Case Study (All references to persons, businesses and locations are entirely fictional) Campbell Dredging Pty Ltd (Campbell) operated dredging equipment throughout Victoria. Dredging is the removal of sediments and debris from the bottom of lakes, rivers, harbours, and other water bodies. Campbells had two (2) dredgers, the "Daicos35" and the "Banks12". The Daicos35 had specialised equipment on board the dredger that could identify objects at the bottom of a river etc. However, it was currently undergoing maintenance and repair and the only dredger available was Banks12. This dredger had a glass bottom but no equipment that could identify objects.

A local council contracted Campbells to have a 3-kilometre stretch of the river dredged. This section of the river was in an industrial area and upstream to a well-known oyster farm owned by the Everett family. The Everett family had farmed oysters in this area for over 60 years.

The industrial area contained many businesses with one (1) being an oil-waste company, OW Enterprises Pty Ltd. This company, unbeknown to the council, had been 'dumping' oil waste in drums into the river for years. There were also communication lines (phone and internet) connecting the industrial area with the town's business district along the riverbed. The council, as part of the contract documents, included a survey, completed ten (10) years before, showing the position of the communication lines and a condition that the dredger should have equipment that can identify items on the bottom of the riverbed.

On the day the dredger was to commence, Daicos35 was still in repair, so Banks12 was assigned to complete the dredging.

The pilot (driver) of Banks12 was Jack Frost who would normally pilot (drive) Daicos35. His assistant was Peter Moore, a first-time worker on the Banks12. Jack advised Peter to keep a look-out at the glass bottom in case the dredger came too close to the communication lines. He also needed to inform Jack if he wasn't watching because of a toilet break. Peter agreed.

The operation began successfully with no problems. Banks12 was operating well, and Peter was keeping an eye out for the communication lines. Before finishing for the day Jack decided to do one more dredge when suddenly, the dredger stopped, and oil waste began to seep along the banks of the river. Jack asked Peter what had happened. Peter didn't know as he had gone to the toilet. However, it now looked like the dredger had hit several containers on the bottom of the riverbed. Peter also noticed that there were communications lines under the containers, and they too were damaged. He checked the survey, and the communication lines were not recorded in this part of the riverbed.

Jack turned the dredger off and rang Head Office. He could get through as the communication lines had been damaged. He noticed that the waste oil was still seeping from under the dredger and causing more and more damage to the riverbank. Jack locked the dredger and with Peter returned to Head Office where there was mayhem everywhere. The receptionist, Sally, gave them both a concerned look, as they walked past her into the managing director's office.

A council representative was already in attendance and yelling at the managing director about the loss of communications and the oil damage. The council representative was threatening all types of legal action against the company and noted that there would probably be many businesses who will lose money due to the incompetence of Jack and Peter. The managing director's face was red, and it looked like she was about to explode. Jack decided it was time to speak up and showed the council representative that the survey map was wrong.

The Everett family woke the next morning and inspected their oysters. They were horrified to see the oil waste had covered nearly 60% of their farming area and immediately contacted the council representative to voice their concerns and advise that they have contacted their lawyer. They indicated that the loss could be over $1.8m.

Several businesses in the business district lost communications and had no on-line banking or eftpos facilities. A local lawyer was preparing a class action against Campbells.

Campbells had engaged an industrial cleaning contractor to attend to the oil spill however the Everett family had warned them that the oysters are likely to suffer toxic effects from the use of the oil dispersant. They cancelled the contract with the cleaning contractor.

Required: Discuss the various negligence legal issues for the Campbells. (You do not have to discuss any contractual issues.)