Supreme Court New South Wales Medium Neutral Citation: Warragamba Winery Pty Ltd v State of New South Wales (No 9) [2012] NSWSC 701 Hearing dates: 24-28, 31 October, 1-4, 7-11, 14-18, 21-25, 28-30 November 5-8, 12-16 December 2011, 30, 31 January, 1-3, 6-10, 13-17, 20-22, 27-29 February, 1, 2, 5, 6, 8, 9, 12, 16, 19, 20-23, 26-30 March, 2-5, 10-13 April, 21-24 May 2012 Decision date: 26 June 2012 Jurisdiction: Common Law Before: Walmsley AJ Decision: 1. Judgment in favour of the defendants in all matters. 2. Order the plaintiffs in each case to pay the defendants' costs. 3. Direct the Principal Registrar to refer the judgment as it concerns Mr Nix to the Director of Public Prosecutions. Catchwords: Torts - negligence - public authorities - bushfire caused by lightning strike spreading to and burning houses and factories in towns near national park - whether a duty of care - occupiers duties - whether breach of duty - nuisance - whether breach of statutory duty - Civil Liability Act 2002, s 43A - Rural Fires Act 1997, s 128 - whether immunity available - Jones v Dunkel - unexplained failure to call witnesses - experts - bias allegation - assumptions - whether expert ought go beyond them - damages - method of valuation for tortiously destroyed buildings - emergency grants - whether defendants should benefit - real property - whether demountable home has become part of the land Legislation Cited: Civil Liability Act 2002 Crown Proceedings Act 1988 Community Welfare Act 1987 Evidence Act 1995 Fire Brigades Act 1989 Local Government Act 2007 National Parks and Wildlife Act 1974 Public Sector Management Act 1988 Rural Fires Act 1997 Sydney Water Catchment Management Act 1998 Cases Cited: Allianz Australia Insurance Ltd v Roads and Traffic Authority of NSW; Kelly v Roads and Traffic Authority of NSW [2010] NSWCA 328 Anthoness v Bland Shire Council (1960) 60 SR (NSW) 659 Australian National Airlines Commission v Newman [1987] HCA 9; (1987) 162 CLR 466 Australian Softwood Forests Pty Ltd v Attorney-General (NSW); Ex rel CAC (1981) 148 CLR 121 Bankstown City Council v Alamdo Holdings Pty Ltd [2005] HCA 46; (2005) 223 CLR 660 Bennett & Wood Ltd v Orange City Council (1967) 67 SR (NSW) 426 Billing v Pill [1953] 3 WLR 758 Board of Fire Commissioners (NSW) v Ardouin (1961) 109 CLR 105 Board of Fire Commissioners v Rowland (1960) 60 SR (NSW) 322 Boatswain v Crawford [1943] NZLR 109 Bourne v Australian Oil Refining Pty Limited (Unreported, Supreme Court of New South Wales, Court of Appeal, Hutley, Mahoney, Reynolds JJ, 2 July 1979) Brodie v Singleton Shire Council; Ghantous v Hawkesbury Shire Council [2001] HCA 29; (2001) 206 CLR 512 Browne v Dunn (1893) 6 R 67 Burnie Port Authority v General Jones Pty Ltd [1994] HCA 13; (1994) 179 CLR 520 Caltex Refineries (Qld) Pty Ltd v Stavar [2009] NSWCA 258; (2009) 259 ALR 616 Capital & Counties Plc; Digital Equipment Co Ltd v Hampshire County Council [1997] QB 1004 Crimmins v Stevedoring Industry Finance Committee [1999] HCA 59; (1999) 200 CLR 1 Dilosa v Latec Finance Pty Ltd [1966] 1 NSWR 259 Dodd Properties Ltd v Canterbury City Council [1980] 1 WLR 433 Edwards v Blue Mountains City Council [1961] NSWR 803 Elitestone Ltd v Morris [1997] 1 WLR 687 Elliot v Ivey (Unreported, New South Wales Supreme Court, Sperling J, 23 April 1998) Evans v Balog [1976] 1 NSWLR 36 Fabre v Arenales (1992) 27 NSWLR 437 Gagner Pty Ltd t/as Indochine Cafe v Canturi Corp Pty Ltd [2009] NSWCA 413; (2009) 262 ALR 691 Gardner v Northern Territory of Australia [2004] NTCA 14 Gill v Australian Wheat Board [1980] 2 NSWLR 795 Gillett v Murphy [2001] NSWCA 199 Goldman v Hargrave [1967] 1 AC 645 Graham Barclay Oysters Pty Ltd v Ryan [2002] HCA 54; (2002) 211 CLR 540 Harbutt's Plasticine Ltd v Wayne Tank & Pump Co Ltd [1970] 1 QB 447 Jones v Dunkel (1959) 101 CLR 298 Kent v Griffiths [2001] QB 36 Little v The Commonwealth (1947) 75 CLR 94 Manly Council v Byrne [2004] NSWCA 123 Maynard v Rover Mowers Ltd [2000] QCA 26 Mid Density Developments Pty Ltd v Rockdale Municipal Council (1993) 44 FCR 290 Murphy v Brentwood District Council [1990] 2 All ER 269 National Justice Compania Naviera SA v Prudential Assurance Co Ltd (The Ikarian Reefer) [1993] 2 Lloyd's Rep 68 Oceanview Holdings Ltd v Clarry M O'Byrne Ltd [1989] 1 NZLR 574 O'Connor v SP Bray Ltd (1937) 56 CLR 464 Parramatta City Council v Lutz (1988) 12 NSWLR 293 Parry v Cleaver [1970] AC 1 Payne v Parker [1976] 1 NSWLR 191 Precision Products (NSW) Pty Ltd v Hawkesbury City Council [2008] NSWCA 278; (2008) 74 NSWLR 102 Puntoriero v Water Administration Ministerial Corp [1999] HCA 45; (1999) 199 CLR 575 Pyrenees Shire Council v Day [1998] HCA 3; (1998) 192 CLR 330 The Queen in right of Ontario v Eliopoulous (2006) 276 DLR (4th) 411; (2006) 288 DLR (4th) 411 Re Cosslett (Contractors) Ltd [1998] Ch 495 Rickard v Allianz Australia Insurance Ltd [2009] NSWSC 1115 R & W Vincent Pty Ltd v Board of Fire Commissioners of New South Wales [1977] 1 NSWLR 15 Sheridan v Borgmeyer [2006] NSWCA 201 Silverbrook Research Pty Ltd v Lindley [2010] NSWCA 357 Standard Portland Cement Co Pty Ltd v Good [1982] 2 NSWLR 668 State of New South Wales v West [2008] ACTCA 14; (2008) 165 ACTR 47 Stephens v Stephens [1970] 3 NSWR 168 Stuart v Kirkland-Veenstra [2009] HCA 15; (2009) 237 CLR 215 Sullivan v Moody; Thompson v Connon [2001] HCA 59; (2001) 207 CLR 562 Sutherland Shire Council v Heyman [1985] HCA 41; (1985) 157 CLR 424 Warren Shire Council v Kuehne [2012] NSWCA 81 Westwood v Cordell [1983] 1 Qd R 276 Whitehouse v Jordan [1981] 1 All ER 267 Williams v The Queen in right of Ontario (2009) 310 DLR (4th) 710; (2009) CanLII 71462 (SCC) Wood v The Queen [2012] NSWCCA 21 X and Y v Pal (1991) 23 NSWLR 26 Texts Cited: Cherie Booth QC, Dan Squires, The Negligence Liability of Public Authorities (2006) Oxford University Press Peter Butt, Land Law, 6th ed (2009), Lawbook Co Michael Eburn, Emergency Law, 2nd ed (2005) Federation Press Harold Luntz, Assessment of Damages for Personal Injury and Death, 4th ed (2002), LexisNexis Butterworths Halsbury's Laws of Australia, Loose-leaf Service (1991), LexisNexis Harvey McGregor, McGregor on Damages 18th ed (2010) Sweet and Maxwell Online Oxford English Dictionary Pearce and Geddes, Statutory Interpretation in Australia, 7th ed (2011), Lexis Asia Pacific Carolyn Sappideen, Prue Vines, Fleming's The Law of Torts, 10th ed (2011) Lawbook Co Pam Stewart, Anita Stuhmcke, Australian Principles of Tort Law, 3rd ed (2012), Federation press Category: Principal judgment Parties: Warragamba Winery Pty Ltd (Plaintiff) Lionel Rupert Fowler (Plaintiff) Joseph David and Jodie Ann Gauci (Plaintiffs) Ernest and Gillian Hausler (Plaintiffs) Vitomir Kuzmanovic (Plaintiff) Michelle and Mark Larden (Plaintiffs) Bruno Lopreiato (Plaintiff) Alexander and Suzanne Lynch (Plaintiffs) Darryl and Tracy Nix (Plaintiffs) Michael O'Brien (Plaintiff) Michael and Jane Passlow (Plaintiffs) Antol and Wanda Plachozki (Plaintiffs) Paul and Josephine Mary Quigley (Plaintiffs) Richard and Joanne Sheppard (Plaintiffs) Russell and Joanne Sheppard (Plaintiffs) State of New South Wales (First defendant) Sydney Catchment Authority (Second defendant) Representation: D Nock SC with K Odgers, J A Rose (from 5 December) (Plaintiffs) L King SC with S Gregory, C A Webster, N Newton (Defendants) McLachlan Chilton (Plaintiffs) GILD (Defendants) File Number(s): 2005/00269559 and Others NOTE: This decision contains over 1900 paragraphs and 34 images. Because of it's size the decision has been published in five parts via PDF documents. To view and print you will need to select the hyperlinks to each part provided in the index below. INDEX PARAGRAPH PART I: Introduction and factual narrative to midnight on 24 December 2001 [1]-[382] 1. Introduction [1] 2. National Parks and Wildlife Act [13] 3. Rural Fires Act 1997 [18] 4. Sydney Water Catchment Management Act 1998 [36] 5. The case opened [40] 6. The case against the NPWS and the RFS [42] 7. The case against the SCA [47] 8. The case opened by the defendants [52] 9. Issues to be decided [53] 10. Factual background [56] 11. RFS and the Media [107] 12. 24 December 2001 [126] 13. First sighting of the fire [126] 14. First request for aircraft [145] 15. Surveillance flight over fire: judged too dangerous for ground crews [198] 16. The first attack on the fire [273] 17. S44 declaration for Blue Mountains RFS District [293] 18. The 11 pm Incident Action Plan on 24 December [375] PART II: Factual narrative for 25 December 2001 and resolution of legal issues on liability [383]-[785] 19. 25 December 2001 [383] 20. The fire spots across Warragamba Dam [528] 21. s 44 declaration for the Wollondilly RFS District [567] 22. The fire reaches Warragamba [571] 23. The plaintiffs: where they were on 25 December 2001 [587] 24. Causes of action pleaded [667] 25. Negligence [667] 26. Nuisance [673] 27. Breaches of statutory duty [675] 28. Duty of care [678] 29. Conclusion: no duty of care was owed [734] 30. Conclusions on breaches of statutory duty case: no causes of action arose [743] 31. S 128 Rural Fires Act defence [744] 32. Onus [747] 33. Good faith [750] 34. Conclusion: s 128 RFA would have provided complete defence to RFS and NPWS [771] 35. S 43A Civil Liability Act [772] 36. Conclusion: s 43A would have applied [784] 37. The merits of the case [786] PART III: Arguments and resolution of issues on first alternative case [786]-[1113] 38. Experts on liability [786] 39. A bias allegation [787] 40. Mr Roche: expert for the plaintiffs [825] 41. Mr Roche's credit [848] 42. Mr Roche's opinion [837] 43. Mr Smith: expert for the defendants [873] 44. Mr Smith's credit [874] 45. Mr Smith's opinion [881] 46. Arguments on liability [886] 47. The initial response: failing to put out the fire on 24 December 2001 [886] 48. Where the fire began: the arguments [893] 49. Conclusion on where the fire began [931] 50. When the fire was first observed by the defendants: the arguments [932] 51. Conclusion on when the fire was first observed by the defendants [977] 52. Breaches of protocol: the arguments [980] 53. Conclusion on breaches of protocol [997] 54. Whether the defendants selected the correct fire fighting strategy: the arguments [998] 55. Availability of aircraft [1002] 56. Conclusion on availability of aircraft [1015] 57. Conclusion on the strategy adopted [1017] 58. Ground crew availability: the arguments [1058] 59. Conclusion on ground crew availability [1062] 60. The Mount Hall Fire Trail's fitness for use: the arguments [1018] 61. The view [1055] 62. Conclusion on fitness for use [1057] 63. Fire intensity [1063] 64. Conclusion on fire intensity [1081] 65. Plaintiffs attacks on credit of some defendants' witnesses [1082] 66. Whether the fire could have been contained: the arguments [1111] 67. Conclusion on whether the fire could have been contained [1112] PART IV: Arguments and resolution of issues on second alternative case [1114]-[1279] 68. The warning case [1114] 69. First period: from 2.20pm on 24 December: the arguments [1117] 70. Conclusion on the first period [1143] 71. Second period: from 8.30am to 11.00am on Christmas day: the arguments [1144] 72. Conclusion on the second period [1177] 73. Third period: from 11.00am on Christmas day: the arguments [1178] 74. Conclusion on the third period [1204] 75. Fourth period: from 1.00pm onwards on Christmas day [1205] 76. Conclusion on the fourth period [1208] 77. SCA's obligation as an occupier to warn [1169] 78. Conclusion on the SCA's obligation to warn [1172] 79. Causation: the general submissions [1222] 80. Inspector Lambert [1263] 81. Inspector Lambert's credit [1267] PART V: The individual cases on causation and damage [1280]-[1906] 82. Lionel Fowler [1303] 83. Mr Fowler's credit [1314] 84. Mr Dunbar's credit [1332] 85. Causation [1315] 86. Damages [1344] 87. Conclusion [1357] 88. Joseph and Jodie Gauci [1358] 89. Mr Joseph Gauci's credit [1374] 90. Mr John Gauci's credit [1392] 91. Mr Mario Camilleri's credit [1394] 92. Causation [1395] 93. Damages [1360] 94. Conclusion [1407] 95. Ernest and Gillian Hausler [1408] 96. Mr Hausler's credit [1418] 97. Causation [1426] 98. Damages [1409] 99. Conclusion [1443] 100. Vitomir Kuzmanovic [1448] 101. Mr Kuzmanovic's credit [1465] 102. Causation [1471] 103. Damages [1453] 104. Conclusion [1486] 105. Michelle and Mark Larden [1487] 106. Ms Larden's credit [1493] 107. Mr Larden's credit [1497] 108. Causation [1514] 109. Damages [1501] 110. Conclusion [1529] 111. Bruno Lopreiato [1530] 112. Mr Lopreiato's credit [1546] 113. Causation [1531] 114. Damages [1556] 115. Conclusion [1561] 116. Alexander and Suzanne Lynch [1562] 117. Mr Lynch' credit [1581] 118. Causation [1565] 119. Damages [1589] 120. Conclusion [1591] 121. Darryl and Tracey Nix [1592] 122. Mr Nix' credit [1599] 123. Causation [1595] 124. Damages [1638] 125. Conclusion [1644] 126. Michael O'Brien [1645] 127. Mr O'Brien's credit [1646] 128. Causation [1654] 129. Damages [1645] 130. Conclusion [1663] 131. Michael and Jane Passlow [1665] 132. Mr Passlow's credit [1680] 133. Causation [1681] 134. Damages [1699] 135. Conclusion [1703] 136. Antol and Wanda Plachozki [1704] 137. Mrs Plachozki's credit [1715] 138. Mr Paul Plachozki's credit [1719] 139. Causation [1720] 140. Damages [1743] 141. Conclusion [1745] 142. Josephine and Paul Quigley [1746] 143. Mrs Quigley's credit [1749] 144. Causation [1748] 145. Damages [1760] 146. Conclusion [1766] 147. Richard and Joanne Sheppard [1767] 148. Mr Sheppard's credit [1775] 149. Causation [1769] 150. Damages [1798] 151. Conclusion [1800] 152. Russell and Joanne Sheppard [1801] 153. Mr Sheppard's credit [1805] 154. Causation [1811] 155. Damages [1839] 156. Conclusion [1858] 157. Warragamba Winery Pty Ltd [1859] 158. Mr Peter De'Chellis' credit [1863] 159. Mr David De' Chellis' credit [1876] 160. Causation [1870] 161. Damages [1865] 162. Conclusion [1896] 163. Summary of reasons why all claims failed [1897] 164. Summary of provisional damages awards [1903] 165. Summary of findings [1904] 166. Conclusions on Plaintiffs' list of issues [1905] 167. Orders [1906] Some commonly encountered acronyms and expressions Air desk Part of an administrative arm of the RFS, which coordinates allocation and use of aircraft, and determines priorities Bimlow map Exhibit A BK A helicopter BM Blue Mountains BMRFS Blue Mountains Rural Fire Service BMRFSD Blue Mountains Rural Fire Service District Cat 1 A category 1 fire truck used by the RFS with capacity to carry a large quantity of water, and a crew Cat 2 A category 2 fire truck also used by the RFS with capacity to carry a large quantity of water, and a crew Cat 9 A category 9, also called a striker, usually a Toyota Landcruiser, used buy the RFS, with a capacity to carry up to 500 litres of water Class 3 fire A major bush fire, or major bush fires, usually the subject of a s 44 declaration CLA Civil Liability Act 2002 Composite Vehicle used by the FB, smaller than a pumper and a tanker, but capable of pumping from a hydrant and carrying some water FB New South Wales Fire Brigade FB39 A Jet Ranger helicopter used by the NPWS FB44 A Squirrel helicopter used by the NPWS FBA Fire Brigades Act 1989 GPS Global positioning system HT26 A Helitac helicopter IAP Incident action plan, a document prepared by an IMT, containing strategies, and referring to resources to be used in the strategies for the next 12 hours. It is intended for the use of the shift following that which prepares it IMT Incident management team: the team set up to manage a fire after a s 44 RFA declaration. Jet Ranger Small sized helicopter which can be used to bucket fires, convey passengers and conduct surveillance LGA Local Government Act 2007 MICC FB's major incident control centre in Sydney NPWS National Parks and Wildlife Service NPWA National Parks and Wildlife Act 1974 PRFSD Penrith RFS District Pumper A FB vehicle which can use mains water from hydrants at the fire scene: it also carries water RAFT Remote area fire team RFA Rural Fires Act 1997 RFS Rural Fire Service of NSW SCA Sydney Catchment Authority Sitrep A situation report, designed to give a snapshot of a fire, and a description of resources committed to it, at a particular time Squirrel A medium sized helicopter which can be used to bucket fires, convey passengers, and conduct surveillance SOP Standard operating procedure State ops An administrative arm of the RFS based at Rosehill, which operated at times of high fire activity SWCMA Sydney Water Catchment Management Act 1998 Tanker A FB vehicle capable of carrying more water than a pumper Tender A FB bus which conveys a fire fighting crew WRFS Wollondilly Rural Fire Service WRFSD Wollondilly Rural Fire Service District Some commonly encountered names Mr Healey NPWS supervisor of seasonal fire fighting team, and air observer Mr Jacobs RFS deputy fire control officer at BMRFS Mr Kondek SCA employee Mr Koperberg Commissioner of the RFS at the time of the fire Mr Luscombe NPWS regional manager of the BM region Mr Manna SCA employee Mr McTaggart Deputy fire control officer at WRFS Mr Phillips District manager and fire control officer at WRFS Mr Tolhurst Deputy fire control officer at BMRFS Mr Waldron Catchment operations manager for SCA Mr Williams RFS fire tower operator and observer at Narrow Neck Mr Wolter NPWS area manager of the BM region Amendments 02 July 2012 - typographical errors Amended paragraphs: many DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision. The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated. Decision last updated: 02 July 2012