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ARTICLE · 10 JANUARY 2012

Damage v Damages: How to lose the protection of proportionate liability

A person's liability will only be reduced by proportionate liability when they have caused the same loss or damage.

AustraliaLitigation, Mediation & Arbitration
Nicholas Lawrence
Nicholas Lawrence

Judgment date: 15 December 2011

Mitchell Morgan Nominees Pty Ltd v Vella [2011] NSWCA 390

New South Wales Court of Appeal1

In Brief

  • A person's liability will only be reduced by proportionate liability in circumstances where they have caused the same loss or damage as another person.
  • The loss or damage suffered by a party is different from the compensatory damages that they can seek, and so sometimes a party may become liable for the entirety of a loss even where another party has caused a loss that would be compensable by the same damages.
  • Apportionment in cases of proportionate liability may be complicated where there are both negligent and intentional wrongdoers, but appellate courts will not overturn decisions on apportionment lightly.

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