Vacik Distributors Pty Ltd v Kelly

Vacik Distributors Pty Ltd (the appellant) appealed to the New South Wales Court of Appeal against a decision of the Supreme Court of New South Wales. The dispute concerned the appellant's liability for damages arising from a motor vehicle accident in which the respondent, Mr. Kelly, was injured. The primary issue was whether the appellant, as the employer of the driver of the vehicle involved in the accident, was vicariously liable for the driver's negligence.

The Court of Appeal was required to determine whether the driver was acting within the scope of his employment at the time of the accident. Specifically, the court had to consider whether the employer had sufficiently delegated the authority to the employee to use the company vehicle for personal purposes, and if so, whether the use of the vehicle for personal purposes was so incidental to or connected with the employment that it could be considered within the scope of employment.

The court found that the employer had not expressly or implicitly authorised the employee to use the company vehicle for personal purposes. The evidence indicated that the employee had taken the vehicle without permission and for his own private use. Consequently, the court held that the driver was not acting within the scope of his employment at the time of the accident, and therefore, the appellant was not vicariously liable for the driver's negligence. The appeal was allowed, and the judgment of the Supreme Court was set aside.