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Stewart, Pam; Stuhmcke, Anita --- "The rise of common law in statuory interpretation of tort law reform legislation: Oil and water or a milky pond?" [2013] UTSLRS 8; (2013) 21 Torts Law Journal 127

Last Updated: 16 May 2017


THE RISE AND RISE OF THE COMMON LAW IN STATUTORY INTERPRETATION OF TORT LAW REFORM LEGISLATION: Oil and Water or a Milky Pond?[*]



Legislation and the common law are not separate and independent sources of law; the one the concern of parliaments, and the other the concern of courts. They exist in a symbiotic relationship.[1]

The meaning of a statutory text is also informed, and reinformed, by the need for the courts to apply the text each time, not in isolation, but as part of the totality of the common law and statute law as it then exists....The attribution of meaning by courts to the statutory text in this way resembles the declaration and development by courts of the common law. The common law and statute law as applied by courts are, to a significant degree, products of the same inherently dynamic legal process.[2]

The common law world has long puzzled over the interplay between common law and statute. This article demonstrates nuance in the approach to statutory interpretation in the six cases decided by the High Court between 2009 and 2013 involving interpretation of the tort law reform legislation: Adeels Palace Pty Ltd v Moubarak; Adeels Palace Pty Ltd v Bou Najem[3], Strong v Woolworths Limited[4] and Wallace v Kam[5] Wicks v State Rail Authority of New South Wales; Sheehan v State Rail Authority of New South Wales[6] and Insight Vacations Pty Ltd v Young[7] and Hunt & Hunt Lawyers v Mitchell Morgan Nominees Pty Ltd[8]. The cases evidence that, in the interpretation of a single statute – the Civil Liability Act 2002 (NSW) - the High Court employs a diversity of statutory interpretation techniques which may be characterised as ranging between an ‘oil and water’ approach (to those statutory provisions which limit or abrogate previous common law rules and rights) to a ‘milky pond’ approach (where the common law is used analogically to interpret and develop statute law). This article argues that the employment of this range of techniques underlines the view that legislation and common law cannot be seen as separate and independent simply because of their independent sources. Rather they ‘exist in a symbiotic relationship’[9] as ‘products of the same inherently dynamic legal process’. [10]



Introduction

It has more often than not, been taken as a given that because statute law and common law originate from two separate arms of government each source of law must necessarily be applied by the judiciary in divergent ways. Consequently it has largely been accepted by commentators that any understanding of the relationship between statute and common law should start from a point of difference rather than similarity.

This article argues that a preferable approach to the relationship between statute and common law is that of viewing both sources of law as emanations of the common law legal tradition of which they are part. The relationship between statute and common law springs from both a coherent and shared legal heritage where sameness rather than difference needs to be emphasized as the starting point for judicial application. In this article we focus on the development of the tort of negligence where recent statutory reforms introduced across Australian jurisdictions provide a welcome opportunity for exploration of the relationship between common law and statute in an area of tort law which has traditionally been regarded as common law based.[11]

Part 1 discusses the complex and evolving relationship between statute and common law. The Australian High Court approach to tort reform legislation is supported in other common law jurisdictions where progress toward an integrated relationship between statute and common law is recognised. For example Professor Burrows, writing with respect to the relationship in England between common law and statute and the law of obligations, has recently expressed a desire to ‘shatter once and for all the myth that common law and statute are very separate bodies of law that should not be treated as if merged in an integrated whole’.[12] Professor Burrows used particular aspects of the law of obligations in England to demonstrate that statutes are both dependant on the common law and are themselves a source of common law development.[13] We demonstrate a similar effect in Australian negligence law, which is now uniquely positioned to enable examination of the complex relationship between statute and common law following Australia wide tort law reform statutes enacted from 2002 onwards. Our examination of six recent Australian High Court decisions on the interpretation and application of the tort reform legislation demonstrates an exceptional synergy and interrelationship between the common law and statute in Australian negligence law: a relationship that depicts a degree of integration over an entire fabric of law. Previous commentators such as Professor Burrows and Professor Beatson,[14] have pointed to specific examples of individual statutory provisions or of decisions in the case law on discrete rules, to demonstrate the changing relationship between statute and common law. But what we are seeing in Australian negligence law in the 21st century may be described as movement towards a more organic fusion of statute and common law. Moreover we argue that the common law is being elevated to a position of prominence and influence by virtue of its use as context (in statutory interpretation) and as a guide to meaning of statutory provisions and even perhaps, to enable analogical development of the statute law.

Part 2 considers statutory interpretation methodology in the High Court and the way Australian High Court judges have characterised the approach to statutory interpretation in subtly different ways. Importantly however, as Chief Justice Spigelman in NSW notes ‘applying the principles of statutory interpretation is always a matter of emphasis and nuance. There have been differences in judicial approaches to the task over time. These transitions are hard to detect.’[15] The interpretive approach of the High Court which we identify with respect to tort law reform legislation is both fluid and flexible. Our analysis of the interplay between statute and the common law will facilitate understanding of a relationship which ‘has traditionally been woefully underexplored by commentators’[16] and point to the possibility of an emerging concurrence between courts and legislatures in the recent development of negligence law. The benefit of this approach is to concentrate debate upon the law as it is, both common law and statute – rather than to apply the law by reference to its institutional contexts - exposing as fallacious any imputed omniscience of parliament. It thus allows a more frank understanding of the issues discussed in the six cases before the High Court which have concerned the tort law reform legislation to date.

Part 3 discusses six cases decided by the High Court between 2009 and 2013 all of which concerned interpretation and application of provisions in the NSW tort reform legislation. Three cases are decisions concerning the element of causation in negligence law: Adeels Palace Pty Ltd v Moubarak; Adeels Palace Pty Ltd v Bou Najem[17] Strong v Woolworths Limited[18] and Wallace v Kam[19]. Each decision thus concerns establishing an essential element of the cause of action in negligence. This article observes that in each decision, the common law of negligence provides the context for statutory interpretation in informing the development and application of the tort of negligence. This common law contextual reading of the tort law reform legislation becomes abundantly clear when juxtaposed with the literal textual reading of the tort law reform legislation in the remaining three High Court decisions discussed in Part 3: Wicks v State Rail Authority of New South Wales; Sheehan v State Rail Authority of New South Wales[20] and Insight Vacations Pty Ltd v Young[21] and Hunt & Hunt Lawyers v Mitchell Morgan Nominees Pty Ltd[22] . These cases concern specific aspects of the legislation that do not centre on the establishment of an essential element of the cause of action but rather on statutory alteration or curtailment of previous common law. This type of binary approach to the interpretation of statutes in the Australian context was recognised by Professor Finn[23] who favoured liberal interpretation of statutes consonant with common law and strict interpretation of statutes antithetical to common law.[24]

We conclude that in the law of negligence the Australian High Court is demonstrating an attitude toward the inter-relationship of the common law and statute which is quite unprecedented. It adopts a more unifying approach to these two primary sources of law than has previously been the case with an avowal of the primacy of the common law as context for the statutory reforms.


1. The Complex and Evolving Relationship between Common Law & Statute

The relationship between common law and statute is an issue as old as Coke and Blackstone[25] who saw the two as completely separate and independent sources of law. Yet, Roscoe Pound[26] writing in 1908 took the view that eventually legislation would be received fully into the body of the common law providing a ‘direct expression of the general will of superior authority to judge made rules’[27] and therefore offering principles from which to reason by analogy in developing the common law. He accepted however that the then orthodox common law attitude to legislation was to apply it strictly, narrowly and rigidly and only in those cases to which it directly applied.[28] Between these extremes (the first and fourth possibilities in Pound’s propositions), Pound identified two other possible accommodations between common law and statute. The second was that statute law might be received fully into the body of common law as equal in authority to judge made law with the use of analogy to develop the common law. The third possibility was that statute law might be liberally interpreted but without being fully accepted into the common law so as to prevent analogical reasoning.

Espousing a view similar to Pound’s ideal, US Chief Justice Stone spoke in 1936 about the ‘ideal of a unified system of judge-made and statute law woven into a seamless whole by the processes of adjudication’[29] but lamented that judges at the time were ‘destructive critics’ of the inadequacies of legislatures.[30] Writing more recently in 1977, Sir Rupert Cross[31], suggested that English law had achieved the second of Pound’s possible accommodations of statute law (the full receipt of statute law as equal to judge made law with the use of analogical reasoning from statute to develop the common law) and that possibly even the ideal of full reception of statute law as superior authority to judge made law, had been achieved.

Yet, writing in 1985 Professor Atiyah[32] took issue with Cross and suggested that what might be apparent analogical development of the common law from statute, in some instances was in fact the application of pre-existing common law rules and that English law had not achieved any serious fusion or integration of common law and statute law[33] at least by the late 20th century. He cautioned against the use of statutes as analogy or extension of statutory operation indirectly by reformulation of the common law and opined that Pound’s identified methods by which statutes might be received into the full body of law was ‘not a general across the board solution’.[34] Atiyah pointed to ‘declaratory acts’ (statutes that ‘declare’ the common law) which were interpreted and applied as though the acts ‘remained largely a matter of common law’[35] whilst the common law continued to be developed independent of the statute.[36] He did acknowledge however that ‘the development of the law always must involve some degree of mutual co-operation between parliament and courts’.[37]

This scholarly view, of cooperation or perhaps partnership between common law and statute is enhanced by Professor Beatson writing in 1997.[38] He considered the vitality and future of the common law from the English perspective and concluded that the ‘oil and water’ view of the relationship between common law and statute - the Coke and Blackstone notion that the two are parallel but completely separate – was no longer tenable. He noted that modern law was ever more ‘an amalgam’ of common law and statute given that so much statutory reform, particularly of private law, is not by codification but by the statutory correction of specific defects (which he stated had been described as ‘legislative microsurgery’).[39] Beatson was, like the eminent commentators before him, most concerned with the question of when statute law might be used analogically to develop the common law. He suggested that if a ‘purpose’ approach to statutory interpretation were employed, then a principle might be drawn from a statute and that identified principle could then be employed in aid of development of the common law. He used the example of the decision in X (Minors) v Bedfordshire County Council[40] where the House of Lords declined to impose a duty of care in negligence because the circumstances were ‘profoundly influenced by the statutory framework within which the acts complained of were done’ (at 739 per Browne-Wilkinson LJ).[41]

The converse position is that common law principles may be relevant to the interpretation of statutory reforms of the common law. Beatson recognised this as the ‘default’ rule[42] and noted the common law technique of the gradual development of a body of case law continued, as courts interpreted and applied statutory provisions.[43] Most recently Professor Burrows took this analysis further and referred to this as ‘statute based common law.’[44] Burrows, recognised that there is a very different enquiry from that addressed previously by the scholars, in the case of common law analogies being used to interpret statutes[45]. He wrote that use of common law in this way should be encouraged to promote consistency between common law and statute and because the common law ‘has been carefully crafted and is likely to be both principled and practically workable’.[46]

In the Australian context, Finn referred to Pound’s work and suggested that the common law should not be ‘subservient to legislation’[47] and that it should not exist ‘under the shadow of legislation’.[48] He suggested that each of Pound’s four categories concerning the relationship of statute and common law can be identified in instances in Australian law. He stated that where a statute is ‘antithetical to a fundamental theme in common law’ then it should be interpreted strictly and not used analogically and should be subject to common law doctrines which serve to protect rights or avoid unfairness. Conversely, where a statute is “consonant” with common law then it should be interpreted liberally, may be used analogically and if in broad terms, it may be limited by common law doctrines.[49] We argue that this analysis is demonstrably accurate in the case of Australian tort reform legislation as applied by the High Court in the cases discussed in Part 3.

Professors Peter Cane and Barbara McDonald have separately considered the interface between the Australian tort reform legislation and the common law. Professor Cane has recognised that ‘the legislation necessarily operates against the backdrop of all the law – both judge made and statutory.’[50] In a similar vein Professor McDonald opined that ’reference to the common law background and principles is necessary ... to put the new provisions in their proper operational context.’[51]These comments foreshadowed the approach of the High Court which we identify and discuss in Part 3.

In 21st century Australian tort law, common law and statute have become considerably more integrated than in the past, but nevertheless we have not reached Stone’s ideal unified system or Pound’s full reception of statute into the common law. Rather, in the case of tort reform statutory provisions which concern essential elements in the tort of negligence we are seeing progress toward a full reception of the common law into statute law: a reverse of the process considered by the old scholars. Here the common law is used analogically in the interpretation and application of the statutory provisions. This view encapsulates a kind of milky pond approach to the interpretation of tort law reform legislation rather than the oil and water view referred to by Beatson: the notion being that the tort law reform legislation has been incorporated into the pre-existing and much larger body of common law, a pond, where it dissipates and disappears at one extreme (with the common law being used analogically to interpret and develop statute law). Yet it remains opaque and indissoluble at the other extreme, in the case of those statutory provisions which limit or abrogate previous common law rules and rights.

2. Statutory interpretation methodology in the High Court of Australia

A full body of scholarship by past and present Australian members of the judiciary explores judicial interpretation of statutes: perhaps unsurprising given that ‘the construction of statutes is now, probably, the single most important aspect of legal and judicial work’.[52] For example, Chief Justice Spigelman of NSW, and Justices Gageler and Kirby, present and past members of the High Court, have tackled, extra-judicially, the modern approaches to interpretation of statute by the judiciary. Their Honours each emphasized that statutory interpretation is not static and that the methodology adopted by the courts is nuanced and sometimes difficult to identify. Nonetheless, each has coined a description of the current style of High Court interpretation.

Chief Justice Spigelman has applied the phrase from ‘text to context’ to describe the shift which has taken place in judicial approaches to statutory interpretation in Australia.[53] His Honour noted that while there is ‘nothing new about emphasizing context and purpose in the interpretation of words’[54] this approach has coincided with a ‘gradual abandonment of literalism in favour of the ‘purposive approach’, stimulated by legislative instructions and encouraged by a greater judicial willingness to use extrinsic materials to assist in the task of construction’.[55] His Honour however remained mindful that:

The task of the courts is to interpret the words used by parliament. It is not to divine the intent of the parliament. The courts must determine what parliament meant by the words it used. The courts do not determine what parliament intended to say.[56]


Justice Kirby also observed that this movement from a strict approach of mandating a so-called ‘plain meaning’ and ‘grammatical’ interpretation of statutory language towards a looser and more flexible approach was underway in the courts in the 1980s around the time that the Interpretation Acts were introduced into most Australian jurisdictions.[57] As Justice Kirby wrote ‘Today, that task requires a combined exercise involving analysis of the text, context and purpose (or policy) of the statute in question.’[58] His Honour noted that:

...the shift in statutory interpretation, and for that matter constitutional interpretation, that has occurred in recent decades can be summarised with a Biblical analogy, for judges, practising lawyers and legislative drafters endeavouring to see through a glass darkly into the meaning of words: And now abideth text, context, purpose, these three; but the greatest of these is text.[59]

Justice Gageler is part of this judicial triumvirate in identifying that:

The approach now ascendant in Australia has been labelled 'literal in total context': it explains statutory interpretation in terms of the attribution of meaning to the words of a statutory text in the totality of the 'context' in which the statutory text was enacted.[60]


While their Honours’ emphasis upon a movement away from literalism towards context is acknowledged, the complexity of the issue lies in the degree to which context has influenced statutory interpretation. While we agree with Professor Finn, that the High Court is not of one purpose and of one mind on this matter[61] the next Part of this article confirms this complexity and argues that legislative reform of negligence law in Australia has become, through the High Court application of the common law context, truly an amalgam of legislation and common law. It is evident in the case analysis which follows that the Australian High Court has completely abandoned any ‘oil & water’ approach to the relationship between tort legislation and common law and view the tort reform statutes and the common law as inextricably intertwined –certainly insofar as the establishment of the essential element of causation in the law of negligence is concerned. In Australia today the common law of negligence can be used not only as ‘context’ in the traditional statutory interpretation method but is elevated to a primary position for the purpose of analogical interpretation and application of the reform statutes with respect to establishing the element of causation. The common law might be seen as a kind of preface or as a most unusual kind of explanatory memorandum to the legislation: a very complex one drafted by the courts carefully over a long period.

3. The High Court Tort Law Reform Cases

In analysing the six cases which have come before the High Court with respect to the tort law reform legislation we do not intend to provide a restatement of the law of statutory interpretation. Indeed in each decision discussed, the Court resolves a narrow question with respect to the issue at hand. But we contend that these decisions evidence a methodology which demonstrates a relationship between common law and statute that is surprisingly unified, with common law as context guiding the application of statutory rules concerning the elements of the cause of action in negligence. Yet, at the same time the High Court adopts a literal approach to interpretation of provisions which limit or abrogate common law rules.

(a) Decisions on the ‘framework’ provisions on causation and establishing an essential element of the cause of action in negligence: let the common law be our context

As noted in the Introduction, three of the six tort reform cases before the High Court have considered the statutory formulation of causation in section 5D Civil Liability Act 2002 (NSW) and the common law. [62] In these cases on causation the High Court takes the view that s 5D guides but does not displace common law methodology.[63] This view appears to be consistent with the Ipp Report recommendation of ‘legislative guidance’[64] of the type embodied in s 5D (though that section is in very different terms to those suggested in the Ipp Report). The Ipp Panel states that such an enactment would ‘suggest to courts a suitable framework in which to resolve individual cases’[65]. On this issue Professor Jane Stapleton[66] observes that:

There is nothing in the post Ipp Report civil liability legislative provisions dealing with either factual causation or scope of liability that inhibits the future recognition of special rules of proof or the enunciation of guiding principles governing the scope of liability. In relation to both, the legislation is best seen as reporting the legitimate law making role of the courts, save with the caveat that the courts must enunciate the considerations that have been taken into account. Beyond that, the legislation properly “offers no further guidance about how the task is to be performed”. In these cases and despite superficial variations in statutory language, the critical role of the High Court in nurturing and developing a national system of common law remains undiminished.

The three cases on causation illustrate a kind of dissipation or absorption of the tort law reform legislation into the body of common law on causation as well as the vibrance of the common law, and as Stapleton notes, the ‘undiminished’ role of the High Court in developing the common law.

The first case where the High Court considered the issue of causation, in particular the relationship of section 5D of the Civil Liability Act 2002 (NSW) to the common law, is Adeels Palace Pty Ltd v Moubarak; Adeels Palace Pty Ltd v Bou Najem.[67] The case, dealt with the issue of the liability of the landlord, Adeels Palace to provide security personnel at its restaurant on New Year’s Eve. Two plaintiffs were shot by a gunman at the venue, arguing before the High Court that their personal injury was a result of the failure of Adeels Palace to hire sufficient security personnel to prevent access to the premises by the gunman. The plaintiffs were unsuccessful as the unanimous judgment of the Court reasoned that the provision of more security personnel would probably not have prevented the entry of the gunman or the shooting of the plaintiffs.

The Court had to examine the interplay between the common law and section 5D (1)[68] which provides:

General principles

(1) A determination that negligence caused particular harm comprises the following elements:

(a) that the negligence was a necessary condition of the occurrence of the harm ("factual causation"), and

(b) that it is appropriate for the scope of the negligent person’s liability to extend to the harm so caused ("scope of liability").


In reference to the application of this provision, the Court held:

The first point to make about the question of causation is that, in these cases, it is governed by the Civil Liability Act.

Section 5D (1) of that Act divides the determination of whether negligence caused particular harm into two elements: factual causation and scope of liability.

Dividing the issue of causation in this way expresses the relevant questions in a way that may differ from what was said by Mason CJ, in March v Stramare (E & M H) Pty Ltd, to be the common law's approach to causation. The references in March v Stramare to causation being "ultimately a matter of common sense" were evidently intended to disapprove the proposition "that value judgment has, or should have, no part to play in resolving causation as an issue of fact". By contrast, s 5D (1) treats factual causation and scope of liability as separate and distinct issues.

It is not necessary to examine whether or to what extent the approach to causation described in March v Stramare might lead to a conclusion about factual causation different from the conclusion that should be reached by applying s 5D(1). It is sufficient to observe that, in cases where the Civil Liability Act or equivalent statutes are engaged, it is the applicable statutory provision that must be applied.

Next it is necessary to observe that the first of the two elements identified in s 5D (1) (factual causation) is determined by the "but for" test: but for the negligent act or omission, would the harm have occurred?[69]

And then the High Court stated that:

...the “but for” test of factual causation was not established. It was not shown to be more probable than not that, but for the absence of security personnel (whether at the door or even at the floor of the restaurant) that the shooting would not have taken place....[70]

It is worth quoting the above in full (with footnotes omitted) as the High Court here demonstrates an interesting interaction between the common law and statute. The Court identifies that the issue of causation is ‘governed by the Civil Liability Act and then deliberately leaves open ‘whether and to what extent’ the existing common law March v Stramare[71] approach to causation might produce a different result from section 5D. The High Court then embeds into section 5D (1) the common law ‘but for’ test by replacing the words ‘necessary condition’ with the pre-existing common law terminology of ‘but for’. Whilst acknowledging that the Latin ‘causa sine qua non’, was known to the common law as ‘but for’ and that it is oft translated as ‘a necessary condition’[72], so that the two have been practically interchangeable, it is indicative of an attitude to the common law that the High Court chooses to continue to use the common law terminology in preference to the words of the section.

Both steps of interpretation taken in this case – to leave open the application of the common law ‘common sense’ test to causation in March v Stramare and to embed the common law terminology of ‘but for’ into section 5D(1) Civil Liability Act confirm that the causation provisions of the legislation make little practical difference to the common law. Indeed the approach elevates the common law context to a position of primacy in the interpretation of the statute – dissolving or absorbing the statute into the common law of negligence. This argument finds some support in the following brief exchange between Chief Justice French and Counsel in the transcript from the hearing of the case: [73]

FRENCH CJ: We have had more than one case in which the Civil Liability Act applied. Nobody seems to want to talk about it much.

MR CAMPBELL: I was in court when your Honour Justice Gummow spoke about the Bar being a bit slow to latch on to this, but could I say, your Honours, by way of interpolation, that often the view has been taken – perhaps erroneously no doubt in a particular case – that the provisions do not make much practical difference, but that may not be a correct approach.


The Adeels integration of the pre-existing common law test into s 5D Civil Liability Act (NSW) is echoed[74] in the subsequent decision of Strong v Woolworths Limited[75] where the High Court by majority of 4 (French CJ, Gummow, Crennan & Bell JJ) to 1 (Heydon J dissenting) allowed the appeal of the plaintiff Mrs Kathryn Strong against Woolworths.

In Strong the plaintiff’s right leg had been amputated above the knee some years before the accident the subject of the case so she walked with the aid of crutches. On a Friday about 12.30 pm in September, 2004 she slipped and fell when one of her crutches slipped on a greasy ‘French fry’ chip on the floor of a shopping mall. The plaintiff suffered a back injury. The area where the plaintiff slipped was a sidewalk sales area outside the entrance to the Big W store which was not far from the food court. The sidewalk sales area was used by and was under the control of Big W. The area had not been inspected or cleaned in the 4 ½ hours before the plaintiff was injured. Woolworths had no system in place for the periodic inspection and cleaning of the area.

The main issue before the High Court was whether the Court of Appeal was correct in concluding that it was not open on the evidence, to apply the ‘probabilistic reasoning’ adopted in Shoeys Pty Ltd v Allan[76] (another case of slipping down on a dirty floor in a shop). That reasoning allows the onus of proof upon the plaintiff to be discharged by a consideration of the probabilities, as to how long the substance on which the plaintiff slipped might have been on the floor, in circumstances in which the evidence did not establish when it was deposited.

The NSW Court of Appeal[77] concluded (having regard to evidence of other cleaning arrangements in the Mall) that reasonable care warranted periodic inspection and necessary cleaning at 15 or not less than 20 minute intervals. The NSW Court of Appeal held, applying s 5D Civil Liability Act 2002 (NSW), that Mrs Strong had failed to prove that the failure of Woolworths to have the 15/20 minute cleaning system in place, had caused the fall[78]. The High Court reversed the Court of Appeal finding holding that the plaintiff’s onus of proof could be discharged by consideration of the probabilities where the evidence did not establish when the chip was dropped. The High Court held that on the balance of probabilities, the chip had been on the floor for longer than 20 minutes, so that if Woolworths had a proper system of inspection and cleaning in place, the chip would probably have been discovered and removed before the plaintiff’s fall. The plaintiff was therefore entitled to succeed.

Despite overturning the Court of Appeal decision, the High Court held that the Court of Appeal was correct in its approach to causation under s 5D(1) Civil Liability Act 2002 (NSW). It is noteworthy that the Court of Appeal held that the statutory test had ‘continuity’ with the previous common law stating:

The test for causation under section 5D(1)(a) has some measure of continuity with the previous common law, because if A is a necessary condition for the occurrence of B, one can always say that B would not happen but for A.[79]


And further observed:

It is only if the “necessary condition” test in section 5D (1)(a) is satisfied that there can be causation within the meaning of section 5D(1).[80]

The High Court appeal did not clarify the extent to which other common law notions about causation were encompassed by s 5D Civil Liability Act 2002 (NSW)[81] however the majority justices held that s 5D (1) (a) is ‘a statutory statement of the ‘but for’ test of causation’[82] , referring to Adeels Palace v Moubarak.[83] Further, in Strong the Court articulated the lack of coverage of common law rules in the Civil Liability Act stating that:

As earlier noted, the limitations of the "but for" analysis of factual causation include cases in which there is more than one sufficient condition for the occurrence of the plaintiff's injury. At common law, each sufficient condition may be treated as an independent cause of the plaintiff's injury. The Ipp Report noted the conceptual difficulty of accommodating cases of this description within a "but for" analysis, but made no recommendation because the common law rules for resolving cases of "causal over-determination" were generally considered to be satisfactory and fair. How such cases are accommodated under the scheme of s 5D does not call for present consideration. (references omitted).[84]

In summary, in Strong as in Adeels, the High Court acknowledges the strong interplay between the pre-existing common law of causation and the tort law reform legislation. The Court is actively looking for similarities and parallels between the common law and the statutory provisions and recognising the very close inter-relationship between the two: the melding of common law and statute.

This point is captured in an interchange between Justice Gummow and Mr Toomey, QC (the appellant’s counsel) in the High Court transcripts[85] where His Honour asks ‘..does 5D(1) do any more than restate succinctly what everyone knew?’

GUMMOW J: This expression “necessary condition” where does that come from? What is the provenance of it? ... I do not think the people drafting this were writing on a blank slate.

MR TOOMEY: It has been so interpreted, your Honour, by the New South Wales courts before this case and the New South Wales Court of Appeal had said, well, it just states the common law.
The final case on causation is Wallace v Kam[86], another unanimous joint judgment from the High Court of Australia on the question of causation under s 5D Civil Liability Act 2002 (NSW). In this judgment, the High Court as in Adeels and Strong does not make any reference to the principles of statutory interpretation, or to the parliamentary context in which the legislation was enacted or to any extrinsic material (with a single footnote reference to the Ipp Report[87] in respect of a statement about the common law[88]. The Court clearly did not consider that reference to such extrinsic material was warranted or justified in order to discern the purpose of the provision and in the event that the meaning of the provision was not in doubt, then consideration of such material would be inappropriate.

Wallace v Kam was a medical failure to warn case. The defendant neurosurgeon had negligently failed to warn the plaintiff of two inherent risks of a surgical procedure. One of the two risks, a painful though temporary condition called neurapraxia eventuated. The other more serious risk of permanent catastrophic paralysis did not eventuate. The trial judge found that the plaintiff would have undergone the surgery even if warned of the risk of neurapraxia. The trial Judge made no finding of fact about whether the defendant had failed to warn the plaintiff of the more serious risk of paralysis or what the plaintiff would have done if warned of such risk. The Trial Judge held that any failure to warn of the more serious risk which did not eventuate, could not have been the legal cause of the neurapraxia.

The High Court held, upholding the NSW Court of Appeal decision, that the surgeon’s failure to warn of one risk (which the patient would apparently not have taken and so would not have had the surgery at all) could not be a cause of the materialisation of a different risk (one which the patient was prepared to take). The High Court held that s5D of the Civil Liability Act 2002 (NSW) (which it noted is substantially replicated in each Australian State and the A.C.T.) requires that the two questions as to causation, previously addressed at common law, should be kept distinct: firstly, the “historical fact as to how particular harm occurred’ and secondly, the ‘normative question as to whether legal responsibility ...should be attributed to a particular person.’ [89] The Court stated that the distinction between the two issues was often ‘overlooked in the articulation of the common law’, and in support of this statement references the Ipp Report as well as several common law cases[90].

The High Court emphasised that the determination under s 5D (1)(a) that negligence was a necessary condition of harm is ‘entirely factual’ whereas the determination under s 5D (1)(b) as to scope of liability is ‘entirely normative’.[91] Further the Court held, referring to the judgment of Allsop, P in the Court of Appeal,[92] that the determination of factual causation under s 5D(1)(a) ‘should not incorporate policy or value judgments’ which ‘considerations naturally fall within the scope of liability analysis in s 5D(1)(b)’.[93] Referring to Strong v Woolworths[94] the Court reiterated that a finding of factual causation under s 5D(1)(a) ‘involves nothing more or less than the application of the “but for” test of causation.’[95]

The High Court then considered three factual scenarios presented by previous cases, all decided at common law[96] and analysed each by reference to s 5D[97] concluding that in a case falling within an established class ‘the normative question’ posed by s 5D(1)(b) is ‘properly answered ...through the application of precedent’[98]and further that ‘section 5D guides but does not displace common law methodology.’[99] The Court then held that ‘the common law method is that a policy choice once made is maintained unless confronted and overruled’[100] thereby mandating the use of common law precedent on policy choices.

The Court then turned to the normative question posed by s 5D(1)(b) and how it should be approached in a novel case and held that s 5D(4) requires the court explicitly to ‘consider and to explain in terms of legal policy whether or not, and if so why, responsibility for the harm should be imposed on the negligent party.’[101] This statement about s 5(4) interposes the words and to explain in terms of legal policy into the words of the section which says ‘the court is to consider (amongst other relevant things) whether or not and why responsibility for the harm should be imposed on the negligent party’. The Court did not rely upon any principle of statutory interpretation in order to read these added words into the section. Rather it relied upon two common law decisions[102] to determine that what is required ‘is the identification and articulation of an evaluative judgment by reference to ‘the purposes and policy of the relevant part of the law.’[103]The Court cautioned that ‘resort to "common sense" will ordinarily be of limited utility unless the perceptions or experience informing the sense that is common can be unpacked and explained.’[104]


The High Court then considered what is the ‘limiting principle of the common law’ with respect to the scope of liability of a medical practitioner for failure to warn of a risk[105] and concluded that it is not necessarily appropriate for liability to ‘extend to every physical injury which represents the materialisation of a risk about which it is the duty of the medical practitioner to warn.’[106] The Court looked to the common law policy underlying the medical practitioner’s duty to warn of risks and held that it was ‘to protect the patient from the occurrence of physical injury the risk of which is unacceptable to the patient.’[107] Given that the Court held that the scope of liability for breach of duty should reflect that underlying policy, the normative judgment which the Court made pursuant to s 5D(1)(b) was that the surgeon’s liability should not extend to ‘harm from risks that the patient was willing to hazard.’[108] Accordingly, the negligence of the surgeon was held not to be the ‘legal cause’ of the plaintiff’s injury.[109]

Wallace v Kam is of particular significance because it provides an insight into the methodology which the High Court sees as prescribed by the causation provision in s 5D Civil Liability Act 2002 (NSW). The Court sees the common law as integral to the normative judgment to be made pursuant to s 5B(1)(b) through the application of precedent to policy choices.

Wallace v Kam may be seen as an example of analogical reasoning of the reverse kind from that predicted by Pound.[110] Here analogy from the common law is influencing the interpretation and application of the statute. Arguably, the decision represents a reception of the common law into the statutory provision which is the reverse of the process considered by the old scholars, where it was thought that statue would be used analogically to develop common law. In this instance the common law is being used analogically to interpret and apply statute law. The High Court treats the tort reform legislation and the common law of negligence as inextricably intertwined, certainly insofar as the establishment of the essential element of causation is concerned.

The High Court has emphasised in recent years the need to ensure coherence of the common law and statutory rules, particularly with respect to the imposition of a duty of care in novel cases of negligence. In Sullivan v Moody[111] the court recognised ‘the need to preserve the coherence of other legal principles or of a statutory scheme which governs certain conduct or relationships’.[112] The same consideration has been recognised in Stuart v Kirkland-Veenstra[113] and New South Wales v Fahy[114] and Miller v Miller.[115] In all these cases the court stressed the objective of ensuring that the imposition of a duty of care in negligence should engage the ‘root principle’ that is ‘captured by any of the expressions "incongruity", "contrariety" or "lack of coherence”.’[116] So development of the common law of negligence must have regard to statutory regimes applying to certain types of relationship and also to principles applicable in other branches of the law including equity and contract.[117] This approach is consistent with the approach described above concerning the inter-relationship between the tort reform legislation and the common law where the court uses the common law context to inform the interpretation and application of the legislation. Indeed, Professor McDonald observed in 2005 that it would be ‘important for advocates and judges to look past the statutory wording to the common law context within which the enactments operate and to promote and restore coherence in the tort of negligence.’[118]The High Court attitude to the integration of common law concepts into the causation provisions of the tort reform legislation certainly promotes coherence between the two streams of law and is in keeping with established High Court doctrine concerning the application of the law of negligence.

There is a converse issue about the coherence of the legislation with the common law as recognised by Professor Cane who has written that:

Legislation necessarily operates against the backdrop of all the law – both judge made and statutory – existing at the time it is enacted and this severely limits the extent to which the legislature can afford to ignore considerations of coherence and consistency in drafting any particular statute.[119]


So the application of the tort reform legislation in a manner consistent with the common law and informed by the common law is a positive step toward achieving coherence of statute and common law in the negligence sphere. Moreover, it is indicative of progress toward a degree of unification of statute and common law which has not been seen previously.

(b) Decisions about provisions which limit the common law and do not determine an element of the cause of action in negligence: let the words speak for themselves.


It is interesting to juxtapose the above decisions on causation with three decisions that turn on provisions of the tort law reform legislation which do not deal with the elements of the cause of action in negligence but which diminish or alter aspects of the common law. Again, the cases concern the Civil Liability Act 2002 (NSW). As the analysis which follows highlights, these decisions place much more emphasis upon the textual reading of the statutory provision rather than the common law context. We contend that this is because the relevant provisions limit common law rights and there is consequently less opportunity or imperative for the High Court to adopt an approach which has the effect of unifying the two streams of law. As Professor Finn noted if a statute is ‘antithetical to a fundamental theme in common law’ it should be interpreted strictly.[120]

Chronologically, the first of these cases is Wicks v State Rail Authority of New South Wales; Sheehan v State Rail Authority of New South Wales[121] (Wicks) where the High Court provided guidance upon how to approach Part 3 of the Civil Liability Act 2002 (NSW) which covers liability for mental harm. The practical outcome of the decision is that the tort law reform legislation (while not identical throughout Australian jurisdictions) is to be interpreted consistently with the common law.

The case involved a claim for mental harm by police involved in a rescue operation following a train disaster. Two policemen, Mr Wicks and Mr Sheehan were amongst the first to arrive to assist the dead and injured at the site of the accident where a commuter train derailed leaving 7 dead and many seriously injured. Both men arrived at the scene at around 7am and left at 2-3pm and claimed various forms of psychiatric disorder as a result.

The defendant, the State Rail Authority (SRA), admitted negligence but argued no liability on the basis of section 30(2) of the Civil Liability Act 2002 (NSW) which is in the following terms:

(2) The plaintiff is not entitled to recover damages for pure mental harm unless:
(a) the plaintiff witnessed, at the scene, the victim being killed, injured or put in peril, or
(b) the plaintiff is a close member of the family of the victim.

This section is referable to much earlier statutory reform of the common law with respect to psychiatric injury in NSW, and is similar to the former provision in s 4 Law Reform (Miscellaneous Provisions) Act 1944 (NSW) (and similar legislation in the Australian Capital Territory and the Northern Territory), which extended the common law applying at the time of enactment (in 1944) rather than limited it.[122] Subsequently, the nature of the common law duty of care was expanded by the courts[123] so the new provision represents a limitation on common law rights to recovery for purely psychiatric injury. Being a limiting provision, we argue that the approach of the High Court is to focus on a literal interpretation of the section rather than to situate the provision within a larger common law context.


In Wicks the SRA argued that the policemen were unable to claim they witnessed any of the victims ‘...being killed, injured or put in peril’ as required by s30(2)(a). The SRA argued that the word ‘being’, in the present tense, meant that the appellants had to be at the scene at the moment at which a person was being killed, injured or put in peril – and that it followed that because the appellants arrived at the scene after the accident they were prevented from recovering under the section.

The High Court rejected the SRA’s argument observing that:

It would not be right, however, to read s 30, or s 30(2)(a) in particular, as assuming that all cases of death, injury or being put in peril are events that begin and end in an instant, or even that they are events that necessarily occupy only a time that is measured in minutes. No doubt there are such cases. But there are cases where death, or injury, or being put in peril takes place over an extended period. This was such a case, at least in so far as reference is made to victims being injured or put in peril.[124]

In reaching this conclusion the High Court noted the absence of extrinsic materials to assist with interpretation, specifically observing that section 30 does not take a form recommended by the Ipp Report and that the Second Reading Speech contains ‘no useful statement about why s30 takes the form it does.’[125] The approach taken by the High Court ignores the legislative motivation of the legislation and instead refers to the words Parliament used. This is again demonstrated in the transcripts to the case:[126]

GUMMOW J: The first question about section 30 is headed “Limitation on recovery for pure mental harm arising from shock”, right?

MR MORRIS: Yes, your Honour.

GUMMOW J: This Act cuts down common law rights.

MR MORRIS: It does, your Honour.

GUMMOW J: Why should it be given a generous interpretation?

MR MORRIS: Well, your Honour, it has to be given an interpretation within the meaning of its words.

GUMMOW J: Of course.

Here, in this exchange at the hearing of the special leave application, Justice Gummow accepts that the words of the statute have primacy. This interchange demonstrates the truth of Justice Spigelman’s extra-judicial observation that ‘the task of the courts in statutory interpretation is to determine what Parliament meant by the words it used. The courts do not determine what parliament intended to say’[127]: a point which accords with Justice Kirby’s extra-judicial observation that:

The context of contested legislation may appear to point in a particular direction. The purpose of the legislation may arguably point in the same direction. But if the text of the legislation points with sufficient clarity in a contrary direction, the

judge, in Australia, will normally give primacy to that language. He or she will

override the inclination to which context, purpose (and on one view the text)

might otherwise point the judicial decision-maker.[128]


Of course the exchange above between Justice Gummow and the Bar also demonstrates the truth of the observation by Posner that the judge ‘usually begins not with the language of the statute but with some conception of its subject matter and likely purpose...He is right to do so, because it is impossible to make sense of statutory language without some context.[129] In making this observation Posner is not denying the importance and often decisive nature of the words of the statute but rather recognising that a judge will often begin somewhere else. In the Australian context Posner’s observation has been recast by Justice Spigelman who has acknowledged that ‘[I]t has long been accepted that words do not exist in limbo.’[130]

In the second decision, Insight Vacations Pty Ltd v Young[131], the High Court again adopts a literal approach to interpretation of the statute in a short, unanimous decision of 40 paragraphs. This case concerned an exclusion clause in a contract for the provision of recreational services by Insight to the plaintiff who was injured while in Europe on a bus tour operated by Insight. The clause exempted Insight from liability in respect of an accident where the passenger in a motor coach was not wearing a provided seat belt. The plaintiff fell whilst onboard a tour coach when she was standing up to retrieve an item from an overhead locker and the driver braked suddenly. The plaintiff sued for damages for breach of an implied contractual warranty (pursuant to section 74 of the Trade Practices Act 1974 (Cth)) as to services being rendered with due care and skill. The decision in this case concerned section 5 Civil Liability Act 2002 (NSW) (which provides that a term in a contract for supply of recreation services may exclude, restrict or modify liability for breach of an implied warranty) and its interplay with s 74(2A) of the Trade Practices Act (Cth) which provided that a state law might limit or preclude liability in respect of a Trade Practices Act implied warranty.

The High Court held that s 74(2A) of the Trade Practices Act 1974 (Cth) did not ‘pick up’ and apply s 5N of the Civil Liability Act as ‘a surrogate federal law’[132] and that section 5N does not itself apply to limit or preclude liability, but only permits parties to certain contracts to exclude, restrict or modify certain liabilities. Accordingly, Insight could not rely on the exclusion clause to avoid liability for the breach of the warranty implied by the Trade Practices Act.

In reaching this conclusion the High Court discussed the background to the provision in the Civil Liability Act 2002 (NSW), noting that the Act made ‘no express provision for any extra-territorial operation.’[133] Then[134] the Court discussed and applied the rules of statutory interpretation in section 12(1)(b) of the Interpretation Act 1987 (NSW) and the decision in Kay’s Leasing Corporation Pty Ltd v Fletcher[135] (also referring to part 1A, Div 5 and ss 5J(1) and 5K Civil Liability Act 2002 (NSW)) to conclude that:

Reading s 5N(1) as hinging on the place of performance of the contract best gives effect to the purposes and text of the provision when it is read in its statutory context.[136]

In short this is a ‘textbook approach’ of applying the rules of statutory interpretation to the Civil Liability Act 2002 (NSW) to arrive at a conclusion as to the literal meaning of s 5N. This approach is, we argue, in keeping with an attitude to a limiting provision (s 5N is a provision enabling avoidance of common law liability) which focuses on a literal interpretation of the section rather than to situate the provision within a larger common law context.


In the third decision, Hunt & Hunt Lawyers v Mitchell Morgan Nominees Pty Ltd[137] ( Hunt & Hunt ) the High Court was asked to consider the proportionate liability provisions comprised in Part 4 of the Civil Liability Act 2002 (NSW). These provisions fundamentally alter the common law rules of joint and several liability, instead imposing a regime of proportionate liability in respect of property or purely financial loss caused by concurrent wrongdoers. In Hunt v Hunt the defendant lawyers had negligently failed to include in a mortgage document a covenant for the repayment of the specific amount of money secured by the mortgage. Mitchell Morgan Nominees Pty Ltd, the plaintiff, had advanced money on the security of the mortgage to a fraudulent person (bankrupt by the time of trial) who had forged a signature on a loan agreement and the mortgage. The loan agreement was void by reason of the forgery. Had it not been for the failure of the lawyers to include in the mortgage a covenant to repay the sum advanced, Mitchell Morgan could have recovered the advance pursuant to the mortgage. As it was, the mortgage secured nothing, so that Mitchell Morgan was unable to recover its advance. The lawyers were held to have been negligent at trial. The only issue on appeal was whether the lawyers were concurrent wrongdoers for the purpose of Part 4 of the Civil Liability Act 2002 (NSW) which provides for proportionate liability (as opposed to solidary liability) of concurrent wrongdoers in cases of property damage or purely economic loss.

The provision of the Civil Liability Act 2002 (NSW), which fell to be considered by the High Court, was the definition of a ‘concurrent wrongdoer’ in s 34(2):

In this Part, a concurrent wrongdoer, in relation to a claim, is a person who is one of two or more persons whose acts or omissions (or act or omission) caused, independently of each other or jointly, the damage or loss that is the subject of the claim.


The High Court was divided (3 Justices to 2) on the application of that definition in the circumstances of the case. The majority (French CJ, Hayne & Kiefel JJ) held that the lawyers were concurrent wrongdoers (with the fraudsters) within the definition and that therefore they were liable only for a proportion of the plaintiff’s loss according to the extent of their responsibility for the damage. The chief issues on appeal involved the identification of the loss or damage caused by the lawyers’ negligence and whether there was any person other than the lawyers whose acts also caused that damage.

The majority judgment provides a detailed consideration of the context and statutory purpose of Part 4 of the Civil Liability Act 2002 (NSW), referring to much extrinsic material to evidence the purpose and legislative policy of the provisions[138]. The extrinsic material relied upon[139] was the Final Report of the Inquiry into the Law of Joint and Several Liability (The Davis Report), 1995;[140] the contribution legislation in Australian jurisdictions[141]; the Second Reading Speech in respect of the Civil Liability Amendment (Personal Responsibility) Act 2002 (NSW);[142] the Explanatory Notes to that legislation;[143] and the draft model provisions (reflecting the recommendations of the Davis Report) released by the Standing Committee of Attorneys-General in 1996.[144] The Judgment refers to the Ipp Report only by way of footnote, because though it recommended that solidary liability should be retained in relation to personal injury or death claims,[145] it did not consider whether proportionate liability should be introduced in relation to property damage or economic loss.[146]
Having considered all these extrinsic materials,[147] the majority held that the purpose of Part 4 is to ‘give effect to a legislative policy that in ...claims ... for economic loss or property damage, a defendant should be liable only to the extent of his or her responsibility’[148]. The majority then concluded that ‘the purpose of Part 4 is achieved by the limitation on a defendant’s liability effected by s 35(1)(b)... [to] the sum which represents the defendant’s proportionate liability as determined by the court.’[149] In making its determination as to whether the defendant law firm was a concurrent wrongdoer within the definition in section 35(1), the majority Justices considered that it would be consistent with the policy of Part 4 of the Act to impose proportionate liability rather than joint and several liability.[150]

The majority identified the damage caused by the lawyers’ negligence as the inability of the plaintiff to recover the money it had advanced.[151] The Court of Appeal had identified the damage to the plaintiff as not having the benefit of security for the funds[152]. The majority in the High Court found that this was the immediate effect of the lawyers’ negligence but pointed out that a mortgage negligently drawn is not necessarily productive of loss.[153] The damage is sustained and the cause of action accrues only when recovery is impossible so that the real nature of the loss is the inability to recover the money whilst the ineffective security is the effect giving rise to the loss.

The minority Justices Bell and Gageler held the opposite view on the nature of the damage caused by the lawyers: that the damage was the lack of security for the loan which was different in kind form the damage caused by the fraudsters. Their Honours held that to find that the lawyers and the fraudsters were concurrent wrongdoers and thus to give to the lawyers the benefit of proportionate liability, would be to transfer to the plaintiff ’some or all of the very risk against which it was the duty of [the lawyers] to protect [the plaintiff].’ This result would be ‘altering rights and duties to an extent not necessary to achieve the identified statutory purpose.’[154] The minority held that the identified statutory purpose was to include the plaintiff as bearing some or all the risk of a wrongdoer being impecunious, insolvent or untraceable as stated by Professor Davis in the 1995 Final Report of the Inquiry into the Law of Joint and Several Liability[155]. This appears at first blush to be slightly different from the purpose identified by the majority, because it casts the purpose from the perspective of the plaintiff’s risk of non-recovery from an absent or unfinancial wrongdoer. Conversely the purpose identified by the majority concerns the limitation of the defendant’s liability, according to responsibility for the damage. The two views are complementary in that they represent effectively two sides of the same coin but they produce opposite results.

So, in this case we have extensive resort to extrinsic material and statutory purpose to apply Part 4 of the Civil Liability Act 2002 (NSW). The literal approach to interpretation is consistent with a restrictive approach to a provision which limits common law rules. In contrast, when the High Court majority turns to the question of causation we again see a return to the relationship between the common law and the Civil Liability Act 2002 (NSW) being especially entwined and we see that the common law has a profound influence on the application of the statutory provision. Here, with respect to causation the court had to determine whether in addition to the lawyers, there was another person whose act or omission caused the plaintiff’s loss, in order for the proportionate liability provision to apply. The majority’s analysis of the causation question for the purpose of s 34 (2) is by reference to the common law rather than specifically to s 5D of the Civil Liability Act 2001 (NSW).

The majority refers to s 5D (1) as containing ‘general principles to be applied in determining whether negligence caused particular harm.’[156] Yet, the detailed examination of the causation question in s 34(2) later in the judgment[157] is entirely reliant on common law principles and authorities. In particular, their Honours state that:

Part 4 acknowledges, as does the common law, that a wrongdoer’s acts may be independent of those of another wrongdoer yet cause the same damage.[158]

They state that ‘causation is largely a question of fact, to be approached by applying common sense’ (at [43]) citing March v Stramare (E & MH) Pty Ltd[159] and Chappel v Hart [160] and then add:

This is not to deny that value judgments and policy have a part to play in causation analysis at common law and, as has been observed, both factual causation and scope of liability elements are referred to in s 5D(1) of the Civil Liability Act.[161]

The majority look to the common law concept of material contribution and conclude that the fraudsters’ conduct in inducing the plaintiff to enter into the loan transaction and pay the funds was a material cause of the harm which resulted.[162] It was pointed out that the application of the ‘but for’ test to the present case did not assist in determining whether the acts of the two successive wrongdoers were concurrent causes of the loss and the majority referred to the criticisms of the ‘but for’ test in March v Stramare (E & MH) Ltd and the fact that ‘the law has always favoured’[163] the common sense approach to causation.
The majority in applying the common law of material contribution to determine causation pursuant to s 34(2), does not apparently apply s 5D Civil Liability Act 2002 (NSW). That section specifically applies to a finding that negligence caused harm and requires a finding that the negligence was a ‘necessary condition’ of the occurrence of the harm and also that it is appropriate for the scope of the negligent person’s liability to extend to the harm so caused. The acts of the fraudsters which were relevant to the s 34(2) definition of concurrent wrongdoer could have been characterised as deliberate acts of fraud, rather than negligent acts. The majority judgment does not specifically address this point but that is perhaps one explanation for the majority reliance upon the common law and in particular, the cases on material contribution[164] and the common law common sense approach to determine causation, rather than on s 5D of the Act.

An alternative reading of the majority judgment, and one that is consistent with the approach in Wallace v Kam,[165] is that the majority implicitly takes the view that the general principles embodied in the causation provision in s 5D, encompass all the common law concepts relied upon in the judgment. This later possibility would however be at odds with the statements of the High Court in Adeels Palace Pty Ltd v Moubarak; Adeels Palace Pty Ltd v Bou Najem[166] about the possible differences between s 5D and the common law. There the Court held that section 5D differs from the common law common sense approach demonstrated in March v Stramare because it treats factual causation and scope of liability as separate and distinct issues and ultimately decided that it was:

not necessary to examine whether or to what extent the approach to causation described in March v Stramare might lead to a conclusion about factual causation different from the conclusion that should be reached by applying s 5D(1).[167]

The High Court had held in Adeels Palace Pty Ltd v Moubarak; Adeels Palace Pty Ltd v Bou Najem that the s 5D (1) requirement for causation that negligence is a necessary condition of harm, is to be determined by the common law "but for" test. The court also stated (obiter) in Strong v Woolworths Limited[168] that a material contribution to harm must satisfy the ‘but for’ test of causation in order to satisfy s 5D causation requirements. These matters were not addressed at all in the Hunt & Hunt case on the question of whether the acts of the fraudsters were acts which caused the loss for the purpose of determining whether they were concurrent wrongdoers under s 34(2). Nevertheless, those acts would satisfy the ‘but for’ test as suggested by the majority.[169]

The analysis of causation in the Hunt & Hunt case with its emphasis on common law principles underlines the view that legislation and common law cannot be seen as separate and independent simply because of their independent sources. Rather they do ‘exist in a symbiotic relationship.’[170] The Hunt & Hunt case further illustrates the nuanced and flexible approach of the High Court to the tort reform legislation whereby the Court adopts a literal approach to interpretation of the limiting provisions with respect to proportionate liability yet on the related causation question, the court looks to the common law for its analysis.


Conclusion


The common law world has long puzzled over the interplay between common law and statute. As Diver notes in the American context ‘[E]ach generation has its theory of statutory interpretation’[171] and similarly, if not more pithily Justice Spigelman observes that ’law is a fashion industry.’[172] This article demonstrates change and nuance in the approach to statutory interpretation by the High Court in the six cases which have interpreted the tort law reform legislation. These decisions illustrate a range in judicial attitude from the traditional ‘oil and water’ approach to the relationship of statute and common law involving a literal reading of a limiting provision of the statute in Wicks, to a ‘milky pond’ approach where the statutory provision is interpreted in its common law context, as in Adeels where prevailing common law notions of causation governed the interpretation of that provision.

The analysis we have provided proves an absence of a universal approach to statutory interpretation of tort reform legislation and demonstrates a nuanced and flexible approach. It confirms that the common law is the paramount context within which reform of the tort of negligence is to be situated. The approach of the High Court, particularly to the ‘framework’ causation provisions of the NSW reform legislation, evidences a much more holistic relationship between statute and common law than existed previously: a relationship that might be recognised by Stone or Pound as approaching the ‘ideal of a unified system of judge-made and statute law woven into a seamless whole.’[173] That said, the six High Court cases illustrate that, in the interpretation of a single statute – the Civil Liability Act 2002 (NSW) –judicial methodology ranges from a literal to a contextual approach to statutory interpretation depending on the nature of the provision under consideration.

The above analysis supports the observations of Gleeson CJ and Justice Gageler (which began this article) that common law and statute ‘exist in a symbiotic relationship’[174] and that ’[T]he common law and statute law as applied by courts are, to a significant degree, products of the same inherently dynamic legal process.’[175] Indeed the diversity of approach of the High Court to statutory interpretation of a single statute – the Civil Liability Act 2002 (NSW) - acknowledges the need for close integration of the common law of negligence into some areas of the statute while restricting the provisions of the statute which diminish or alter other aspects of the common law. The High Court’s interpretation of the six cases on the tort law reform legislation adds much strength to the argument that the development of the future relationship between statute and the common law will be facilitated through being viewed as an integrated whole where the two source of law merge together in a ‘milky pond’ rather than remain disparate entities as ‘oil and water’.




[*] Pam Stewart & Anita Stuhmcke, Faculty of Law, University of Technology Sydney.
[1] Brodie v Singleton Shire Council [2001] HCA 29; (2001) 206 CLR 512, 532 [31] per Gleeson CJ.
[2] S Gageler, ‘Common Law Statutes and Judicial Legislation: Statutory Interpretation as a Common Law Process’ (2011) 37(2) Monash Law Review 1.
[3] [2009] HCA 48; (2009) 239 CLR 420.
[4] [2012] HCA 5; (2012) 285 ALR 420.
[5] [2013] HCA 19; (2013) 297 ALR 383.
[6] [2010] HCA 22; (2010) 241 CLR 60.
[7] [2011] HCA 16; (2011) 276 ALR 497.
[8] [2011] FCA 1123; (2013) 297 ALR 56.
[9] Brodie v Singleton Shire Council [2001] HCA 29; (2001) 206 CLR 512, 532 [31] per Gleeson CJ.
[10] Gageler, above n 2.
[11] Of course statutory incursion into the common law of negligence has been a constant see workers compensation schemes: Safety, Rehabilitation and Compensation Act 1988 (Cth); Seafarers Rehabilitation and Compensation Act 1992 (Cth); Military Compensation and rehabilitation Act 2004 (Cth); Workers Compensation Act 1998 (NSW); Workers Compensation and rehabilitation Act 2003 (Qld); Workers Rehabilitation and Compensation Act 1986 (SA); Workers Rehabilitation and Compensation Act 1988 (Tas); Accident Compensation Act 1985 (Vic); Workers Compensation and Injury management Act 1981 (WA); Workers Compensation Act 1951 (ACT); Workers Rehabilitation and Compensation Act 1986 (NT). (There is also in some States special legislation dealing with particular types of industry or claim: for example, Workers Compensation (Dust Diseases Act 1942 (NSW). Other examples include statutory schemes for motor accident compensation; compensation to relatives legislation and legislation with respect to contributory negligence.
[12] A Burrows, ‘The Relationship between Common Law and Statute in the Law of Obligations’ (2012) 128 LQR 232 at 233.
[13] Ibid.
[14] See for example, Jack Beatson, ‘Has the Common Law a Future?’ (1997) 56 Cambridge Law Journal 291.
[15] Hon JJ Spigelman, ‘The Intolerable Wrestle: Developments in Statutory Interpretation’ (2010) 84 ALJ 822.
[16] Burrows, above n 12.
[17] [2009] HCA 48; (2009) 239 CLR 420.
[18] [2012] HCA 5; (2012) 285 ALR 420.
[19] [2013] HCA 19; (2013) 297 ALR 383.
[20] [2010] HCA 22; (2010) 241 CLR 60.
[21] [2011] HCA 16; (2011) 276 ALR 497.
[22] [2011] FCA 1123; (2013) 297 ALR 56.
[23] P Finn, ‘Statutes and the Common Law’ (1992) 22 University of Western Australia Law Review 7 at 20.
[24] Ibid at 23-24.
[25] Sir Edward Coke’s Institutes of the Lawes of England (published between 1628 and 1644) and Sir William Blackstone’s Commentaries on the Laws of England (published between 1765 and 1769).
[26] R Pound, ‘Common Law and Legislation’ (1908) 21 Harvard Law Review 383.
[27] Ibid 385.
[28] Ibid 386.
[29] HF Stone, ‘The Common Law in the United States’ (1936) 50 Harvard Law Review 4.
[30] Ibid.
[31] Sir Rupert Cross, Precedent in English Law, 3rd Edn., Oxford, 1977.
[32] P Atiyah, ‘Common Law and Statute Law’ (1985) 48 Modern Law Review 1.
[33] Ibid at 14.
[34] Ibid at 18.
[35] Ibid at 17.
[36] Atiyah uses the Sale of Goods legislation as an example.
[37] Ibid at 25.
[38] Beatson, above n14.
[39] Ibid at 301.
[40] [1995] UKHL 9; [1995] 2 AC 633
[41] The Australian High Court reached the same conclusion in very similar circumstances in Sullivan v Moody (2001) 207 CLR 562.
[42] J Beatson, ‘The Role of Statute in the Development of Common Law Doctrine’ (2001) 117 L.Q.R. 247 at 247.
[43] Beatson, above n 14 at 302.
[44] Burrows, above n 12 at 240. Justice Stephen Gageler of the High Court of Australia writing in 2011 (prior to his appointment to the High Court) referred to ‘common law statutes’ in ‘Common Law Statutes and Judicial Legislation: Statutory Interpretation as a Judicial Process’ (2011) 37(2) Monash Law Review 1.
[45] Ibid at 242-3.
[46] Ibid at 243.
[47] Finn, above n 23 at 20.
[48] Ibid.
[49] Ibid at 23-24.
[50] P Cane, ‘Taking Disagreement Seriously: Courts, Legislatures and the Reform of Tort Law’ (2005) 25(3) Oxford Journal of Legal Studies, 393 at 416.
[51] B McDonald, ‘The Impact of the Civil Liability Legislation on Fundamental Policies and Principals of the Common Law of Negligence’ (2006) 14 Torts Law Journal 268 at 298.
[52] Justice Michael Kirby, ‘Towards a Grand Theory of Interpretation: the Case of statutes and Contracts’ 24(2) Statute Law Review 95-111 at 96.
[53] Hon JJ Spigelman, ‘From Text to Context: Contemporary Contractual Interpretation’ (2007) 81 ALJ 322.
[54] Hon JJ Spigelman, above n 15, at 824.
[55] Ibid at 110.
[56] Hon JJ Spigelman, above n 53 at 828.
[57] Hon Michael Kirby ‘The Never-Ending Challenge of Drafting and Interpreting Statutes – A Meditation on the career of John Finemore QC’ [2012] MelbULawRw 4; (2012) 36 Melbourne University Law Review 140; see R S Geddes, ‘Purpose and Context in Statutory Interpretation’ (2005) 2 UNELJ 5.
[58] Hon Michael Kirby AC CMG, ‘Statutory Interpretation: The meaning of meaning’ [2011] MelbULawRw 3; 35 (2011) Melbourne University Law Review 113 at 116.
[59] Justice Kirby, above n 57 at168.
[60] Justice Gageler, above n 2.
[61] Finn, above n 23 at 12.
[62] The formulation of causation will, in terms of the relationship between statute and the common law presumably apply to the remaining jurisdictions which have enacted provisions in very similar, if not identical, terms. Civil Liability Act 2003 (Qld) s 11; Civil Liability Act 1936 (SA) s 34; Civil Liability Act 2002 (Tas) s 13; Wrongs Act 1958 (Vic) s 51; Civil Liability Act 2002 (WA) s 5C; Civil Law (Wrongs) Act 2002 (ACT) s 45.
[63] Wallace v Kam [2013] HCA 19; (2013) 297 ALR 383 at [22].
[64] Review of the Law of Negligence Final Report, Commonwealth of Australia, Canberra, 2002 (The Ipp Report) [1.4]-[1.6] http://revofneg.treasury.gov.au [7.49] 117.
[65] Ibid, Recommendation 29 at 117.
[66] J Stapleton, ‘Factual Causation’ ( 2010 ) 38 Federal Law Review 467.
[67] [2009] HCA 48; (2009) 239 CLR 420.
[68] The Court did also discuss the meaning and application of section 5D(2) and held that it was not relevant here due to the fact that ‘the “but for” test is now to be (and has hitherto been seen to be) a necessary test of causation in all but the undefined group of exceptional cases contemplated by s 5D(2).’Adeels Palace Pty Ltd v Moubarak; Adeels Palace Pty Ltd v Bou Najem [2009] HCA 48; (2009) 239 CLR 420. at [55] (per French CJ, Gummow, Hayne, Heydon and Crennan JJ)
[69] At [41]-[45] per French CJ, Gummow, Hayne, Heydon and Crennan JJ
[70] At [51].
[71] [1991] HCA 12; (1991) 171 CLR 506.
[72] HLA Hart and T Honore, Causation in the Law 2nd Edn, 1984, Clarendon, Oxford; T Honore, ‘Necessary and Sufficient Conditions’ in DG Owen, (Ed), Philosophical Foundations of Tort Law 1997, Clarendon, Oxford, Ch 16.
[73] ([2009] HCA Trans 233) (22 September 2009) Office of the Registry Sydney No S191 of 2009.
[74] ‘Echo’ is used as description here, given that the majority joint judgment is just 40 paragraphs long and the discussion of the Ipp Report is limited to just four paragraphs in the judgment.
[75] [2012] HCA 5; (2012) 285 ALR 420.
[76] (1991) Aust Torts Reps 81-104.
[77] Woolworths Ltd v Strong — Unreported, Supreme Court, NSW, Court of Appeal, Campbell JA, Handley AJA and Harrison J, 2 Nov 2010, [2010] NSWCA 282.
[78] Ibid at [70] per Campbell JA with whom Handley AJA and Harrison JA agreed.
[79] At [46] per Campbell JA with whom Handley AJA and Harrison JA agreed.
[80] At [48]-[49] per Campbell JA with whom Handley AJA and Harrison JA agreed.
[81] This was a live issue in the NSW Supreme Court and Court of Appeal following the decision in Woolworths v Strong: See Benic v NSW [2010] NSWSC 103; Zanner v Zanner [2010] NSWCA 343.
[82] [2012] HCA 5; (2012) 285 ALR 420 at [18].
[83] [2009] HCA 48; (2009) 239 CLR 420. The NSW Court of Appeal has considered and applied s 5D(1) in Stojan (No 9) Pty Ltd v Kenway [2009] NSWCA 364; Woolworths Limited v Strong & Anor [2010] NSWCA; Benic v State of New South Wales [2010] NSWSC 1039; Zanner v Zanner [2010] NSWCA 343; Ruddock v Taylor [2003] NSWCA 262; (2003) 58 NSWLR 269.
[84] [2012] HCA 5; (2012) 285 ALR 420 at [28].
[85] Strong v Woolworths Limited T/as Big W & Anor [2011] HCATrans 194 (5 August 2011).
[86] [2013] HCA 19; (2013) 297 ALR 383.
[87] The Ipp Report, above n 64.
[88] [2013] HCA 19; (2013) 297 ALR 383 at [11].
[89] [2013] HCA 19; (2013) 297 ALR 383 at [11].
[90] Ibid.
[91] At [14].
[92] Wallace v Kam [2012] NSWCA 82; (2012) Aust Torts Reports 82-101 at 66,044-66,045 [4].
[93] [2013] HCA 19; (2013) 297 ALR 383 at [15].
[94] [2012] HCA 5; (2012) 246 CLR 182 at 190-1 [18],
[95] At [16].
[96] Rosenberg v Percival (2001) 205 CLR 43;Rogers v Whitaker [1992] HCA 58; (1992) 175 CLR 479; Chappel v Hart (1998) 195 CLR 232.
[97] [2013] HCA 19; (2013) 297 ALR 383 at [18]- [21].
[98] At [22].
[99] Ibid.
[100] Ibid.
[101] At [23].
[102] Barnes v Hay (1988) 12 NSWLR 337 at 353, quoted in Henville v Walker [2001] HCA 52; (2001) 206 CLR 459 at 491 [98]; [2001] HCA 52.
[103] [2013] HCA 19; (2013) 297 ALR 383 at [23].
[104] Ibid.
[105] At [24]-[27].
[106] At [27].
[107] At [36].
[108] At [37].
[109] At [40].
[110] R Pound, above n 26 at 4.
[111] (2001) 207 CLR 562
[112] Ibid, at [50] per Gleeson CJ, Gaudron, McHugh, Hayne and Callinan JJ
[113] [2009] HCA 15; (2009) 237 CLR 215 at [123] per per Crennan and Kiefel JJ
[114] [2007] HCA 20; (2007) 232 CLR 486 at [250] per Crennan J.
[115] [2011] HCA 9; (2011) 275 ALR 611 at [15]; [56]; [74]; [102] per French CJ, Gummow, Hayne, Crennan, Kiefel and Bell JJ
[116] Ibid at [102]. For a discussion of coherence, see WMC Gummow, ‘The common law and statute’ in Change and Continuity: Statute, Equity and Federalism, New York, Oxford University Press, 1999.
[117] [2011] HCA 9; (2011) 275 ALR 611 at [102] per French CJ, Gummow, Hayne, Crennan, Kiefel and Bell JJ
[118] B McDonald, ‘Legislative Intervention in the Law of Negligence: The Common Law, Statutory Interpretation and Tort Reform in Australia’ [2005] SydLawRw 22; (2005) 27 Sydney Law Review 443 at 482.
[119] Cane, above n50, at 416.
[120] Finn, above n23 at 23- 24.
[121] [2010] HCA 22; (2010) 241 CLR 60.
[122] See Gifford v Strang Patrick Stevedoring Pty Ltd (2003) 214 CLR 269.
[123] Annetts v Australian Stations Pty Ltd [2002] HCA 35; (2002) 211 CLR 317.
[124] [2010] HCA 22; (2010) 241 CLR 60 at [44] per French CJ, Gummow, Hayne, Heydon, Crennan, Kiefel and Bell JJ.
[125] At [41].
[126] Wicks v State Rail Authority of NSW; Sheehan v State Rail Authority of NSW [2010] HCATrans 15 (12 February 2010) Last Updated: 18 February 2010 Office of the Registry, Sydney No S262 of 2009.
[127] Hon JJ Spigelman, above n 53, at 331.
[128] Justice Kirby, above n 57, at 163.
[129] Richard A Posner, ‘Statutory Interpretation – in the Classroom and in the Courtroom’ 50 1983 U. Chi. L. Rev. 800 at 808.
[130] Hon JJ Spigelman, above n 127 at 325 citing Morris v Beardmore [1981] AC 446 at 459.
[131] [2011] HCA 16; (2011) 276 ALR 497.
[132] [2011] HCA 16; (2011) 276 ALR 497, [26] per French CJ, Gummow, Hayne, Kiefel and Bell JJ. t.
[133] At [16] per French CJ, Gummow, Hayne, Kiefel and Bell JJ.
[134] At [28]-[32].
[135] [1964] HCA 79; (1964) 116 CLR 124.
[136] At [36].
[137] [2011] FCA 1123; (2013) 297 ALR 56.
[138] At [10]-[17].
[139] The same material (and more) was referred to by the minority Justices under the heading ’Legislative Context’: Hunt & Hunt Lawyers v Mitchell Morgan Nominees Pty Ltd [2013] HCA 10 at [78]- [86] per Bell and Gageler, JJ.
[140] Commonwealth of Australia, Inquiry into the Law of Joint and Several Liability: Report of Stage Two, 1995.
[141] Such as Part III, Law Reform (Miscellaneous Provisions) Act 1946 (NSW)
[142] New South Wales, Legislative Assembly, Parliamentary Debates (Hansard), 23 October 2002 at 5764 and New South Wales, Legislative Council, Parliamentary Debates (Hansard), 19 November 2002 at 6896.
[143] New South Wales, Civil Liability Amendment (Personal Responsibility) Bill 2002, Explanatory Notes.
[144] Standing Committee of Attorneys-General, Draft Model Provisions to Implement the Recommendations of the Inquiry into the Law of Joint and Several Liability, 1996.
[145] The Ipp Report, above n 64, at 178 [12.17]-[12.19].
[146] Ibid at 173 [12.2], 175 [12.8].
[147] It is notable that all the extrinsic materials which the majority considered, were identified by Prof. B. McDonald as useful sources for interpretation purposes in ‘Legislative Intervention in the Law of Negligence: The Common Law, Statutory Interpretation and Tort Law Reform in Australia’ above n 118.
[148] Hunt & Hunt Lawyers v Mitchell Morgan Nominees Pty Ltd [2011] FCA 1123; (2013) 297 ALR 56 at [16].
[149] At [17].
[150] At [58].
[151] At [28].
[152] Mitchell Morgan Nominees Pty Ltd v Vella [2011] NSWCA 390; (2011) 16 BPR 30,189 at 30,198-30,199 [41] per Giles JA.
[153] [2011] FCA 1123; (2013) 297 ALR 56 at [58].
[154] [2011] FCA 1123; (2013) 297 ALR 56 at [95].
[155] Commonwealth of Australia, Inquiry into the Law of Joint and Several Liability: Report of Stage Two, 1995 referred to at Hunt & Hunt Lawyers v Mitchell Morgan Nominees Pty Ltd [2011] FCA 1123; (2013) 297 ALR 56 [85] per Bell and Gageler JJ.
[156] [2011] FCA 1123; (2013) 297 ALR 56 at [22].
[157] At [43]-[56].
[158] At [41].
[159] [1991] HCA 12; (1991) 171 CLR 506 at 515, 523.
[160] (1998) 195 CLR 232 at 238 [6].
[161] [2011] FCA 1123; (2013) 297 ALR 56 at [43].
[162] At [51].
[163] At [55]-[56].
[164] March v Stramare (E & MH) Pty Ltd [1991] HCA 12; (1991) 171 CLR 506 at 514, referring to Duyvelshaff v Cathcart & Ritchie Ltd (1973) 47 ALJR 410 at 417; 1 ALR 125 at 138; Tubemakers of Australia Ltd v Fernandez (1976) 50 ALJR 720 at 724; 10 ALR 303 at 310; Bonnington Castings Ltd v Wardlaw [1956] UKHL 1; [1956] AC 613 at 620; McGhee v National Coal Board [1972] UKHL 7; [1973] 1 WLR 1 at 4, 6, 8, 12; [1972] UKHL 7; [1972] 3 All ER 1008 at 1010, 1012, 1014, 1018; Henville v Walker [2001] HCA 52; (2001) 206 CLR 459 at 469 [14]; [2001] HCA 52.
[165] [2013] HCA 19; (2013) 297 ALR 383.
[166] [2009] HCA 48; (2009) 239 CLR 420 at [45].
[167] At [43]-[44].
[168] [2012] HCA 5; (2012) 285 ALR 420 at [20].
[169] [2011] FCA 1123; (2013) 297 ALR 56 at [55].
[170] Brodie v Singleton Shire Council [2001] HCA 29; (2001) 206 CLR 512, 532 [31] per Gleeson CJ
[171] CS Diver, ‘Statutory Interpretation in the Administrative State’ (1985) 133(3) University of Pennsylvania Law Review 549, 552.
[172] Hon JJ Spigelman, ‘From Text to Context: Contemporary Contractual Interpretation’ (2007) 81 ALJ 322
[173] Stone, above n 29.
[174] Brodie v Singleton Shire Council [2001] HCA 29; (2001) 206 CLR 512, 532 [31].
[175] Gageler, above n 2.


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