Woodward Pty Ltd v Kelleher

Woodward 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 Kelleher, sustained injuries.

The primary legal issue before the Court of Appeal 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. This question turned on whether the driver was acting within the scope of their employment at the time of the collision.

The Court of Appeal considered the established principles of vicarious liability, particularly the test of whether the employee's actions were so closely connected with their authorised duties as to be regarded as an authorised mode of doing them. The court found that the driver, who was on a frolic of their own at the time of the accident, was not acting within the scope of their employment. 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.