PROBLEM

You are the Principal Engineering Consultant employed by  Brownwood Mining and Power ( BMP). BMP operates a large open cut mine which has been established for some 50 years  and is close to residential areas. As the mine is quite old it is not very profitable to operate.

BMP is undergoing some  long overdue repairs and maintenance of the mine. BMP engages Worldwide Electrical Company Ltd (WWE)  to carry out necessary electrical works and the removal of obsolete electrical structures. The mine has been operating for some time and a certain disused areas have had fire safety equipment  systems and sprinkler systems removed due to cost pressures.

In the course of carrying out its work WWE causes a fire from equipment that it is using to carry out the work. The work was carried out in conditions of high fire risk but WWE was given a tight deadline to complete the work.

Due to the fact that the fire safety equipment systems and sprinkler systems were removed from certain parts of the mine the fire spreads extensively and causes damage.

There are various potential claims from persons who have suffered damage.

 Damages have included

III. Businesses that have had to close as they could not operate due to the dangerous circumstances and closeness to the fire.

QUESTIONS

(1) Does BMP  have any liability at law for the damages caused by the fire and what is the basis in law of determining  such liability? what is the extent of the duty of care of BMP?

(2) What is the basis of attributing any liability for the damage arising from the fire to BMP  or WWE?

(3) In the case where there is a legal liability, what are the limits imposed on recovery in respect of the various classes of persons to whom the damage was caused? (the persons referred to above)

RECOMMENDED READINGS

BLACKBOARD

Module 1  and 2

Learning Material Course Documents all detailed references to cases are in the learning material

Learning Material Construction Law Readings

The following feedback on Past Assignments has been included to assist students. This does not form a formal part of the Direction for the Assignment

GENERAL FEEDBACK ON PAST ASSIGNMENTS

There were some basic matters

This is necessary to include a list of all the material read including cases, articles and textbooks. This helps the assessment of the work. The list should include all the items read including items that were not specifically quoted.

The assignment included a reference to the items of the blackboard and some specific cases. Some students did not include even the basic cases in their answer.

You should always state what principle in case you rely on and explain it in your own words.