David is driving the speed limit down a four lane street, where there are children playing. One nine-year old child, Kevin, runs into the road chasing a soccer ball. David, without looking over his shoulder, swerves into the other lane to avoid Kevin and in the process he collides with a car driven by Peter, who was speeding past David in the left-hand lane going in the same direction.

Peter loses control of his car, hits a hydro pole and is seriously and permanently injured. The hydro pole, owned by the local utility company, Hydroco, easily breaks into two pieces and hits Kevin who is still in the street, knocking Kevin unconscious and resulting in permanent injuries to Kevin.

Hydroco never did any testing on its poles to establish how easily the poles broke. The only factor used in choosing which poles to use was cost, which is why Hydroco chose Cheapco to supply and instal the poles.The poles were made from low quality materials and not treated in any significant manner, except for a cheap coating. No reinforcement was used on the poles.

Question: What are the various liabilities and rights of the parties involves?