Question
Tranquil Water Pty Ltd is a private company that supplies water to the picturesque town of Berry. A huge main pipeline transfers water from Berry
Tranquil Water Pty Ltd is a private company that supplies water to the picturesque town of Berry. A huge main pipeline transfers water from Berry Dam to the company's water filtration plant for treatment and distribution to customers. After lengthy periods of rain which caused damage to the road in the area, the Berry Roads and Traffic Authority undertook repair excavations on the road near the main water pipeline in order to lay asphalt on the road. The road excavation remained unfinished, leaving potholes on the road. The Berry Roads and Traffic Authority received anonymous complaints from disgruntled road users regarding the dangers posed by the potholes. The scheduled repair of the road was postponed due to bad weather and a tight budget caused by a huge decline in revenues.
Andrew is an experienced truck driver employed by Big Bang Truckers. He is nearing the end of his long daily shift and on his way to make one final delivery in town when he decided to stop by the local pub to have a few cold beers. Afterwards, he hopped back into his truck, slightly drowsy, and was starting to doze off. He suddenly saw a large pothole and in trying to avoid it, made a quick swerve. He was startled by a loud bang and realised that he hit a concrete structure. Andrew was surprised to see a torrential volume of water flying into the air, instantly flooding the road. The concrete structure housed the main water pipeline which was extensively damaged, automatically shutting down the secondary valves cutting all water supply to Berry. The damage to the main water pipeline including the costs of repair is estimated at $100,000.
Andrew sustained several fractured ribs caused by the sudden impact of the truck colliding with the concrete structure enclosing the main pipeline. The police report filed after the incident revealed that Andrew consumed five bottles of beer before the incident and his blood alcohol level was twice the legal limit at the time of the accident.
Georgia, the sister of Andrew, who was immediately informed of the accident, rushed to the site. Georgia, upon seeing Andrew's condition, was momentarily stunned and unable to move. She managed to recover her composure, convincing herself that she will be alright. In the months that followed, Georgia received extensive professional counselling. However, she later developed and was diagnosed with post-traumatic stress disorder as a result of this event, constantly worrying that a similar accident might befall her or any of her loved ones.
Andrew was rushed to Berry Hospital where he was looked after by Dr Badlukko. The doctor performed a thorough physical examination as well as imaging tests using x-ray and CT scan. Dr Badlukko made the correct diagnosis that Andrew needed to undergo an emergency surgical procedure. Dr Badlukko offered to Andrew an innovative, but relatively new surgical procedure which uses a minimally invasive operation to insert and screw on contoured titanium plates on the ribs of patients with chest injuries. Andrew agreed to the procedure, which was excellently performed by Dr Badlukko. Andrew wrote a lovely message on the hospital board for Dr Badlukko, which read: "I am so happy to have undergone this wonderful new procedure. I owe you my life, Dr Badlukko!"
However, before he was released from hospital, Andrew complained of fatigue, headaches, blurring of vision, difficulty in breathing, and severe abdominal pain. It turned out that Andrew has a very rare condition of being allergic to titanium. Titanium allergies are extremely rare, occurring in about 0.6% of the population, according to one study. The titanium plates were safely removed and a rib splint was put in place. Dr Badlukko who was relieved to see Andrew recover quickly, left a note by his hospital bed, where he scribbled: "I am sorry for what happened. I hope you are able to go home soon."
Meanwhile, the people of Berry were displeased that their water supply would be unavailable for at least 24 hours while emergency repairs of the main pipeline are being undertaken. One of the businesses affected by the loss of water supply is Walid, who is the owner of Taste of Beirut, a famous local Lebanese restaurant.
He had a wedding reception booked the next day and his kitchen staff was busy preparing a feast of Middle Eastern dishes. There was a batch of nan bread and other pastries which dried out and became inedible due to loss of water supply. The commercial value of these food items was $1,000. Realising that he could not deliver on the order without running water on his premises, Walid immediately contacted Premium Spring Water, a mobile water trailer company. Walid reluctantly paid $1,000 to Premium Spring Water for the delivery of water to enable him to cook the dishes for the wedding reception the following day.
The following day, the water supply in Berry was restored and the wedding reception at the Taste of Beirut went smoothly without any issues.
Advise Tranquil Water Pty Ltd as to the potential liability of other parties to it in negligence. [17 marks]
Advise Andrew of any possible negligence claims that he could bring against Dr Badlukko. [17 marks]
AdviseGeorgiaofanypossiblenegligenceclaimsthatshecouldbring.[8marks]
Advise Walid of any possible negligence claims that he could bring. [8 marks]
You should explain the strengths and weaknesses of each case. You should address any possible defences to these claims. Ensure that in your answer you refer to both the common law and to legislative provisions in the Civil Liability Act 2002 (NSW) where applicable.
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