IYIR 2015 | PUBLIC & PRODUCTS LIABILITY It might be ‘dangerous’ but ‘obvious’ too? Two limbs to the dangerous recreational activity defence Written by Sean O’Connor and Travis Luk What happened? • • In Stewart & Ors v Ackland [2015] ACTCA 1, the Supreme Court of the Australian Capital Territory was called upon to consider the application of the dangerous recreational activity defence to a backward somersault on a ‘jumping pillow’. The discussion of this important case focuses upon the first instance and appeal judgments in the ACT Supreme Court. Stewart’s appeal to the High Court of Australia was granted special leave but the parties then settled the matter the day before the High Court Hearing! Facts The judgment below On 10 October 2009, the respondent plaintiff, a 21 year old arts/law student, attended the appellant defendant’s ‘amusement park’, Green Valley, as part of a ‘mystery bus tour’ organised by his college social committee. At first instance, Burns J was of the view the risk was foreseeable (particularly in light of the pamphlet given to the defendant two weeks prior), the potential risk was catastrophic and the cost of precautions (e.g. the erection of signage) was “miniscule”. He thus found the plaintiff had established the defendant was negligent pursuant to section 5B of the Civil Liability Act 2002 (CLA). At about 3pm, the plaintiff sustained catastrophic injury (tetraplegia) when he landed on his neck after trying to complete a backward somersault on a ‘jumping pillow’ at the park. The plaintiff gave evidence that he had previously attempted a backward somersault but was unsuccessful, landing awkwardly. It was established that, on the day, children were performing the same manoeuvre in view of and without intervention from the defendant’s staff. There were no signs in the area warning users of the pillow that there was a risk of injury. The plaintiff tendered a pamphlet the defendant received from the manufacturer of the pillow two weeks prior to the plaintiff’s injury. It advised the defendant to supervise users of the pillow and to prohibit or warn users not to perform “somersaults and inverted manoeuvres”. The defendant’s staff did not take any action following receipt of the pamphlet and in fact, appeared to actively encourage users of the pillow to perform somersaults on their Facebook page. It was accepted the plaintiff did not see that page prior to his injury. W+K Insurance Year in Review 2015 Burns J also held that the plaintiff had been engaged in a ‘dangerous recreational activity’ (i.e. one that involved a significant risk of physical harm) within the meaning of section 5K of the CLA. He relied largely on the expert evidence of Dr Olsen that the potential consequences of a poorly performed somersault were ‘catastrophic’. However, he held that the “risk of a serious neck injury if the manoeuvre was not properly performed” was not an obvious risk within the meaning of sections 5K and 5F. In making that determination, Burns J noted, amongst other things, that young children were performing the manoeuvre and the jumping ‘pillow’ was full of air and ‘yielding’. Therefore, the dangerous recreational activity defence could not succeed. The judgment on appeal was split into two separate decisions. The first of Justice Penfold and the second of Justice Walmsley with whom Acting Judge Robinson agreed. Duty of care The defendant argued the scope and content of the duty of care they owed to the plaintiff did not extend to prohibiting and/or warning the plaintiff of the risk associated with performing backwards somersaults on the pillow. It was argued that the duty to prohibit the activity, whilst potentially extending to children, could not extend to the plaintiff, an adult of normal competence expected to take reasonable care for his own safety. Penfold and Walmsley however both disagreed, giving similar reasons. They placed particular emphasis on the pamphlet received by the defendant two weeks prior to the plaintiff’s accident. In their view, the pamphlet would sensibly be construed as a warning given in the interests of all of its customers safety, which a reasonable person would have acted on. Although the approach to section 5L differs between the two judgments, the decision confirms the focus of the Courts’ enquiry is on the specific activity and circumstances of the plaintiff’s injury. Penfold J at paragraph 59 stated: “It is one thing to say that personal autonomy requires competent adults to take responsibility for the obvious risks of an apparently dangerous recreational activity. It is quite another to say that it extends to requiring those adults to take such responsibility for the risks of an activity that may not be apparently dangerous, even where the nature or severity of a non-obvious risk of that activity has been brought to the attention of the person providing the activity.” In both Walmsley and Penfold’s opinion, Burns J was correct in deciding that the plaintiff had established negligence under section 5B of the CLA. Section 5L - dangerous recreational activity Section 5L states that “a person is not liable in negligence for harm suffered by another person as a result of the materialisation of an obvious risk of a dangerous recreational activity engaged in by the plaintiff”. ‘Dangerous recreational activity’ is defined in section 5K as “a recreational activity that involves a significant risk of physical harm”. W+K Insurance Year in Review 2015 It was not in dispute that performing a backwards somersault on a jumping pillow was a ‘recreational activity’. As to whether it was a ‘dangerous recreational activity’, Penfold J, referring to a series of NSW authorities, formulated the test as being whether, on an “objective and prospective” assessment, the activity carried a ‘significant risk of physical harm’. In Penfold’s view, Burns J at first instance fell into error by classifying the activity as dangerous. He said the risk of catastrophic consequences, by itself, was insufficient to classify the activity as a dangerous one and that the likelihood of those consequences eventuating, must also be considered. At paragraph 34 he states: “This must be the correct position given how many of our daily activities, recreational or otherwise, carry a small to miniscule risk of catastrophic consequences but are nevertheless viewed as generally safe and entirely sensible activities to engage in (for instance, private car travel and commercial air travel).” On the other hand, Walmsley J accepted the activity was a ‘dangerous recreational activity’, specifically referring to and relying upon, as Burns J did at first instance, Dr Olsen’s biomechanical evidence that there was a risk of catastrophic harm if the manoeuvre was not executed perfectly. However, he said the risk that materialised was not an obvious risk of jumping on the jumping pillow. Relying heavily on a Queensland Court of Appeal decision of State of Queensland v Kelly, he held that knowledge of a risk of injury does not make the risk of serious injury obvious. Walmsley’s conclusion was that whilst the activity was a ‘dangerous recreational activity’, the risk that materialised, being of serious neck injury, was not obvious to the plaintiff as required under section 5L. Concluding remarks Although the approach to section 5L differs between the two judgments, the decision confirms the focus of the Courts’ enquiry is on the specific activity and circumstances of the plaintiff’s injury. An important aspect of the decision is the Courts’ majority approach to determining whether the risk was an obvious risk of a dangerous recreational activity within the meaning of section 5L and its reliance on the Queensland decision of State of Queensland v Kelly. That is, the plaintiff must appreciate the risk of serious or significant injury not just of minor injury for it to be considered an “obvious risk” of a dangerous recreational activity. Sean O’Connor On 11 September 2015, the High Court heard a special leave application by the defendants to appeal against the Supreme Court of ACT’s decision. On 3 December 2015, the parties resolved the appeal by consent. What then is the status of the judgments in the ACT Supreme Court? By consent, the High Court allowed the appeal and the first instance decision of Burns J was set aside. Travis Luk Partner | Sydney T: + 61 2 8273 9826 [email protected] Associate | Sydney T: + 61 2 8273 9805 [email protected] As a result, the much needed clarification by the High Court on the ‘dangerous recreational activity’ and ‘obvious risk’ defences, particularly given the increasing trend of the state courts to limit their application, is yet to occur but eagerly awaited. Stay tuned. This publication is intended to provide commentary and general information. It should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this publication. Persons listed may not be admitted in all states and territories. © Wotton + Kearney 2016
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