Collins v Insurance Australia Ltd

Link copied
Case Copied 80 min read

Court of Appeal


Supreme Court


New South Wales

  • Summary available
Medium Neutral Citation: Collins v Insurance Australia Ltd [2022] NSWCA 135
Hearing dates: 15 June 2022
Date of orders: 2 August 2022
Decision date: 02 August 2022
Before: Meagher JA at [1];
Kirk JA at [2];
Basten AJA at [43]
Decision:

(1)   Set aside the judgment and orders 1 and 2 made in the District Court on 2 August 2021.

(2)   In place thereof,

(a)   Give judgment for the plaintiff against the defendant in an amount of    $200,000.

(b)    Direct that the judgment take effect on 2 August 2021.

(c)    Order that the defendant pay the plaintiff’s costs of the trial.

(3)   Order that the respondent pay the appellant’s costs in this Court.

Catchwords:

INSURANCE – motor vehicle – compulsory third-party insurance – collision causing stationary traffic on highway – driver injured avoiding stationary traffic – whether stationary traffic a “situation” – whether original collision caused “dangerous situation” –Motor Accidents Compensation Act 1999 (NSW), s 3A(1)(d)

NEGLIGENCE – duty of care – scope of duty – whether negligent driver owed duty of care to road users not involved in collision – injury to second driver distant in time and place from original collision

NEGLIGENCE – breach – whether risk “not insignificant” – levels of risk – error to focus on precise mechanism by which harm occurs

NEGLIGENCE – defences – contributory negligence – speed not excessive – no failure to keep lookout – driver injured in avoiding stationary cars on highway – whether contributorily negligent

Legislation Cited:

Civil Liability Act 2002 (NSW), ss 5B, 5C, 5D, 5R

Interpretation Act 1987 (NSW), s 33

Motor Accidents Amendment Act 1995 (NSW)

Motor Accidents Compensation Act 1999 (NSW) ss 3, 3A, 5, 6, 113

Motor Accidents Compensation Amendment Act 2006 (NSW), Sch 1[3]

Motor Accidents Compensation Amendment Act 2010 (NSW)

Road Rules 2014 (NSW), r 126

Cases Cited:

Allianz Australia Insurance Ltd v GSF Australia Pty Ltd (2005) 221 CLR 568; [2005] HCA 26

Benic v State of New South Wales [2010] NSWSC 1039

Bourhill v Young [1943] AC 92

Bunnings Group Ltd v Giudice [2018] NSWCA 144; (2018) Aust Torts Rep 82-402

Burnie Port Authority v General Jones Pty Ltd (1994) 179 CLR 520; [1994] HCA 13

Caltex Refineries (Qld) Pty Ltd v Stavar (2009) 75 NSWLR 649; [2009] NSWCA 258

Chapman v Hearse (1961) 106 CLR 112; [1961] HCA 46

Czatyrko v Edith Cowan University (2005) 214 ALR 349; [2005] HCA 14

D’Orta-Ekenaike v Victoria Legal Aid (2005) 223 CLR 1; [2005] HCA 12

Harriton v Stephens (2006) 226 CLR 52; [2006] HCA 15

Imbree v McNeilly (2008) 236 CLR 510; [2008] HCA 40

Kimber v Chief Executive, Department of Treasury and Finance, for Chief Executive, Department for Health and Wellbeing (SA Ambulance Service) [2021] SASCA 133

Kozarov v Victoria (2022) 96 ALJR 405; [2022] HCA 12

Kuhl v Zurich Financial Services Australia Ltd (2011) 243 CLR 361; [2011]…

CaseChat AU logo

Keep reading for free

Create a free CaseChat account to read Collins v Insurance Australia Ltd and more:

  • Read every judgment in full
  • Ask AI and get answers linked to paragraphs
  • See how each paragraph was cited in later cases
  • Download judgments as PDF or Word
Continue with Google

One click creates your free account or signs you in.

By continuing you agree to the Terms and Privacy Policy.

Details
Case
[2022] NSWCA 135
Decision Date

CaseChat Overview and Summary

In *Collins v Insurance Australia Ltd*, the plaintiff, Ms Collins, appealed to the New South Wales Court of Appeal against a decision of the District Court which had dismissed her claim for damages arising from injuries sustained when she swerved to avoid stationary traffic on a highway. The stationary traffic had been caused by an earlier collision involving the insured vehicle. The dispute concerned whether the injuries sustained by Ms Collins, who was not directly involved in the initial collision, were caused by the negligence of the driver of the insured vehicle and whether the Motor Accidents Compensation Act 1999 (NSW) provided cover for her injuries.

The Court of Appeal was required to determine two primary legal issues. Firstly, whether the stationary traffic on the highway constituted a "situation" within the meaning of section 3A(1)(d) of the Motor Accidents Compensation Act 1999 (NSW), and if so, whether that situation was caused by the original collision in a manner that rendered the original collision the cause of Ms Collins' injuries. Secondly, the Court had to consider whether the driver of the insured vehicle owed a duty of care to road users, such as Ms Collins, who were injured at a later time and a different location as a consequence of the initial collision, and if so, whether that duty had been breached. The Court also considered the defence of contributory negligence.

The Court of Appeal found that the original collision had created a dangerous situation on the highway, and that the stationary traffic was a direct consequence of that situation. The Court held that the driver of the insured vehicle owed a duty of care to other road users, including Ms Collins, to avoid creating such a dangerous situation. The Court determined that the risk of harm to other road users was "not insignificant" and that the driver had breached this duty of care. The Court also found that Ms Collins was not contributorily negligent. Accordingly, the Court of Appeal set aside the judgment of the District Court and entered judgment for the plaintiff against the defendant in the sum of $200,000, with costs.

Orders

Orders of the court

(1) Set aside the judgment and orders 1 and 2 made in the District Court on 2 August 2021.

(2) In place thereof,

(a) Give judgment for the plaintiff against the defendant in an amount of $200,000.

(b) Direct that the judgment take effect on 2 August 2021.

(c) Order that the defendant pay the plaintiff’s costs of the trial.

(3) Order that the respondent pay the appellant’s costs in this Court.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.