EXERCISE 1

Acme Ltd v Dan - Property damage caused by Negligent Acts

Acme Ltd operates power transmission lines from the generating plant to a number of towns. The transmission lines run across rural properties. The towns it services have no other source of supply. Dan operates a crop dusting business. Being bored one day with the fairly routine flying required by crop dusting, Dan decided to fly under the powerlines, which he was trained never to do.

Unfortunately, Dan didn't make it. The collision brought down one of the lines, causing a total blackout for the township of Whyus.

1.1 Does Dan owe a duty of care to Acme Ltd for the damage to the power lines? (Assume the cost of fixing the power lines is $15,000)

Page Break

EXERCISE 2

Nicole v Dan - Pure Economic Loss caused by Negligent Acts

Acme Ltd operates power transmissions lines from the generating plant to a number of towns. The transmissions lines run across rural properties. The towns it services have no other source of supply. Dan operates a crop dusting business. Being bored one day with the fairly routine flying required by crop dusting, Dan decided to fly under the powerlines, which he was trained never to do.

Unfortunately, Dan didn't make it. The collision brought down one of the lines, causing a total blackout for the township of Whyus. Nicole owns and operates a local cinema. Because of the lack of power Nicole is unable to open the cinema for two weeks. She claims that the loss of power cost her $10,000.

2.1 Does Dan owe a duty of care to Nicole for the loss of $10,000?