Taru Power Station Case Study

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ASSIGNMENT
I. Issue
I have been asked to advice Jarrod (J) on whether Timaru Power Station (TPS) is likely to succeed in the tort of negligence against him. In an attempt to reach a conclusion, the following criteria are what need to be taken into account:
• Did J owes a duty of care to TPS? Was he in breach of a proper standard of care? If yes, does the loss suffered link to the negligent action?
• What kind of compensation should be rewarded to the plaintiff if he succeed in the tort of negligence?
• Did the plaintiff negligently contribute the loss suffered by him?
II. Law and Application
a. Duty of care
i. Law
“A manufacturer of products, which he sell … to reach ultimate consumers in the form in which they left him… owes a duty to consumers …show more content…

However, while the damage relating the power station and the injury suffered by the employee is causally linked to the negligent action, the penalty payment to Steel Smelting Ltd (SSL) is not directly related to the negligence action of TPS. Although were the negligent act not to occur, TPS might be able to fulfill its obligation to SSL but it is not definite. Obviously, while carrying out a contract there are certain risks that you must face, such risks should not be transferred easily to third party because of her negligence. It is TPS’s responsibility to ensure that there will be no power outrage and she has to mitigate that risk by any means. By solely relying on J equipment, TPS accepts the risk and even if the power explosion occurs she has to find way to solve the problem, instead of relying on compensation for tort of negligence. In addition, imposing the duty of care for such damage, in this case, exposes the defendant to indeterminate liability which is not reasonable. As with respect to the claim of personal injury of the employees, because of ACC, TPS has been taken away a right to claim for payment with regard to negligent action causing personal

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