CASE STUDY

Andy and Kay are both professional Accountants who work together at a Marketing firm in Melbourne. They decided to visit "Larry's Lobster Restaurant" (LLR) for dinner. The owner of the restaurant (Larry the sole proprietor of the business) greeted them and showed them to their table. Near the entrance, and as they came into the venue, they noticed a large Sign displaying the words ..."Warning- Wet Floor"....where there had been a spillage earlier on.

They were enjoying a bottle of red wine with their food, when Kay started feeling nauseas. Looking closely at the bottle, she was shocked to see a dead worm-floating inside. Feeling violently ill, she ran to the bathroom while Andy told Larry she had been food poisoned. Larry said it was the fault of the Manufacturer (Wally's Winery").

Andy decided he would go and get his car, so he could get Kay to a doctor as quickly as possible. In his rush, he ran across thewet area- ignoring theWarning Sign. He slipped and fell - breaking his arm and fracturing his collar bone.

Andy and Kay, now wish to sue Larry. Kay suffered damages -$5,000 for medical costs,$4,000 for lost earnings, $10,000 for thereplacement cost of buying a "Persian Cat". Her 'Pet Persian Cat' had run away while she was in hospital

Andy's suffered losses for 'medical costs ($6,000)', 'loss of earnings ($4,000)' and 'loss of a Cruise Ship Deposit ($3,000). (Andy had previously paid a deposit for his Holiday - but due to the accident, he was unable to travel, and lost the non- refundable deposit).

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Questions

1.Explain the 3 Elements of Negligence that Kay must prove as the Plaintiff. Discuss the 2 Defences that Larry may argue as the Defendant.

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2.Discuss whether Kay is likely to be able to recover damages for her losses -Medical Costs, Loss of Earnings, and 'loss of the Acting Contract'.

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3.Explain the 3 Elements of Negligence that Andy must prove as the Plaintiff. Discuss the 2 Defences that Larry may argue as the Defendant.

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4.Discuss whether Andy may be able to recover damages for his losses -Medical Costs, Lost Earnings, and 'Loss of Cruise Ship Deposit'. Give your reasons.