Gifford v Strang Patrick Stevedoring Pty Ltd (2003) 214 CLR 269
Tort; Negligence; the duty of care; psychiatric harm; limits of liability.
Facts: Gifford was employed by Strang Patrick Stevedoring Pty Ltd (SPS) as a labourer and container location clerk on the wharf at Darling Harbour in Sydney. He was killed in a forklift accident in the course of his employment. Gifford had three children aged 14, 17 and 19. The children were informed the same day of Gifford's death and were shocked and distressed at the news. They claimed damages from SPS for nervous shock, a type of psychiatric harm.
Issue: Had SPS owed a duty of care to the children in relation to the harm they suffered?
Decision: SPS owed a duty of care to the children, and had breached that duty. However, it had not been proved that the children had suffered psychiatric harm.
Reason: SPS owed their employee (Gifford) a duty to provide a safe place of employment and had failed to do so. Further, because of the close relationship between Gifford and his children, SPS was bound to have in mind that causing harm to Gifford carried the risk of causing psychiatric harm to his children, for example, should they learn of his accidental death. SPS therefore also owed the children a duty of care. By breaching the duty owed to Gifford himself, SPS had also breached the duty it owed to the children. However, the evidence did not establish that the children had actually suffered psychiatric harm and the proceedings were remitted to the District Court for further evidence.