LAW1113 Lecture Notes - Lecture 7: Pipeline Transport, Oil Terminal
LAW1113&TORTS&-&CASE&SUMMARIES&AND&KEY&POINTS&
NEGLIGENCE&–&PURE&ECONOMIC&LOSS&
&
&
• Economic'loss'that'is'not'the'result'of'personal'injury'to'the'P'or'damage'to'the'P’s'property'
• Traditional&reluctance&to&compensate&due&to:&
o Competition'and'legitimate'business'activity:'Contrary'to'competition,'where'the'purpose'is'to'make'
competitors'receive'PEL)'
o Indeterminate'liability:'Failures/errors'may'affect'huge'numbers'of'people'not'previously'
anticipated'(e.g.'newspapers'advertise'inaccurate'information'regarding'shares)'
o Extent'of'the'harm:'Disproportionate'costs'for'minor'carelessness'
• Two&kinds&of&situations:&&
1. PEL'caused'by'reliance'on'advice'or'information'
2. PEL'caused'by'an'act'or'omission'
Case&
Details&
Caltex'Oil'v'The'Dredge'‘Willemstad’(1976)&
Ø Use:'Damage'to'third'party'property&
Ø Test:&Did'D'know'or'ought'to'have'known'that'
a'particular'person,'not'merely'a'member'of'an'
unascertainable'class,'will'be'likely'to'suffer'
economic'loss'as'a'consequence'of'D’s'
carelessness?&
'
'
Facts&
• D'is'digging'channel'along'Botany'Bay,'which'they'
do'so'carelessly,'fracturing'an'oil'pipeline'which'
connects'an'oil'refinery'and'an'oil'terminal'
(owned'by'oil'refinery)''
• Oil'pipeline'moves'oil'between'refinery'and'Caltex'
• Caltex'bears'the'cost'of'finding'an'alternative'way'
of'transporting'the'oil'between'the'parties'(Found'
Duty'of'Care'since'the'between'it'occurred'
exclusively'with'2'parties,'no'indeterminate'
liability)'
• Overruled'
Perre'v'Apand;'Johnson'Tiles'
Ø Use:'Salient'features'
Ø Salient&features&considered:'
o Indeterminate'liability:'Not'about'how'big'
the'liability'is,'but'the'ascertainability'(i.e.'
discoverability'for'the'class'of'people'at'risk'
and'for'what'(can'find'risk))'(Indeterminacy'
is'strong)'
o Control:'If'people'other'than'D'had'control,'
Facts&(Perre'v'Apand)&
• D'(Apand)'supplied'farmer'infected'potato'seeds'
• Farmer'(X)'does'not'know'
• Financial'losses'for'potato'farmers'(20km'affected'
by'disease)'(Duty'of'Care'found,'the'harm'inflicted'
was'reasonably'foreseeable'if'D'supplied'X'with'
infected'potato'seeds)'
• Considerations:&
o No'Indeterminate'Liability:'Class'of'persons'
Document Summary
Law1113 torts - case summaries and key points. Indeterminate liability: not about how big the liability is, but the ascertainability (i. e. discoverability for the class of people at risk and for what (can find risk)) (indeterminacy is strong: control: if people other than d had control, Duty of care since the between it occurred exclusively with 2 parties, no indeterminate liability: overruled. Facts (perre v apand: d (apand) supplied farmer infected potato seeds. Financial losses for potato farmers (20km affected by disease) (duty of care found, the harm inflicted was reasonably foreseeable if d supplied x with infected potato seeds: considerations, no indeterminate liability: class of persons. Law1113 torts - case summaries and key points it would point away from duty of care: vulnerability: ability to take steps to prevent, would mean no duty of care. Where p relied and d assumed responsibility (point towards a duty of care)
