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Case Study - Problem Solving Exercise: Bart's Negligence and Liability for Losses
Answered

Scenario

Scenario  

Bart is a transport contractor. He owns a truck and trailer unit and specialises in delivering specialised loads such as precast concrete beams. While returning from a delivery Bart negligently allows the speed of his unladen vehicle to increase to some 115kph. As a result, as he negotiates a bend in the road, he is unable to avoid a collision with Lisa's truck which had broken down. Although Lisa had managed to get the truck part way off the road, Ban struck the rear of Lisa's vehicle causing the trailer unit to overturn. As the unit had a full load of eggs which Lisa was delivering to Milhouse Bakery Ltd, the entire cargo was destroyed costing $10,000. As Lisa was carrying the eggs at owner's risk the loss falls on Milhouse Bakery Ltd. Because it takes several days to arrange for replacement eggs, Milhouse Bakery is forced to suspend production for 5 days causing a loss of $35,000 for the sales thus lost. The suspension of production over that particular period also led to TVNZ cancelling a planned N documentary on NZ bakers which was to be filmed at Milhouse Bakery's premises and for which TVNZ had agreed to pay Milhouse a fee of $5,000.

Advise, with reasons supported by appropriate authority, whether Bart would be liable, in the tort of Negligence, to reimburse Milhouse Bakery for the following losses: 


? $10,000 for the loss of the eggs

? $35,000 for the lost sales

? $5,000 for loss of the fee for the documentary 

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