Question
You are a claims handler for a liability insurer. One of the insurer's policyholders, FR Ltd, owns and operates a restaurant. FR Ltd has notified
You are a claims handler for a liability insurer. One of the insurer's policyholders, FR Ltd, owns and operates a restaurant. FR Ltd has notified you of an incident where Rachel, an employee, was trapped inside a walk-in fridge. Rachel tried to escape using the door handle inside the fridge, however it snapped. Rachel also pressed the emergency alarm, but it failed to activate. After a period of time, Rachel was discovered by another employee. Following medical treatment, Rachel was found to be suffering from hypothermia and was later diagnosed with psychological injuries. Upon investigation, it was found that a third employee had closed the fridge door, while Rachel was in the fridge, as a practical joke. Discuss how FR Ltd's legal liability for Rachel's injuries may arise. Refer to one relevant statute and one relevant case law in support of your answer. (20 marks)
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