Australian Telecommunications Commission v Lennox

The Australian Telecommunications Commission (ATC) appealed to the New South Wales Court of Appeal against a decision of the Supreme Court of New South Wales, which had found in favour of Mr Lennox. The dispute concerned the ATC's liability for damage caused to Mr Lennox's property by the negligent installation of underground telecommunications cables.

The primary legal issue before the Court of Appeal was whether the ATC was vicariously liable for the negligent acts of its contractor, a company named Cable & Wireless, in carrying out the excavation and installation work. The court was required to determine the nature of the relationship between the ATC and Cable & Wireless, and whether the work performed was of such a nature that the ATC retained a non-delegable duty of care to Mr Lennox.

The Court of Appeal held that the ATC was vicariously liable for the negligence of Cable & Wireless. The court reasoned that the work undertaken, namely the excavation and laying of cables, was inherently dangerous and created a significant risk of harm to adjoining properties. Consequently, the ATC owed a non-delegable duty of care to ensure that the work was carried out with reasonable care and skill. This duty could not be discharged by engaging an independent contractor. The court found that the ATC had failed to establish that it had taken all reasonable precautions to prevent the damage, and therefore the appeal was dismissed.