Habermann v Cook Shire Council

In Habermann v Cook Shire Council, the plaintiff, Mrs Habermann, an employee of the defendant Cook Shire Council, sought compensation for psychiatric harm she suffered as a result of a fabricated email being circulated publicly. The email, which was falsely attributed to Mrs Habermann, portrayed her as racist and engaged in deceit, and was tabled in parliament. Mrs Habermann was unable to continue her employment due to the psychiatric injury she suffered from the public dissemination of the email.

The court was required to determine whether the Council owed Mrs Habermann a duty of care to prevent the harm she suffered, whether the Council's actions or inactions constituted a breach of that duty, and whether the injury was reasonably foreseeable. The court also needed to consider whether the Council's liability, if any, was negated by the actions of third parties.

The court found that the Council did owe Mrs Habermann a duty of care, as it was reasonably foreseeable that she would suffer psychiatric harm from the public dissemination of the fabricated email. The court rejected the argument that the Council's liability was negated by the actions of third parties, as the Council had a duty to take reasonable steps to prevent the harm, even if it could not control the actions of third parties. The court held that the Council's failure to investigate the fabricated email and its contents, and its subsequent tabling in parliament, constituted a breach of its duty of care. The court also found that the psychiatric harm suffered by Mrs Habermann was a direct result of the Council's breach of duty.

The court awarded Mrs Habermann damages in the amount of $2,359,037.64. The court also ordered that the parties would be heard regarding costs, with an opportunity for out-of-town parties to appear by video link.