Proportionate Liability under the microscope - when both parties are in the wrong

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

Introduction

On 15 December 2011, the New South Wales Court of Appeal handed down its decision in Mitchell Morgan Nominees Pty Limited Pty Ltd v Vella [2011] NSWCA 390 (Vella). In doing so, the Court clarified how proportionate liability operates in New South Wales pursuant to Part 4 of the Civil Liability Act 2002 (CLA). In short, it is now more difficult to successfully reduce a defendant's liability due to the requirement that, for the proportionate liability provisions to apply, any alleged wrongdoers must have each caused the plaintiff to suffer the same loss or damage. The New South Wales situation is now confirmed as similar to that in Victoria.