Did the employer have vicarious liability for the negligence of one of its bicycle couriers? Which case won?

S
Stacks Law Firm

Contributor

Stacks Law Firm is a leading Australian legal service provider with more than 250 people operating locally in many Australian communities. We are committed to supporting the legal needs of everyday Australians and businesses across every stage of life.
Question to be decided was whether the courier company had vicarious liability for the negligence of the unknown bicycle courier.
Australia Litigation, Mediation & Arbitration

The Facts

Man struck and injured by cyclist in uniform of courier company

On 22 December 1994 as he was leaving a building in Sydney, a man stepped onto the footpath, was struck by a cyclist and knocked to the ground.

He sustained a knee injury and required surgery.

He also suffered a period where he was unfit for work and was left with a 25% permanent deficit in his knee.

The cyclist, who had gone over the handlebars of his bicycle in the collision, stood up, said: "Sorry mate" and left the scene.

His identity remains unknown. However, what is known is that he was wearing a uniform emblazoned with the name of a courier business.

Injured man sues courier business for negligence and case goes to High Court

The injured man sued the courier business for negligence in the NSW District Court, seeking approximately $175,000 in damages.

When the District Court ruled against the injured man, he appealed to the NSW Court of Appeal.

When the Court of Appeal dismissed his appeal, he appealed to the High Court of Australia.

In the High Court, the question to be decided was whether the courier company had vicarious liability for the negligence of the unknown bicycle courier. This turned on whether the bicycle courier was an employee of the courier business, or an independent contractor.

case a - The case for the injured man

case b - The case for the courier company

  • The bicycle courier who hit me was an employee of the courier company. Therefore, the company is vicariously liable for his negligence and must pay damages for my injuries.
  • That the bicycle courier was an employee, not an independent contractor, is clear from the following facts.
  • Bicycle couriers working for the company have little control over the manner of performing their work. They are required to be available at a certain time every day and are not allowed to refuse the delivery jobs that are allocated to them.
  • Nor are the bicycle couriers able to bargain for the rate of their remuneration.
  • The bicycle couriers are presented to the public as emanating from the courier business. The company's "General Rules for All Drivers", including bicycle couriers, require the drivers to wear uniforms, to be presentable at all times, and to "...always be aware that they are a direct representation of the company".
  • From a practical perspective, it makes no sense to say that a bicycle courier has established himself as an independent contractor, since delivering packages is not skilled labour and requires no special qualifications.
  • Since the bicycle courier was an employee of the courier business, the High Court must grant my appeal.
  • The bicycle courier was an independent contractor. Therefore, we cannot be held vicariously liable for his negligence.
  • That he was an independent contractor, not an employee, is clear from the following facts.
  • As a business, we require bicycle couriers to supply their own bicycles, to bear the expense of providing for and maintaining those bicycles, and to provide their own accessories, such as street directories, telephone books, ropes, blankets and tarpaulins.
  • Our bicycle couriers do not receive a salary or wages, but rather are remunerated in accordance with the deliveries that they make and are taxed as independent contractors.
  • Work is allocated to bicycle couriers in the order in which they call in daily to seek work, so the couriers are in direct competition with one another in that respect, unlike ordinary employees.
  • Since the bicycle courier was an independent contractor, the High Court must dismiss the injured man's appeal.

So, which case won?

Cast your judgment below to find out

Meena Nawabi
Employment agreements
Stacks Champion

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