are that (1) it should not have given priority to elevation 4 over the detail in plan 18B[18]; (2) it should have requested further information from the architect in relation to the drawings[19]; (3) it had ample opportunity to raise any uncertainty or ambiguity in the plans at site meetings. Only after the work had been substantially done did Scolaro learn of the code stipulation of 1000mm and advise James of Hudson Conway Management Limited ("HCML") of that fact[20]; (4) nonetheless Scolaro clearly built the balustrade at a height which did not comply with the code and in that respect was negligent[21]; (5) on the positive side of the ledger Scolaro did advise HCML of the discrepancy in heights with respect to the code requirement and suggest a solution.
The judgment indicates (1) through the provision of earlier plans omitting relevant details it was aware of the fact that balustrade heights needed to be checked when completed plans as to the project arrived[22]; (2) Thomas took no step to ensure that its agent Young was careful in his later examination of the plan[23]; (3) the failure of Young to detect and have corrected the defects in plan 18B was negligent conduct for which Bigridge was vicariously liable[24]; (4) the statutory immunity was not available to Young and Bigridge because Young did not act in good faith in relying on the certificate of final inspection[25]; (5) the primary responsibility for inspection remained with the surveyor. The statutory immunity applied only to the individual who is discharging functions under the Act[26]; (6) the conduct of Thomas was relevant to the question of good faith because he engaged Smith and his attitude was relevant to Young's attitude to Smith[27]; (7) the certificate presented by Smith did not comply with the regulations and the immunity provisions did not apply[28]; (8) a feature of Thomas' evidence was that he was acutely sensitive and appreciative as to his relationship with Hudson Conway[29]; (9) it was a deliberate decision on the part of Young not to oversee what was happening (with Smith) lest that interfere with or complicate the total immunity given by the Act[30]; (10) it is probable that Young did not bother to check the documentation Smith provided with the Form 14 and doubtful that he gave more than glancing attention to the Form 14 itself[31], Young adopted a "hands off" approach towards his own and Bigridge's statutory and contractual obligations[32], he displayed "blind disinterest"[33]; (11) Bigridge had a contractual obligation to HCML to inspect[34]; (12) Bigridge owed a duty to the plaintiff either to inspect the balustrade or to ensure it was properly inspected[35]. The surveyor is permitted to delegate only the act of inspection not the duty to inspect[36]. This was an instance of a non-delegable duty of care. No steps were taken by Young to ensure Smith was exercising the appropriate care in his inspections[37]; (13) duty imposed on young was equally imposed on Bigridge[38]. Bigridge was in breach of its duty with respect to onsite activities. It was obliged to check that reasonable care and skill was being employed by Smith. No step was taken by Young to discharge the non-delegable duty to check the work being done by Smith[39]; (14) Young should have picked up the defects on the plan and should not have granted an occupancy permit[40]; (15) Young had a continuing role and duty with respect to site inspections which was not discharged merely by appointing Smith. He failed to discharge that duty[41]; (16) Young did not bring the requisite skill and attention to the job of examining the plans and was negligent as a surveyor[42].
The judgment reveals (1) Smith was a person with an unusual personality[43]; (2) Smith was not familiar with the new forms introduced by the 1994 regulations. He sought advice from Thomas as to how he should complete the forms and in what detail[44]; (3) Thomas regarded him as a person whose approach was that of facilitator not inhibitor of building projects[45]; (4) he was paid an absurdly low monthly fee[46]; (5) to him the certified plans were "the Bible" and he saw his job as ensuring work complied with those plans[47]; (6) he regarded himself as working both for Thomas and Young[48]; (7) industry expectation was that the inspector should actually measure the height of the balustrade in order to certify compliance. A reasonable inspector would advise the surveyor if he found a difference. A reasonable inspector would not issue a Form 14 Certificate without any uncertainty being resolved by the surveyor[49]; (8) he was slow to cause difficulties on a project but would certainly do so if he thought safety or health were at risk. Either he did not observe the rail height at less than 1000mm or else he did not think it a safety issue[50]. He was immensely proud of his work[51]; (9) at the very least Smith had an obligation to ensure that the balustrade complied with the height shown on the plan. It should have been measured from the finished surface[52]; (10) Smith was clearly negligent[53].
(1) Plan 18B was not only not compliant with the Code but offended proper principles in design by containing inconsistent dimensions and ambiguities[54]. The draftsperson of Plan 18B did not make it clear beyond doubt that the detail applied to internal and external areas and whether the surfaces were tiled or carpeted[55]; (2) if a plan is drawn with ambiguities it can mislead the reader and did so in this case[56].
(1) HCML through James had actual knowledge of the deficiency of the height of the balustrade and chose not to correct it[57]; (2) Davidson Hughes Estate Pty. Ltd. ("DHE") through HCML were in a position of control by virtue of their contract with Scolaro's so as to ensure any deficiency was remedied[58]; DHE as owner/occupier of the building when the dangerous defect arose failed through its agent to exercise reasonable care to remove the defect and make the premises safe[59]; (4) having regard to the role played by James for HCML during the project, his decision not to correct the balustrade height was within the scope of his authority[60]; (5) DHE is liable for the inaction of HCML through James in addressing the danger posed by the low balustrade[61]; (6) DHE breached a statutory duty of care it owed under clause D2.16[62]; (7) HCML must have known that Scolaro and his sub-contractors were performing work which was substandard in many respects. The fact that external balustrades were built below the code height might have alerted HCML to the need to have internal balustrades checked. HCML chose not to require an architect's inspection. HCML had both expertise and considerable influence on site[63]. DHE was not an average owner, HCML had ample economic and practical influence on site to determine the manner of performance by the builder and subcontractors[64]; (8) HCML had been put on notice of the likely problems with the balustrade not only by virtue generally of the poor quality of the work of Scolaro and its subcontractors but more specifically by virtue of the knowledge that external balustrades were built below the height required by the plan[65]; (9) the liability of DHE arises by virtue of the breach of its statutory duty and also by virtue of its actual knowledge (through James and HCML) of the danger posed by the balustrade and the inaction of HCML to correct the defect. The liability of HCML arises independent of its role as agent by virtue of its own breach of duty of care arising by virtue of James' knowledge and inaction as to the balustrade[66].
[1] Toomey v. Scolaro's Concrete Constructions Pty. Ltd. [2001] VSC 279 ("the principal reasons").
[3] Cf. Tenth Dancote Pty. Ltd. v. Pyramid Building Society (unreported, Court of Appeal, 7th May 1997) in the second paragraph of the President's reasons, the first paragraph of my reasons and the first paragraph of the reasons of Hedigan, A.J.A.
[4] Toomey v. Scolaro's Concrete Constructions Pty. Ltd. (No. 3) [2001] VSC 477 ("the additional reasons").
[5] See Skinner v. Jeogla Pty. Ltd. [2001] NSWCA 15, distinguishing Humber & Co. v. John Griffiths Cycle Co. (1901) 85 L.T. 141 and BPM Pty. Ltd. v. HPM Pty. Ltd. (1996) 14 A.C.L.C. 857.
[9] See also Wynbergen v. Hoyts Coroporation Pty. Ltd. [1997] HCA 52; (1997) 72 A.L.J.R. 65; Liftronic Pty. Ltd. v. Unver (2001) 75 A.L.J.R. 867 and Esso Australia Ltd. v. Victorian WorkCover Authority [2000] VSCA 74; (2000) 1 V.R. 246.
[10] Esso Australia Ltd. v. Victorian WorkCover Authority per Winneke, P. at 253 [21]. See also Fleming, The Law of Torts (9th ed. 1998) at 298.
[11] Principal reasons at [80]-[81].
[12] Compare the principal reasons at [421]-[422].
[13] I reject the argument, advanced by counsel for the tenth defendant, that the appellants' responsibility was all the greater because, if the balustrade had been built before the Building Code was amended in 1984, it would have been compliant and the appellants would have been solely responsible. In the first place, we are concerned with the events that actually happened and, in the second place, one might as well argue that only the building defendants would have been liable if the plaintiff had leaned over the balustrade and fallen without negligence on the part of the appellants.
[15] Especially at [42]-[44]. As to "the directing mind and will of the corporation", referred to at [44], see Director of Public Prosecutions Reference No. 1 of 1996 [1998] 3 V.R. 352 at 354-355.
[16] Additional reasons at [38]-[51].
[17] One suggestion was that arrangements could be made for Eames, J.A. to sit in the Trial Division for that purpose. Quite apart from whether it would be fair to ask his Honour to do so, nothing would be gained by that course if the other members of the Court share my view that his assessment should be accepted in all but one respect.
[46] Principal reasons at [282] and [326].
Moore & Anor
Scolaro's Concrete Constructions Pty Ltd