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Duty of Care and Pure Economic Loss in Negligence

TUTORIAL WEEK 8 Revision - Question 1 With reference to Caltex itself and the facts and judgment(s) of other cases studied this semester, explain the development of the test set out by Gibbs and Mason JJ in Caltex Oil (Australia) Pty Ltd v The Dredge 'Willemstad' (1976) 136 CLR 529, and critique its use in the determination of a duty of care for pure economic loss. Revision - Question 2 Rocco Riccardo is a personal assistant and works for Bernard Bucks, a Brisbane lawyer. Bernard refers to Rocco as his contractor, but Rocco does not work for anyone else and is paid an hourly rate from which tax is deducted. Rocco receives holiday and sick leave. Bernard instructs Rocco in the performance of Rocco's daily tasks. While Rocco is provided with a car and other items by Bernard to use for work related purposes, these remain the property of Bernard. Rocco does however buy his own post-it notes - upon which he writes reminders of the many tasks he is set. Bernard's office is in a suburb on the south side of Brisbane. One year ago, Rocco had to drive some documents into the Brisbane CBD to lodge them at the Family Court. After lodging the documents he remembered that it was his mother's birthday and so decided to buy, and deliver to her, some flowers on his way back to the office. His mother lives on the north side of Brisbane. While driving to his mother's house, the flowers that Rocco had purchased fell off the passenger seat and onto the floor of the car. Not wanting them to bruise and damage, Rocco negligently bent over to retrieve them off the floor. In so doing, he took his eyes off the road while driving through an intersection and crashed into a car driven by Olga Oswald. Olga sustained severe head injuries. Olga was a school teacher, and the accident occurred outside her school, just after 3pm as the children were going home. Olga is not married, but is good friends with her next-door neighbour of ten years Gregory Black. Upon hearing of the accident, Gregory rushed to the scene to see Olga. Gregory is very sensitive to the sight of blood from witnessing a childhood accident and seeing the blood from Olga's head injuries triggers an adverse reaction in him. Initially, he is very sad and cannot stop crying, but two months later, Gregory is diagnosed with a recognised psychiatric injury. 1. (a) With reference to relevant policy considerations, advise on Gregory Black's ability to establish that Rocco Riccardo owes him a duty of care in negligence. 2. (b) Assuming that Rocco Riccardo's driving was negligent as stated, advise Olga Oswald whether Bernard Bucks would be liable to her for the actions of Rocco Riccardo. Answering a question: Q1 - 7 mark question . Identification and statement of the "ascertained class" test set out by Gibbs and Mason JJ in Caltex and how it was applied to the facts