Endeavour Energy v Precision Helicopters Pty Ltd

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Court of Appeal
Supreme Court

New South Wales

Case Name: 

Endeavour Energy v Precision Helicopters Pty Ltd

Medium Neutral Citation: 

[2015] NSWCA 169

Hearing Date(s): 

8, 9 and 10 December 2014

Decision Date: 

22 June 2015

Before: 

Basten JA at [1];
Macfarlan JA at [171];
Sackville AJA at [174]

Decision: 

The Court directs that, absent agreement reached within 3 weeks of the delivery of these reasons, as to (i) apportionment, (ii) calculation of amounts payable and (iii) costs, the parties are to file and serve:

(a)within 4 weeks, their respective submissions dealing with such of the issues identified above as remain unresolved, such submissions not to exceed seven pages; and
(b)within a further 2 weeks, any submission, not to exceed four pages, in reply.

Catchwords: 

AVIATION – carriage by air – carrier’s liability – limitation under Civil Aviation (Carriers’ Liability) Act 1959 (Cth), s 31 – electricity supply company contracted for supply of helicopter and pilot to undertake aerial inspection power lines – whether carriage under Civil Aviation (Carriers’ Liability) Act 1967 (NSW) – whether employee of electricity supply company on board helicopter was a “passenger” – whether employee’s role to provide information to pilot about route and hazards made him a crew member – Fellowes (or Herd) v Clyde Helicopters Ltd [1997] AC 534 applied

CONTRACT – breach of contract – carrier provided low flying helicopter and pilot to electricity supply company for aerial inspection of power lines – electricity supply company responsible for marking route plan with hazards and briefing pilot and crew – helicopter struck unmarked telecommunication wire – helicopter damaged and employee of electricity supply company catastrophically injured – whether pilot’s performance complied with contractual obligation of reasonable care and applicable laws and standards – whether electricity supply company under duty to mark all hazards – whether electricity supply company should have made relevant inquiries of telecommunication company – whether electricity supply company protected by contractual indemnity where contract provided for apportionment of liability for carrier’s losses resulting wholly or partly from electricity supply company’s actions – interpretation of indemnity clauses

NEGLIGENCE – duty of care – aviation accident – carrier provided low flying helicopter and pilot to electricity supply company for aerial inspection of power lines – helicopter struck telecommunication catenary wire – electricity supply company employee suffered catastrophic head injuries – no helmet worn – if helmet worn injuries would have been significantly avoided – whether carrier under general law duty to require wearing of helmets where no enforceable statutory and regulatory requirements – whether employer under duty to require employees to wear helmets

NEGLIGENCE – duty of care – aviation accident – during aerial inspection of power lines low flying helicopter struck telecommunication catenary wire – longstanding practice of aerial inspections and public information campaigns but no direct communication with telecommunication company – whether telecommunication company ought reasonably to have known of aerial inspections – breach of duty – whether telecommunication company should have taken steps to avoid risk posed by wire where…

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Details
Case
[2015] NSWCA 169
Decision Date

CaseChat Overview and Summary

Endeavour Energy Pty Ltd and Precision Helicopters Pty Ltd were parties to a dispute arising from an aviation accident during an aerial inspection of power lines. Endeavour Energy had contracted Precision Helicopters to provide a helicopter and pilot for this task. During the inspection, the helicopter struck an unmarked telecommunication wire, resulting in damage to the helicopter and catastrophic injuries to an Endeavour Energy employee on board. The case was heard in the Court of Appeal of New South Wales.

The court was required to determine several legal issues. These included whether the injured Endeavour Energy employee was a "passenger" for the purposes of the *Civil Aviation (Carriers’ Liability) Act 1967* (NSW), or if their role in providing information about the route and hazards classified them as a crew member. The court also considered whether Precision Helicopters had breached its contractual obligations by failing to exercise reasonable care and comply with applicable laws and standards. Further issues involved whether Endeavour Energy had a duty to mark all hazards, whether it should have made inquiries of the telecommunication company, and the interpretation of contractual indemnity clauses. Additionally, the court examined whether Precision Helicopters owed a general law duty to require the wearing of helmets, and whether Endeavour Energy, as an employer, had a duty to mandate helmet use. The potential negligence of the telecommunication company in relation to the unmarked wire and the issue of causation for the injuries sustained were also central to the proceedings.

The court applied principles of contract law and negligence. Regarding the contractual obligations, the court assessed whether the pilot's performance met the standard of reasonable care and compliance with laws and standards. The court considered the scope of Endeavour Energy's duty to mark hazards and its potential failure to make necessary inquiries. The interpretation of indemnity clauses was crucial in determining the apportionment of liability for the carrier's losses. In negligence, the court examined the existence and scope of duties of care owed by Precision Helicopters and Endeavour Energy, particularly concerning the requirement for helmet use in the absence of specific statutory or regulatory mandates. The court also considered the telecommunication company's duty of care, assessing whether it ought to have been aware of the aerial inspections and taken steps to mitigate the risk posed by its wire. Causation was analysed under section 5D(1)(b) of the *Civil Liability Act 2002* (NSW), considering whether the accident was a materialised risk. The court also addressed the application of the *Civil Aviation (Carriers’ Liability) Act 1967* (NSW) and the employer's indemnity under section 151Z(1)(d) of the *Workers Compensation Act 1987* (NSW).

The court directed that, unless the parties reached an agreement within three weeks regarding apportionment, the calculation of amounts payable, and costs, they were to file and serve submissions on the remaining unresolved issues within four weeks, with replies to follow within a further two weeks.

Orders

Orders of the court

The Court directs that, absent agreement reached within 3 weeks of the delivery of these reasons, as to (i) apportionment, (ii) calculation of amounts payable and (iii) costs, the parties are to file and serve:

(a)within 4 weeks, their respective submissions dealing with such of the issues identified above as remain unresolved, such submissions not to exceed seven pages; and

(b)within a further 2 weeks, any submission, not to exceed four pages, in reply.

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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