ABC Ltd are licensed by the government to operate a quarry. The licence applies strict terms in relation to the noise levels, hours of operating and goods that can be contained on the land. A new private housing scheme has been occupied in recent months. The locals have complained to the management company about the noise levels and dust that comes from the quarry. Some employees have started parking their cars in the car parking spaces allocated to the individual house owners in the private estate. An incorrect strength of explosive was used for blasting and it caused damage to neighbouring properties. ABC's public liability policy included a warranty that required that the explosives be approved by a senior engineer before use, but this had not been done.

a) Discuss what possible torts may be committed by ABC Ltd and what defences are available, citing relevant case law. (12 marks)

b) Discuss what possible torts have been committed by the employees and what remedies are available to the house owners. (6 marks)

c) Discuss whether the policy will respond to indemnify the insured against the claims for damage to the neighbouring properties, citing relevant case law.