Negligent Driver Pays For Tram Delays

The Victorian Court of Appeal considers the test of reasonable foreseeability Metrolink Victoria Pty Ltd V Inglis [2009] VSCA 227

Metrolink Victoria Pty Ltd (Yarra Trams) was successful in a recent Court of Appeal matter that will shape the future application of the test of reasonable foreseeability in our courts and redefine the range of losses recoverable from tortfeasors.

Yarra Trams operates its services pursuant to a franchise agreement with the State Government. The agreement contains an incentive scheme by which Yarra Trams is paid for its close adherence to a master timetable, and penalised for deviations from it.

Yarra Trams successfully argued that the losses under the incentive scheme were recoverable from the respondent, who by his negligent driving had caused a motor vehicle accident resulting in damage to a tram and significant delays to the tram network. Prior to the commencement of the proceeding in the Magistrates' Court, the respondent had