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Council wins appeal over $9 million liability claim

Councils all over Australia were breathing a sigh of relief last week after the NSW Court of Appeal upheld a Supreme Court ruling that the Coffs Harbour City Council wasn’t to blame for a diving accident which left an Irish backpacker with severe spinal injuries.

Law firm Phillips Fox says the ruling is a step in the right direction to establishing individuals’ personal responsibility in such incidents.

Garry Mulligan sought $9 million in compensation from the council, saying that it, along with the State of NSW, had a responsibility to warn of varying water depth in a creek where he went swimming.

His injuries occurred in January 1999 when he dived into Coffs Creek and hit his head on the bottom. Mr Mulligan and his girlfriend had been swimming in the creek for more than an hour before the incident occurred. He said he wouldn’t have dived into the creek if a warning sign had been in place.

Phillips Fox partner Michael Down, who acted for the council, told Sunrise Exchange News the ruling shows that courts aren’t willing to compensate people for injuries sustained in recreational activities that naturally carry some risk.

Mr Down says although it may take some years for the effects of tort reform to have a positive impact on public liability premiums, the insurance industry should view the ruling as a step in the right direction. He says lawyers are already noticing a reduction in personal injury claims against councils.

“The Court of Appeal’s decision clearly demonstrates that local councils should not be required to warn of matters that are common knowledge.”