AMP v RTA & Anor

AMP Limited (AMP) appealed a decision of the Supreme Court of New South Wales concerning its liability to the widow of a deceased employee, Ms RTA. The dispute arose from the employee's suicide, which Ms RTA alleged was caused by AMP's negligence. AMP had breached a duty of care to the employee, resulting in a back injury. The employee had sought an extension of the limitation period to pursue a claim for this injury. During the hearing of that application, the employee experienced significant stress from cross-examination, which allegedly led to depression and ultimately his suicide shortly thereafter.

The Court of Appeal of New South Wales was required to determine whether AMP was liable to Ms RTA for damages arising from the employee's suicide. Specifically, the court had to consider whether AMP's breach of duty in causing the initial back injury was a legally relevant cause of the employee's subsequent depression and suicide, and whether such an outcome was a foreseeable consequence of AMP's negligence. The central legal issues revolved around the principles of causation and remoteness in negligence law, particularly in the context of psychiatric injury and suicide following a physical injury.

The court found that while AMP had breached its duty of care to the employee, causing the back injury, this breach was not the legal cause of the employee's suicide. The court reasoned that the stress experienced during the cross-examination, which precipitated the depression and suicide, was an intervening event that broke the chain of causation. The court applied the principles of foreseeability and causation, holding that the suicide was not a reasonably foreseeable consequence of the initial negligent act of causing the back injury. The stress of the legal proceedings, and the resulting psychiatric harm, were considered to be too remote from the original breach of duty.

The appeal was allowed, and the orders of the Supreme Court were set aside.