Shields v Commonwealth Bank of Australia

In *Shields v Commonwealth Bank of Australia*, the New South Wales Court of Appeal considered a dispute between a former employee, Ms. Shields, and her former employer, the Commonwealth Bank of Australia. Ms. Shields alleged that the Bank had breached its duty of care to her by failing to take reasonable steps to prevent her from suffering psychiatric injury arising from her employment.

The central legal issue before the Court of Appeal was whether the Bank had breached its duty of care to Ms. Shields by failing to provide a safe working environment, specifically in relation to the alleged harassment and bullying she experienced from a colleague. The Court was required to determine if the Bank knew, or ought to have known, of the risk of psychiatric injury to Ms. Shields and, if so, whether it took reasonable precautions to avert that risk.

The Court of Appeal found that the Bank had breached its duty of care. It reasoned that the Bank was aware, or ought to have been aware, of the ongoing harassment and bullying directed at Ms. Shields by a senior colleague. Despite this knowledge, the Bank failed to take adequate steps to investigate the complaints or to protect Ms. Shields from further harm. The Court applied the principles of negligence, emphasizing that an employer has a positive duty to take reasonable steps to protect its employees from foreseeable risks of injury, including psychiatric injury, arising from their work. The Court upheld the trial judge's finding of liability against the Bank.