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Question (10 marks) Sam Speed runs a business which provides a re-fuelling service for aircraft at the regional airport at Albury in New South Wales.Sam stores his fuel at a depot he owns in an...

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Question (10 marks)

Sam Speed runs a business which provides a re-fuelling service for aircraft at the regional airport at Albury in New South Wales.Sam stores his fuel at a depot he owns in an underground tank.One day, Sam receives a tanker load of XXXXXXXXXXlitres of fuel from his supplier.The fuel is pumped into Sam’s underground tank, and Sam puts a dip-stick into the tank to check that the correct amount has been delivered.Unfortunately, Sam is distracted by a phone call, and forgets to screw the lid back onto the tank, with the result that dust enters the fuel during the night, contaminating it.

The next day, still unaware of what has happened, Sam refuels three light aircraft with the fuel.Each aircraft is owned by a different company, White Ltd, Blue Ltd and Green Ltd.

The aircraft owned by White Ltd takes off successfully, but about 2 km from the end of the runway the engine cuts out because of the fuel contamination and the aircraft, which is worth $ 1 million, crashes onto a road and is totally destroyed, although the pilot miraculously survives without any injury.

The aircraft ownedby White Ltd also destroys a Mercedes Benz car worth $ XXXXXXXXXXowned by Ms Susan Swift, who usually never parks her car on that street but did so that day because the parking lot she uses was full.

Sam hears on the radio what happened to the aircraft owned by White Ltd, and that the pilot reported a problem with the fuel system to air traffic control moments before the crash. Fearing that the accident might have been due to contaminated fuel, Sam runs across to the aircraft owned by Blue Ltd, waving his arms to attract the attention of the pilot, who is just about to start his engine. Sam tells the pilot that there seems to be something wrong with the fuel and that it could damage the engine, and the pilot decides not to take off for Sydney. There are no other aircraft able to fly to Sydney, and because the aircraft owned by Blue Ltd does not take off, one of the passengers, Ms Mary Harper, who is a maritime engineer, is unable to get to Sydney to certify that a cargo ship owned by Safmarine Ltd is seaworthy, with the result that Safmarine Ltd loses $ XXXXXXXXXXin profit because its vessel cannot put to sea that day.

After alerting the pilot of the Blue Ltd plane, Sam also runs to the aircraft owned by Green Ltd and gives him the same information about the fuel, but the pilot says “Look, mate, I understand what you are saying, but I don’t have time for this. I’m going to take off anyway. I have to get to Melbourne by 10 am”, and with that the pilot closes his window and taxis towards the runway. As the pilot starts his take-off run, the aircraft’s engine cuts out, it swerves across the runway and suffers $ XXXXXXXXXXworth of damage.

Accident reports confirm that the aircraft owned by White Ltd and Green Ltd crashed because their engines were damaged by the contaminated fuel.

Advise Sam on what liabilities he may have to all potential plaintiffs who have suffered loss under the above facts.

** Please check that you have complied with all the points in the Style Guide before handing in your assignment.**


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This assessment task will assess the following learning outcome/s:

  • be able to anlayse the rules of statutory interpretation and the law relating to torts, contracts, property, agency, partnerships and corporations.
  • be able to distinguish between rules of law and exercise judgement in applying the law to complex legal problems.
and more specifically
  • yourknowledge of the law of torts
  • your ability to undertake an assessment task relevant to the workplace and professional practice.
Answered Same Day Aug 08, 2020


Arun answered on Aug 12 2020
143 Votes
Negligence Law Analysis
The incident of contaminated fuel and resultant effects shows that there is a negligence played by Sam. He mistakenly forgets to follow the safety procedure and his ignorance caused destruction of white ltd aircraft, financial losses to Safmarine Ltd due to Blue Ltd aircraft not flying as Sam informed pilot about contaminated fuel and financial losses to Green Ltd Company because the company pilot did not listen to Sam advice.
Clearly, it is a case of negligence law and therefore, the identification of legal issues are assessed.
White Ltd Company can sue Sam for delivering contaminated fuel that destroyed its aircraft and can claim financial losses from Sam. Blue Ltd Company may not claim the loss, but Safmarine Company may claim losses from Blue ltd and Blue ltd company may pass this liability to Sam. Green Ltd Company can claim financial losses from Sam.
The law of negligence and limitation of liability act 2008 purpose is illustrated for this purpose. This act protects Good Samaritan acts and reforms and consolidates aspects of negligence, mental harm, contributory negligence and liability of public authorities. The law defines that a person cannot be called negligent until the risks are foreseeable, the risks are significant, and a reasonable person will have taken precautions to avoid risks (“Law of negligence and limitation of liability act 2008 (NI),” n.d.). The court also determine that a rational person precautions against risks mitigation determines on these conditions such as probability of risks if the care is not taken, seriousness of harms, the burden of taking precautions, and social utility of the activity. The law also states that to determine the negligence has taken place, following elements such as negligence is the necessary condition of the occu
ence of harm and scope of liability.
Section15 of negligence law states that a person cannot be liable for negligence for the harm suffered by other person if the materialization of inherent risk takes place. Law states that an inherent risk is that risk that cannot be...

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