​A New South Wales court recently awarded $1.5M to a plaintiff after she sustained psychological injuries when a light aircraft collided with the Ferris wheel she was on at a festival hosted by a local government.

Background
In 2011, the plaintiff was on a Ferris wheel at the Old Bar Festival when a light aircraft collided with it. The collision did not cause any substantial physical injury to the plaintiff or the pilot, but the plaintiff did suffer a severe psychological injury and incapacity. The court noted the overwhelming cause of the plaintiff's incapacity was the trauma associated with the collision.   

The local government had approved the location for the Ferris wheel, despite contrary advice from the Civil Aviation Authority, who stated the area should be an "obstacle free zone".

In a separate claim, the pilot brought proceedings against the local government for failing to take care in relation to the proper placement of the Ferris wheel, resulting in psychological injuries.

The findings
The local government did accept that it was responsible for the care, control, and management of the Old Bar Airstrip and the surrounding park, in which the Ferris wheel was located, however the court found that the local government was not liable for the pilot's injuries, as the harm suffered was the materialisation of an obvious risk of a dangerous recreational activity.

However, the court held that the local government owed the plaintiff a duty to take reasonable care to avoid foreseeable injury to those attending the festival. In permitting the erection and operation of the Ferris wheel, the local government had breached its duty of care and was therefore liable for the injuries suffered by the plaintiff.

The critical issue in determining liability was the fact the relevant council may have been the only entity that was aware of all the facts that gave rise to the danger (the Council had care, control and management of the airstrip along with the festival area where the Ferris wheel was erected).

If not for the local government's negligence – in its approval of the festival and, in particular, the Ferris wheel, or in the operation of the Airstrip, or both – the injury would not have occurred.

Further, the court also found the pilot negligent, due to a lack of due care associated with the landing that was too high, too fast, and too deep. The court apportioned 35% of the liability to the pilot and the remainder to the local government.

What this means for you
This case serves as a timely reminder to local governments of your broad liability to attendees of the events you operate, particularly where expert recommendations are disregarded. This case also serves as a warning for cases involving minors – the Court awarded a significant sum for future economic loss despite the injured minor having no prior employment history.

At LGIS, we have a unique combination of event, risk management, and risk financing skills to enable you to deliver, approve, facilitate, and support safe, suitable and quality events within your communities.

For more information on how to best prepare and manage risks for your upcoming events, please contact the risk and governance services team on 9483 8888.