What it does
The Wrongs Act 1954 (Tas) is a short but pivotal piece of reform legislation that abolished two long-standing common-law rules which had produced harsh outcomes in multi-party litigation. First, it removed the rule that any contributory negligence by a plaintiff operated as a complete defence to a tort claim. Second, it created a statutory right of contribution between persons liable for the same damage.
Section 4(1) provides the apportionment mechanism: where damage is suffered "partly of that person's wrongful act and partly of the wrongful act of any other person", the claim is not defeated by the plaintiff's own fault. Instead, damages "shall be reduced to such extent up to 100% as the court thinks just and equitable, having regard to the claimant's share in the responsibility for the damage". The court must, under s 4(2), first record the total damages that would have been recoverable had there been no contributory negligence. This notional sum is critical for subsequent contribution calculations.
Section 3(1) deals with proceedings against and contribution between wrongdoers. It declares that judgment against one person liable does not bar an action against any other person who would have been liable had they been sued (s 3(1)(a)). Where multiple actions are brought, the aggregate damages recoverable cannot exceed the first judgment sum, and later plaintiffs lose their costs unless the court finds reasonable grounds for the second action (s 3(1)(b)). Most importantly, s 3(1)(c) creates the right of contribution: a person liable may recover from any other person who is or would have been liable for the same damage, provided the contributor is not entitled to an indemnity from the person seeking contribution.
The Act applies the same principles to settlements. Under s 3(1)(d) a defendant who settles with the injured party may then sue other wrongdoers and must satisfy the court that the settlement amount was reasonable; if the court finds it excessive it may fix a lower figure. Section 3(3) contains intricate rules about the effect of a release or accord given to one wrongdoer. The release does not discharge others unless it expressly says so, but it reduces the injured person's overall claim by the greater of the consideration paid, any contractual reduction, or the amount the released party would have been required to contribute.