From: Robert Stevens <robert.stevens@law.ox.ac.uk>

Sent: Wednesday 13 November 2024 11:27

To: Paula Giliker; Neil Foster; obligations@uwo.ca

Subject: RE: HCA on Vicarious Liability of bishop for priests

 

"There is a sense that the courts are being steered away from vicarious liability and towards non-delegable duties (Edelman J is in the majority). While interesting, this does not, of course, help survivors of clergy sexual abuse, a topic sadly dominating the headlines in UK newspapers today."

 

A judge presented with a case that has been argued on the wrong basis may well be tempted to try to get to the correct result (in the abstract or as an exam question) by distorting the doctrine of the basis upon which the case has actually been argued. That temptation may be overwhelming where the plaintiffs who will be denied a claim that should succeed if argued properly are children who have been the victims of grotesque abuse.

 

That is the sorry history of "vicarious liability" in the Commonwealth in child abuse cases over the last 25 years, from Bazley v Curry (Canada), Lister v Hazley Hall (UK) through to today Bird v DPP (Australia).

 

The problem with distorting other rules to get at the right result is demonstrated by the dreadful mess of UK law over that period. Once the law broke free of its traditional moorings (employees, acting in a way that was either authorise or an unauthorised mode of an authorised act) litigants (naturally enough) tried to test the limits of the new rule. The problem was made worse by the academic orthodoxy since the 1970s that vicarious liability is a form of strict liability for harm justified by a basket of policy concerns (eg enterprise liability). In the UK, the judges have tried in recent years to put the genie back into the shattered lamp, but because the articulated rules have no relationship to the policies that are (still) said to justify them, it just looks arbitrary and unconvincing.

 

As other areas of the law of torts have returned in recent years to a position recognisable by lawyers of earlier generations (eg liability for pure economic loss, liability of public authorities for failing to confer benefits) vicarious liability has been a sad outlier, collapsing into an unjustifiable mess.

 

We should have a label for the necessary relation between one person and another sufficient for the vicarious liability rules to be engaged. Traditionally that label has been "master/servant". We can have an argument about who should count for this purpose (is a contract necessary? what degree of control suffices?) but it makes no sense to have two labels for one category as English law now does (employees and other people a bit like employees). The Australians get that right.

 

If, like me, you think that the rules cannot be explained as a form of strict liability for harm caused (one of many proofs of this is that there is no requirement to show that the employer made any causal contribution to the harm, nor can the employer escape liability by proving beyond peradventure the absence of any contribution by the employment) but is rather based upon the actions of the employee being attributed to the employer, than the traditional Salmond test makes perfect sense, and again the Australian courts were right not to have been so keen as other jurisdictions to abandon it.

 

Similarly, the default rule is that non-delegable duties that care will be taken arise whenever one party assumes responsibility for another s person or property. If I bail my car to you, if that car is then destroyed by the negligence of a sub-bailee, it won t avail you to show that you have been perfectly careful.

 

So, according to the orthodox position, that still prevails in Australia, this case should have been argued, as Professor Foster powerfully argues, as a non-delegable duty case, not on the basis of vicarious liability. Again, the academics may be partly to blame for the fact that this was not done in the past: the leading Australian torts textbook once claimed that non-delegable duties are just a form of vicarious liability under a different label, which they are not. This led to the (obvious) mistake that is New South Wales v Lepore, which will now hopefully be challenged before the HCA.

 

If a case is not pleaded and argued competently, clients will have a claim against those advising them. I don t think it is consistent with the judicial function to give judgment according to anything other than the law, and the case as pleaded and argued, however much sympathy we may have for the terrible wrong done to the victim.

 

Rob

 

 

From: Paula Giliker <Paula.Giliker@bristol.ac.uk>
Sent: 13 November 2024 09:16
To: Neil Foster <neil.foster@newcastle.edu.au>; obligations@uwo.ca
Subject: Re: HCA on Vicarious Liability of bishop for priests

 

Thank you Neil.  Australia seems determined to go its own way - and UK law, notably Lister and CCWS, ends up in its firing line.

 

Controversially, the majority state: "Reformulation of the law of vicarious liability is properly the province of the legislature" [67].

 

While this makes more sense in the Australian context, the different legislative instruments to date following the Royal Commission report do not give one confidence that this is the optimal step.

 

There is a sense that the courts are being steered away from vicarious liability and towards non-delegable duties (Edelman J is in the majority). While interesting, this does not, of course, help survivors of clergy sexual abuse, a topic sadly dominating the headlines in UK newspapers today.

 

Best wishes, Paula

 

 


From: Neil Foster <neil.foster@newcastle.edu.au>
Sent: 13 November 2024 01:58
To: obligations@uwo.ca <obligations@uwo.ca>
Subject: ODG: HCA on Vicarious Liability of bishop for priests

 

Dear Colleagues;

The High Court of Australia has handed down a decision today, Bird v DP (a pseudonym) [2024] HCA 41 (13 November 2024) in which it holds (by 6-1 majority) that the doctrine of vicarious liability should not be extended to apply to relationships akin to employment . In doing so it upholds an appeal against the decision of the Victorian Court of Appeal in [2023] VSCA 66, (2023) 69 VR 408 that the Roman Catholic Bishop of Ballarat (and the diocese) should be held to be vicariously liable for historic acts of child abuse committed by one Coffey, who at the time was an assistant priest in the diocese. It was accepted at all times that a priest is not an employee of the bishop or diocese.

There is a joint plurality judgment from GAGELER CJ, GORDON, EDELMAN, STEWARD AND BEECH-JONES JJ, a concurring separate judgment from Jagot J, and a judgment from Gleeson J in which her Honour would have accepted the akin to employment extension but holds that on the facts there was no liability as the actions of Coffey were not in the scope of his (quasi?) employment.

Imposition of vicarious liability, of course, involves two main questions, which have come to be called stage 1 (is there a relationship between the defendant and the wrongdoer which the law recognises as creating VL), and stage 2 (was the wrong committed in the course or scope of that relationship?) The primary issue in this case was the relevant test for stage 1. As colleagues here will be well aware, in recent years the UK Supreme Court has approved extension of the stage 1 test to include a relationship akin to employment .

The plurality judgment notes that there is an unbroken series of HCA decisions over the last 20 years or so ruling that stage 1 of the vicarious liability test can (with limited exceptions) only be satisfied by the existence of an employment relationship between the actual wrongdoer and the defendant. They say that the VCA were in error in adopting the arguments in favour of extending this to pick up the akin to employment category. See [47]:

 

[47] The issue is whether, in undertaking the first step of that inquiry, the Court should now expand the boundaries of vicarious liability beyond a relationship of employment to one that is "akin to employment". Contrary to the decisions of the courts below and the submissions of DP, the answer is no.

 

The judgment notes from [54] the extensions made by the UKSC. However, they note at [60] some of the implications this extension has had and conclude that this is not the way the law of Australia should be developed. They say:

 

[63] In light of this Court having rejected, on more than one occasion over the last 25 years, both the starting point and the basis on which the Supreme Court of the United Kingdom extended the law of vicarious liability, the issue is squarely in the hands of the legislatures. This Court should not, by developing the common law, deny the centrality of the employment relationship nor abandon that requirement. As this Court stated in Sweeney, "[w]hatever may be the logical and doctrinal imperfections and difficulties in the origins of the law relating to vicarious liability, the two central conceptions of distinguishing between independent contractors and employees and attaching determinative significance to course of employment are now too deeply rooted to be pulled out".[1] Those deep roots of reliance on a threshold requirement of an employment relationship for a finding of vicarious liability extend to other Australian courts, the legislatures (including in relation to drafting employment legislation) and insurers. That list is not exhaustive.

 

They note that legislation has addressed some of these issues, but conclude that the court should not intervene to extend the common law in ways that the legislature has not done so far.

 

I agree with this decision, as I noted in my SSRN piece on the appeal: see https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4810264 . However, I think it unfortunate that, the matter having been raised by a notice of contention, the judgment says that the court will not consider the possible extension of a non-delegable duty to cover intentional torts, which I think is a preferable way of dealing with the issue. The extension is not precluded for the future, just that they hold that it was not raised in the courts below and that there may have been a need for more fact-finding before it could have held that it applied in this case- see [42]-[43].

 

As noted, Jagot J in effect agrees with the plurality. Gleeson J dissents on the akin to employment issue, arguing that the previous course of HCA authority does not preclude this extension of the law. However, her Honour concluded that even if stage 1 were satisfied, on the facts Coffey was not acting in the course of his relationship and so stage 2 would not have been satisfied.

 

The judgements helpfully cite a number of colleagues from our list.

 

Regards

Neil

 

 

 

 

NEIL FOSTER

Associate Professor, School of Law and Justice

College of Human and Social Futures,

University of Newcastle, NSW

 

T: +61 2 49217430

E: neil.foster@newcastle.edu.au

 

Further details: http://www.newcastle.edu.au/profile/neil-foster

My publications: http://works.bepress.com/neil_foster/ , http://ssrn.com/author=504828 

Blog: https://lawandreligionaustralia.blog

 

 

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[1]           Sweeney (2006) 226 CLR 161 at 173 [33].