Picton Power Lines v Wollondilly Shire Council

Gaudron and McHugh JJ of the High Court of Australia considered a dispute between Picton Power Lines Pty Ltd and Wollondilly Shire Council concerning the Council's alleged breach of a statutory duty to maintain a public road. Picton Power Lines claimed that the Council's failure to maintain the road in a safe condition led to damage to its underground electricity cables, for which it sought compensation. The core of the dispute lay in whether the Council owed a specific duty of care to Picton Power Lines in relation to the road's condition and, if so, whether that duty had been breached.

The High Court was required to determine whether the *Local Government Act 1993* (NSW) imposed a statutory duty on the Council to maintain the road in a condition that would prevent damage to underground infrastructure. Further, the Court had to consider whether, assuming such a duty existed, it extended to protecting the interests of entities like Picton Power Lines, whose assets were located beneath the road. The ultimate question was whether the Council's actions or omissions in relation to the road's maintenance constituted a breach of this statutory duty, giving rise to a cause of action for damages.

In their joint judgment, Gaudron and McHugh JJ analysed the relevant provisions of the *Local Government Act 1993* (NSW). They concluded that while the Act imposed a duty on the Council to maintain public roads, this duty was primarily concerned with the safety and usability of the road for public passage. Their Honours held that the statutory scheme did not contemplate or create a duty owed to owners of underground services to protect their infrastructure from damage caused by the state of the road surface. Consequently, the Council was not liable to Picton Power Lines for the damage sustained to its cables, as no actionable duty of care, statutory or otherwise, had been breached in favour of the company.