Parliamentary
Archives,
HL/PO/JU/18/256
Stovin and another (Respondent) v. Norfolk County Council (Appellants)
JUDGMENT
Die Mercurii 24° Julii 1996
Upon Report from the Appellate Committee to
whom was referred the Cause
Stovin and another against Norfolk
County Council, That the Committee had heard
Counsel as well on
Tuesday the 23rd as on Wednesday the 24th day of January last
upon
the Petition and Appeal of Norfolk County Council, of County
Hall, Martineau Lane,
Norwich, praying that the matter of the
Order set forth in the Schedule thereto, namely an
Order of Her
Majesty's Court of Appeal of the 16th day of February 1994, might
be
reviewed before Her Majesty the Queen in Her Court of
Parliament and that the said
Order might be reversed, varied or
altered or that the Petitioners might have such other
relief in
the premises as to Her Majesty the Queen in Her Court of Parliament
might
seem meet; as upon the case of Rita Wise lodged in answer to
the said Appeal; and due
consideration had this day of what was
offered on either side in this Cause:
It is Ordered and Adjudged, by
the Lords Spiritual and Temporal in the Court of
Parliament of Her
Majesty the Queen assembled, That the said Order of Her
Majesty's
Court of Appeal of the 16th day of February 1994
complained of in the said Appeal, and
the Order of His Honour
Judge Crawford of the 27th day of July 1992, in the
proceedings
between the Respondent as Defendant and the Appellants
as Third Party, be, and the
same are hereby, Set aside and
the Respondent's claims against the Appellants dismissed:
And it
is further Ordered, That the Respondent do pay or cause to be
paid to the said
Appellants the Costs incurred by them in the High
Court, in the Court of Appeal and in
respect of the said Appeal to
this House, the amount of such last-mentioned Costs to be
certified
by the Clerk of the Parliaments if not agreed between the parties.
Cler: Parliamentor:
HOUSE OF LORDS
OPINIONS
OF THE LORDS OF APPEAL
FOR JUDGMENT IN THE CAUSE
STOVIN
AND ANOTHER
(RESPONDENT)
v.
NORFOLK
COUNTY COUNCIL
(APPELLANTS)
ON 24TH JULY 1996
Lord
Goff of Chieveley
Lord Jauncey of Tullichettle
Lord Slynn of
Hadley
Lord Nicholls of Birkenhead
Lord Hoffmann
LORD GOFF OF CHIEVELEY
My Lords,
I have had the
advantage of reading in draft the speech of my noble
and learned
friend Lord Hoffmann and for the reasons he gives I too would
allow
this appeal.
LORD JAUNCEY OF TULLICHETTLE
My Lords,
I have had the
advantage of reading in draft the speech of my noble
and learned
friend Lord Hoffmann and for the reasons he gives I too would
allow
this appeal.
LORD SLYNN OF HADLEY
My Lords,
I have had the
advantage of reading in draft the speech of my noble
and learned
friend Lord Nicholls of Birkenhead and for the reasons he gives
I
too would dismiss this appeal.
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LORD NICHOLLS OF BIRKENHEAD
My Lords,
This case
arises at the interface of public and private law obligations:
the
liability of a public authority in tort for failure to exercise a
statutory
power. When may a public authority be liable in damages
for an
unreasonable failure to act, in breach of its public law
obligations?
The public body
is a highway authority: Norfolk County Council.
Highway
authorities have responsibilities for maintaining and
improving
highways, including powers to remove potential sources
of danger. Section
79 of the Highways Act 1980 is such a power.
Where a highway authority
deems it necessary for the prevention of
danger arising from obstruction to the
view of road users, the
authority has power to serve a notice on the owner of
land
directing him to alter a fence or wall or bank. The owner may
recover
the cost from the authority.
Had Norfolk
Council exercised this power in 1988 in respect of the
fork of
land at the junction of Station Road and Cemetery Lane at
Wymondham,
the road accident in which the plaintiff, Mr. Stovin, was
grievously
injured would not have happened. Indeed, steps short of
actually
serving a section 79 notice would have sufficed.
The council
knew this was an exceedingly dangerous junction.
Visibility was
very limited for vehicles turning right out of Cemetery Lane
into
Station Road, and accidents had occurred in 1976 and 1982.
The
necessary remedial work was relatively straightforward and
could be done
quickly, cheaply and effectively. The work would
cost less than £1,000, and
money was available.
The council
decided to act. On 14 January 1988 the council wrote to
British
Rail, the owner of the land, suggesting that part of the bank should
be
removed in order to improve visibility. The council would do
the work at its
own expense. That was eleven months before the
accident. A site meeting
took place early in February. The
representatives of British Rail agreed to
seek the necessary
internal approval. They did not get in touch again, and the
council
did not send a reminder. The council official handling the matter
was
moved to other duties, and the matter was allowed to go to
sleep. A third
accident happened on 6 March.
On 11 December
1988 as the plaintiff rode along Station Road, he was
knocked off
his motorcycle by a car turning right out of Cemetery Lane.
Judge
Crawford Q.C., sitting as a judge of the High Court, held the car
driver
was 70 per cent. to blame for the accident, and Norfolk
Council 30 per cent.
The Court of Appeal, comprising Nourse,
Kennedy and Roch L.JJ., dismissed
the council's appeal: [1994] 1
W.L.R. 1124. On this further appeal to your
Lordships' House, the
question is whether the council owed the plaintiff any
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common law duty
in respect of its failure to take action. That is the sole
question.
The council does not seek to disturb the judge's conclusion that
if
the duty existed, the council was in breach. In other words,
the council failed
to act as a reasonable authority in the
circumstances. The council need not
have exercised its power under
section 79 to compel British Rail to alter a
corner of its land.
If the site meeting had been followed up, British Rail
would have
given consent, and the council itself would have completed the
work
before the date of the accident.
Liability for omissions
The starting
point is that the council did not create the source of
danger.
This is not a case of a highway authority carrying out road
works
carelessly and thereby creating a hazard. In the present
case the council
cannot be liable unless it was under a duty
requiring it to act. If the plaintiff
is to succeed the council
must have owed him a duty to exercise its powers
regarding a
danger known to it but not created by it.
The distinction
between liability for acts and liability for omissions is
well
known. It is not free from controversy. In some cases the distinction
is
not clear cut. The categorisation may depend upon how broadly
one looks
when deciding whether the omission is a "pure"
omission or is part of a larger
course of activity set in motion
by the defendant. Failure to apply the
handbrake when parking a
vehicle is the classic illustration of the latter. Then
the
omission is the element which makes the activity negligent. Dorset
Yacht
Co. Ltd. v. Home Office [1970] AC 1004 is an instance
where the distinction
was not so easy to apply.
Despite the
difficulties, the distinction is fundamentally sound in this
area
of the law. The distinction is based on a recognition that it is one
matter
to require a person to take care if he embarks on a course
of conduct which
may harm others. He must take care not to create
a risk of danger. It is
another matter to require a person, who is
doing nothing, to take positive
action to protect others from harm
for which he was not responsible, and to
hold him liable in
damages if he fails to do so.
The law has
long recognised that liability can arise more readily in the
first
situation than the second. This is reasonable. In the second
situation a
person is being compelled to act, and to act for the
benefit of another. There
must be some special justification for
imposing an obligation of this character.
Compulsory altruism
needs more justification than an obligation not to create
dangers
to others when acting for one's own purposes.
There is no
difficulty over categorisation in the present case. The
council
did not bring about the dangerous configuration and poor visibility
at
the road junction. The question is whether it was in breach of
a common law
duty by carelessly failing to remove this source of
danger.
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Common law duties to take positive action
Common law
obligations to take positive action arise mainly in contract
and
fiduciary relationships. They may also arise in tort. Familiar
instances
are parent and child, employer and employee, school and
pupil. The
established categories are useful because they embrace
common types of
situation, but these categories are no more closed
than any other categories of
negligence. Their unifying thread is
some circumstance, or combination of
circumstances, which makes it
fair and reasonable that one person should be
required to take
reasonable steps for another's protection or benefit.
Perhaps the
established category nearest to the present case comprises
occupiers
of land and their neighbours. An occupier is under a common law
duty
to take positive action to remove or reduce hazards to his
neighbours,
even though the hazard is not one the occupier brought
about. He must take
reasonable steps to this end, for the benefit
of his neighbours: see Goldman
v. Hargrave [1967] 1 AC 645. If an occupier's tree is struck by lightning
and catches
fire, he must take reasonable steps to prevent the fire spreading.
He
must act as would a reasonable occupier in his position.
In this
situation a combination of features is present: foreseeability
of
damage or injury if preventive steps are not taken; control by
the occupier of
a known source of danger; dependence, or
vulnerability, of the neighbour; and
the prospect of damage or
injury out of all proportion to the preventive steps
required.
Even this
combination is not enough. The classic example of the
absence of a
legal duty to take positive action is where a grown person stands
by
while a young child drowns in a shallow pool. Another instance is
where
a person watches a nearby pedestrian stroll into the path of
an oncoming
vehicle. In both instances the callous bystander can
foresee serious injury if
he does nothing. He does not control the
source of the danger, but he has
control of the means to avert a
dreadful accident. The child or pedestrian is
dependent on the
bystander: the child is unable to save himself, and the
pedestrian
is unaware of his danger. The prospective injury is out of
all
proportion to the burden imposed by having to take preventive
steps. All that
would be called for is the simplest exertion or a
warning shout.
Despite this,
the recognised legal position is that the bystander does not
owe
the drowning child or the heedless pedestrian a duty to take steps to
save
him. Something more is required than being a bystander. There
must be some
additional reason why it is fair and reasonable that
one person should be
regarded as his brother's keeper and have
legal obligations in that regard.
When this additional reason
exists, there is said to be sufficient proximity.
That is the
customary label. In cases involving the use of land, proximity
is
found in the fact of occupation. The right to occupy can
reasonably be
regarded as carrying obligations as well as rights.
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Omissions and proximity
Norfolk Council
was more than a bystander. The council had a
statutory power to
remove this source of danger, although it was not under a
statutory
duty to do so. Before 1978 the accepted law was that the
council
could be under no common law liability for failing to act.
A simple failure
to exercise a statutory power did not give rise
to a common law claim for
damages: see East Suffolk Rivers
Catchment Board v. Kent [1941] AC 74.
The decision in Anns
v. Merton London Borough Council [1978] AC 728
liberated the
law from this unacceptable yoke. This was the great contribution
Anns
made to the development of the common law.
However, as
with Hedley Byrne & Co Ltd v. Heller & Partners
Ltd.
[1964] AC 465, another notable development in the law
of negligence, so
with Anns: a coherent, principled control
mechanism has to be found for
limiting this new area of potential
liability. The powers conferred on public
authorities permeate so
many fields that a private law duty in all cases,
sounding in
damages, would be no more acceptable than the opposite
extreme.
Considerable caution is needed lest a welcome development
do more harm that
good.
In Anns v.
Merton London Borough Council [1978] AC 728
Lord
Wilberforce propounded a two stage test for the existence of a
duty.
This test is now generally regarded with less favour than
the familiar tripartite
formulation subsequently espoused in
Caparo Industries Plc. v. Dickman
[1990] 2 AC 605, 617,
618: (1) foreseeability of loss, (2) proximity and (3)
fairness,
justice and reasonableness. The difference is perhaps more
a
difference of presentation and emphasis than substance.
Clearly,
foreseeability of loss is by itself an insufficient
foundation for a duty to take
positive action. Close attention to
the language of Lord Wilberforce at
pp. 751-752, with its
reference to a sufficient relationship of proximity or
neighbourhood,
shows that he regarded proximity as an integral requirement:
see
also McLoughlin v. O'Brian [1983] AC 410, 420, 421, per
Lord
Wilberforce, and Yuen Kun Yeu v. Attorney-General of Hong
Kong
[1988] A.C. 175, 191, per Lord Keith of Kinkel.
The Caparo
tripartite test elevates proximity to the dignity of a
separate
heading. This formulation tends to suggest that proximity is
a
separate ingredient, distinct from fairness and reasonableness,
and capable of
being identified by some other criteria. This is
not so. Proximity is a
slippery word. Proximity is not legal
shorthand for a concept with its own,
objectively identifiable
characteristics. Proximity is convenient shorthand for
a
relationship between two parties which makes it fair and reasonable
one
should owe the other a duty of care. This is only another way
of saying that
when assessing the requirements of fairness and
reasonableness regard must
be had to the relationship of the
parties. As McLachlin J. said in the Supreme
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Court of
Canada, in Norsk Pacific Steamship Co. Ltd. v. Canadian
National
Railway Co. [1992] 1 S.C.R. 1021, 1152:
". . .the
concept of proximity may be seen as an umbrella,
covering a number
of disparate circumstances in which the relationship
between the
parties is so close that it is just and reasonable to permit
recovery
in tort."
Similarly, in
his valuable exposition in Sutherland Shire Council v.
Heyman
(1985) 157 C.L.R. 424, 496, Deane J. in the High Court of
Australia
observed that Lord Atkin's notion of proximity in
Donoghue v. Stevenson
[1932] AC 562 "involved both
an evaluation of the closeness of the
relationship and a judgment
of the legal consequences of that evaluation."
Deane J.
added, at p. 498:
"Given the
general circumstances of a case in a new or
developing area of the
law of negligence, the question what (if any)
combination or
combinations of factors will satisfy the requirement of
proximity
is a question of law to be resolved by the processes of
legal
reasoning, induction and deduction ... the identification of
the content
of that requirement hi such an area should not be
either ostensibly or
actually divorced from notions of what is
'fair and reasonable' ... or
from the considerations of public
policy which underlie and enlighten
the existence and content of
the requirement."
Despite this,
the pithy tripartite formulation has advantages. The
relationship
between the parties is an important ingredient in the
overall
assessment. The tripartite test is useful in focusing
attention specifically on
this feature and also in clearly
separating this feature from foreseeability of
damage. But the
application of the same tripartite test, both to a duty to take
care
when acting and a duty to take positive action, should not be allowed
to
mask the difference between the two duties. As already seen,
the test of
fairness and reasonableness is more difficult to
satisfy with a duty to act. This
is especially so when the subject
matter is potential financial loss, rather than
physical injury or
damage. The reluctance to impose a duty to act is even
greater
when the loss threatened is financial.
The basic test
of fair and reasonable is itself open to criticism for
vagueness.
Indeed, it as an uncomfortably loose test for the existence of
a
legal duty. But no better or more precise formulation has
emerged so far, and
a body of case law is beginning to give the
necessary further guidance as
courts identify the factors
indicative of the presence or absence of a duty.
A duty to act, and finite resources
I must mention
one further feature of common law liability for
omissions before
turning in more detail to the position of public
authorities.
Liability for omissions gives rise to a problem not
present with liability for
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careless acts.
He who wishes to act must act carefully or not at all. A
producer
of ginger beer must adopt a safe manufacturing process. If this
would
be uneconomic, he ought not to carry on the business. With
liability
for omissions, however, a person is not offered a
choice. The law compels
him to act when left to himself he might
do nothing.
This gives rise
to a difficulty if positive action requires expenditure.
The law
requires him to act reasonably. But, as Lord Wilberforce observed
in
Goldman v. Hargrave [1967] 1 AC 645, 663, what is reasonable
to one
man may be very unreasonable or ruinous to another.
The solution
adopted is to have regard to the circumstances of the
individual.
He must act as would a reasonable person in his position.
The
standard of reasonableness is to be measured by what may
reasonably be
expected of the defendant in his individual
circumstances. Where action calls
for expenditure, the court if
necessary will have regard to the financial
resources of the
defendant. The law does not always shrink away from such
an
investigation and regard itself as unable ever to make an assessment
of
competing demands for money.
Public authorities and liability for omissions
The liability
of public authorities for negligence in carrying out
statutory
responsibilities is a knotty problem. The decision of this House
in
Anns v. Merton London Borough Council [1978] AC 728
articulated a
response to growing unease over the inability of
public law, in some
instances, to afford a remedy matching the
wrong. Individuals may suffer loss
through the carelessness of
public bodies in carrying out their statutory
functions. Sometimes
this evokes an intuitive response that the authority
ought to make
good the loss. The damnified individual was entitled to expect
better
from a public body. Leaving the loss to lie where it falls is not
always
an acceptable outcome. The authority did not create the
loss, but it failed to
discharge its statutory responsibilities
with reasonable care. Had it behaved
properly, the loss would not
have occurred.
Expressed in
traditional tort terms, the loss in this type of case arises
from
a pure omission. Any analysis must recognise this. But the
omission
may also constitute a breach of the authority's public
law obligations. As will
be seen, the present case is an example
of this, even though the relevant
statutory function was expressed
as a statutory power and not a statutory duty.
When this is so,
the question is not whether the authority was under a legal
duty
to take action. The authority was already so obliged, as a matter
of
public law. The question, rather, is what should be the remedy
for the
breach.
Anns showed
that a remedy in the form of an award of damages is
possible
without confusing the uneasy divide between public and private
law.
The common law is still sufficiently adaptable. The common
law has long
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recognised that
in some situations there may be a duty to act. So a concurrent
common
law duty can carry the strain, without distortion of principle.
The Anns
principle has to cope with a complication absent from
other
landmark decisions such as Donoghue v. Stevenson [1932] AC 562 and
Hedley Byrne & Co. Ltd. v. Heller &
Partners Ltd. [1964] AC 465.
Typically, although not
necessarily, the effect of an application of the Anns
principle
will be to bring home against an authority a liability for damages
for
failure to perform public law obligations created by statute.
Thus in Anns
cases, unlike in Donoghue v. Stevenson and
Hedley Byrne, it is necessary to
consider the legislative
intention. Resort to Anns is not required when
Parliament
created a statutory duty and also, expressly or impliedly, a cause
of
action for breach of the duty. The problem only arises outside the
area
where Parliament has willed that the individual shall have a
remedy in
damages. This gives rise to the difficulty of how much
weight should be
accorded the fact that, when creating the
statutory function, the legislature
held back from attaching a
private law cause of action. The law must
recognise the need to
protect the public exchequer as well as private interests.
It is
essentially on this latter point that so many divergent views
have
been expressed, mainly in articles and textbooks. There is
general agreement
that the law is unsettled, with a different
judicial emphasis between the
common law countries. There is no
consensus on what the law should be:
see, for instance,
Arrowsmith, Civil Liability, 176-185; S.H. Bailey and
M.J.
Bowman, "The Policy/Operation Dichotomy - A Cuckoo in
the Nest" [1986]
C.L.J. 430; Sir Gerard Brennan, "Liability
in Negligence of Public
Authorities: The Divergent Views"
(1990) 48 Advocate 842; Buckley, The
Modern Law of Negligence,
2nd ed. (1993), pp. 229-247; and Craig,
Administrative Law,
3rd ed. (1994), pp. 618-632, and P.P. Craig,
"Negligence
in the Exercise of a Statutory Power" (1978) 94 L.Q.R. 428;
de
Smith, Woolf and Jowell, Judicial Review of Administrative
Action, 5th ed.
(1995), pp. 774-782; J.J. Doyle Q.C.,
Solicitor-General for South Australia,
"The Liability of
Public Authorities" (1994) 2 Tort L.Rev. 189; Fleming,
The
Law of Torts, 8th ed. (1992), pp. 146-159; Hogg, 17 Monash
U.L.R. 285;
Justice David Malcolm, "The Liability and
Responsibility of Local
Government Authorities: Trends and
Tendencies" Austr B.R. 209; Hon. John
Sopinka, Justice,
Supreme Court of Canada, "The Liability of Public
Authorities:
Drawing the Line" (1993) 1 Tort L.Rev. 123; Stephen Todd,
"The
Negligence Liability of Public Authorities: Divergence in the
Common
Law" (1986) 102 L.Q.R. 370; Smith and Peter Burns,
"Donoghue v.
Stevenson - The Not So Golden
Anniversary" (1983) 46 M.L.R. 147; Wade
and Forsyth,
Administrative Law, 7th ed., (1994), pp. 771-783; and
Winfield
and Jolowicz, Tort, 14th ed., (1994), pp. 78-90,
102-103.
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The statutory framework
Against this
background I must now map the route which as a matter
of legal
analysis I believe is applicable in the present case. Public
authorities
discharging statutory functions operate within a
statutory framework. Since
the will of the legislature is
paramount in this field, the common law should
not impose a
concurrent duty inconsistent with this framework. A common
law
duty must not be inconsistent with the performance by the authority
of its
statutory duties and powers in the manner intended by
Parliament, or contrary
in any other way to the presumed
legislative intention.
In some
respects the typical statutory framework makes the step to a
common
law duty to act easier with public authorities than
individuals.
Unlike an individual, a public authority is not an
indifferent onlooker.
Parliament confers powers on public
authorities for a purpose. An authority
is entrusted and charged
with responsibilities, for the public good. The
powers are
intended to be exercised in a suitable case. Compelling a
public
authority to act does not represent an intrusion into
private affairs in the same
way as when a private individual is
compelled to act.
The matter goes
much further. Sometimes a concurrent common law
duty would not
impose any additional burden, in the sense of requiring an
authority
to act differently from the course already required by its public
law
obligations. In such cases a major impediment to the existence
of a common
law duty to act is not present. This calls for
elaboration.
The scope of a
common law duty to take positive action, as much as
any other
common law duty of care, depends upon the circumstances giving
rise
to the duty. A concurrent common law duty cannot require the
authority
to act outside its statutory powers. But the
superimposed common law duty
may sometimes curtail the freedom of
an authority's actions within its powers.
There may have been some
dealing between the authority and the plaintiff, or
some other
special circumstance, from which the law will properly conclude
that
the authority has assumed an obligation to the plaintiff to act in
a
particular way within the scope of its powers. An example of
this is
Parramatta City Council v, Lutz (1988) 12
N.S.W.L.R. 293, where the
council told the plaintiff it would be
carrying out an order for the demolition
of adjoining derelict
property. Or the special circumstance may be more
general, as
where an authority has habitually exercised a power and,
in
consequence, a person or class of persons has to the knowledge
of the
authority reasonably relied on the authority continuing to
follow its normal
practice.
The present
case is not of this kind. The plaintiff was in no different
position
from any other road user on any public road. Nothing had occurred
to
impose on the council an obligation to act otherwise than in
conformity
with its public law obligations. That is the first
step.
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The next step
is to note that the council's existing public law
obligations
required the council to attain the standards expected of
any
reasonable highway authority in the circumstances. A statutory
discretion
cannot properly be exercised in an unreasonable manner,
that is, in a way no
sensible authority with a proper appreciation
of its responsibilities would act:
see Secretary of State for
Education and Science v. Tameside Metropolitan
Borough
Council [1977] AC 1014, 1064, per Lord Diplock.
Thus, and this
is the third step, if there were a common law obligation
in the
present case, sounding in damages, the extent of the obligation
would
march hand in hand with the authority's public law
obligations. This is a
cardinal feature of the present case. The
council's public law obligation was
to act as a reasonable
authority. The common law obligation would be to the
same effect.
The final step,
and this goes to breach, is to note that Norfolk Council
acted in
a way no reasonable authority would have done. If there is a
common
law duty, breach of the duty is not disputed. With knowledge of
the
danger the council decided to act. It then failed to proceed
with reasonable
diligence. The failure to proceed was not an
exercise of discretion by the
council. The council did not change
its mind. The matter was overlooked.
Given the decision to act,
the only proper course open to the council was to
proceed to
implement the decision. Had the council acted as any
reasonable
authority would, that is what would have happened. The
council failed to
fulfil its public law obligations just as much
as if it were in breach of a
statutory duty.
Hence the
conclusion, that a concurrent common law duty would not
impose on
the council any greater obligation to act than the obligation
already
imposed by its public law duties. The common law duty
would impose, not
a duty to act differently, but a liability to
pay damages if the council failed to
act as it should. This is the
consequence which considerations of proximity
must especially
address in the present case. Was the relationship between the
parties
such that it is fair and reasonable for the council to be liable
in
damages for failing to behave in a way which merely corresponds
to its public
law obligations? In this type of case, therefore,
the reluctance of the common
law to impose a duty to act is not in
point. What is in point, in effect though
not in legal form, is an
obligation to pay damages for breach of public law
obligations.
This leads
naturally to a further feature of the typical statutory
framework.
This feature points away from public bodies being subject
to
concurrent common law obligations. When conferring the
statutory functions
Parliament stopped short of imposing a duty in
favour of the plaintiff. This
is so when there is a statutory duty
not giving rise to a cause of action for
breach of the duty. This
is even more marked when Parliament conferred a
power. Without
more it would not be reasonable for the common law to
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impose a duty,
sounding in damages, which Parliament refrained from
imposing.
For this reason
there must be some special circumstance, beyond the
mere existence
of the power, rendering it fair and reasonable for the authority
to
be subject to a concurrent common law duty sounding in damages.
This
special circumstance is the foundation for the concurrent
common law duty to
act, owed to a particular person or class of
persons. It is the presence of this
additional, special
circumstance which imposes the common law duty and also
determines
its scope. Viewed in this way there is no inconsistency in
principle
between the statutory framework set up by Parliament and a
parallel
common law duty.
Statutory powers and proximity
What will
constitute a special circumstance, and in combination with
all the
other circumstances amount to sufficient proximity, defies
definition
and exhaustive categorisation save in the general terms
already noted
regarding proximity. The special circumstance must
be sufficiently
compelling to overcome the force of the fact that
when creating the statutory
function Parliament abstained from
creating a cause of action, sounding in
damages, for its breach.
Factors to be
taken into account include: the subject matter of the
statute (for
instance, the regulatory power in Yuen Kun Keu v.
Attorney-
General of Hong Kong [1988] A.C. 175,195, was
quasi-judicial, with a right
of appeal); the intended purpose of
the statutory duty or power (in Governors
of the Peabody
Donation Fund v. Sir Lindsay Parkinson & Co. Ltd. [1985]
A.C.
210 and Murphy v. Brentwood District Council [1991] 1 AC 398, 408,
public health measures were not intended to safeguard
owners of buildings
against financial loss); whether a concurrent
common law duty might inhibit
the proper and expeditious discharge
of the statutory functions (such as the
protection of children at
risk, in X (minors) v. Bedfordshire County Council
[1995] 2 AC 633, 749-751); the nature of the loss (whether physical
injury
or purely financial); the ability of the plaintiff to
protect himself (in Just v.
British Columbia (1989) 64
D.L.R. (4th) 689 a road user was injured by a
rock falling onto
his car); the adequacy of the public law remedies (Rowling
v.
Takaro Properties Ltd. [1988] AC 473, 501-502, and Jones
v. Department
of Employment [1989] Q.B. 1, 22, 24-25); and the
presence or absence of a
particular reason why the plaintiff was
relying or dependent on the authority
(as in Invercargill City
Council v. Hamlin [1996] 2 W.L.R. 367, and see the
New
Zealand Court of Appeal at [1994] 3 N.Z.L.R. 513, 519, 524-525,
and
530). This list is by no means exhaustive, and each case will
turn upon the
particular combination of factors present or absent.
Reliance calls
for special mention. By reliance I mean that the
authority can
reasonably foresee that the plaintiff will reasonably rely on the
- 11 -
authority
acting in a particular way. Reliance is a useful aid here, as in
the
field of negligent misstatement, because it leads easily to
the conclusion that
the authority can fairly be taken to have
assumed responsibility to act in a
particular way. Reliance may be
actual, in the case of a particular plaintiff,
or more general, in
the sense that persons in the position of the plaintiff may
be
expected to act in reliance on the authority exercising its powers.
In
Sutherland Shire Council v. Heyman, 157 C.L.R. 424, 464,
Mason J. treated
dependence as having equivalent effect in some
circumstances:
"... there
will be cases in which the plaintiff's reasonable
reliance will
arise out of a general dependence on an authority's
performance of
its function with due care, without the need for
contributing
conduct on the part of a defendant or action to his
detriment on
the part of a plaintiff. Reliance or dependence in this
sense is
in general the product of the grant (and exercise) of powers
designed
to prevent or minimise a risk of personal injury or
disability,
recognised by the legislature as being of such
magnitude or complexity
that individuals cannot, or may not, take
adequate steps for their own
protection. This situation generates
on one side (the individual) a
general expectation that the power
will be exercised and on the other
side (the authority) a
realisation that there is a general reliance or
dependence on its
exercise of power. . ."
Reliance, or
dependence, may be a sufficient basis but will not always
be so.
Everyone is entitled to expect that an authority will behave as
a
reasonable authority, in accordance with its public law
obligations, but
reliance of this character will usually not be
enough. Otherwise a concurrent
common law duty might readily arise
in almost every case. Nor, conversely,
is reliance a necessary
ingredient in all cases. Proximity cannot be confined
by fixed
restraints applicable in all cases.
Some statutory
powers, of their nature, are less susceptible to a
concurrent
common law duty than others. More is needed by way of a
special
circumstance. This does not mean that powers are capable
of being assigned
to fixed categories. There are no hard and fast
boundary lines here. The
approach, rather, is that as the part
played by broad discretionary
considerations in the exercise of
the power grows, the less readily will a
common law duty be
superimposed, and vice versa. At the discretionary edge
of the
spectrum will be powers whose nature and purpose make it difficult
to
envisage any likely circumstances where a common law duty,
sounding in
damages, could be superimposed. A local authority's
powers to decide what
schools there should be, and where, and of
what type, may be an example of
this. At the other edge of the
spectrum will be powers where comparatively
little extra may be
needed to found a common law duty owed to a particular
person or
class of persons. A power to remove dangers from public places
must
be near this edge of the spectrum. A power to control air safety may
be
another example, as in Swanson Estate v. Canada (1991)
80 D.L.R (4th)
741.
- 12 -
Some decisions
since Anns v. Merton London Borough Council [1978]
A.C.
728 have gone further and identified a "no go" area for
concurrent
common law duties: see Anns, at p. 754;
Sutherland Shire Council v. Heyman,
157 C.L.R. 424, 469,
per Mason J.; Rowling v. Takaro Properties Ltd.
[1988] AC 473, 501; and X (Minors) v. Bedfordshire County Council
[1995]
2 A.C. 633, 738. In practice the two approaches will
usually reach the same
conclusion. My preference is for the more
open-ended approach. The
exclusionary approach presupposes an
identifiable boundary, between policy
and other decisions,
corresponding to a perceived impossibility for the court
to handle
policy decisions. But the boundary is elusive, because
the
distinction is artificial, and an area of blanket immunity
seems undesirable and
unnecessary. It is undesirable in principle
that in respect of certain types of
decisions the possibility of a
concurrent common law duty should be
absolutely barred, whatever
the circumstances. An excluded zone is also
unnecessary, because
no statutory power is inherently immune from judicial
review. This
has not given rise to any insuperable difficulties in public law.
Nor
should it with claims in tort if, very exceptionally, a concurrent
common
law duty were held to exist in an area of broad policy.
Courts are well able
to recognise that reasonable people can reach
widely differing conclusions
when making decisions based on
social, political or economic grounds: see,
for instance, Reg.
v. Secretary of State for the Environment, Ex parte
Nottingham
County Council [1986] AC 240. Similarly with competing
demands
for money. Indeed, the courts have recognised that sometimes it
may
be necessary in private law to look into competing demands for
available
money. As already noted, this is inherent in the very
concept of a common
law duty to take positive action. Thus this
feature does not of itself exclude
the existence of a concurrent
common law duty.
The Highways Act
I turn to apply
these principles to the present case. The Highways Act
1980
provides that the authority for a highway maintainable at public
expense
is under a duty to maintain the highway: section 41. The
duty is not absolute.
In an action against the authority in
respect of damage resulting from failure
to maintain a highway, it
is a defence to prove that the authority had taken
such care as
was reasonable to secure that the relevant part of the highway
was
not dangerous for traffic: section 58.
That concerns
the state of repair of the highway itself. A highway may
be
dangerous for other reasons. Highway authorities have a panoply
of
powers enabling them to deal with dangers, obstructions and
inconveniences
arising in many different ways. A projection from a
building may be an
obstruction to safe passage. Overhanging hedges
or trees may endanger or
obstruct the passage of vehicles or
pedestrians. A dead or diseased tree may
be likely to cause danger
by falling on the road. Adjoining land may contain
an inadequately
fenced source of danger. The forecourt of premises abutting
on a
street may be a source of danger. In each instance the highway or
other
authority has power to require the owner or occupier of the
adjoining land to
- 13 -
take the
necessary action to get rid of the source of danger: see sections
152,
154, 165, and 166. Section 79, with which this appeal is
concerned, is
another such power. Sometimes the authority has
power to do the work if the
notice is not complied with, sometimes
not. Section 79 is an instance of the
latter.
Known dangers and road users
I turn to the
crucial question: does a highway authority, aware of a
danger, owe
to road users a common law duty to act as would a
reasonable
authority in the circumstances, and hence be
potentially liable in damages if
it fails to attain this standard?
Built into this
question are several features which, in combination,
seem to me to
point to the conclusion that the existence of such a duty and
such
a liability would indeed be fair and reasonable. First, the subject
matter
is physical injury. The existence of a source of danger
exposes road users to
a risk of serious, even fatal, injury. Road
users, especially those unfamiliar
with the stretch of road, are
vulnerable. They are dependent on highway
authorities fulfilling
their statutory responsibilities. Second, the authority
knows of
the danger. When an authority is aware of a danger it has
knowledge
road users may not have. It is aware of a risk of which road
users
may be ignorant.
Third, in the
present case, had the authority complied with its public
law
obligations the danger would have been removed and the accident
would
not have happened. In such a case the authority can properly
be regarded as
responsible for the accident just as much as if its
employees had carried out
roadworks carelessly and thereby created
a danger. There is no sensible
distinction between an authority's
liability for its workmen in the former
instance and its liability
if, in breach of its public law obligations, office staff
fail to
do their jobs properly and an avoidable road accident takes place
in
consequence.
Fourth, this is
an area where Parliament has recognised that public
authorities
should be liable in damages for omissions as well as actions. In
1961
Parliament abrogated the old rule which exempted the inhabitants
at
large and their successors from liability for non-repair of
highways (Highways
(Miscellaneous Provisions) Act 1961). A highway
authority is liable in
damages for failing to take reasonable care
to keep the highway safe. But no
sound distinction can be drawn
between dangers on the highway itself, where
the authority has a
statutory duty to act, and other dangers, where there is a
statutory
power but not a statutory duty. The distinction would not
correspond
to the realities of road safety. On the council's argument a
highway
authority would be liable if it carelessly failed to remove a dead
tree
fallen onto the road, but not liable if it carelessly failed
to act after learning
of a diseased overhanging tree liable to
fall at any moment. Such a legalistic
- 14 -
distinction
does not commend itself. It would be at variance with
ordinary
persons' expectations and perceptions.
Fifth, the
purpose of the statutory powers is to protect road users by
enabling
highway authorities to remove sources of danger, but public law
is
unable to give an effective remedy if a road user is injured as
a result of an
authority's breach of its public law obligations. A
concurrent common law
duty is needed to fill the gap.
Sixth, a common
law duty in the present case would not represent an
incursion into
a wholly novel field. As already noted, an occupier owes a
duty to
take positive action to protect his neighbours. Until subsumed
in
legislation, an occupier also owed common law duties to
safeguard those who
come onto his property, whether lawfully or
unlawfully. Although a highway
authority does not occupy the
highway, there is a certain resemblance. A
highway authority has,
and alone has, the capacity to remove what would
otherwise be a
source of physical danger to users of property.
Seventh, for
the reason given earlier a common law duty would not
impose on the
authority any more onerous obligation, so far as its behaviour
is
concerned, than its public law obligations. Roch L.J., [1994] 1
W.L.R.
1124, 1140, encapsulated the practical effect:
"[The
highway authority's] assessment whether a danger exists,
and, if
it does, the extent of that danger and the weight that the
danger
should be given against the cost of rendering the highway
reasonably
safe and its assessment of the priority to be given to
this particular part
of the highway as against other parts of the
highway under its
jurisdiction are all matters for the highway
authority and its decisions
on such issues will not be easily
overturned in the courts."
Finally, and
critically, the consequence of a concurrent common law
duty would
be that in the event of a breach the loss, so far as measurable
in
terms of money, would fall on the highway authority or, if
insured, on
highway authorities generally. Sometimes an injured
road user, whether
driver or passenger or pedestrian, has a claim
against an insured road user.
This is so in the present case. Then
it may be debatable whether there is
anything to be gained, any
social utility, in shifting the financial loss from
road users to
a highway authority. But there can be no room for doubt when
the
injured road user has no such claim. This may well happen. Then it
does
seem eminently fair and reasonable that the loss should fall
on the highway
authority and not the hapless road user. And if the
existence of a duty of care
in all cases, in the shape of a duty
to act as a reasonable authority, has a
salutary effect on
tightening administrative procedures and avoiding another
needless
road tragedy, this must be in the public interest.
In my view
these factors, taken together, constitute special
circumstances of
sufficient weight for the crucial question to be answered yes.
- 15 -
There is here
sufficient proximity. I reserve my view on what the position
would
be if an authority did not know, but ought to have known, of
the
existence of a danger.
I must mention
one last matter as a footnote. The council contended
that a common
law duty would achieve little or nothing. Highway authorities
would
qualify their decisions to act, lest they expose themselves more
readily
to damages claims. This is not an impressive argument.
Public authorities
are responsible bodies which normally discharge
their duties conscientiously
and carefully. There is no reason for
thinking they would indulge in artifice
to conceal their true
decisions. Further, the common law duty does not stem
from the
decision to act. The authority's decision to act does not create
a
common law duty where otherwise none existed. Where there is a
decision
to act, the decision fixes the starting point of the
inquiry into whether there
has been a breach of the common law
duty, viz, a failure to act as a
reasonable authority. It is the
starting point, because it is only afterwards
there was any
failure to act. If there was no decision to act, the inquiry
would
start at an earlier stage.
I would dismiss this appeal.
LORD HOFFMANN
My Lords,
1. The Accident
Late at night
in December 1988, the plaintiff Mr. Stovin was riding his
motorcycle
along Station Road, Wymondham. A car driven by the defendant
Mrs
Wise emerged from a junction into his path. He was unable to stop
in
time and there was a collision in which he suffered serious
injuries.
His Honour
Judge Crawford Q.C. found that Mrs Wise had not been
keeping a
proper look out and was 70 per cent. to blame for the accident.
He
attributed the other 30 per cent. of liability to the Norfolk
County Council,
which Mrs Wise had joined as third party. The
Council was the local
highway authority. The judge found that it
had known that the junction was
dangerous and had been negligent
in not taking steps to make it safer.
2. The Junction
The junction
was certainly a hazard to traffic. Cemetery Road, along
which Mrs
Wise had been driving, joined Station Road at an acute angle.
A
driver who, like Mrs Wise, wanted to turn right, had to make a
turn of about
150 degrees across the traffic coming from her
right. What made matters
- 16 -
worse was that
the view to the right was obstructed by a bank of earth topped
by
a fence. Mrs Wise could not see what was coming, apart from
light
thrown forward by approaching headlights, until she had
actually nosed out
into Station Road.
There had been
accidents at the junction in 1976, 1982 and in March
1988, when
someone coming out of Cemetery Road had collided with a police
car.
Three accidents in twelve years was not however enough to give
the
junction the status of a "cluster site" or accident
black spot in the Council's
computerised records. That needed at
least five personal injury accidents
within three years. It did
not therefore merit special attention under the
Council's policy
for dealing with hazardous stretches of road. But the
Wymondham
Road Safety Committee had taken up the matter about a year
before
Mr. Stovin's accident. In December 1987 the Committee
approached
British Rail, which owned the land upon which stood the
obstructing bank and
fence. British Rail's Area Civil Engineer
wrote to Mr. Longhurst, the
Council's Divisional Surveyor,
suggesting that the junction should be
realigned. Mr. Longhurst
was in charge of road maintenance in south
Norfolk. His traffic
movement expert, Mr. Deller, whom he sent to inspect,
thought that
the best solution was to remove the bank. Mr. Longhurst
accepted
his advice and wrote to British Rail, asking permission to do
the
work and offering to pay the cost.
Unfortunately
British Rail did not answer the letter and nothing was
done to
follow it up. A month or two later Mr. Deller was transferred
to
other work. By the time of Mr. Stovin's accident, nothing had
happened.
3. The Trial
The question of
law at the trial was whether the Council, as highway
authority,
owed a duty to users of the highway in respect of the safety of
the
junction. At first Mr. Stovin relied primarily upon the
Council's statutory
duty to maintain the highway: see section 41
of the Highways Act 1980. But
the judge rejected this claim on the
ground that the bank was not part of the
highway. It was on land
adjoining the highway. This decision was affirmed
by the Court of
Appeal and is not challenged before this House.
The alternative
claim was that the Council owed Mr. Stovin a duty of
care at
common law. The judge said that a "neighbour relationship"
as
described by Lord Atkin in Donoghue v. Stevenson [1932] AC 562 existed
because the Council, as highway authority, should
have had users of the
highway in contemplation as affected by its
operations and knew that the lay-
out of the junction was
dangerous. He then went on to consider whether there
was
"proximity" between the highway authority and Mr. Stovin.
He took into
account that the kind of damage which should have
been foreseen was physical
injury. He was not therefore troubled
by any of the problems about the duty
of care in respect of
economic loss which have so perplexed the courts over
the past few
decades. The junction was in his view exceptionally dangerous
- 17 -
and the Council
through its officers actually knew of the risk. In addition,
the
Council was a public authority. He said, quoting Du Parq L.J.
in Kent v.
East Suffolk Rivers Catchment Board [1940] 1
K.B. 319, 338, that it owed a
duty to the public to strike a
"balance between the rival claims of efficiency
and thrift."
In this case, he said, there was no question of choosing
thrift
because in his view a decision to improve the junction had
already been taken.
Having found that the Council owed Mr. Stovin
a duty of care, the judge had
no difficulty in finding that there
had been a breach. Mr. Deller had said that
he had not regarded
the matter as urgent. But the judge held that he had been
mistaken.
He was not told of the accident with the police car in March
1988.
The judge found that if he had heard about it, he would have
acted with
greater despatch. But for his transfer to other duties,
the work would have
been implemented before Mr. Stovin's accident.
It was a breach of duty for
the Council not to have done it.
4. Acts and omissions.
The judge made
no express mention of the fact that the complaint
against the
Council was not about anything which it had done to make the
highway
dangerous but about its omission to make it safer. Omissions,
like
economic loss, are notoriously a category of conduct in which
Lord Atkin's
generalisation in Donoghue v. Stevenson [1932] AC 562 offers limited help.
In the High Court of Australia in
Hargrave v. Goldman (1963) 110 C.L.R.
40, 65-66, Windeyer
J. drew attention to the irony in Lord Atkin's allusion,
in
formulating his "neighbour" test, to the parable of the
Good Samaritan
([1932] AC 562, 580):
"The
priest and the Levite, when they saw the wounded man by the
road,
passed by on the other side. He obviously was a person whom
they
had in contemplation and who was closely and directly affected
by
their action. Yet the common law does not require a man to act as
the
Samaritan did."
A similar point
was made by Lord Diplock in Dorset Yacht Co. Ltd. v. Home
Office
[1970] AC 1004, 1060. There are sound reasons why
omissions
require different treatment from positive conduct. It is
one thing for the law
to say that a person who undertakes some
activity shall take reasonable care
not to cause damage to others.
It is another thing for the law to require that
a person who is
doing nothing in particular shall take steps to prevent another
from
suffering harm from the acts of third parties (like Mrs Wise) or
natural
causes. One can put the matter in political, moral or
economic terms. In
political terms it is less of an invasion of an
individual's freedom for the law
to require him to consider the
safety of others in his actions than to impose
upon him a duty to
rescue or protect. A moral version of this point may be
called the
"why pick on me?" argument. A duty to prevent harm to
others or
to render assistance to a person in danger or distress
may apply to a large and
indeterminate class of people who happen
to be able to do something. Why
should one be held liable rather
than another? In economic terms, the
- 18 -
efficient
allocation of resources usually requires an activity should bear
its
own costs. If it benefits from being able to impose some of
its costs on other
people (what economists call "externalities,")
the market is distorted because
the activity appears cheaper than
it really is. So liability to pay compensation
for loss caused by
negligent conduct acts as a deterrent against increasing the
cost
of the activity to the community and reduces externalities. But there
is
no similar justification for requiring a person who is not
doing anything to
spend money on behalf of someone else. Except in
special cases (such as
marine salvage) English law does not reward
someone who voluntarily confers
a benefit on another. So there
must be some special reason why he should
have to put his hand in
his pocket.
In Hargrove v. Goldman, 110 C.L.R. 40, 66 Windeyer J. said:
"The trend
of judicial development in the law of negligence has
been ... to
found a duty to take care either in some task undertaken,
or in
the ownership, occupation or use of land or chattels."
There may be a
duty to act if one has undertaken to do so or induced
a person to
rely upon one doing so. Or the ownership or occupation of land
may
give rise to a duty to take positive steps for the benefit of those
who
come upon the land and sometimes for the benefit of
neighbours. In Hargrove
v. Goldman the High Court of
Australia held that the owner and occupier of
a 600 acre grazing
property in Western Australia had a duty to take reasonable
steps
to extinguish a fire, which had been started by lightning striking a
tree
on his land, so as to prevent it from spreading to his
neighbour's land. This
is a case in which the limited class of
persons who owe the duty (neighbours)
is easily identified and the
political, moral and economic arguments which I
have mentioned are
countered by the fact that the duties are mutual. One
cannot tell
where the lightning may strike and it is therefore both fair
and
efficient to impose upon each landowner a duty to have regard
to the interests
of his neighbour. In giving the advice of the
Privy Council affirming the
decision (Goldman v. Hargrove
[1967] 1 AC 645) Lord Wilberforce
underlined the exceptional
nature of the liability when he pointed out that the
question of
whether the landowner had acted reasonably should be judged
by
reference to the resources he actually had at his disposal and
not by some
general or objective standard. This is quite different
from the duty owed by
a person who undertakes a positive activity
which carries the risk of causing
damage to others. If he does not
have the resources to take such steps as are
objectively
reasonable to prevent such damage, he should not undertake
that
activity at all.
5. Omissions in the Court of Appeal
The Court of
Appeal did advert to the question of omissions. The
main ground
upon which they affirmed the judge's decision was that the
position
of the Council as a public authority gave rise to a common law
duty
in the circumstances to safeguard users of the junction from
harm. I shall
- 19 -
have to return
to this central question at some length. But Kennedy LJ. and
Roch
L.J. (with whom Nourse LJ. agreed) each made additional
points
independent of the public nature of the highway authority.
Kennedy L.J. said
([1994] 1 W.L.R. 1124, 1138) that the case was
not one of pure omission:
"Here the
highway authority did not simply fail to act. It decided
positively
to proceed by seeking agreement from British Rail, and its
failure
to pursue that course is not an omission on which it can rely
to
escape liability, any more than a car driver could escape
liability
simply because his breach of duty consisted in a failure
to apply the
brakes."
I do not find
this analogy convincing. Of course it is true that the
conditions
necessary to bring about an event always consist of a combination
of
acts and omissions. Mr. Stovin's accident was caused by the fact that
Mrs
Wise drove out into Station Road and omitted to keep a proper
look-out. But
this does not mean that the distinction between acts
and omissions is
meaningless or illogical. One must have regard to
the purpose of the
distinction as it is used in the law of
negligence, which is to distinguish
between regulating the way in
which an activity may be conducted and
imposing a duty to act upon
a person who is not carrying on any relevant
activity. To hold the
defendant liable for an act, rather than an omission, it
is
therefore necessary to be able to say, according to common sense
principles
of causation, that the damage was caused by something
which the defendant
did. If I am driving at 50 miles an hour and
fail to apply the brakes, the
motorist with whom I collide can
plausibly say that the damage was caused by
my driving into him at
50 miles an hour. But Mr. Stovin's injuries were not
caused by the
negotiations between the Council and British Rail or anything
else
which the Council did. So far as the Council was held responsible, it
was
because it had done nothing to improve the visibility at the
junction.
Roch L.J. made
a different point. Accepting that the alleged breach
of duty was
an omission, he drew an analogy between the position of the
highway
authority and an occupier of premises in relation to visitors
coming
upon his land. Occupation of premises is, as was said in
Hargrave v.
Goldman, 110 C.L.R. 40, one of the exceptional
grounds upon which there
may be a duty to take positive steps to
protect others from harm. Therefore
Roch L.J. thought that the
highway authority should be equally liable. But an
occupier can
ordinarily limit his liability by deciding whom he will allow to
come
upon his land. He has a limited duty to trespassers and can take
steps
to keep them out. An occupier of land over which there is a
public right of
way cannot stop anyone from using it. So in
McGeown v. Northern Ireland
Housing Executive [1995] 1 A.C.
233 this House decided that an occupier of
land over which there
is a public right of way owes no duty to take reasonable
steps to
make it safe for members of the public who use it. Because he has
no
choice as to whether to allow them upon his land or not he should not
be
required to spend money for their benefit. Lord Keith of
Kinkel, at p. 243:
- 20 -
"Rights of
way pass over many different types of terrain, and it would
place
an impossible burden upon landowners if they not only had to
submit
to the passage over them of anyone who might choose to
exercise
the right but also were under a duty to maintain them in a
safe
condition."
It therefore
seems clear that if Station Road and Cemetery Road had been
highways
over private land which happened to be owned and occupied by
the
Norfolk County Council instead of being repairable at the
public expense,
there would have been no liability. The analogy of
an occupier is therefore
insufficient for the purpose of imposing
liability.
6. Public authorities.
The argument
that the Council had a positive duty to take action giving
rise to
a claim for compensation in tort must therefore depend, as the
judge
and the Court of Appeal recognised, upon the public nature
of its powers,
duties and funding. The argument is that while it
may be unreasonable to
expect a private landowner to spend money
for the benefit of strangers who
have the right to cross his land,
the very purpose of the existence of a public
authority like the
Council is to spend its resources on making the roads
convenient
and safe. For that purpose it has a large battery of powers in
the
Highways Act 1980. These do not actually include a power which
would have
enabled the Council to go upon the land of British Rail
and remove the bank
of earth. But there is power under section 79
to serve a notice requiring the
bank to be removed. The power is
conferred for the purpose of "the
prevention of danger
arising from obstruction to the view of persons using the
highway."
Although the allegation is not that the Council failed to use
this
power (it probably would not have been necessary to do so),
its existence
shows that one of the purposes for which Parliament
contemplated that the
highway authority would spend its money was
the removal of exactly the kind
of obstructions which caused the
accident in this case.
It is certainly
true that some of the arguments against liability for
omissions do
not apply to public bodies like a highway authority. There is no
"why
pick on me?" argument: as Kennedy L.J. said, at p. 1139, the
highway
authority alone had the financial and physical resources,
as well as the legal
powers, to eliminate the hazard. But this
does not mean that the distinction
between acts and omissions is
irrelevant to the duties of a public body or that
there are not
other arguments, peculiar to public bodies, which may negative
the
existence of a duty of care.
(a) Negligent conduct in the exercise of statutory powers.
Since Mersey
Docks and Harbour Board Trustees v. Gibbs (1866) L.R.
1 HL 93 it has been clear law that in the absence of express
statutory
authority, a public body is in principle liable for
torts in the same way as a
private person. But its statutory
powers or duties may restrict its liability.
- 21 -
For example, it
may be authorised to do something which necessarily
involves
committing what would otherwise be a tort. In such a case
it will not be
liable: Allen v. Gulf Oil Refining Ltd. [1981] AC 1001. Or it may have
discretionary powers which enable it to
do things to achieve a statutory
purpose notwithstanding that they
involve a foreseeable risk of damage to
others. In such a case, a
bona fide exercise of the discretion will not attract
liability: X
(Minors) v. Bedfordshire County Council [1995] 2 AC 633
and
Dorset Yacht Co. Ltd. v. Home Office [1970] AC 1004.
In the case of
positive acts, therefore, the liability of a public authority
in
tort is in principle the same as that of a private person but may be
restricted
by its statutory powers and duties. The argument
in the present case, however,
is that whereas a private person
would have owed no duty of care in respect
of an omission to
remove the hazard at the junction, the duty of the highway
authority
is enlarged by virtue of its statutory powers. The existence
of the
statutory powers is said to create a "proximity"
between the highway authority
and the highway user which would not
otherwise exist.
(b) Negligent omission to use statutory powers.
Until the
decision of this House in Anns v. Merton London Borough
Council
[1978] AC 728, there was no authority for treating a
statutory
power as giving rise to a common law duty of care. Two
cases in particular
were thought to be against it. In Sheppard
v. Glossop Corporation [1921] 3
K.B. 132 the council had power
to light the streets of Glossop. But their
policy was to turn off
the lamps at 9 p.m. The plaintiff was injured when he
fell over a
retaining wall in the dark after the lamps had been extinguished.
He
sued the council for negligence. The Court of Appeal said that the
council
owed him no duty of care. Atkin L.J. said, at p. 150:
"[The
local authority] is under no duty to act reasonably in
deciding
whether it shall exercise its statutory powers or not, or
in deciding to
what extent, over what particular area, or for what
particular time, it
shall exercise its powers. . . The real
complaint of the plaintiff is not
that they caused the danger, but
that, the danger being there, if they
had lighted it he would have
seen and avoided it."
In East
Suffolk Rivers Catchment Board v. Kent [1941] AC 74, the
facts of
which are too well known to need repetition, Lord Romer
cited Sheppard v.
Glossop Corporation and stated the
principle which he said it laid down:
"Where a
statutory authority is entrusted with a mere power it cannot
be
made liable for any damage sustained by a member of the public
by
reason of a failure to exercise that power."
- 22 -
There are two
points to be made about the East Suffolk case by way
of
anticipation of what was said about it in Anns. First,
Lord Wilberforce said
[1978] AC 728, at p. 757 that:
"... only
one of their Lordships [Lord Atkin] considered [the case]
in
relation to a duty of care at common law. . . I believe that
the
conception of a general duty of care, not limited to
particular accepted
situations, but extending generally over all
relations of sufficient
proximity, and even pervading the sphere
of statutory functions of
public bodies, had not at that time
become fully recognised."
I must say with
great respect that I do not think that this is a fair description
of
the reasoning of the majority. As a claim of breach of statutory duty
had
expressly been abandoned, it is hard to imagine what the
majority could have
thought was the alleged cause of action unless
it was breach of a duty of care
at common law. What the majority
found impossible was to derive such a duty
from the existence of a
statutory power: to turn a statutory "may" into a
common
law "ought."
The second
point about East Suffolk is that Lord Atkin, who
dissented,
does not appear to have founded a duty of care solely
upon the existence of
the board's statutory powers. He appears to
have held that by going upon the
plaintiffs land to do work which
the plaintiff himself could have done (see pp.
91-92) the board
accepted a duty to execute the work with due despatch. On
this
argument, the only relevance of the board's statutory powers was that
it
could have done the work. It had no statutory defence which
would not have
been available to a private contractor who had gone
upon the land in similar
circumstances. Whether Lord Atkin's
reasoning is good or bad, it does not
support the proposition that
statutory powers can generate a duty of care
which would not
otherwise have existed.
The equally
well known case of Dorset Yacht Co. Ltd. v. Home Office
[1970] AC 1004 also cast no doubt upon the general principle stated by
Lord
Romer in East Suffolk. The only reference to the case
is by Viscount
Dilhorne, at p. 1050 G-H, in a dissenting speech.
All members of the House
plainly did not regard the case as one in
which the alleged breach of duty was
merely an omission to use a
statutory power. The negligence was caused by
something which the
Borstal officers did, namely to use their statutory powers
of
custody to bring the trainees onto the island, where they constituted
a
foreseeable risk to boat owners, and then take no care to
prevent them from
escaping in the night. The case was therefore
prima facie within Mersey
Docks and Harbour Board Trustees v.
Gibbs (1866) L.R. 1 H.L. 93, and their
Lordships were
concerned only with whether the Crown had a defence on the
grounds
that the alleged breach of duty involved the exercise of a
statutory
discretion or whether the fact that the damage was
caused by the criminal act
of the Borstal trainees negatived the
causal link with the Crown's breach of
duty. Both these defences
were rejected.
- 23 -
7. Anns v. Merton Borough Council [1978] AC 728.
This brings me
to Anns. As this case is the mainstay of Mrs Wise's
argument,
I must examine it in some detail. The plaintiff were lessees of
flats
in a new block which had been damaged by subsidence caused
by inadequate
foundations. They complained that the Council had
been negligent in the
exercise of its statutory powers to inspect
the foundations of new buildings.
The Council said that it owed no
duty to inspect and therefore could not be
liable for negligent
inspection. The House rejected this argument. So far as
it held
that the Council owed a duty of care in respect of purely
economic
loss, the case has been overruled by Murphy v.
Brentwood District Council
[1991] 1 AC 398. The House left
open the question of whether the Council
might have owed a duty in
respect of physical injury, although I think it is fair
to say
that the tone of their Lordships' remarks on this question was
somewhat
sceptical. Nevertheless, it is now necessary to ask
whether the reasoning can
support the existence of a duty of care
owed by a public authority in respect
of foreseeable physical
injury which is founded upon the existence of statutory
powers to
safeguard people against that injury.
Lord
Wilberforce, who gave the leading speech, first stated the well
known
two stage test for the existence of a duty of care. This
involves
starting with a prima facie assumption that a duty of
care exists if it is
reasonably foreseeable that carelessness may
cause damage and then asking
whether there are any considerations
which ought to "negative, or to reduce
or limit the scope of
the duty or the class of person to whom it is owed or the
damages
to which a breach of it may arise." Subsequent decisions in
this
House and the Privy Council have preferred to approach the
question the other
way round, starting with situations in which a
duty has been held to exist and
then asking whether there are
considerations of analogy, policy, fairness and
justice for
extending it to cover a new situation: see for example Lord Bridge
of
Harwich in Caparo Industries Plc. v. Dickman [1990] 2 AC 605, 617-
618. It can be said that, provided that the
considerations of policy etc. are
properly analysed, it should not
matter whether one starts from one end or the
other.
On the other
hand the assumption from which one starts makes a great
deal of
difference if the analysis is wrong. The trend of authorities has
been
to discourage the assumption that anyone who suffers loss is
prima facie
entitled to compensation from a person (preferably
insured or a public
authority) whose act or omission can be said
to have caused it. The default
position is that he is not.
This does not
of course mean that the actual analysis in Anns was
wrong.
It has to be considered on its own merits. Lord Wilberforce had
to
deal with an argument by the Council which was based upon two
propositions.
The first was that if the Council owed no duty to
inspect in the first place, it
could be under no liability for
having done so negligently. The second relied
upon Lord Romer's
principle in East Suffolk [1941] AC 74, 97: a public
- 24 -
authority which
has a mere statutory power cannot on that account owe a duty
at
common law to exercise the power. Lord Wilberforce did not deny
the
first proposition. This, if I may respectfully say so, seems
to me to be right.
If the public authority was under no duty to
act, either by virtue of its
statutory powers or on any other
basis, it cannot be liable because it has acted
but negligently
failed to confer a benefit on the plaintiff or to protect him
from
loss. The position is of course different if the negligent action of
the
public authority has left the plaintiff in a worse position
than he would have
been in if the authority had not acted at all.
Lord Wilberforce did however
deny the Council's second
proposition. His reasoning was as follows, at p.
755:
"I think
that this is too crude an argument. It overlooks the fact that
local
authorities are public bodies operating under statute with a
clear
responsibility for public health in their area. They must,
and in fact
do, make their discretionary decisions responsibly and
for reasons
which accord with the statutory purpose . . . .If they
do not exercise
their discretion in this way they can be
challenged in the courts. Thus,
to say that councils are under no
duty to inspect, is not a sufficient
statement of the position.
They are under a duty to give proper
consideration to the question
whether they should inspect or not. Their
immunity from attack, in
the event of failure to inspect, in other
words, though great is
not absolute. And because it is not absolute,
the necessary
premise for the proposition 'if no duty to inspect, then
no duty
to take care in inspection' vanishes."
The duty of
care at common law is therefore derived from the
council's duty in
public law to "give proper consideration to the question
whether
they should inspect or not." It is clear, however, that this
public law
duty cannot in itself give rise to a duty of care. A
public body almost always
has a duty in public law to consider
whether it should exercise its powers, but
that does not mean that
it necessarily owes a duty of care which may require
that the
power should actually be exercised. As Mason J. said in
Sutherland
Shire Council v. Heyman (1985) 157 C.L.R. 424,
465:
"...
although a public authority may be under a public duty,
enforceable
by mandamus, to give proper consideration to the question
whether
it should exercise a power, this duty cannot be equated with,
or
regarded as a foundation for imposing, a duty of care on the
public
authority in relation to the exercise of the power.
Mandamus will
compel proper consideration of the authority of its
discretion, but that
is all."
A mandamus can
require future consideration of the exercise of a
power. But an
action for negligence looks back to what the council ought to
have
done. Upon what principles can one say of a public authority that
not
only did it have a duty in public law to consider the exercise
of the power but
that it would thereupon have been under a duty in
private law to act, giving
- 25 -
rise to a claim
in compensation against public funds for its failure to do so?
Or
as Lord Wilberforce puts it in Anns [1978] AC 728, 754:
"The
problem which this kind of action creates, is to define
the
circumstances in which the law should impose, over and above,
or
perhaps alongside, these public law powers and duties, a duty
in
private law towards individuals such that they may sue for
damages in
a civil court."
The only tool
which Anns provides for defining these circumstances is
the
distinction between policy and operations. Lord Wilberforce
said:
"Most,
indeed probably all, statutes relating to public authorities
or
public bodies, contain in them a large area of policy. The
courts call
this 'discretion' meaning that the decision is one for
the authority or
body to make, and not for the courts. Many
statutes also prescribe or
at least presuppose the practical
execution of policy decisions: a
convenient description of this is
to say that in addition to the area of
policy or discretion, there
is an operational area. Although this
distinction between the
policy area and the operational area is
convenient, and
illuminating, it is probably a distinction of degree;
many
'operational' powers or duties have in them some element
of
'discretion.' It can safely be said that the more 'operational'
a power
or duty may be, the easier it is to superimpose upon it a
common law
duty of care."
East Suffolk
[1941] AC 74 and Sheppard v. Glossop Corporation
[1921]
3 K.B. 132 were distinguished as involving questions of policy
or
discretion. The inspection of foundations, on the other hand,
was "heavily
operational" and the power to inspect could
therefore give rise to a duty of
care. Lord Romer's statement of
principle in East Suffolk was limited to cases
in which the
exercise of the power involved a policy decision.
8. Policy and operations
Since Anns,
there have been differing views, both in England and
the
Commonwealth, over whether it was right to breach the
protection which the
East Suffolk principle gave to public
authorities. In Sutherland Shire Council
v. Heyman, 157
C.L.R. 424, 483, Brennan J. thought that it was wrong: one
simply
could not derive a common law "ought" from a statutory
"may". But
I think that he was the only member of the
court to adhere to such
uncompromising orthodoxy. What has become
clear, however, is that the
distinction between policy and
operations is an inadequate tool with which to
discover whether it
is appropriate to impose a duty of care or not. In Rowling
v.
Takaro Properties Ltd. [1988] AC 473, 501 Lord Keith of Kinkel
said:
- 26 -
"[Their
Lordships] incline to the opinion, expressed in the literature,
that
this distinction does not provide a touchstone of liability,
but
rather is expressive of the need to exclude altogether those
cases in
which the decision under attack is of such a kind that a
question
whether it has been made negligently is unsuitable for
judicial
resolution, of which notable examples are discretionary
decisions on
the allocation of scarce resources or the
distribution of risks. . . .
If this is right, classification of
the relevant decision as a policy or
planning decision in this
sense may exclude liability; but a conclusion
that it does not
fall within that category does not, in their Lordships'
opinion,
mean that a duty of care will necessarily exist."
There are at
least two reasons why the distinction is inadequate. The
first is
that, as Lord Wilberforce himself pointed out, the distinction is
often
elusive. This is particularly true of powers to provide
public benefits which
involve the expenditure of money.
Practically every decision about the
provision of such benefits,
no matter how trivial it may seem, affects the
budget of the
public authority in either timing or amount. East Suffolk,
about
which Lord Wilberforce said in Anns [1978] AC 728, 757, that the activities
of the board, though "operational,"
were "well within the discretionary area,
so that the
plaintiff's task in contending for a duty of care was a difficult
one"
is a very good example. But another reason is that even
if the distinction is
clear cut, leaving no element of discretion
in the sense that it would be
irrational (in the public law
meaning of that word) for the public authority not
to exercise its
power, it does not follow that the law should superimpose a
common
law duty of care. This can be seen if one looks at cases in which
a
public authority has been under a statutory or common law duty
to provide a
service or other benefit for the public or a section
of the public. In such cases
there is no discretion but the courts
have nevertheless not been willing to hold
that a member of the
public who has suffered loss because the service was not
provided
to him should necessarily have a cause of action, either for
breach
of statutory duty or for negligence at common law.
There are many
instances of this principle being applied to statutory
duties, but
perhaps the most relevant example of the dissociation between
public
duty and a liability to pay compensation for breach of that duty was
the
ancient common law duty to repair the highway. The common law
imposed
this financial burden upon the inhabitants of the parish.
But it saw no need
to impose upon them the additional burden of
paying compensation to users
of the highway who suffered injury
because the highway surveyor had failed
to repair. The duty could
be enforced only by indictment. This rule
continued to apply when
the duty to maintain was transferred by statute to
highway
authorities and was only abolished by section 1 of the
Highways
(Miscellaneous Provisions) Act 1961. Likewise in Hill
v. Chief Constable of
West Yorkshire [1989] AC 53 it
was held that the public duty of the police
to catch criminals did
not give rise to a duty of care to a member of the public
who was
injured because the police had negligently failed to catch one.
The
decision was mainly based upon the large element of discretion
which the
- 27 -
police
necessarily have in conducting their operations, but the
judgment
excludes liability even in cases in which the alleged
breach of duty would
constitute public law irrationality.
In terms of
public finance, this is a perfectly reasonable attitude. It is
one
thing to provide a service at the public expense. It is another to
require
the public to pay compensation when a failure to provide
the service has
resulted in loss. Apart from cases of reliance,
which I shall consider later,
the same loss would have been
suffered if the service had not been provided
in the first place.
To require payment of compensation increases the burden
on public
funds. Before imposing such an additional burden, the courts
should
be satisfied that this is what Parliament intended.
Whether a
statutory duty gives rise to a private cause of action is a
question
of construction: see Reg. v. Deputy Governor of Parkhurst
Prison,
Ex parte Hague [1992] 1 AC 58. It requires an
examination of the policy
of the statute to decide whether it was
intended to confer a right to
compensation for breach. Whether it
can be relied upon to support the
existence of a common law duty
of care is not exactly a question of
construction, because the
cause of action does not arise out of the statute
itself. But the
policy of the statute is nevertheless a crucial factor in
the
decision. As Lord Browne-Wilkinson said in X (Minors) v.
Bedfordshire
County Council [1995] 2 AC 633, 739c in
relation to the duty of care owed
by a public authority performing
statutory functions:
"the
question whether there is such a common law duty and if so its
ambit,
must be profoundly influenced by the statutory framework
within
which the acts complained of were done."
The same is
true of omission to perform a statutory duty. If such a
duty does
not give rise to a private right to sue for breach, it would
be
unusual if it nevertheless gave rise to a duty of care at
common law which
made the public authority liable to pay
compensation for foreseeable loss
caused by the duty not being
performed. It will often be foreseeable that loss
will result if,
for example, a benefit or service is not provided. If the policy
of
the act is not to create a statutory liability to pay compensation,
the same
policy should ordinarily exclude the existence of a
common law duty of care.
In the case of
a mere statutory power, there is the further point that
the
legislature has chosen to confer a discretion rather than
create a duty. Of
course there may be cases in which Parliament
has chosen to confer a power
because the subject matter did not
permit a duty to be stated with sufficient
precision. It may
nevertheless have contemplated that in circumstances in
which it
would be irrational not to exercise the power, a person who
suffered
loss because it had not been exercised, or not properly
exercised, would be
entitled to compensation. I therefore do not
say that a statutory "may" can
never give rise to a
common law duty of care. I prefer to leave open the
question of
whether Anns was wrong to create any exception to Lord
- 28 -
Romer's
statement of principle in East Suffolk and I shall go on to
consider
the circumstances (such as "general reliance")
in which it has been suggested
that such a duty might arise. But
the fact that Parliament has conferred a
discretion must be some
indication that the policy of the act conferring the
power was not
to create a right to compensation. The need to have regard to
the
policy of the statute therefore means that exceptions will be rare.
In summary,
therefore, I think that the minimum pre-conditions for
basing a
duty of care upon the existence of a statutory power, if it can
be
done at all, are, first, that it would in the circumstances
have been irrational
not to have exercised the power, so that
there was in effect a public law duty
to act, and secondly, that
there are exceptional grounds for holding that the
policy of the
statute requires compensation to be paid to persons who suffer
loss
because the power was not exercised.
9. Particular and general reliance.
In Sutherland
Shire Council v. Heyman, 157 C.L.R. 424, 483,
Brennan J., as I
have mentioned, thought that a statutory power could never
generate
a common law duty of care unless the public authority had created
an
expectation that the power would be used and the plaintiff had
suffered
damage from reliance on that expectation. A common
example is the
lighthouse authority which, by the exercise of its
power to build and maintain
a lighthouse, creates in mariners an
expectation that the light will warn them
of danger. In such
circumstances, the authority (unlike the Glossop
Corporation in
Sheppard v. Glossop Corporation [1921] 3 K.B. 132) owes a
duty
of care which requires it not to extinguish the light without
giving
reasonable notice. This form of liability, based upon
representation and
reliance, does not depend upon the public
nature of the authority's powers and
causes no problems.
In the same
case, however, Mason J. suggested a different basis upon
which
public powers might give rise to a duty of care. He said, at p. 464:
"there
will be cases in which the plaintiff's reasonable reliance will
arise
out of a general dependence on an authority's performance of
its
function with due care, without the need for contributing
conduct on
the part of a defendant or action to his detriment on
the part of a
plaintiff. Reliance or dependence in this sense is
in general the
product of the grant (and exercise) of powers
designed to prevent or
minimise a risk of personal injury or
disability, recognised by the
legislature as being of such
magnitude or complexity that individuals
cannot, or may not, take
adequate steps for their own protection. This
situation generates
on one side (the individual) a general expectation
that the power
will be exercised and on the other side (the authority)
a
realisation that there is a general reliance or dependence on
its
exercise of the power . . . .The control of air traffic, the
safety
- 29 -
inspection of
aircraft and the fighting of a fire in a building by a fire
authority
. . . may well be examples of this type of function."
This ground for
imposing a duty of care has been called "general
reliance."
It has little in common with the ordinary doctrine of reliance;
the
plaintiff does not need to have relied upon the expectation
that the power
would be used or even known that it existed. It
appears rather to refer to
general expectations in the community,
which the individual plaintiff may or
may not have shared. A
widespread assumption that a statutory power will
be exercised may
affect the general pattern of economic and social behaviour.
For
example, insurance premiums may take into account the expectation
that
statutory powers of inspection or accident prevention will
ordinarily prevent
certain kinds of risk from materialising. Thus
the doctrine of general reliance
requires an inquiry into the role
of a given statutory power in the behaviour
of members of the
general public, of which an outstanding example is the
judgment of
Richardson J. in Invercargill City Council v. Hamlin [1994]
3
N.Z.L.R. 513, 526.
It appears to
be essential to the doctrine of general reliance that the
benefit
or service provided under statutory powers should be of a uniform
and
routine nature, so that one can describe exactly what the
public authority was
supposed to do. Powers of inspection for
defects clearly fall into this
category. Another way of looking at
the matter is to say that if a particular
service is provided as a
matter of routine, it would be irrational for a public
authority
to provide it in one case and arbitrarily withhold it in another.
This
was obviously the main ground upon which this House in Anns
considered that
the power of the local authority to inspect
foundations should give rise to a
duty of care.
But the fact
that it would be irrational not to exercise the power is, as
I
have said, only one of the conditions which has to be satisfied. It
is also
necessary to discern a policy which confers a right to
financial compensation
if the power has not been exercised. Mason
J. thought in Sutherland Shire
Council v. Heyman, 157
C.L.R. 424, 464 that such a policy might be inferred
if the power
was intended to protect members of the public from risks
against
which they could not guard themselves. In Invercargill,
as I have said, the
New Zealand Court of Appeal [1994] 3
N.Z.L.R. 513 and the Privy Council
[1996] 2 W.L.R. 367 found it in
general patterns of socio-economic
behaviour. I do not propose to
explore further the doctrine of general reliance
because, for
reasons which I shall explain, I think that there are no grounds
upon
which the present case can be brought within it. I will only note
in
passing that its application may require some very careful
analysis of the role
which the expected exercise of the statutory
power plays in community
behaviour. For example, in one sense it
is true that the fire brigade is there
to protect people in
situations in which they could not be expected to be able
to
protect themselves. On the other hand, they can and do protect
themselves
by insurance against the risk of fire. It not obvious
that there should be a
right to compensation from a negligent fire
authority which will ordinarily
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ensure by right
of subrogation to an insurance company. The only reason
would be
to provide a general deterrent against inefficiency. But there
must
be better ways of doing this than by compensating insurance
companies out
of public funds. And while premiums no doubt take
into account the existence
of the fire brigade and the likelihood
that it will arrive swiftly upon the scene,
it is not clear that
they would be very different merely because no
compensation was
paid in the rare cases in which the fire authority negligently
failed
to perform its public duty.
10. Anns v. Merton London Borough Council [1978] AC 728 in Canada.
Before coming
to the facts of the present case, I should say something
about the
Canadian cases which have followed Anns. They are
relevant
because a number of them involve reliance upon the
statutory powers of
highway authorities to create a common law
duty of care. What is more, the
Canadian Supreme Court appears to
have achieved this result without the aid
of any principle of
discrimination other than the distinction between policy
and
operations.
In Barratt
v. District of North Vancouver (1980) 114 D.L.R. (3rd) 577
the
plaintiff was a cyclist who was injured when he rode into a pothole.
The
local authority had a statutory power, but no duty, to
maintain the highway.
It had a system of inspecting roads once a
fortnight. The pothole had
apparently come into existence since
the last inspection a week earlier. At
first instance, the judge
held that the local authority were negligent in not
having more
frequent inspections. The Supreme Court, applying Anns, held
that
frequency of inspections was a matter of policy and could not form
the
basis of a charge of negligence. On the other hand, in Just
v. British
Columbia (1989) 64 D.L.R. (4th) 689,
frequency of inspections was held to
be operational. The
plaintiffs car was struck by a boulder which had been
loosened by
ice and snow and rolled down a hill onto the road. The
British
Columbia Department of Highways had a statutory power to
maintain the
highway and had a system of inspection of rock slopes
to detect loose
boulders. The Supreme Court held that the
Department could be negligent if
it did not inspect often enough.
In Brown v. British Columbia (Minister of
Transport and
Highways) (1994) 112 D.L.R. (4th) 1, the plaintiff was
injured
when his truck skidded on black ice in cold November
weather. He said that
the Department of Highways should have put
salt and sand on the road to
prevent ice from forming. The court
held that the Department's decision to
continue its infrequent
summer schedule of road maintenance into November
was a matter of
policy. The Department was therefore not negligent even if
an
earlier adoption of the winter schedule would have prevented the
accident.
I have to say
that these cases seem to me to illustrate the inadequacy
of the
concepts of policy and operations to provide a convincing criterion
for
deciding when a duty of care should exist. The distinctions
which they draw
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are hardly
visible to the naked eye. With all respect to the majority, I
prefer
the vigorous dissenting judgments of Sopinka J. in the
latter two cases.
11. Duties of a highway authority
I return
to consider whether the Council owed a duty of care which
required
it to take steps to improve the junction. Since the only basis for
such
a duty is the authority's statutory powers, both specifically
under section 79
of the Act of 1980 and generally to carry out
works of improvement with the
consent of British Rail, I will
start by asking whether in the light of what the
council knew or
ought to have known about the junction, it would have had
a duty
in public law to undertake the work. This requires that it would
have
been irrational not to exercise its discretion to do so. The
trial judge did not
address himself to this question. He thought
it was sufficient that, as he put
it, "a decision had already
been taken to deal with the situation" in which
"budgetary
considerations were not a restraint".
The fact that
Mr. Longhurst and Mr. Deller had agreed to do the work
does not
show that it would have been unreasonable or irrational for
the
council not to have done it. That is simply a non sequitur.
The Court of
Appeal seems to have reasoned that the "decision"
to do the work disposed of
any question of policy or discretion
and left only the operational question of
when the work should
have been done. But this too seems to me fallacious.
The timing of
the work and the budgetary year in which the money is spent
is
surely as much a matter of discretion as the decision in principle to
do it.
And why should the council be in a worse position than if
Mr. Longhurst had
left Mr. Deller's report at the bottom of his
in-tray and forgotten about it?
In that case, it is said, the
council would have been in breach of its duty in
public law to
give due consideration to the exercise of its powers. Perhaps
it
would, but that does not advance the case far enough. It would still
be
necessary to say that if the council had considered the matter,
it would have
been bound to decide to do the work. One comes back,
therefore, to the
question of whether it would have been
irrational to decide not to do it.
Furthermore, to
say that a decision had been taken oversimplifies the
situation.
Mr. Longhurst had not committed himself to any particular time
within
which the work would be done. There was, as Mr. Deller said, a
"nil
time scale involved;" he did not think it mattered
whether the work took one,
two or three years. At the time when
the letter to British Rail was sent, the
March 1988 accident with
the police car had not yet happened. Nor was it
notified to Mr.
Longhurst or Mr. Deller when it did. The judge found that
they
would have displayed a greater sense of urgency if they had known
about
it. But the judge made no finding that the council should
have had a system
by which Mr. Longhurst was notified of every
accident on the roads of South
Norfolk. Such a system would have
been quite impractical. There were
3,500 personal injury accidents
in Norfolk every year and their particulars
were simply entered on
a computer from which the Accident Studies Section
in Norwich
identified "cluster sites" for special attention. No firm
decision
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had been taken
on expenditure either. Mr. Deller thought that the work would
cost
less than £1,000, in which case it would have come within
Mr.
Longhurst's discretionary budget for small works. But he said he
could
not be sure of the cost until he had consulted a design
engineer: "it could be
lots and lots more." This caution
was justifies by events. After Mr. Stovin's
accident, Mr. Brian
Meadows, who worked for the Accident Studies Section,
inspected
the junction and said that the bank could not be regraded within
the
budget for a low cost remedial scheme.
The judge, as I
say, made no finding as to whether it would have been
irrational
for the council not to have done the work. The unchallenged
evidence
of Mr. Reid, who was head of the Accident Studies Office, would
have
made it very difficult to do so. In evidence in chief, he was asked
about
the March 1988 accident:
"Q. So far
as you are concerned, what difference, if any, would the
significance
of this accident have made in relation to priority given to
carrying
out work at this site, against the background of what had
happened with
British Rail?
"A. In
practical terms, it would have made no difference at all to
the
priority within the accident remedial budget, because our
attention and
resources would have been directed to those many
sites in the county which
already had much higher accident
records."
There was no
suggestion in cross-examination that this was an unreasonable,
let
alone irrational, attitude to take.
It seems to me
therefore that the question of whether anything should
be done
about the junction was at all times firmly within the area of
the
council's discretion. As they were therefore not under a
public law duty to
do the work, the first condition for the
imposition of a duty of care was not
satisfied.
But even if it
were, I do not think that the second condition would be
satisfied.
Assuming that the highway authority ought, as a matter of public
law,
to have done the work, I do not think that there are any grounds
upon
which it can be said that the public law duty should give
rise to an obligation
to compensate persons who have suffered loss
because it was not performed.
There is no question here of
reliance on the council having improved the
junction. Everyone
could see that it was still the same. Mr. Stovin was not
arbitrarily
denied a benefit which was routinely provided to others. In
respect
of the junction, he was treated in exactly the same way as
any other road user.
The foundation for the doctrine of general
reliance is missing in this case,
because we are not concerned
with provision of a uniform identifiable benefit
or service. Every
hazardous junction, intersection or stretch of road is
different
and requires a separate decision as to whether anything should
be
done to improve it. It is not without significance that the
Canadian cases in
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which a duty of
care has been held to exist have all involved routine
inspection
and maintenance rather than improvements.
I have
mentioned earlier that maintenance of the highway was, until
1961,
a striking example of a public duty which involved no obligation
to
compensate a person who had suffered damage because of its
breach. The
power in section 79, upon which the plaintiff
principally relies to generate a
duty of care, was first enacted
as section 4 of the Road Improvement Act
1925. It seems to me
impossible to discern a legislative intent that there
should be a
duty of care in respect of the use of that power, giving rise to
a
liability to compensate persons injured by a failure to use it,
when there was
at the time no such liability even for breach of
the statutory duty to maintain
the highway.
In my view the
creation of a duty of care upon a highway authority,
even on
grounds of irrationality in failing to exercise a power,
would
inevitably expose the authority's budgetary decisions to
judicial inquiry. This
would distort the priorities of local
authorities, which would be bound to try
to play safe by
increasing their spending on road improvements rather than
risk
enormous liabilities for personal injury accidents. They will spend
less
on education or social services. I think that it is
important, before extending
the duty of care owed by public
authorities, to consider the cost to the
community of the
defensive measures which they are likely to take in order
to avoid
liability. It would not be surprising if one of the consequences
of
Anns and the spate of cases which followed was that
local council inspectors
tended to insist upon stronger
foundations than were necessary. In a case like
this, I do not
think that the duty of care can be used as a deterrent against
low
standards in improving the road lay-out. Given the fact that the
British
road network largely antedates the highway authorities
themselves, the court
is not in a position to say what an
appropriate standard of improvement would
be. This must be a
matter for the discretion of the authority. On the other
hand,
denial of liability does not leave the road user unprotected. Drivers
of
vehicles must take the highway network as they find it.
Everyone knows that
there are hazardous bends, intersections and
junctions. It is primarily the duty
of drivers of vehicles to take
due care. And if, as in the case of Mrs Wise,
they do not, there
is compulsory insurance to provide compensation to the
victims.
There is no reason of policy or justice which requires the
highway
authority to be an additional defendant. I would therefore
allow the appeal.
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