Civil Liability of Organizations in Tort Law

Corporate Law
Student Name

 An organization has a civil liability of paying
compensation to the aggrieved party when such party
has been a victim of Negligence of the Organization.
 The law of Tort in Australia has been derived from
English common law.
 The Civil Liability Act 2002 also governs the law
related to Negligence and Tort in Australia.
 To prove that an organization was Negligent in its
operations, the essential elements of Negligence must
be present. The law of Tort in Australia has been
derived from English common law. The Civil Liability
Act 2002 also governs the law related to Negligence
and Tort in Australia.
Civil liability of Organizations
in Tort Law

Duty of care is an essential element of Negligence. To
prove that a duty of care was owed to the aggrieved
party it is important to assess such duty by the
application of a test as held in the case Caparo
Industries plc v Dickman [1990] 2 AC 605. The test
of duty of care is a three part test which assesses:
 Whether Harm caused to the aggrieved party due to
the action of the Defendant was reasonably
foreseeable to him
 Whether a proximity existed between the parties
 Whether it is fair, reasonable and just to impose the
liability on the Defendant
Duty of Care

 The Breach of Duty of Care is the second
most essential element to prove negligence.
 In order to prove that the duty of care owed
to the plaintiff had been breached the
application of an objective test is essential
as held in the case Vaughan v
Menlove (1837) 3 Bing. N.C. 467.
 Such objective test assesses whether the
defendant met the standard of a reasonable
person.
Breach of Duty of Care