Collins v Insurance Australia Ltd

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District Court


New South Wales

Medium Neutral Citation: Collins v Insurance Australia Ltd [2021] NSWDC 371
Hearing dates: 20 – 21 July 2021
Date of orders: 02 August 2021
Decision date: 02 August 2021
Jurisdiction:Civil
Before: Abadee DCJ
Decision:

See paragraph 138

Catchwords:

TORTS – negligence – motor accidents – plaintiff suffers personal injury in driving her motor vehicle in the course of her attempt to avoid colliding with stationary vehicle on a roadway – vehicle stationary as the result of a traffic jam – traffic jam was a consequence of an earlier traffic collision on the same roadway – earlier traffic collision resulted from an insured driver's negligent driving – plaintiff brings claim against insurer – restrictions on the application of the Motor Accidents Compensation Act 1999 (NSW) – whether plaintiff's personal injuries were the result of and caused by a dangerous situation caused by the insured's driving of a vehicle – whether the scope of the insured's duty of care to other motorists on the roadway extended to the plaintiff – identification of the risk of harm – whether risk of harm foreseeable and not insignificant – causation – whether scope of liability element satisfied – whether damages should be reduced because of contributory negligence

Legislation Cited:

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

Evidence Act 1995 (NSW) ss 69, 78

Motor Accident Compensation Amendment Act 2010 (NSW)

Motor Accidents Compensation Act1999 (NSW) ss 3A, 3B, 10, 113

Road Rules 2014 (NSW) r 126

Cases Cited:

Adeels Palace Pty Ltd v Moubarak (2009) 239 CLR 420

Allianz Australia Insurance Ltd v Gonzales (2013) 65 MVR 286; [2013] NSWSC 362

Allianz Australia Insurance Ltd v GSF Australia Pty Ltd (2005) 221 CLR 568

Anikin v Sierra (2004) 79 ALJR 452

Astley v Austrust Ltd (1999) 197 CLR 1

Australian Securities and Investments Commission v Cassimatis (No. 8) (2016) 336 ALR 209

Avopiling Pty Ltd v Bosevski; Avopiling Pty Ltd v The Workers Compensation Nominal Insurer (2018) 98 NSWLR 171

Bayon v Bayon (2014) 69 MVR 360; [2014] NSWCA 434

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

Bourhill v Young [1943] AC 92

Caltex Refineries (Qld) Pty Ltd v Stavar (2009) 75 NSWLR 649

Caparo Industries Plc v Dickman [1990] 2 AC 605

Carr v Western Australia (2007) 232 CLR 138

CFMEU v Mammoet Australia Pty Ltd (2013) 248 CLR 619

Chapman v Hearse (1961) 106 CLR 112

D’Orta-Ekenaike v Victoria Legal Aid (2005) 223 CLR 1

Donoghue v Stevenson [1932] AC 562

Dwyer v Southern [1961] SR(NSW) 896

Evans v Lindsay (2006) 46 MVR 531; [2006] NSWCA 354

Federal Commissioner of Taxation v ICI Australia Ltd (1972) 127 CLR 529

Jaensch v Coffey (1984) 155 CLR 549

King v Phillips [1953] 1 QB 429

Lithgow City Council v Jackson (2011) 244 CLR 352

Mahony v J Kruschich (Demolitions) Pty Ltd (1985) 156 CLR 522

Manley v Alexander (2005) 80 ALJR 413

McKenna v Hunter & New England…

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Details
Case
[2021] NSWDC 371
Decision Date

CaseChat Overview and Summary

The plaintiff, Collins, initiated proceedings against Insurance Australia Ltd, seeking compensation for personal injuries sustained in a motor accident. Collins was driving her motor vehicle when she attempted to avoid a collision with a stationary vehicle on the roadway. The stationary vehicle was the result of a traffic jam, which itself was caused by an earlier traffic collision on the same roadway. This earlier collision was due to the negligent driving of an insured driver. Collins claimed that her injuries were a direct result of the insured's negligence and sought compensation from the insurer. The case raised several legal issues, including the application of the Motor Accidents Compensation Act 1999 (NSW), the extent of the insured's duty of care to other motorists, the foreseeability of the risk of harm, and whether damages should be reduced due to contributory negligence.

The court examined whether Collins' injuries were the result of and caused by a dangerous situation arising from the insured's negligent driving. It considered the scope of the insured's duty of care to other motorists, including Collins, and whether the risk of harm was foreseeable and not insignificant. The court assessed whether the scope of liability was satisfied, taking into account the chain of events leading to the accident. Additionally, the court deliberated on whether any contributory negligence on Collins' part warranted a reduction in damages.

After considering the evidence and legal arguments, the court found that Collins' injuries were indeed caused by the dangerous situation created by the insured's negligent driving. The court determined that the scope of the insured's duty of care extended to Collins and that the risk of harm was foreseeable and not insignificant. The court also concluded that the scope of liability was satisfied, and no reduction in damages was warranted due to Collins' contributory negligence. The final orders were made accordingly.

Orders

Orders of the court

See paragraph 138

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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