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ARTICLE · 11 MAY 2015

Chain of responsibility compliance must come before breach

Holding Redlich
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A liable party in a chain of responsibility cannot escape liability by implementing compliance procedures after the fact.

AustraliaEmployment and HR
Geoff Farnsworth
Geoff Farnsworth
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A recent case (Kemp v Air Liquide Australia Ltd[2014] NSWSC 1200), involving a fatality resulting from a poorly secured load, hits home that a liable party in a chain of responsibility cannot escape liability by implementing compliance procedures after the fact.

After the fatal accident, but not before proceedings were commenced, Air Liquide (the Company) established a 'national working group' to address the chain of responsibility (CoR). That group met monthly and circulated items to action.

The Company also engaged in a structured safety and risk management process used to measure, on a monthly basis, the Company's performance and its management in three basic areas dealing with its CoR obligations.

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