| Autex Industries Ltd v Auckland City Council | |
|---|---|
| Court | Court of Appeal of New Zealand |
| Full case name | Autex Industries Ltd v Auckland City Council |
| Citation(s) | [2000] NZAR 324 |
| Court membership | |
| Judge(s) sitting | Keith J, Blanchard J |
| Keywords | |
| negligence | |
Autex Industries Ltd v Auckland City Council [2000] NZAR 324 is a cited case in New Zealand regarding the development of nuisance claims under Rylands v Fletcher. [1]
Rylands v Fletcher[1868] UKHL 1 was a decision by the House of Lords which established a new area of English tort law. Rylands employed contractors to build a reservoir, playing no active role in its construction. When the contractors discovered a series of old coal shafts improperly filled with debris, they chose to continue work rather than properly blocking them up. The result was that on 11 December 1860, shortly after being filled for the first time, Rylands' reservoir burst and flooded a neighbouring mine, run by Fletcher, causing £937 worth of damage. Fletcher brought a claim under negligence against Rylands, through which the case eventually went to the Exchequer of Pleas. The majority ruled in favour of Rylands. Bramwell B, however, dissenting, argued that the claimant had the right to enjoy his land free of interference from water, and that as a result the defendant was guilty of trespass and the commissioning of a nuisance. Bramwell's argument was affirmed, both by the Court of Exchequer Chamber and the House of Lords, leading to the development of the "Rule in Rylands v Fletcher"; that "the person who for his own purposes brings on his lands and collects and keeps there anything likely to do mischief if it escapes, must keep it in at his peril, and, if he does not do so, is prima facie answerable for all the damage which is the natural consequence of its escape". No right "to enjoy property" exists in UK black letter law, and it is this decision upon which stare decisis is built in the area.
As the result of an Auckland City Council water main breaking, the resulting flood destroyed $206,708.17 of stock owned by Autex.
After the council refused to reimburse them for the damaged stock, they sued the council. But instead of filing for the normal negligence claim, which the council would have surely defended, they instead brought a Rylands v Fletcher claim, where there is strict liability, i.e. no defence is normally arguable.
As it was a strict liability claim, they made an application for summary judgment.
The Court of Appeal ruled that it was inappropriate to grant summary judgment here, and referred the matter back to court for argument.
At the time, this case was expected to clarify the development of Rylands v Fletcher case law in New Zealand. However, the parties settled the claim before a court made a further ruling on this. This matter was clarified 2 years later in Hamilton v Papakura District Council.
Hamilton v Papakura District Council [2002] UKPC 9 is a cited case in New Zealand regarding liability under tort for negligence under Rylands v Fletcher.
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Transco plc v Stockport Metropolitan Borough Council[2003] UKHL 61 is an important English tort law case, concerning the rule in Rylands v. Fletcher.
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