FEDERAL COURT OF AUSTRALIA
Grueff v Virgin Australia Airlines Pty Ltd [2021] FCA 501
File number(s): NSD 363 of 2020
NSD 366 of 2020Judgment of: GRIFFITHS J Date of judgment: 12 May 2021 Catchwords: AVIATION – two applications for damages under Art 17(1) of the 1999 Montreal Convention as given force by s 9B of the Civil Aviation (Carriers’ Liability) Act 1958 (Cth) (CACL Act) – two passengers consumed “tainted” water onboard international flight from Denpasar to Sydney – passengers complained of various health conditions – whether passengers suffered “bodily injury” within meaning of Art 17(1) – whether “bodily injury” caused by “accident” onboard flight – consideration of “common sense” causation in absence of medical evidence
DAMAGES – claims for non-economic loss – where claims would be precluded by s 16 of the Civil Liability Act 2002 (NSW) (CL Act) – whether Pt 2 of CL Act “picked up” as surrogate federal law in exercise of federal jurisdiction in NSW under Pt 1A of CACL Act – identification of relevant law in federal jurisdiction in accordance with ss 79 and 80 of the Judiciary Act 1903 (Cth) – whether Pt 1A of CACL Act and Art 17(1) of Montreal Convention have “otherwise provided” or are “inconsistent” with CL Act concerning damages – whether Pt 2 of CL Act applies to no-fault personal injury proceedings – legislative history of CL Act unclear
Legislation: Constitution s 109
Civil Aviation (Carriers’ Liability) Act 1959 (Cth) ss 9B, 9D-9E, 25K, Pt 1A, Pt IV, Sch 1A, Sch 2
Federal Court of Australia Act 1976 (Cth) s 43
Judiciary Act 1903 (Cth) ss 79, 80
Safety, Rehabilitation and Compensation Act 1988 (Cth)
Civil Liability Act 2002 (NSW) ss 3, 3B, 5A, 11-11A, 16, Pt 2
Civil Liability Amendment (Personal Responsibility) Act 2002 (NSW) Sch 2
Companion Animals Act 1998 (NSW) s 25
Law Reform Act 1995 (Qld) s 6
Legal Profession Uniform Law Application Act 2014 (NSW)
Wrongs Act 1958 (Vic) Pt VBA, s 28LE
Convention for the Unification of Certain Rules for International Carriage by Air, opened for signature 28 May 1999, 2242 UNTS 309 (entered into force 4 November 2003) Arts 17, 21, 24, 29
Protocol to Amend the Convention for the Unification of Certain Rules Relating to International Carriage by Air, opened for signature 28 September 1955, 478 UNTS 371 (entered into force 1 August 1963) Art 24
Explanatory Notes, Civil Liability Amendment (Personal Responsibility) Bill 2002 (NSW)
Explanatory Notes, Civil Liability Bill 2002 (NSW)
Cases cited: Air France v Saks 470 US 392 (1985)
American Airlines Inc v Georgeopoulos (No 2) [1998] NSWCA 273
Arefin v Thai Airways International Public Co Ltd (unreported, District Court of New South Wales, 21 August 2007)
Austral Pacific Group Ltd (in liq) v Airservices Australia [2000] HCA 9; 203 CLR 136
Blunden v Commonwealth [2003] HCA 73; 218 CLR 330
Brannock v Jetstar Airways Pty Ltd [2010] QCA 218; 273 ALR 391
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- Case
- [2021] FCA 501
- Decision Date
CaseChat Overview and Summary
The Court's reasoning focused on the need for clear evidence of bodily injuries under the Montreal Convention and the unclear legislative history of the Civil Liability Act. The Court held that the Civil Liability Act applied to the passengers' no-fault claims, limiting their damages and precluding recovery for non-economic loss. The Court ultimately dismissed the passengers' claims for damages and ordered them to pay the airline's costs. The Court's decision provides guidance on the application of the Civil Liability Act to no-fault claims under the Montreal Convention and the need for clear evidence of causation and bodily injuries.
Orders
Orders of the court
1. The originating application be dismissed.
2. The applicant pay the respondent’s costs as agreed or taxed.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
Finally (and related to the third observation), Keogh J described Zicherman as inapplicable, as the issues raised by s 79 of the Judiciary Act are distinguishable. With great respect, this may involve a misunderstanding of the purpose of s 79, when understood through the lens of Blunden and the role ss 79 and 80 play in the “identification” of the relevant domestic law. If Zicherman is understood as holding that the assessment of damages under the Warsaw Convention is left to domestic law as identified by choice of law rules in the forum state, then Zicherman is not distinguishable because of s 79 of the Judiciary Act. Rather, the consequence of Zicherman, if applied in Australia, would be that the assessment of damages for claims under the CACL Act rely upon identifying the relevant law in accordance with ss 79 and 80, where strictly speaking no “choice of law” is required in federal jurisdiction (see Pfeiffer at [53]; Blunden at [10]). Conclusion on operation of s 80 of Judiciary Act For these reasons, the better view is that s 80 of the Judiciary Act operates to pick up and apply to the present proceedings relevant provisions in Pt 2 of the CL Act as surrogate federal laws. This accords with the assumption underlying the Pel-Air litigation and with the views expressed in two District Court decisions in New South Wales. (2) Does the CL Act apply to damages for no-fault based personal injury? As noted above, Art 17(1) of the Montreal Convention creates a no-fault cause of action against carriers, where, as in the present proceedings, a passenger claims to have suffered a “bodily injury” caused by an “accident” which took place on board the aircraft. Assuming that the CL Act is capable of being picked up under ss 79 or 80, the question then arises whether Pt 2 of the CL Act is “applicable”, as a modification of the common law with respect to the heads of damage and assessment of damage for non-fault based “bodily injury”. This raises two questions:(a)Does “bodily injury” fall within the definition of “personal injury” in the CL Act?(b)Does Pt 2 of the CL Act apply to non-fault based “personal injury” or is it limited in operation to fault-based claims? As to question (a), “injury” is defined in s 11 of the CL Act as including “impairment of a person’s physical or mental condition” and “disease”. This broad definition suggests that the expression of “bodily injury” in Art 17(1) falls within the meaning of “personal injury” in the CL Act. Consideration of question (b) requires a detailed review of the legislative history of the CL Act, which regrettably is unclear. CL Act as originally enacted The long title of the CL Act, as originally enacted, stated that it was (emphasis added) “An Act to make provision in relation to the recovery of damages for death or personal injury caused by the fault of a person; to amend the Legal Profession Act 1987 (NSW) in relation to costs in civil claims; and for other purposes”.