Ball v Consolidated Rutile Ltd [1990] QSC 66 [1991] 1 Qd R 524
10
20
30
40
so
60
IN THE SUPREME COURT OF QUEENSLAND
CIVIL JURISDICTION No. 4083
of
1987
BEFORE MR. JUSTICE
AMBROSE
BRISBANE, 30
MARCH
1990
BETWEEN:
~nut.
Printer, Qld.
(Copyright
in this transcript is
vested in
the
Crown.
Copies
thereof
must
not
be
made
or sold without the written authority of the
Chief Court Reporter,Court Reporting Bureau.)
ALLAN
BALL,
EDWARD
CHARLES BEDFORD,LESLIE KEITH BENNETT,
RONALD
JOHN CAMPBELL,
RICHARD COLIN FURSEY,
RONALD
ALFRED
HATCHMAN,
BARRY
JOHN HOARE,
BARRY
JAMES HOLT,
EDNA
MAY
HOLT,
GRAHAM
STEPHEN HOLT,
L.A.
HOLT
(Male),
PERCY
ARTHUR
HOLT,
WILLIAM JOHN JAMIESON,
MARIA KATHERINA JAMIESON,
WAYNE
HERBERT KLEINSCHMIDT
TREVOR
LESLIE KLEINSCHMIDT,
DAVID
LANGFORD-SMITH,
E.A.
LIEBINGER
(Male),
BARRY
MAXWELL
LITHERLAND,
CYNTHIA
CLARE
LITHERLAND,
BARRY FRANK
MOORE,
IAN
MORGAN,
FREDERICK
ANDREW
MUNDAY,
BARRY
O'BRIEN,
GRAHAM
POWER,
LEON CLARANCE
RICHARDSON,
ALISON
DONNA
RICHARDSON,
DANNY
JAMES
RIYS,
JOHN
ALLAN
SCARBOROUGH,
BARRY
JEFFREY TAYLOR,
DAVID JAMES
THOMSON,
ATHENA
PALLAS TOLHURST,
DARYL TOWN,
VICTOR
JOHN VENN,
JUNE LAVIN[A VENN,
EDMOND
JOSEPH
WALSH,
LAURENCE
KENNETH
WEBB,
BARRY
WILLIAM
WESTBURY,STEPHEN JEFFREY WRAYFORD,and
STEPHEN
ZEMAN
Plaintiffs
10
20
30
40
so
60
-- 1 of 50 --
10
20
30
40
50
60
-and-
CONSOLIDATED RUTILE LTD
-and-
Q.B.E.
INSURANCE LIMITED
-and-
INSURANCE COMPANY OF NORTH
AMERICA (AUSTRALIA)
LIMITED
-and-
C.E.
HEATH INSURANCE BROKING
(AUSTRALIA)
PTY.LTD.
JUDGMENT
Defendant
First
Third Party
Second
Third
Party
Third Party
HIS
HONOUR:
J;In
this
matter
I
have
simply answered
questions
numbered one
to five in Exhibits
1
and
2
and
I
forma:l'ly,,pronounce judgment
as follows:
I
dispose of the
points
of
law
raised
by
the
parties
to this- application
by
answering
questions
numbered
1,
2, 3,
4
and
5
contained
in Exhibits
1
and
2
hereof' in the following
way:
Question
1 -
Not
with
respect to
pure
economic
loss.
Question
2 -
No.
Question
3 -
No.
Question
4 -
(a)
with
respect to
damage
to fishing
gear
to the extent~ of
$39,880
-
Yes.
(b)
With
respe::t
to
economic
loss to
extent
of
$1,220,000
-
No.
Question
5 -
Not on
the
facts
of
this
case.
It
is
:;,,,
unnecessary
to
answer
the question
whether,
if
pure
economic
loss
were
recoverable
in
this
case,
the
controls
applied
in
negligence
would be
applied
in
nuisance.
I
publish
my
reasons.
I
reserve
the questions of
costs.
;•ler, Qld. 2
10
20
30
40
50
60
-- 2 of 50 --
6C
'J_d-0
\~ IN THE SUPREME COURT
OF QUEENSLAND
No. 4083 of 1987
Before Mr. Justice Ambrose
BETWEEN:
ALLAN BALL, EDWARD CHARLES BEDFORD,
LESLIE KEITH BENNETT, RONALD JOHN
CAMPBELL, RICHARD COLIN FURSEY,
RONALD ALFRED HATCHMAN, BARRY JOHN
HOARE, BARRY JAMES HOLT, EDNA MAY
HOLT, GRAHAM STEPHEN HOLT, L.A. HOLT
(Male), PERCY ARTHUR HOLT, WILLIAM
JOHN JAMIESON, MARIA KATHERINA
JAMIESON, WAYNE HERBERT KLEINSCHMIDT
and TREVOR LESLIE KLEINSCHMIDT,
DAVID LANGFORD-SMITH, E.A. LIEBINGER
(Male), BARRY MAXWELL LITHERLAND,
CYNTHIA CLARE LITHERLAND, BARRY
FRANK MOORE, IAN MORGAN, FREDERICK
ANDREW MUNDAY, BARRY O'BRIEN, GRAHAM
POWER, LEON CLARANCE RICHARDSON and
ALISON DONNA RICHARDSON, DANNY JAMES
RIYS, JOHN ALLAN SCARBOROUGH, BARRY
JEFFREY TAYLOR, DAVID JAMES THOMSON,
ATHENA PALLAS TOLHURST, DARYL TOWN,
VICTOR JOHN VENN and JUNE LAVINIA VENN,
EDMOND JOSEPH WALSH, LAURENCE KENNETH
WEBB, BARRY WILLIAM WESTBURY, STEPHEN
JEFFREY WRAYFORD, STEPHEN ZEMAN
CONSOLIDATED RUTILE LTD.
Q.B.E. INSURANCE LIMITED
Plaintiffs
Defendant
First Third Party
INSURANCE COMPANY OF NORTH AMERICA
(AUSTRALIA) LIMITED
Second Third Party
C.E. HEATH INSURANCE BROKING
(AUSTRALIA) PTY. LTD.
REASONS FOR JUDGMENT - AMBROSE J.
Delivered the 30th day of March, 1990
Third Party
-- 3 of 50 --
Counsel:
Solicitors:
Hearing
dates:
2
Miss S. Kiefel
Q.C. with
Mr.
J.
Douglas for
Applicant
Mr. R. Ches terrnan
Q. C.
with
Mr. S .
Couper
for
Respondent
Feez Ruthning for Applicant
Murrell Stephenson
for
Respondent
15th
and
16th February,
1990
-- 4 of 50 --
IN THE SUPREME COURT
OF QUEENSLAND
BETWEEN:
No. 4083
of
1987
ALLAN BALL,
EDWARD
CHARLES BEDFORD,
LESLIE KEITH BENNETT,
RONALD
JOHN
CAMPBELL, RICHARD COLIN FORSEY,
RONALD ALFRED HATCHMAN, BARRY
JOHN
HOARE, BARRY JAMES HOLT,
EDNA
MAY
HOLT,
GRAHAM
STEPHEN HOLT,
L.A.
HOLT
{Male),
PERCY ARTHUR HOLT, WILLIAM
JOHN JAMIESON, MARIA KATHERINA
JAMIESON,
WAYNE
HERBERT KLEINSCHMIDT
and
TREVOR
LESLIE
KLEINSCHMIDT,
DAVID LANGFORD-SMITH,
E.A.
LIEBINGER
{Male),
BARRY
MAXWELL
LITHERLAND,
CYNTHIA CLARE LITHERLAND,
BARRY
FRANK MOORE, IAN
MORGAN,
FREDERICK
ANDREW MUNDAY, BARRY
O'BRIEN,
GRAHAM
POWER, LEON CLARANCE RICHARDSON
and
ALISON
DONNA
RICHARDSON,
DANNY
JAMES
RIYS,
JOHN
ALLAN SCARBOROUGH,
BARRY
JEFFREY TAYLOR, DAVID JAMES
THOMSON,
ATHENA
PALLAS TOLHURST,
DARYL TOWN,
VICTOR JOHN
VENN
and
JUNE LAVINIA VENN,
EDMOND
JOSEPH WALSH,
LAURENCE KENNETH
WEBB,
BARRY
WILLIAM
WESTBURY,
STEPHEN
JEFFREY
WRAYFORD,
STEPHEN
ZEMAN
CONSOLIDATED RUTILE LTD.
Q.B.E.
INSURANCE LIMITED
Plaintiffs
Defendant
First
Third Party
INSURANCE
COMPANY OF
NORTH
AMERICA
{AUSTRALIA) LIMITED
Second
Third Party
C.E.
HEATH
INSURANCE
BROKING
(AUSTRALIA) PTY. LTD.
REASONS FOR
JUDGMENT
-
AMBROSE
J.
Delivered
the
30th
day
of
March, 1990
Third
Party
-- 5 of 50 --
2
This
is
an
application for disposal of points of
law
raised
upon
the pleadings pursuant to
R.S.C.
022
rr.
27
and 28.
It
is
conceded
that for the purpose of this application
I
should
assume
the existence of the facts
pleaded
and
particularized in the
plaintiffs'
pleadings.
I
shall state briefly
what appear
to
be
those
facts:
1.
At
material
times the
plaintiffs all
carried
on
business as
professional
fishermen
and conducted
at least
some
of
their
fishing
activities
in
Moreton
Bay
in
the
vicinity
of
North
Stradbroke
Island.
They
held licenses the
effect
of
which
to
take
prawns
for
a
commercial
purpose
the
use
of nets
operated
from
their
licensed fishing
in
waters
in
various
parts of
Queensland
including
Bay.
It
was
not lawful for
persons
who
did not
have
of the
sort
held
by
the
plaintiffs
to
take
prawns
with
such
nets in
those waters.
2.
The
defendant
conducted sand
mining
operations
on
the
west
coast of
North
Stradbroke
Island
and
in
the course of those
operations
formed
a
sand
dune
on
the island abutting the
waters
of
Moreton
Bay.
On
about
22nd
March, 1982
the
sand
dune
or
at least
part
of
it
slipped into
the
waters
of
Moreton
Bay
along about
400
metres
of
its
shoreline carrying
with
it
about
570
trees
of
an
average
height of five
metres
together
with
approximately
114,000
cubic metres
of root
masses
and
other
types
of vegetation.
3.
After slippage of the
sand
dune,
tidal
currents
carried
the
trees,
root
masses
and
vegetation
into
southern
parts
of
Moreton
Bay
which
included
waters
in
which prawn
trawling
-- 6 of 50 --
3
by
the plaintiffs
was
permitted.
When
the plaintiffs
attempted to fish in those waters they suffered
damage
to
their fishing gear
due
to the trees, roots, vegetation etc.
coming
into contact with
it.
All told
about $19,880.00
worth
of fishing gear
was
destroyed
and
other gear
was
damaged
to
such an
extent that
its
repair cost
$20,000.00.
The
gear
was damaged when
it
became
snagged on
the material
carried
by
the slippage of the
sand dune
into
Moreton
Bay
and
also
because
trawl nets
became
so
filled
with vegetation
and
debris generally
and
so entangled with such
floating
material
that
they could not withstand
the
weight
and
failed.
Because
some
of the material
on
the
bed
of
parts
of the
bay
caused
the trawl nets to
become
snagged
and/or
fail
resulting in
unacceptable
loss
of
and
damage
to
fishing
gear,
it
became
uneconomical
to fish in
those
parts.
4.
As
the
result
of the deposit of material in
those
prawning
grounds
in
Moreton
Bay
affected
by
the slippage the
plaintiffs
were
unable
to fish
there
economically with
their
trawl
nets
and
lost
catches of
prawns from them
to
the
extent
of:-
40,000
kgs.
in
the
1981-82
season
which
was
valued
at
$264,000.00.
80,000
kgs.
in
the
1982-83
season
which
was
valued
at
$528,000.00
40,000
kgs.
in
the
1983-84
season
which
was
valued
at
$334,000;
and
-- 7 of 50 --
4
10,000 kgs. in the 1984-85 season which was
valued
at
$94,000.00.
The
value of the "catch of
prawns foregone" over the four
fishing seasons to
which
I
have
referred
was
$1,220,000.00.
At
all
material
times the defendant
knew
or
ought
to
have
known
that there
were
professional
fishermen
who
regularly
carried
on
the business of
prawn
trawling in
the
grounds
to
which
I
have
referred
and
that
those fishermen
would be
likely to
be
detrimentally affected
by
slippage of the
sand dune.
A
cause
of the slippage of the
sand
dune
was
the defendant's
acts in
-
(i)
causing
or permitting the
sand
dune
to
be formed
in
an
area
where
the defendant
knew
or
ought
to
have
known
that
it
would be
affected
by
fresh
water
springs
and
seepage
from
lakes
in
the area
adjacent
to
it;
(ii)
causing
or
permitting the
dune
to
be
formed
with
a
slope
angle
which
was
too
steep
in
the circumstances;
(iii)
causing
or permitting the
dune
to
be formed
in
a
position
closer to
the
western
shoreline of
Moreton
Island
than
that
occupied
by
the natural
dune
which
it
replaced,
and
with
its
toe
extending
over
tidal flats;
On
and
after
22nd March, 1982
the
defendant
knew
that
the
slippage
had
occurred but did nothing
at
any
time
to
prevent
or
minimise
the detrimental
effects
which had been
caused
to
the
plaintiffs
as
professional
fishermen as
a
result.
In
particular
the defendant
failed
to
take
any
reasonable steps
to
remove
the
tidal
vegetation
and
other debris
from
the fishing
grounds
used
by
the
plaintiffs
and
failed
to
take
any
reasonable
steps to
-- 8 of 50 --
5
cover with sand certain of the vegetation, trees, roots, etc.
which had sunk
to parts of the bottom
of
Moreton Bay
which
constituted fishing
grounds.
As a
consequence
of the deposit of the trees, roots,
vegetation,
etc.
within the fishing
grounds used by
the
plaintiffs,
they
had
to travel further distances
than they
would
otherwise have had
to travel
so
that
they
might
fish in fishing
grounds
unaffected
by
the slippage.
It
is
pleaded
that
the defendant's acts
with
respect to the
slippage of the
sand
dune and
also with respect to
its
failure
to
remove
the vegetable material
washed
into
Moreton
Bay
and
carried
by
tidal
currents
into
fishing
grounds used
by
the
plaintiffs
were
negligent.
It
is
also
pleaded
that
the
defendant's
acts resulting in
the slippage
amounted
to causing
a
public nuisance
and an
unlawful
interference
with
a
public
right
and
that
the
plaintiffs'
loss
and
damage
were
caused
also
by
the
failure
of
the
defendant
to
abate
that
nuisance
and
to
terminate
that
interference.
Counsel
for
the
plaintiffs
and
the
defendant
were
unable
to
agree
precisely
on
the formulation
of
the points
of
law
to
be
determined
and
at
my
request
each
handed
a
list
of "questions"
encapsulating the points
they sought determined.
There
seems
to
be
little
difference
in the
substance
of
the
five points
formulated
by
the applicants
and
the
respondent.
Each
consented
to
the tendering of
the
questions formulated
by
the
other
and
I
proceed
on
the
basis
that
each
consented
to
my
determining
all
points of
law
raised
by
those
questions.
-- 9 of 50 --
6
The
questions are contained in exs.
1 and 2
tendered
upon
the hearing.
Plaintiffs'
formulation
1 .
2.
3.
Did
the defendant
owe
the
plaintiffs:
(a)
individually; or
(b)
as
members
of
a
class
a
duty of care regarding
the acts
complained
of?
Can
the
plaintiffs
recover
by
an
action in
negligence
economic
loss
suffered
by them
arising
out of the
damage
to
the
sea
bed
(not
their
which
property)
interfered
with
their
right to
take
prawns?
Was
t h e r e
an
interference
with
a
public
right
so
as
to
constitute
the
acts
complained
of
a
public
nuisance?
Defendant's formulation
1 •
2.
3.
Did
the defendant
owe
the
plaintiffs
(each of
them)
a
duty of care
regarding the acts
complained
of?
Can
the
plaintiffs
recover
economic
loss
suffered
by them
arising
out of
damage
to
the sea
bed
(not
their
property)?
Was
there
an
interference
with
a
public
right
so as
to
constitute
the
acts
complained
of
a
public
nuisance?
-- 10 of 50 --
4.
5.
Is the loss alleged in
the statement of claim
particular
damage.
Can
the
plaintiffs
recover pure
economic
loss in
nuisance?
7
4.If
yes
plaintiffs
to 3,
(each
Did the
of
them}
suffer particular
damage?
5.
Can
the
plaintiffs
recover pure
economic
loss in
nuisance?
Are
the controls applied in
negligence
to
such
loss
applicable to
claims
in
nuisance?
It
is
convenient
to
deal with questions
1
and
2
together
before dealing with questions
3,
4
and
5.
Questions
1
and
2
Upon
the
facts
as
I
have
outlined
them
the point of
law
encapsulated
in
questions
1
and
2
appears
to
be
this:
Upon
the
facts,
did the
defendant
owe
to
the
plaintiffs
a
duty
when
building
the
sand
dune
in
the
course
of
its
mining
operations to
take reasonable
care
to build
it
in
such
a way
and
in
such
a
location
as
to
avoid
it
ever
slipping into
the sea
and
causing
them
economic
loss
by
preventing
them from
fishing in
waters
affected
by
such
a
slippage.
A
related
point
is
whether
the
defendant
was
under
a
duty
to
take reasonable
steps to
remove
or
cover
with
sand
the
material
deposited
by
the slippage
so
that
the
plaintiffs
might
fish
with only
those
restrictions
which would
have
operated
had
the slippage
not occurred.
-- 11 of 50 --
8
The
first
point involves
a
positive act
which might
foreseeably cause
damage
to the plaintiff.
The
second
point
involves the omission to
do an
act
which would
alleviate the
damage
caused
by
the positive act resulting in the slippage of
the sand dune.
In
my
view upon
the
facts
if
the defendant
was
not in
breach of
a
duty
which
it
owed
to the
plaintiffs
with
respect to
the slippage of the
sand
dune
into
Moreton
Bay
causing
them
economic
loss
it
could not
be
said that
it
might
nevertheless
be
in
breach of
duty
in omitting to
take
steps to
reduce the
economic
loss
occasioned
to the
plaintiffs
by
such
slipping.
On
the other
hand
if
the defendant
was
in
breach of
a
duty
owed
to
the
plaintiffs
which
caused
them economic
loss
then
the
damage
recoverable
would encompass
the
whole
of the
damage
which would
be
recoverable
for
any
breach
of
duty
to
remove
material
which
interfered
with the
plaintiffs'
fishing
grounds.
I
therefore
confine
my
consideration to
whether
upon
the
facts
the
defendant
was
under
any
duty
to
the
plaintiffs
to
take
reasonable
steps to
so
construct
the
sand
dune
that
it
would
not
slip
into
Moreton
Bay
and
cause
economic
loss to
them by
interfering
with the catching of
prawns
in
the
southern
part
of
that
bay.
In
spite
of the
formulation of the questions
no
point of
law
has
been
argued as
to
whether
the
defendant
was
under
a
duty
to
the
plaintiffs
not
to
cause
physical
damage
to
the
plaintiffs'
fishing
gear
to
the
extent of nearly
$40,000.00
when
the
plaintiffs,
presumably
shortly
after
the
slippage attempted
-- 12 of 50 --
9
to trawl for prawns
in the fishing grounds affected
by
the
slippage.
Both
parties
argued the application
on
the assumption
that
there
was a
clear
and
significant distinction
between such
"physical
damage" and
the
"economic damage" which
resulted
from
the decision of the
plaintiffs
to
avoid physical
damage by
travelling further afield to fishing
grounds
not so
affected
and
to
simply
refrain
from
fishing in the affected area for the
best
part
of four
fishing
seasons
until
one presumes
the
effects of
the slippage
no
longer
impeded
fishing in
those grounds.
It
is
not appropriate therefore
upon
this
application for
me
to express
any view
as
to
whether
or not
upon
the
facts
as
I
have
stated
them
the
defendant
was
under
a
duty
to take
reasonable
care
when
constructing
and managing
the
sand
dune
not
to construct
it
so
that
it
might
slip
and
cause
physical
damage
to
the
plaintiffs'
fishing
gear
should
they attempt
to fish in
Moreton
Bay
with
their
prawn
nets
after
the slippage
or
whether
there
exists sufficient
causal
connexion between
any
breach
of
such
a
duty
and
all
such
physical
damage.
I
confine
my
attention
only
to
the
point
of
law which seems
to
be
encapsulated
in
the questions
posed
and which
was
argued
before
me
which
is
whether
the
defendant
was
in
breach
of
a
duty
not
to
cause
economic
loss
of
the
sort
the
plaintiffs
suffered.
On
the
facts
outlined
the
economic
loss
suffered
by
the
plaintiffs
as
a
result
of the slippage
was
foreseeable
to
the
defendant.
It
is
clear
however
that
foreseeability
of
loss
..
alone
is
not
sufficient
to
make
it
recoverable
by
action
for
negligence.
I
refer
to
the observation of
Deane
J.
in
-- 13 of 50 --
10
Sutherland Shire Council v.
Heyman (1985) 157 C.L.R. 424 where
at
p.
495 he observed:-
"The
common
law imposes no
general duty to
avoid
loss
or injury to another merely because
it
is
reasonably
foreseeable that one's actions or omissions are
likely
to
cause
it.
Nor
under
common
law
is
a
person
liable
in
damages
for loss or injury to
another merely
because such
loss or injury
would
not
have been
sustained
if
he
or
she had
acted with reasonable care
to
avoid
it.
Such
a
duty
arises
and such
liability
exists
under
common
law
only
if
there
be
the
requisite
element
of
proximity
in the relationship
between
the
parties
with respect to
a
relevant act or
omission:
the injured party
must be
'so
closely
and
directly
affected
by
my
act' that
the
law
adjudges
that
'I
ought reasonably
to
have
him
or her in
contemplation
as being so
affected
when
I
am
directing
my
mind
to
the acts or
omissions
which
are called in question':
per
Lord
Atkin
Donoghue
v. Stevenson".
In the
same
case
at
p.
497
His
Honour
continued:-
"The
requirement
of
proximity
is
directed to the
relationship
between
the
parties
in
so
far
as
it
is
relevant to
the
allegedly negligent act or
omission
of
the
defendant
and
the
loss or injury sustained
by
the
plaintiff.
It
involves the notion of
nearness
or
closeness
and embraces
physical
proximity
(
in the
sense of
space
and
time)
between
the
person
or
property of the
plaintiff
and
the
person
or
property
of the
defendant,
circumstantial
proximity
such
as
an
overriding~relationship
of-employer and
employee
or of
a
professional
man
and
his
client
and what
may
(perhaps
loosely)
be
referred
to
as causal
proximity
in
the sense of the closeness or directness
of the
causal
connection
or relationship
between
the
particular
act
or course
of
conduct
and
the
loss or
injury
sustained
---
The
requirement
of
a
relationship
of
proximity serves as
a
touch
stone
and
control of
the categories
of case
in
which
the
common
law
will
adjudge
that
a
duty
of care
is
owed.
Given
·
the
general
circumstances
of
a
case
in
a new
or
developing
area
of the
law
of
negligence the question
what
(if
any)
combination
or
combinations
of factors
will
satisfy
the
requirement
of
proximity
is
a
question
of
law
to
be
resolved
by
the
processes
of
legal
reasoning
induction
and
deduction.
On
the
other
hand
the
identification
of the
content of
that
requirement
in
such
an
area
should
not
be
either
ostensibly
or
actually
divorced
from
motions
of
what
is "fair
and
reasonable"
--
or
from
the considerations
of
public
policy
which
underlie
and
enlighten
the existence
and
content of the requirement."
-- 14 of 50 --
1 1
In the
same
case Brennan
J. at
pp. 486-7 pointed out that
liability in tort is
for
damage done and not for
damage which
is
merely foreseeable.
His Honour
referred to the observation
of Viscount
Simonds
in
The Wagonmound No. 1
(1961) A.C. 388
at
p.
425
that
it
is
not the act but the
consequences upon which
tortious
liability is
founded.
Where a
tortfeasor's liability
is
in respect of the specified
damage and no
other
damage
His
Honour
observed
at
p. 487:-
"The
question
is
always. whether
the defendant
was
under
a
duty
to
avoid
or
prevent
that
damage,
but the
actual nature of the
damage
suffered
is
relevant to
the existence
and
extent of
any
duty
to
avoid
or
prevent
it."
Sutherland Shire
Council
v.
Heyman was a
case
where
damages
for
economic
loss
were
claimed
against
the council
allegedly in
breach
of
its
duty
to
a
purchaser of
a
house
by
reason of
its
failure to
take
effective steps to
ensure
that
the foundations
of
that
house had been
properly constructed.
At
p.
501
Deane
J.
in considering the
degree
of
proximity
which
was
adequate
to
give
rise
to
a
duty
of care observed:-
"At
the
outset
one must
distinguish
between
physical
damage
and mere
or
pure
economic
loss.
In
the
absence
of
some
contrary
express
or
implied
statutory
mandate
or special
common
law
right
there
will ordinarily
be
little
difficulty
in discerning
that
a
defendant
whether
public instrumentality or
private
person
was
under
a
duty
to
take
reasonable
care
to
avoid causing ordinary physical injury
to
the
person
or
property of the
plaintiff
by
the
direct
impact
of
its,
his or
her
positive
action.
In
such
cases as pointed out previously
the
reasonable
foreseeability
of
such
damage
being
caused
will
ordinarily suffice to establish
the
requisite
proximity
of
relationship
and
there
will also
ordinarily
be
no
difficulty
in
the operation
of the
rule
that
a
cause
of action
will arise
when
the
physical
damage
is
sustained.
The
position
is
different
in
cases
where
--
the alleged loss or
damage
is
pure
economic
loss."
-- 15 of 50 --
12
At p.
502 His Honour
continued:-
"The
field of
liability for pure economic
loss
is
a
comparatively
new
and developing area of the
law
of
negligence.
Again
the reasonable foreseeability of
a
real risk of
such
loss
does not of
itself
suffice to
give
rise to
a
prima
facie
duty
to take reasonablecare to
avoid
it:
See
e.g.
The Dredge
'Willemstad'
(1976) 136
C.L.R.
at
pp.
549FF, 572FF and 590FF.
Thatbeing so the circumstances
in
which
the relationship
between
the parties will
be such as to
impose
a
duty
of care to
avoid pure
economic
loss are also properly
to
be
seen as
special.
Indeed
in
a
competitive
society the
infliction
of
pure
economic
loss
upon
another
will
commonly
be
a
concomitant
of thesuccessful pursuit of personal
advantage
by way
of
lawful conduct
in that there
can be
discerned in
many
commercial and
financial transactions
a
co-relation
between
the attainment of
personal gain for oneself
and
the sustainment of
economic
loss
by
another."
I
refer
also to
what
was
said in
Jaensch v. Coffey
(1984)
155
C.L.R.
549
at
p.
553-5
per
Gibbs
J.,
and
at
pp.
579, 585-586
per
Deane
J.
and
in
San
Sebastian Pty.
Ltd. v.
The
Minister
(1986)
162
C.L.R.
341
at
p.
355.
The
observations
in
Heyman
and
other
cases since
The
Dredge
'Willemstad'
in
1976 on
the
"control" of
proximity
in
negligence
reflect
and expand
upon
those of
Holdsworth
in his
consideration
of the
development
of
the
law
of
negligence
in
Vol.
8
of
A
History
of
English
Law
2nd Ed. (1937)
at
pp.
450, 451.
Perhaps
of
all
the
authorities
dealing
with proximity
required
to create
a
duty
of care to
avoid
economic
loss,
the
facts
in
The
Dredge
'Willemstad'
(1976)
136
C.L.R.
529
most
closely
resemble
those
in
the present
case;
however upon
analysis there are
significant
differences
between
them.
In
that
case the
plaintiff
suffered
economic
loss
occasioned
by
the necessity to
incur additional costs in
transporting
oil
to
its
terminal
by
reason
of the
defendant
-- 16 of 50 --
13
carelessly
damaging
a
pipeline resting
on a
harbour bottom and
running from
a
refinery
on one
side of the harbour
to the
plaintiffs'
terminal
on
the other side.
owned by
the
plaintiff.
The
pipeline
was
not
In
that
case Stephen
J. at
p. 573-4
observed:-
"But
if
economic
loss
is
to
be compensated
its
inherent capacity to manifest
itself
at several
removes from
the
direct
detriment
inflicted
by
the
defendant's carelessness
makes
reasonable
foreseeability
an
inadequate
control
mechanism
--
to
take
an
instance
used
in
argument
if
by
negligent
navigation
a
bridge
is
destroyed
can
it
be
the policy
of the
law
that
every
member
of the public
who
is
a
regular user of the bridge
and
who
in
consequence
incurs increased transport costs
because
now
obliged
to
travel
by
a
more
circuitous route
is
to
be
entitled
to recover
his resultant
economic
loss,
a
loss
which
will
perhaps continue
until at
some
distant
future
date the bridge
is
restored?
I
would
think not; yet
it
is
by no
means
clear
to
me
that
an
application of
the
criterion
of reasonable
foreseeability
might
not
produce
that
very
result."
His
Honour
then
at
pp.
576-577
concluded
that
on
the
facts
of
that
case
there existed
sufficient
proximity
to
entitle
the
plaintiff
to
recover
its
reasonably foreseeable
economic
loss.
The
relevant
facts
His
Honour
classified
as
follows:-
(
1)
The
defendant's
knowledge
that
damage
to
the
refinery
pipeline
was
likely
to
produce
consequential
economic
loss
to
those
who
relied
upon
its
use.
The
plaintiff
in that
case
had
"a
very
real
interest
in" the
continued
operation
of the pipeline
even though
it
did not
possess
a
proprietary or
possessory
interest
in
it.
(2)
The
defendant's
knowledge
that
the
damaged
pipeline
extended
to
the
plaintiff's
terminal led to
the obvious
inference
that
the
plaintiff
was
a
user of the
pipeline.··
-- 17 of 50 --
14
His Honour concluded
that these
two
factors led to the
conclusion that the
plaintiff
was
within the reasonable
contemplation of the defendants as
a
person
likely to suffer
economic
loss
if
the pipeline
was
cut.
His Honour
concluded
that
another relevant factor
was
the nature of the
damage
suffered
by
the
plaintiff
which
reflected directly
the
plaintiff's
loss of
use
of
that
pipe.
It
did not represent
a
loss of
profits arising
because
collateral
commercial
arrangements
were
adversely affected but
on
the contrary
involved the
expense
directly
incurred
in
employing
alternate
modes
of transport
of
oil
from
the refinery to the
plaintiff's
terminal.
His
Honour
concluded those
factors
demonstrated
a
close
degree
of
proximity
between the
defendant's
conduct
in
damaging
the
pipeline
owned
by
the refinery
and
the
economic
loss
which
the
plaintiff
suffered
when
its
chosen
means
of
supplying
its
terminal with products
from
the
refinery
was
interrupted
by
damage
to
the pipeline.
His
Honour summarized
the matters
he
thought
relevant to
proximity
at
p. 577:-
"The acknowledgement
that
a
duty
of care
was owed
to
A.O.R.;
the
fact
that' Caltex
was
not
less
proximately
concerned than
was
A.O.R.
in
the
continued
integrity
of
the
pipeline;
the
very nature of the
pipeline
a
major
mode
of
conveyance
of products
to
an
identifiable
recipient
whose
use
of
its
terminal
was
for
the
receipt
of
such
products; the nature of the
economic
loss
direct
and
inevitably
flowing
from
the
severing of the
pipeline
and
not
in
any
sense
a
matter
for
speculation
only;
all
these
characteristics
of the
present
case
combine
to constitute
a
relationship
of
sufficient
proximity
to
give
rise
to
a
duty
of
care
owed
to
Caltex
for
breach
of
which
it
may
recover
its
purely
economic
loss."
Mason
J. at
p.
593
of the
same
case
said:-
"A
defendant
will
then
be
liable
for
economic
damage
due
to
his
negligent
conduct
when
he
can
reasonably
foresee
that
a
specific
individual
as
distinct
from
a
-- 18 of 50 --
15
general class of persons will suffer financial loss as
a
consequence of his conduct. This approach
eliminates or diminishes the prospect that there will
come
into existence
liability to
an indeterminate
class of persons;
it
ensures that liability is
confined to those individuals
whose
financial loss
falls
within the area of foreseeability
and
it
accords
with the decision in
Rivtow (1973)
40
D.L.R. 3d
(530)."
At
p.
555
of that report
Gibbs
J.
observed:-
"
In
my
opinion
it
is
still
right to
say
that
as
a
general
rule
damages
are not recoverable for
economic
loss
which
is
not consequential
upon
injury to the
plaintiff's
personal property.
The
fact that
the
loss
was
foreseeable
is
not
enough
to
make
it
recoverable.
However
there are exceptional cases in
which
the
defendant has
knowledge
or
means
of
knowledge
that
the
plaintiff
individually
and
not
merely as
a member
of
an
unascertained
class will
be
likely
to
suffer
economic
loss
as
a
consequence
of his
negligence
and
owes
the
plaintiff
a
duty
to
take care not
to
cause
him
such
damage by
his
negligent
act.
It
is
not
necessary
and would
not
be
wise
to
attempt
to
formulate
a
principle that
would
cover
all
cases
in
which
such
a
duty
is
owed
--
11
At
p.
556
His
Honour
came
to
the
conclusion
that
the
persons
responsible for
the
damage
to
the pipeline
should
have
had
the
plaintiff
in
contemplation as
a
person
who
would
probably
suffer
economic
loss
if
the pipe
was
damaged.
His
Honour
came
to
the
conclusion
that
in
the
circumstances
there
was
a
particular
relationship
between
the
plaintiff
and
the
defendant
which
placed the
defendant
under
a
duty
to
take
reasonable
care
to
avoid
damaging
the pipeline
because
that
would
cause
the
plaintiff
economic
loss.
Upon
the
facts in
The
Dredge
'Willemstad'
it
is
clear that
the defendant
was
or
ought
to
have been
aware
that
Caltex
was,
if
not
the
only
user of the
pipeline,
at
least
one
of
a
very
limited
class
of user
who
would
suffer
economic
loss
if
its
use
of
that
the
pipeline
for
the
purpose
of transporting
oil
to
its
-- 19 of 50 --
16
terminal
was
interfered with.
As Gibbs
J.
observed the
defendant
knew
that the
plaintiff
"individually
and
not merely
as
a member
of
an unascertained class"
would be
likely to suffer
loss
if
the pipe
were damaged.
Similarly Stephen
J.
in
considering whether
a
sufficient
degree of proximity existed
between
the defendant's unreasonable
conduct and
the
economic
loss suffered
by
the
defendant's
knowledge
plaintiff
that
damage
regarded
to
the
as important the
pipe
would
cause
economic
loss "to
those
who
rely directly
upon
its
use"
and
its
knowledge
that
the
plaintiff
was
one
of the persons
who
did rely
directly
upon
its
use.
On
the
facts
of the present
case the defendant
knew
that
an
unspecified
number
of professional
fisherman
fished in parts
of
Moreton
Bay
that
would
be
adversely affected
by
slippage of
the
sand
dune
into
it.
Reference
to
the
legislation
indicates
that
only
members
of the public
who
held
licences of the
sort
specified
could lawfully catch
prawns
for
commercial
purposes
with
trawling nets in
that part
of
Moreton Bay.
How
many
professional
fishermen
held
such
licences
does
not
emerge
from
the pleadings.
There
is
nothing
to
suggest
that
the
number
of
professional
fishermen
holding
licences
which
permit
them
to
use
trawl nets to
catch
prawns
in
the
area of
Moreton
Bay
affected
by
the slippage
is
limited or ascertainable
by
reference to
the
area
of
Moreton
Bay
adverseli
affected
by
the
slippage.
What
does
emerge from
the
facts
and
from
consideration of the
relevant
legislation is
that
any
members
of
the
public
who
wish
to
fish
for
prawns
with
nets
anywhere
in
Moreton
Bay
or
anywhere
in
Queensland
for
that
matter
must have
a
licensed
boat
and
a
-- 20 of 50 --
17
licence to use nets of the sort
which the plaintiffs
were
entitled to use. There appear to
be
39
plaintiffs in this
action al
though
it
is
not clear
how many
licensed fishing
vessels they used between them. There
is
nothing before
me
to
indicate
how many
persons
or fishing vessels with licences
similar to those of the
plaintiffs
and
their vessels, in fact
operated
at
the relevant
time in the areas of
Moreton
Bay
affected
by
the slippage of the
sand dune
or in other
Queensland
waters.
The
facts
do
not
establish that
the
defendant
knew
any
of
the
plaintiffs
individually or
as
members
of
a
readily
identifiable
or ascertainable class
of
fishermen.
What
they
establish
is
that
the defendant
knew
that
some
professional
fishermen
fished in
the area
and might be
affected
and
suffer
financial loss
as
a
result
of interference
with
their
fishing
operations
if
the
sand
dune
slipped into
the
bay.
I
keep
in
mind
references
in
the
judgments
to
problems
that
might
arise
should
a
pylon
of
a
bridge or
an
electric
power
line
be
damaged by
the
absence
of
reasonable care
on
the
part
of
somebody
causing
economic
loss to
perhaps thousands
of
persons
using
the bridge or relying
upon
the
supply
of
electricity.
As
I
read the observations
made
in
the
judgments on
these
hypothetical
cases
it
could
not
be
said
that
in those
situations
all
persons
whose
transport
arrangements
were
adversely
affected
or
all
persons
whose
use
of
electricity
was
interfered
with
would
be
members
of
an
"ascertained" class
merely because
appropriate
inquiries
might
establish
the
identity
of
all
or
-- 21 of 50 --
18
nearly all
people
who
used the bridge or all or nearly
all
people
who made
use of the
electricity
supply.
On
the facts of the present case
it
seems
that
many
professional
fishermen
who
would
but for the
effects of the
slippage
have
successfully fished for
prawns
in the four fishing
seasons to
which
I
have
referred
may
have
suffered
economic
loss
of various kinds
and
to
varying degrees
if
unable so
to fish
as
a
consequence
of that
slippage.
For
all
the
facts disclose
there
may
have been hundreds
of professional
fishermen
apart
from
the
plaintiffs
who
would, depending
upon
the
number
of
prawns
that
might be
taken,
have
fished successfully in the area
spoilt
by
the slippage in
that
four year period
had
that
slippage not occurred.
Assuming
that
all
the
plaintiffs
had
from
time
to
time
been observed
by
officers
of
the
defendant
to
be
fishing in
and
about
that part
of
Moreton
Bay
affected
by
the
slippage,
could
such
observation
be
sufficient
to constitute
them
members
of
"an
ascertained class"
known
individually
and
distinct
from
all
those
professional
fishermen
in
Queensland
who
holding ·the
appropriate licenses
mig_ht
lawfully
have
fished in
the
relevant
seasons
for
prawns
in
the
southern
part
of
Moreton
Bay?
To
so
hold
in
my
view
would
be
to
go
a
long
way
beyond what
was
decided
in
The
'Willemstad'.
The
doctrine of
proximity
of
course
has
been
elucidated
and
developed
since
The
Dredge
'Willemstad'
was
decided
in
1976.
Indeed
the
most
recent
consideration of
proximity
to
which
my
attention
was
drawn
was
the decision of
the
Full
Court
of
Queensland
in
Suosaari
v.
Steinhardt
(1989)
2
Qd. R.
477.
The
question
in
that
case
-- 22 of 50 --
19
involved whether there
was
sufficient proximity between
a
manufacturer of
farm equipment and
the user of
it
who was
injured
by
reason of
a
defect in
its
design.
However,
that
was
not
a
case involving
economic
loss
and
consideration of the
"class" constituted
by
users of the
machinery
who
might be
physically injured
is
not
really of
much
assistance in
determining the nature of
a
"class"
defined
only
by knowledge
of
the
sort
of person
who
foreseeably
will
be
damaged
economically
by
a
failure to exercise reasonable care.
In
The
Dredge
'Willemstad' the defendant
damaged
a
pipe
owned
by
a
refinery
and
used
by
Caltex.
It
was
that
damage
that
caused
Caltex the
economic
loss
involved
in
arranging
alternate
transport
facilities
for
oil
from
the
refinery to
its
terminal.
In
this
case
even
accepting
that
the sea
bed
of
Moreton
Bay
is
"owned" by
the
Crown
it
is
hardly
"used"
by
fishermen
who
trawl
prawning
nets
above
or
even
upon
its
surface in
the sense
that
Caltex
used
the
oil
pipeline
owned
by
the
refinery.
Even
if
it
can
be
said
that
fishermen "use" the sea
bed and
the
water
above
it
as they
fish
for
prawns,
it
does
not
seem
to
me
that
the
depositing of
trees,
roots,
vegetation
etc.
in
the waters
and
upon
the sea
bed can
be
said to
"damage"
either
the waters
or
the sea
bed.
All
that
can
be
said
is
that
such
deposition
interferes
with the catching of
prawns
by
net in
the areas
affected
by
the deposited
materials.
There
is
no
suggestion
that
prawns were
adversely
affected
as
the
result
of the
slippage,
indeed
the slippage
may
prove
beneficial to
sea
life
over
the
long term:
however
it
is
unnecessary
to
speculate
on
such
matters. Suffice
it
to
say
that
in
my
view
it
is
not
open
-- 23 of 50 --
20
on
the facts to conclude
that the waters and sea bed
of
Moreton
Bay
were "damaged" by
the slippage.
There
is
nothing to suggest
that the slippage in
any
way
impeded
the navigation of the
bay
by
the
plaintiffs
or
by any
other
persons
who
wished
to travel
by
boat in
any
part of the
bay
affected
by
the slippage.
It
is
impossible
in
my
view
to put into the
same
category the
impairment
of the
ability
of
Caltex
to
convey
oil
to
its
terminal
by
the
damage
done
to
the pipeline
it
used
for this
purpose
and
the
impairment
of the
ability
of the
plaintiffs
to
trawl for
prawns
by
the deposit of materials in
Moreton
Bay
which
prevented
them
economically
from
so
trawling.
In
Tate
&
Lyle v. G.L.C. (1983)
2
A.C. 509,
a
case
where
jetty
owners
sued,
inter alia,
in
negligence for
damage
suffered
when
siltation
deprived
them
of
access
to
jetties
they operated
under license~
it
was
held
that
licences to erect
and keep
in
good
repair
jetties
in the
River
Thames
did not confer
on
the
licence
holders
any
rights to
the
maintenance
of
any
part~cular
depth
of
water
hear or leading to
the
jetties.
Lord Templeton
at
p.
536
B-C
said:-
"I
consider
that
Tate
&
Lyle cannot maintain
an
action
in
negligence
because
they did
not possess
any
private
rights
which
enabled
them
to
insist
upon any
particular
depth
of
water
in
connection with
the
operation of
their
licensed
jetties."
In
my
view
the
plaintiffs'
right
to
use trawl
nets
to
catch
prawns
in
that part
of
Moreton
Bay
affected
by
the slippage
cannot
be
put
in
the
same
category
as
the
right
of
Caltex
to
use
the
A.O.R.
pipeline to
convey
oil
to
its
terminal
and
does
not
suffice
to
establish
the
requisite
proximity.
-- 24 of 50 --
21
I
have come
to the conclusion that
it
cannot be said that
even
if
the defendant had on occasions seen each of the
plaintiffs fishing in
the.
area affected
by
the slippage
it
knew
of
them
"individually" or as
members
of
an
'ascertained class'
sufficient to establish the requisite
proximity between
the
defendant
and
the
plaintiffs
to
impose upon
the defendant
a
duty
to
avoid
economic
loss to the
plaintiffs
by
taking reasonable
care in
the construction
and
management
of the
sand
dune
to
avoid
its
slippage into
Moreton
Bay.
In
my
view
the
first
two
questions as formulated
and
argued
by
the
plaintiffs
and
the defendant
must be answered
"No.
11
Turning
to
Questions 3,
4
and
5
the points of
law
for
determination here are
whether
the slippage of the
sand dune
into
Moreton
Bay
as the
consequence
of
acts or
omissions
on
the
part
of the defendant
amounted
to
a
public
nuisance
and
if
it
did
whether
the
plaintiffs
may
recover
their
economic
loss
resulting
from
their inability
to fish
for
prawns
for
four
seasons as
particular
damage.
It
seems
to
me
that
Question
4
relates
not
merely
to
the
economic
loss suffered
by
the
plaintiffs
but
also to
the
destruction
of
and
damage
to fishing
gear
to
the
extent of nearly
$40,000.00.
In
A.G.
v.
P.Y.A.
Quarries
Ltd.
(1957)
2
Q.B. 169
at
p.
191
Denning
L.J.
defined public
nuisance
in
the
following
terms:-
"A
public
nuisance
is
a
nuisance so
widespread
in
its
range
or
so
indiscriminate in
its
effect that
it
would
not
be
reasonable
to
expect
one
person
to
take
proceedings
on
his
own
responsibility
to
put
a
stop
to
it
but
that
it
should
be
taken
on
the
responsibility
of the
community
at
large."
-- 25 of 50 --
22
For interesting historical
analyses of the development of
the
law
relating to public nuisance
I
refer to
The
Boundaries
of
Nuisance
by F.H.
Newark 65
L.Q.R. (1949) 480 and
to Public
Nuisance
A
Critical
Examination by
J.R. Spencer
1989
Cambridge
Law
Journal
55.
I
refer also to
Halsbury 4th
Ed. Vol.
34
at
p.
102 where
it
is stated:-
" A
public nuisance
is
one which
inflicts
damage,
injury or
inconvenience
on
all
the
Queen's
subjects or
on
all
members
of
a
class
who come
within the sphere
or
neighbourhood
of
its
operation.
However,
it
may
affect
some
to
a
greater
extent
than
others.
The
question
whether
the
number
of
persons
affected
is
sufficient
to constitute
a
class
is
one
of
fact.
There
are
many
statutory
provisions
which impose
penalties for nuisances
affecting
public health,
morals
and
comfort.
However,
the
common
law
liability
remains,
and any
person
who
by any
act
unwarranted
by
law
or
by any
omission
to
carry out
a
legal
dutyendangers
the
life,
health,
property,
morals
or
comfort
of the public
commits an
offence
known
as
public nuisance."
It
is
clear that to
be
indictable
under
s.
230
of
The
Criminal
Code
(Queensland) an
act
or
omission with
respect to
property
under
a
person's control
must:-
(a) cause danger
to
the
lives,
safety
and
health of the
public; or
(b)
cause
danger
to
the
property
or
comfort
of
the public
or
obstruct the public in
the
exercise
or
enjoyment
of
a
right
common
to
all
members
of the
public
and
thereby
cause
personal injury to
some
person.
In
McKell
v.
Rider
(1908)
5
C.L.R.
480
at
p.
485
Griffith
C.J.
expressed
the
view
that
at
common
law
a
public
nuisance
was
"an
indictable
nuisance".
-- 26 of 50 --
23
I was
referred to
no
statutory
enactment making
the acts or
omissions of the defendant, which had
the effect of preventing
prawn
trawling with nets
an offence whether
indictable or
otherwise.
application.
Section
2 3 0
of
The
Criminal
Code
clearly
has
no
For the
plaintiffs
to
have
a
right to
sue
in public
nuisance they
must
show
that
(1)
The
defendant
was
responsible for the slippage of the
sand
dune
into
Moreton Bay;
(
2)
That
that
slippage
interfered
with the public
right
to
catch
prawns
in
that part
of
Moreton
Bay
so
effected;
(3)
That
that interference constituted
a
public nuisance;
and
(4)
That
the
plaintiffs
suffered
some
special
damage
peculiar
to
themselves
by
reason of the
interference
with
that
public
right.
I
refer
to
Boyce
(1903)
1
Ch. 109
per
Buckley
J. at
p.
114.
My
research
has
revealed only
two
cases
where
an
act
although
not
impeding
access
to fishing
grounds
in
public waters,
made
it
more
difficult
to
catch
fish
in
those
grounds
and
for
this
reason
was
assumed
or
held
to constitute
a
public nuisance. In
Fillion
v.
New
Brunswick
International
Paper
Co.
(1934)
3
D.L.R.
22,
the
Appeals
Division of
The
New
Brunswick
Supreme
Court
held
that
the
pollution
of sea
water near the
plaintiff's
fishing
grounds
with
wood
particles
which
had
the
result
of
his
nets
being fouled
and
damaged
by
masses
of ice
resulting
from
that
pollution
and
of
inhibiting
the freezing
of
river
water thus
,•
delaying
his
setting
of
nets
with
consequent
financial loss
of
income,
if
it
did
constitute
a
public
nuisance
did not
cause
the
-- 27 of 50 --
24
plaintiff
a
sufficiently special or particular
damage
to allow
him
to recover
damages
in public nuisance. Baxter
J.
in
delivering the
judgment
of the Court
said at
p. 26:-
"Assuming
then
that
the defendant's act constituted
a
public nuisance
and
if it
is
wrongful
I
do
not see
how
it
can be
anything
else,
the
plaintiff
has
suffered
differently
from
the
rest
of the public only
in
degree. nearly
all
of the cases in
which
this
principle
has been invoked concern
the obstruction of
a
highway
---
Lord Haldane
in
A-G
B.C.
v.
A-G
Can. 15
D.L.R.
at
p.
315
assimilates
the
right
of public
fishing to that
of navigation or "the right to
use
a
navigable
river
as
a
highway."
In
McRae
v.
British
Norwegian Whaling
Co.
Ltd.
(1927-31)
Nfld.
L.R.
274.
there
was
pollution
of sea waters
from
waste
materials
discharged
by
a
whaling
factory
which
greatly
hampered
local
fishermen.
Kent
J. at
p.
282
observed:-
"It is
an
established principle that
the
right to
fish
in
the sea
and
public
navigable waters
is
free
and
open
to
all.
It
is
a
public
right that
may
be
exercised
by
any
of the King's
subjects
and
for
any
interference
with
it
the usual
remedies
to vindicate
a
public
right
must be employed."
His
Honour
then
ref
erred to
Benjamin
v.
Storr
(
187
4)
43
L.J.C.P.
162
(a
highway
case)
at
p.
166
per
Brett
J.
and
treating
the
pollution
of the sea
as
a
public
nuisance
went on
to
hold
that
the
plaintiff's
damage was
not
sufficiently
particular
to
permit
recovery
of
damages by
the
plaintiff
in
public
nuisance.
In
Hickey
et
al
v.
Electric
Reduction
Co.
of
Canada
Ltd.
(1970)
21
D.L.R. (3d)
the
defendant discharged
poisonous
substances
into
the
waters of
a
bay
causing
the death
of
fish
life
in
it.
The
plaintiffs
were
fishermen
whose
livelihood
was
impaired
by
the
destruction
of
those
fish.
It
was
held
that
the
pollution
of the
bay
waters
amounted
to
a
public nuisance.
-- 28 of 50 --
25
Furlong C.J. referred to
McRae
(supra) and
Fillion (supra) to
support this conclusion.
His Honour however came
to the conclusion
that the
damage
suffered
by
those fishermen
was
not sufficiently special or
particular to
them
to permit
them
to
sue
for the loss
which
they
had
suffered.
At
p.
371-2 His
Honour
said:-
"Counsel
for the
plaintiffs ---
argued
that
when
a
public nuisance has been
created
anyone
who
suffers
special
damage,
that is, direct
damage
has
a
right
of
action.
I am
unable
to
agree to
this rather
wide
application of
Salmond's view
that
a
public nuisance
may
become
a
tortious act.
I
think the
right
view
is
that
any
person
who
suffers peculiar
damage
has
a
right
of action but
where
the
damage
is
common
to
all
persons
of the
same
class
then
a
personal
right
of
action
is
not maintainable.
Mr.
Wells
suggests
that
the
plaintiffs'
right
to
outfit
for
the
fishery
and
their right
to fish
is
a
particular right
and
this
right
having
been
interfered
with they
have
a
cause
of
action.
This
right
which
they enjoy
is
a
right in
common
with
all
Her
Majesty's subjects
an
interference
with
which
is
the
whole
test
of
the public nuisance;
a
right
which can
only
be
vindicated
by
the
appropriate
means
which
is
an
action
by
the Attorney-
General
either
with
or
without
a
relater
in the
common
interest
of the
public."
While Hickey
et al
v.
Electrical
Reduction
Co.
of
Canada
Ltd.
is
authority for the proposition
that
the discharge of
poisonous
materials into
a
bay
containing
fish
from
time
to
time
caught
by
professional
fisherman
for
human
consumption
constitutes
a
public
nuisance
if
it
causes the death
of
those
fish,
it
is
not
in
my
view
authority
for
the
proposition
that
the
causing
of
trees,
roots
and
vegetation
to
fall
into
a
bay
making
it
uneconomic
to
use
nets to
catch
prawns
constitutes
that
event
a
public
nuisance.
As I
have
already
indicated there
is
nothing
to
suggest
that
the deposition
of
that
material in
Moreton
Bay
in
this
case
wouid
have been
in
any
way
harmful
to
-- 29 of 50 --
26
marine
life. It
must be kept in
mind
that in times of flood
trees, roots, vegetation, etc. are frequently carried
from
rivers
and waterways
into
bays.
With
the exception of Fillion
(supra)
and
McRae
(supra)
I
have
discovered
no
authority
supporting the proposition that
deposition of
such
material
by
man
in
a
bay
in
such
a
way
that
it
does
not adversely
interfere
with
marine
life
and
is
not
demonstrated
to
impede
the
navigation of the
bay by
boats
amounts
to
a
public nuisance.
For
the
plaintiffs
it
is
contended
that
the
right
to fish
in
those
parts of
Moreton
Bay
affected
by
the slippage of the
sand
dune
is
a
public
right
which
the defendant
by
causing
or
permitting the slippage
unlawfully
interfered
with,
and
that
that
interference
amounts
to
a
public nuisance. In support of
these contentions the
plaintiffs
rely
upon
observations
made
in
Attorney-General
for
British
Columbia
v. Attorney-General
for
Canada
( 191
4)
A.
C.
153.
At
pp.
168-169
Viscount
Haldane L.C.
refers
to
a
passage
in
the
De
Jure
Maris
of
Lord
Hale
to
the
effect that:-
"---
yet the
common
people of
England have
regularly
a
liberty
of fishing in
the sea
or
creeks
or
arms
thereof
as
a
public
common
of piscary
and
may
not
without
injury
to
their
right
be
restrained
of
it
unless
in
such
places,
creeks
or
navigable
rivers
where
either
the
King
or
some
particular
subject
hath
gained
a
propriety
exclusive of
that
common
liberty."
He
continues
at
p.
169:-
"But
Their
Lordships
are
in entire
agreement
with
him
on
his
main
proposition
namely
that
the
subjects of
the
Crown
are
entitled
as
of
right
not
only
to
navigate but
to
fish
in
the
high
seas
and
tidal
waters
alike.
The
legal
character
of
this right
is
not
easy
to
define.
It
is
probably
a
right
enjoyed
so
far
as
the
high
s.eas
are
concerned
by
common
practice
from
time
immemorial and
it
was
probably
in
very
early
times extended
by
the subject
without
challenge
to
the
foreshore
and
tidal
waters
which were
continuous
with
-- 30 of 50 --
27
the ocean
if
indeed
it
did not in fact first
take rise
in
them. The
right into
which
this practice has
crystallised
resembles in
some
respects the right to
navigate the seas or the right to use
a
navigable
river
as
a
highway and
its
origin is
not
more
obscure
than
that of these rights of navigation. Finding
its
subjects exercising this right
as
from immemorial
antiquity the
Crown
as parens
patriae
no
doubtregarded
itself
bound
to protect the subject in
exercising
it
and
the origin
and
extent of the
right
as
legally
cognisable are
probably
attributable tothat protection,
a
protection
which
gradually
came
to
be
recognised as
establishing
a
legal right
enforceable in the
courts."
At
p.
170
His Lordship
continues:-
"
it
has been
unquestioned
law
that
since
Magna
Carta
no
new
exclusive fishery
could
be
created
by
royal grant in
tidal
waters
and
that
no
public
right
of fishing in
such
waters then
existing
can be
taken
away
without
competent
legislation."
It
is
contended
for the
plaintiffs
that
the observations
to
the
effect that
the
right
of fishing in
the sea "resembles
in
some
respects" the
right
to
navigate the seas
or the
right
to
use
a
navigable
river
as
a
highway
supports
this
proposition:
because
an
interference
with the
right
to
use
a
navigable
river
as
a
highway
may
constitute
a
public
nuisance
therefore
an
interference
with
the
right
of fishing in
the
sea
may
constitute
a
public
nuisance
also.
This appears
to
have been
the
approach
taken
in
Fillion's
Case
(supra)
also.
It
is
contended
that
Hickey
et al
v.
Electrical
Reduction
Co.
of
Canada
Ltd.
itself
and
the
two
authorities
which
Furlong
C.J.
relied
upon
in
that
case
-
McRae's Case and
Fillion's
Case
are
all
cases
where
the
Canadian
courts
at least
have
so
applied
Attorney-General
for
British
Columbia
v.
Attorney-General
for
Canada.
-- 31 of 50 --
28
I
pause only to
remark
that in each of those three Canadian
cases
it
was
held that the
damage
suffered
by
professional
fisherman as
a
result
of the destruction of sea
life
or the
interference with fishing
by
pollution of the waters
was
not
sufficiently particular to permit
them
to
recover
damages
for
economic
loss
which they
suffered
as
a
result.
It
is
convenient
when
considering those cases
however
to
analyse the issues
before the Privy
Council
in
1913 when
the
observations
in that
case
to
which
I
have
referred
were made.
In
1871
British
Columbia
was
admitted
into
the
Union
of
Provinces
constituted
by
the
British
North
America
Act.
Under
the
arrangement
the
Dominion
of
Canada assumed
the
protection
and
encouragement
of
fisheries.
It
also
assumed
the
obligation
to
complete
within
10
years
a
railway
from
the
Pacific
Coast
of
British
Columbia
to
a
point
east
of the
Rocky
Mountains
linking
up
with
the railway
system
of
Canada.
The
government
of
British
Columbia became bound
to
convey
to
the
dominion government
a
strip
of
land not
to
exceed
20
miles
in
extent
on
either
side
of
the railway
line
to
be
constructed for
the
full
length
of the
line.
An
effect
of the grant of
the railway
belt
of
land
was
in
substance
an
assignment
of the
rights
of the province
to
appropriate
territorial
or provincial
revenues
arising
from
that
land.
At
p.
166
Lord Haldane
said:-
"Their Lordships
can
see nothing
in
the
judgment above
referred to
which
casts
the
slightest
doubt
upon
the
conclusion
to
which
they
have
come
from
a
direct
consideration of
the
terms
of the grant
itself
namely
that
the
entire
beneficial
interest
in
everything
that
was
transferred
passed
from
the
Province
to the
Dominion
---
and
this
must
include the
beds
of the
-- 32 of 50 --
29
rivers
and lakes
which
lie
within the belt."
His Lordship then
.
referred to
an
earlier decision in
Barrard
Power Co.
v.
Rex (1911) A.C. 87
in these terms:-
"The
grounds of the decision of the
Board
in that
case
were
that the grant of the lands to the
Dominion had
passed the water
rights incidental to the lands
and
that these lands so long as unsettled
were
public
property within the
meaning
of
s.
91
of the
British
North America Act and were
therefore
under
the
exclusive
legislative
authority of the
Dominion and
could not
be
dealt
with under
a
Water
Clauses
Act
passed
by
the Provincial
government."
At
p.
167
His
Lordship observed:-
"In the present
case therefore
Their Lordships
entertain
no
doubt
that
the
title
to the
solum and
the
water
rights
in
the Fraser
and
other
rivers
and
the
lakes
so
far
as within the
belt
are
at
present held
by
the
Crown
in right
of the
Dominion and
that this
title
extends
to the exclusive
management
of
the land
and
to
the
appropriation of
its
territorial
revenues.
It
remains
to
consider the
consequences
as
regards
fishing
rights.
These
are in
Their Lordship's opinion
the
same
as
in
the ordinary
case
of
ownership
of
a
lake or
riverbed."
At
p.
168
after
considering
rights
of fishing
etc. in
non
tidal
water
His
Lordship
continued:-
"but
in
the
case of
tidal
foreshore
or in estuaries
exclusive
character of the
another
and paramount
title
the
public."
waters
(
whether
on
the
or
tidal
rivers)
the
title
is
qualified
bywhich
is
prima
facie in
His
Lordship
then
referred to
what Lord
Hale
had
said in
De
Jure
Maris.
After dealing
with
fishing rights
within the railway
belt
in
tidal
and non
tidal
waters
at
p.
171
His
Lordship
observed:-
"But
we now
come
to
the
crux
of
the present case.
The
restriction
above
referred
to
relates
only
to
royal
grants
and what
Their
Lord~hips
here
have
to
decide
is
whether
the Provincial Legislature
has
the
power
to
alter
these public
rights
in
the
same
way
as
a
sovereign
legislature
such as
that
of the
United
Kingdom
could
alter
the
law
in
these
respects
within
-- 33 of 50 --
30
its territory."
At
p.
172
reference
was made
to other advice given by
the
Board
as to the limits of the
powers
of provincial legislatures in
North America
in the following terms:-
"It
was
held that
it
does
not confer
on
the
Dominion
any
rights of property but
it
does
confer
an
exclusive
right
on
the
Dominion
to
make
restrictions or
limitations
by which
public rights
of fishing are
controlled
and on
this
exclusive right provincial
legislation
cannot
trench."
His
Lordship continued:-
"Neither in
1867
or
at
the date
when
British
Columbia
became
a member
of the Federation
was
fishing in
tidal
waters
a
matter of property.
It
was a
right
open
equally to
all
the public
and
therefore
when
bys.
91
sea coast
and
inland
fisheries
were
placed under
the
exclusive
legislative
authority
of the
Dominion
Parliament, there
was
in the
case of the
fishing in
tidal
waters nothing
left
within the
domain
of the
Provincial Legislature.
The
right
being
a
public
one
all
that
could
be done
was
to regulate
its
exercise
and
the exclusive
power
of regulation
was
placed
in
the
Dominion
Parliament.
Taking
this
in
connection
with the
similar
provision
with
respect to 'navigation
and
shipping'
Their Lordships
have
no
doubt
that
the
object
and
the
effect
of these
legislative
provisions
that
place the
management and
protection of the
cognate
public
rights
of navigation
and
fishing
in
the
sea
and
tidal
waters
exclusively in
the
Dominion
Parliament
and
to
leave
to
the
Province
no
right
of
property or control in
them.
It
was
most
natural
that
this
should
be
done
seeing
that
these
rights
are the
rights
of the public
in
general
and
in
no
way
special
to
the
inhabitants
of the province."
The
Board
then
went on
to
answer
the question
posed
for
its
consideration
and
said
that
it
was
not
competent
for
the
Provincial Legislature to authorise
the
government
of the
Province
to grant
the
exclusive
right
to fish
in
the waters
in
any
part
of the
railway
belt
where such
waters
were
tidal
or
though
not
tidal
were
navigable.
-- 34 of 50 --
31
In essence the Board held that so far as waters were
tidal
within the railway belt the right to fish in
them was a
public
right
and was
subject only to regulation
by
the
Dominion
Parliament.
It
was
held also that in
so
far
as the right of
fishing in the sea
was
concerned
that right
was
of the public in
general
and
that
the
Dominion had
the exclusive
right
of
legislating
with regard
to
it.
At
p.
174
His Lordship observed:-
"But
Their
Lordships
feel
themselves
relieved
from
expressing
any
opinion
on
the question
whether
the
Crown
has
a
right
of property in
the
bed
of the sea
below low
water
mark
to
what
is
known
as the
three
mile
limit
because they
are
of opinion
that
the
right
of the public to fish in
the sea
has been
well
established in
English
law
for
many
centuries
and
does
not
depend
on
the
assertion
or
maintenance
of
any
title
in
the
Crown
to the subjacent land."
At
p.
175
the
judgment
continued:-
"---
the principles
above
enunciated
should
suffice
to
answer
the
third
question
which
relates to
the
right
of fishing in
arms
of the sea
and
the
estuaries
of
rivers.
The
right
to fish
is
in
Their Lordship
1 s
opinion
a
public
right
of the
same
character
as
that
enjoyed
by
the public in
the
open
seas.
A
right
of
this
kind
is
not
an
incident
of
property
and
is
not
confined
to
the
subjects of
the
Crown who
are
under
the
jurisdiction
of the
province.
Interference
with
it
whether
in
the
form
of
direct
regulation or
by
the
grant of exclusive
or
partially
exclusive
rights to
individuals or classes
of individuals
cannot
be
within
the
power
of the
Province
which
is
excluded
from
the
general
legislation
with regard
to
sea
coast
and
island
fisheries."
In
my
view
the observations
in
the
judgment
of the
Board
which
I
have
set
out
at
some
length
must be
considered
in
the
context of the matters
of
law
that
were
debated
before
it.
The
issue in
that
case
did not
involve the
question
of
any
infringement
of
a
public
right
much
less
whether
any
such
infringement
constituted
a
public
nuisance.
The
question
-- 35 of 50 --
32
considered
was
whether
it
was
within the legislative
competence
of the Provincial Legislature to regulate fishing in waters
within the
legislative
competence
of the
Dominion
Legislature.
It
was
within
this
context that
the
Board
addressed the nature
of the public
rights to fish in waters under the
legislative
control of the
Dominion.
It
is
true that
reference to fishing
rights
as "public rights"
perhaps having
their origin in
recorded
legal history in
"a public
common
of Piscary"
which
resemble
"in
some
respects the
right to navigate the seas or the
right to
use
the navigable
river
as
a
highway"
are contained in
the
judgment.
However
I
can
find
nothing
either
in the context
in
which
those observations are
made
or
connected with the
ratio
of the decision to
suggest
that
because
the
right
of the public
to
use
a
navigable
river
as
a
highway and
the
right to fish in
that
tidal
water
have
similarly
obscure
origins in history
it
follows
that
because
on
the
cases
an
interference
with the
use
of
a
navigable
river
as
a
highway
has been
held
in appropriate
circumstances
to constitute
a
public
nuisance
for
that
reason
alone
an
interference
with
fishing in the sea
should
by
analogy
be
held
to constitute
a
public
nuisance.
There
are three
Canadian
cases
decided
in
1929,
1934
and
1970
where
interference
with the catching of
fish
in the
sea
by
the discharge
of
effluents into
tidal
waters
has been
held
or
assumed
to
amount
to
a
public
nuisance
and
it
seems
that
the
basis
for
so
holding
or
assuming
were
the observations of the
Board
in
Attorney
General
for
British
Columbia
v.
Attorney
General
for
Canada
to
some
of
which
I
have
referred.
-- 36 of 50 --
33
In Chitty's Criminal
Law 2nd Ed. (1826) Vol.
3
in
Chap. 13
there are
set forth various
forms
of indictment "For Offences
Against Public Police
and
Economy"
included in
which
at
p.
607
are "Indictments
&c
.For
Nuisances
to
Highways
by Actual
Obstruction"
and
at
p.
632,
"Indictments
&c
For Nuisances
to
Water Courses
&c
By Actual Obstruction". Indictment
No. 641
at
p.
640
is
for
a
nuisance
and
obstruction
on
the River
Thames by
keeping
a
vessel
sunk
there.
The
essence of
all
the indictments
it
seems
to
me
is
the hindering of the
passage of the public
upon
the
highways
or
river.
The
forms
of "Indictments
&c
For
Nuisances Near
to
Highways"
at
pp.
641-655
seem
in
essence
to
assert
an
interference
the
convenient use
of the
highway by
members
of the public
by
reason of the production
of noise,
smells
etc.
near
it.
At
pp.
656-667
other
forms
of
indictment
for
"nuisances
generally" are
recorded.
Nowhere
in Chitty
is
there
a
suggestion
that
an
interference
with the
ability
of
members
of the public to
catch
fish in
tidal
waters
was
then
considered
an
indictable
nuisance.
To
my
mind
a
consideration
of the
development
of the
law
relating
to public
nuisance
and
in
particular
the analyses of
its
historical
development
by
F.H.
Newark
in
1949
and
by
J.R.
Spencer
in
1989
to
which
I
have
referred
and
of the various
texts
dealing
with
public
nuisance including
Chitty's
Criminal
Law
2nd
Ed.
(1826),
Clerk
and
Lindsell
(15th Ed.)
and
Halsbury
4th
Ed.
Vol.
34
leads to
the conclusion
that
no
reported
authority apart
from
the
Canadian
cases
to
which
I
have
referred
provides support
for
the proposition
that
interference
with the
catching of
fish
in
the sea
amounts
to
a
public
nuisance.
As I
-- 37 of 50 --
34
have indicated
I
have reservations as to
whether the description
of the "public right" to catch fish in the sea as one which
"resembles
in
some
respects the right to navigate the seas or
the
right to
use
a
navigable
river
as
a
highway"
leads logically
or
even
persuasively to the conclusion
that just
as
an
interference
with the use of
a
navigable
river
as
a
highway
has
for
historical
reasons
been
held
to constitute
a
public nuisance
therefore or
even
by
analogy an
interference
with
the catching
of
fish in the sea
by making
it
more
difficult
to
do
so
also
constitutes
a
public nuisance.
I am
observations
unpersuaded
that
considered in context the
of
Lord Haldane
in
Attorney-General
for
British
Columbia
v. Attorney-General
of
Canada
(supra)
ought be
treated
as
"assimilating"
the public
right
of fishing in the sea with
the public
right
to
use
a
navigable
river
as
a
highway
for
the
purpose
of defining
an
interference
with
each
right
as
a
public
nuisance.
Both
"rights"
may
be
categorised
as
liberties
or
privileges
in the
Hohfeldian sense.
Interference
with
some
liberties
and
privileges
have
in
the
course
of
development
of the
common
law
been
categorised
as
public
nuisances but
in
the
absence
of
binding precedent
I
am
unpersuaded
that
interference
with
all
liberties
and
privileges
in
that
sense
necessarily
constitutes
actionable public
nuisances.
Even
if
it
were
demonstrated
that
the
defendant breached
some
statutory
obligation or
prohibition in
causing
or
permitting the slippage of the
sand
dune
into
Moreton
Bay
that
fact
would
not of
itself
give
the
plaintiffs
any
cause
of action
-- 38 of 50 --
35
for breach of statutory duty. In this respect
I
refer only to
Beaudesert Shire Council v. Smith (1966) 120 C.L.R. 145 and
to
Martin v. Queensland
Airlines Pty. Ltd.
(1956)
St.
R. Qd. R.
1
362.
Much
less
would
it
necessarily
amount
to
a
public
nuisance.
Of
course in
.those
cases the question
was
whether
it
appeared
from
the
terms
of the relevant statute that
it
was
intended
that
a
person
injured
by
breach of
a
statutory
obligation
would have
a
right
of action or
whether
it
was
the
statutory intention
only
to
make
the breach punishable
by
fine
etc.
It
is
interesting
to
note the discussion of
Clarke
&
Wife
v.
Brims (1947)
1
K.B.
497
in
Martin's
Case where
the following
observation of
Morris
J. at
p.
505-6
is cited:-
"The
question
is
not
whether
this
defendant
would
be
liable
under
the penalty section of the
Act
of
1927
but
on
the
assumption
that
he
was
in
breach
of
an
obligation
laid
down
by
that
Act
whether
he
becomes
liable to
be
sued
at
the instance of
any
person
aggrieved
or consequentially injured.
Applying
the
tests
which have been
laid
down
my
view
is
that
the
Act imposes
public
duties
only."
It
seems
not ever
to
have been
suggested
that
the
injury of
a
plaintiff
by
reason
of
a
breach of
a
legislative
provision
imposing
only
a
public
duty
and
not
giving
him
any
personal
right
to
sue
for
breach
of
statutory
duty
nevertheless
gives
him
a
right
to
sue
in
public
nuisance
for
"particular
damage".
No
suggestion
is
made
in
this
case
that
the slippage
of the
sand
dune
resulted
from
the defendant's
breach
of
any
statutory
or
public
duty
imposed
by any
legislative
provision.
In
Tate
&
Lyle v.
Greater
London
Council
&
Anor. (1983)
2
A.
C.
509
the
defendant
so
constructed
ferry
terminals
as
to
cause
siltation
of
channels
giving
access
to
the
plaintiff's
-- 39 of 50 --
36
jetties.
The
Port of
London
Authority had granted licences to
the
plaintiff to
dredge channels and
erect the
jetties.
The
licences granted
no
right to
any depth of water in the channels
once dredged and
the
plaintiff
had no
right other than the
public right
of navigation to bring vessels to
their jetties.
The House
of
Lords
rejected the
plaintiff's
contention
that
the
effect
of granting the licences
was
to
confer
on
the
plaintiffs
a
right
to
a
sufficient
depth of water
to
use
their jetties.
Lord Templeton
at
p.
535
considering the legal effect
of the
grant of licences
under
s.
66(1)(b) of
The
Port of
London
Act
1968
said:-
"In
my
views.
66(1
)(b) did not confer
on
Tate
&
Lyle
any
rights to
the
maintenance
of
any
particular
depth
of
water near or leading
to
the
jetties."
In
my
view
the fishing licences
which
permitted the holders
thereof lawfully
to
catch
prawns
with
nets
cannot be
said to
give those holders
any
right
whether
public or private to
have
the
fishing
grounds
where
they
fish
pursuant to
such
licences
kept
free
of material of the
sort
deposited
in
Moreton
Bay
by
the slippage
in issue.
It
cannot
be
said therefore
that
in
any
relevant
sense
the
right
of the
plaintiffs
to
take
prawns
by
commercial
nets
of designated
size
and
design
is
any
different
from
the
right
of
any
other
members
of
the public
to
take
prawns
or
fish
without using
such
nets.
I am
unpersuaded
upon
the
authorities that
the depositing
of material in
fishing
grounds
which
makes
it
more
difficult
to
catch
fish
by
using
certain
types
of fishing
gear
so
interferes
with
"a
right"
of
a
public nature
as
to constitute
it
a
public
nuisance.
I
am
aware
of
no
authority
which
supports
such
a
-- 40 of 50 --
37
contention apart
from two
of the Canadian cases to
which I
have
referred
and such an
interference
seems
to
have no
analogy with
an
interference with
a
public right of
way
upon
land or
a
public
right to navigate
upon Moreton Bay.
However
let
it
be assumed
that the slippage of the sand
dune
into
Moreton Bay,
for practical
purposes
making
it
impossible economically
to fish
for
prawns
in
those
parts of the
bay
affected,
was
sufficient
to constitute
a
public nuisance;
the next point for determination
is
whether
the
plaintiffs
were
so
specially or particularly
damaged
as
to
permit
them
to
sue
for
damages
in this
case.
For
the
plaintiffs
much
reliance
was
placed
upon
Blundy,
Clarke
and
Company
Ltd. v.
The London
and
North
Eastern
Railway
Company ( 1 9 3 1 ) 2 K . B . 3 3 4 .
That
was
a
case
where
sand
and
gravel
merchants
who
habitually
used
a
canal containing
a
lock
to
convey
their
material to
markets
were awarded damages
for
delay
on
the
part
of the
person
in control of the lock
in
repairing
it
when
it
fell
into disrepair.
It
was
held
that
the
plaintiffs
were
entitled
to
damages
for
delay
"in
as
much
as
they
had
suffered special
and
particular
damage
above
that
sustained
by
the public
generally."
On
my
reading of
that
case
however
it
provides
little
support
for the
plaintiffs
in
the present
case.
It
appears
from
the
resume
of
facts in
the
judgment
of Scrutton
L.J.
that
the
canal
and
lock
in
question
had been
constructed
in
the
middle
of
the eighteenth century. Thereafter
various
acts
had
been
passed
giving various
persons
the
right
to control
the canal
and
lock
and
the
right
to
charge
for
its
use. In the mid-nineteenth
-- 41 of 50 --
38
century an
act
was
passed imposing upon a company a
duty "to
keep and maintain the said River
Ure
Navigation and
all
works
thereto
belonging well
and
sufficiently repaired."
It
was
conceded upon
the hearing
that
the act
imposed upon
the
defendant in that
case
a
duty
to
use reasonable care to
keep
the
lock
and
canal in repair
and
to
make
it
liable
for
damages
if
it
negligently failed to
do
so.
It
was
also
conceded
that
the
defendant
would be
liable
for
damages
if
it
was
negligent in
failing
to repair
and
restore
the
lock
within
a
reasonable time.
The
cause of action
was
breach
of statutory
duty (vide p. 350).
On
the facts of
that
case
it
was
found
that
the
Railway
Company
was
negligent in
spending
four
months
longer than
it
should
have
in effecting repair.
It
was
in this
period of four
months
that
the
plaintiff
.had
suffered
economic
damage
in
being forced
to
make
alternate
arrangements
for
the
transport
of
its
sand
and
gravel.
It
is
true that
at
pp.
352-355
Scrutton
L.J.
considered
the
argument advanced on
behalf of the
defendant
that
the
plaintiffs
could not succeed
because they
had
suffered
"no
particular
or private special
damage by
the
closing of the
lock
but
only
the general
damage
which
every
member
of the public
trying
.to
use
the navigation
and
the lock
would
suffer."
His
Lordship considered
a
number
of
cases
where
compensation
had
been
claimed under
the
Land
Clauses Consolidation
Act
on
the
basis
that
the
claimant's
property
had
been
"injuriously
affected".
At
p.
353
he
analysed the
relevant facts of
the case
•
in
the
following
terms:-
"The
position
of
the
present
plaintiffs is
that
paying
tolls
they
had
brought barges
on
to
the navigation
which
could not
get
out
of
the navigation
above
Milby
Lock
because
the lock
was
closed
and
that
they
carried
-- 42 of 50 --
39
on by means
of the navigation
a
trade in gravel which
in certain parts of the navigation they could not
profitably exercise because the chief
method
of
carriage
by
the navigation
was
barred to
them by
the
closing of the lock.
---
There being here
no
question
involving the
Land
Clauses Consolidation Act
the
decisions collected
by
Erle C.J. in his
judgment
in
the
Exchequer
Chamber
(
in
Rickets case)
show
in
my
opinion
that
the facts in the present case
would
constitute particular
damage
sufficient to
entitle
the
plaintiff
to
maintain
an
action for
infringement of
a
public
right
unless the subsequent decisions of the
House
of
Lords
in the cases
under
the
Land
Clauses
Consolidation
Act
overrule
them.
Erle C.J.
says:-
'The
action
lies
where
the exercise of the
right
of
way
by
or
on
behalf of the
plaintiff
has been
obstructed
and
a
greater
damage
has been caused
to
him
thereby than
is
caused
to the
Queen's
subjects in the
general
by
obstructing
them
in
the exercise
of
their right.'"
His
Lordship then considered
a
number
of
authorities
dealing with
the
rights
of
persons
whose
way
upon
the public
highways,
etc.
was
obstructed
causing
them economic
loss.
Dealing
in
particular
with
Rose
v.
Miles
4 M.S. 101
he
observed
of
that case:-
"The
plaintiff
was
obstructed in his
use
of
the
navigable water
and
was damaged by
being
obliged
to
unload
his
barge
and
carry
the
goods
overland. In
all
these cases the
plaintiff
was
exercising his
right
of
way
and
the
defendant
obstructed
that
exercise
and
caused
particular
damage
thereby
directly
and
immediately
to
the
plaintiff."
In
my
view
the
facts in
Blundy
Clarke
&
Co.
are
so
dissimilar
from
the
facts in
the present
case as
to
provide
no
support
for the
plaintiffs'
contention
that
the
economic
damage
they
suffered
as the
result
of
interference
with
their ability
to
fish
for
prawns
was
special
or
particular to
them
as
understood
in
the
law
of public
nuisance.
Blundy
Clarke
&
Co.
was
not
a
case
in
public
nuisance
and
it
is
unclear
to
me
why
it
-- 43 of 50 --
40
was argued
that to
be recoverable,
damages
for
economic
loss
resulting
from
breach of
a
statutory
duty not to
be
negligent in
maintaining
and
repairing the canal lock
had
to
be shown
to
be
particular to the
plaintiff.
However,
accepting
that to
have
been
the position the finding that
it
was
particular
on
the
facts of
that
case, in
my
view
gives
no
support
to the
plaintiffs'
contention in
this
case
that their
economic
loss
resulting
from an
interference
with
their
fishing for
prawns
is
special or
particular to
them.
In
my
view
the
authorities
demonstrate
clearly
enough
that
a
plaintiff
who
suffers particular
damage
by
reason
of
a
public
nuisance involving obstruction
of public
right
of
way may
recover
damage
for
merely
economic
loss.
In dealing
with nuisance involving the creation
of
a
danger
to
persons
or
property
in
navigable waters (equivalent
to
a
highway)
in
The
Wagonmound
(No. 2) (1967) A.C.
617
Lord
Reid
in
delivering
the
judgment
of the
Board
with
respect to
liability
for
damages
for public
nuisance
at
p.
639
observed:-
"And
although negligence
may
not
be
necessary
fault
of
some
kind
is
almost
always
necessary
and
fault
generally
involves
foreseeability e.g.
in
cases
like
Sedley
Denfield v. O'Callaghan the
fault is
in
failing
to
abate
the
nuisance
of the existence
of
which
the
defender
is
or
ought
to
be
aware
as
likely
to
cause
damage
to his
neighbour
--
the present
case
is
one
of
creating
danger
to
persons
or
property
in
navigable
waters
(
equivalent
to
a
highway) and
there
it
is
admitted
that fault
is
essential
-
in this
case
the
negligent
discharge of
oil.
But
how
are
we
to
determine
whether
the
state
of
affairs
in or
near
a
highway
is
a
danger?
This
oepends
I
think
on
whether
injury
may
reasonably
be
foreseen.
If
you
take
all
the
cases
in
the
books
you
will
find
that
if
the
state
of
affairs is
such
that
an
injury
may
reasonably
be
anticipated to
persons
using
the
highway
it
is
a
public
nuisance (per
Lord
Denning
M.R.
in
Morton
v.
Wheeler).
-- 44 of 50 --
41
So
in the class of nuisance which includes this case
foreseeability is
an
essential
element in determining
liability.
It
could not
be necessary to discriminate
between
different
cases of nuisance so as to
make
foreseeability
a
necessary element
in
determining
damages
in those cases
where
it
is
a
necessary element
in determining
liability
but not in others.
So
the
choice
is
between
it
being
a
necessary
element
in
all
cases of nuisance or in
none.
---
It
is
not
sufficient
that
the injury suffered
by
the respondents' vessels
was
the
direct result
of the nuisance
if
that injury
was
in the relevant
sense unforeseeable."
I
have
discovered
no
authority for the proposition
that
there
is
any
constraint
on
the
limits
of foreseeability
as
a
determinant
of
liability
for
damage
for public
nuisance
similar
to
the
constraint of
proximity
upon
the existence of
a
duty
of
care to
avoid
foreseeable
damage
of
certain sorts
in the
tort
of
negligence.
I
have
already indicated that
it
is
my
view
that in
the
present case
there
is
not
sufficient
proximity
between
the
plaintiffs
and
the
defendant with
respect to
the foreseeable
economic
loss
which
would
accrue
to the
plaintiff
should
the
sand
dune
under
the control
of the
defendant
slip
into
Moreton
Bay
to
impose upon
the
defendants
a
duty
in
negligence
to
take
reasonable
steps to
avoid causing
such
economic
loss to
the
plaintiffs.
It
would
be
a
quite unsatisfactory
state
of
affairs
if
upon
the
same
facts
by
pursuing
an
action
for
damages
for
public
nuisance
the
plaintiffs
were
able
to
avoid
satisfying
the
test
of
proximity
and
recover
in
nuisance
damages
for
economic
loss
caused
to
them
in
their
prawn
fishing
endeavours
which
would
not
be
recoverable in
negligence.
I
would
adopt
the
approach
of
Lord
Radcliffe in
Esso Petroleum
Co.
Ltd. v.
-- 45 of 50 --
42
Southport Corporation (1956) A.C. 218
at
p. 242, and conclude
that
an
essential issue in the
plaintiff's
cause
of action in
public nuisance
on
the facts in this
case
is
the negligence of
the defendant in the construction of the sand
dune which caused
its
slippage into
Moreton Bay.
Newark
in his consideration of the
Boundaries
of
Nuisance
65
L.Q.R.
at
pp.
483
and
485
draws
attention to aspects of the
development
of the
law
governing the
right
of
a
person
to
recover
damages
for public nuisance
which
suggest
that
for
practical
purposes
that right
was
similar to that in
negligence
to
recover
damages.
I
refer
also to
Spencer's conclusions
in
(1989) Cambridge
Law
Journal
at
pp. 81-83.
In
"An
Introduction to
English
Legal
History"
2nd Ed.
(
1979)
at
p.
362
J.
H.
Baker observes with
respect to
the
development
of the
right
of
persons
who
can
show
"particular
damage"
to
recover in public nuisance:-
"Some
conceptual confusion
has
arisen
from
calling
these
private
actions
'nuisance'.
They
have
little,
if
any,
affinity
with
private
nuisance
and
were
in
fact
innominate
actions to
recover
compensation
for
the
special loss.
If
they
belong
to
any
particular
genus
it
is
the
tort
of
negligence.
The
significance
of
common
or
public
nuisance
in
the
realms
of
tort is
not
that
it
furnishes
a
distinct
cause
of action
which
would
not
otherwise
exist,
but
that
it
takes
away
existing
causes
of
action in
order to prevent
a
multiplicity
of
lawsuits."
It
is
unnecessary
for
me
however
to give
further
consideration to
this
matter
and
in particular
upon
the
assumed
facts in
this
case
to
answer
the defendant's
question
whether
the
"controls"
applied
in
negligence
to
recovery
of
a
loss
are
applicable to
a
claim
for
that
loss
in
nuisance.
In nuisance
one
"control"
is
the
necessity
for
the
plaintiff
to
show
-- 46 of 50 --
43
particular
damage. However
to the extent that fault
must be
shown
to establish
publ~c nuisance,
The Waggonrnound (No. 2)
is
authority for the proposition that foreseeability of injury or
damage
is
relevant.
One
control in negligence,
that of
proximity,
is
expressed to
go
to the extent of the duty while
in
public nuisance, the control of particularity, is
expressed to
go
to the nature of the
damage
recoverable. Foreseeability
would seem
to
be
a
constraint in
both negligence
and
public
nuisance.
While no
doubt
it
is
desirable that
the
plaintiffs'
rights to
recover
their
economic
loss against the defendant
be
equally constrained in
negligence
and
public nuisance having
regard
to
the
views
I
have
already
expressed,
it
is
unnecessary
and
unhelpful
to
embark upon any
consideration of the extent to
which
the "controls" for
recovery
of
economic
loss in
negligence
and
public
nuisance
upon
the
facts
of
this
case
may
in
theory
or
in
effect
coincide or overlap.
It
is
my
view
that in permitting or
causing
the
sand
dune
to
slip
into
Moreton
Bay
so
as
to interfere
with the
capacity of
persons
to net
prawns
in
parts of
that
bay
for
a
number
of
years
there
was
not
an
interference
with
a
public
right
o~
such
a
nature
as
to constitute
the slippage
a
public
nuisance
for
which
the
defendant
is
responsible.
I
would
answer
Question
3
posed
by
the
parties to
this
application in
the negative.
I am
also
of the
view
that
even
if
the slippage
resulting
from
the defendant's
failure
to
take reasonable care did
amount
to
a
public
nuisance the
economic
loss
suffered
by
the
plaintiffs
was
not
particular
damage
for
which
they
could
-- 47 of 50 --
44
recover in
an
action in public nuisance.
I
have already dealt
with authorities that support this
view and
in particular the
Canadian cases to
which
I
have
referred.
The damage
to the
plaintiffs'
fishing gear
amounting
to
nearly
$40,000.00
would be
sufficiently particular to
enable
them
to
recover
that
damage
if
the deposition of the material in
Moreton
Bay
as
a
result
of the slippage of the
dune
constituted
a
public nuisance.
However
the
economic
loss
which
the
plaintiff
suffered
is
not
in
any
way
consequential
upon
the
damage
to the fishing gear
which
would
be
particular
damage.
The
economic
loss
flowed
not
from any
particular
damage
but
from
the
inability
of the
plaintiffs
to
trawl for
prawns
with
their
prawning
nets for
four
seasons
in that part
of
Moreton
Bay
affected
by
the
slippage.
This
loss
flowed
from
an impediment
upon
fishing
which
existed
for
all
licensed
fishermen
who
might wish
to
trawl
their
nets
for
prawns
in
this
part
of
Moreton
Bay.
Had
the deposition of material in
the
Bay
had
the
effect
of
so
confining the
plaintiffs'
vessels in
a
part
of the
bay
that
they
were
unable
to
work anywhere
so
that
they
were
obliged
to
expend
money
to free
their
boats
from
such confinement such
economic
loss in
my
view
may
have been
sufficiently particular
to
be
recoverable.
Tate
&
Lyle v.
G.L.C.
(supra)
is
clear
authority
for
the
proposition
that
provided
it
is
sufficiently
particular,
loss
which
is
merely
economic
is
recoverable
in
public
nuisance.
However
those
are not the
facts
of the
present case.
The
economic
loss
which
the
plaintiff
suffered
in
the
present
case
-- 48 of 50 --
45
flowed simply from the fact that
they were unable to trawl for
prawns
for four seasons in certain parts of
Moreton Bay
because
to
do
so would cause too
much damage
to their nets.
This in
my
view
is
not
sufficiently particular to
give
them
a
cause of
action
even
if
the slippage did constitute
a
public nuisance.
Both
parties to this
application
have
treated question
4
as
raising
a
point of
law.
I
have
reservations as
to
whether the
question of
particularity
upon
the
assumed
facts
is
a
question
of
law
rather
than
a
question of fact.
However
at
the request
and upon
the
submissions
of both
parties
I
treat
it
as
one
of
law.
I
would answer
question
4
as
follows:-
If
the slippage of the
sand
dune
resulted in
the creation
of
a
public nuisance:-
(a)
With
respect to
damage
to
their
fishing gear
to
the extent
of
$39,880.00,
such
damage
is
sufficiently particular
to
permit the
plaintiffs
to
recover
it;
(b)
the
economic
loss suffered
by
the
plaintiffs
as the
result
of
their inability
to
trawl for
prawns
in
that part
of
Moreton
Bay
affected
by
the slippage of
the
sand
dune
is
not
sufficiently particular
to
permit recovery
by
the
plaintiffs.
I
dispose of the
points of
law
raised
by
the
parties
to
this
application
by
answering
questions
numbered
1,
2,
3,
4
and
5
contained
in
exs.
1
and
2
hereof
in
the
following
way:-
Question
1 -
Not
with
respect to
pure
economic
loss.
Question
2 -
No.
Question
3 -
No.
-- 49 of 50 --
46
Question
4 -
(a) with respect to
damage
to fishing gear
to the extent of
$39,880.00
-
Yes.
Question
5
(
b)
with respect to
economic
loss to the
extent of
$1,220,000.00
- No.
Not on
the facts of this
case.
It
is
unnecessary
to
answer
the question
whether
if
pure economic
loss
were
recoverable in this
case the controls applied
in
negligence
would be
applied in
nuisance.
-- 50 of 50 --
Official source: https://www.sclqld.org.au/caselaw/QSC/1990/066