Civil Liability Act 2002

If section 52 would operate to prevent a person incurring a liability to which this Part applies in respect of any conduct but for the fact that the conduct was not a reasonable response in the circumstances as he or she perceived them, a court is nevertheless not to award damages against the person in respect of the conduct unless the court is satisfied that—

the circumstances of the case are exceptional, and

in the circumstances of the case, a failure to award damages would be harsh and unjust.

If the court determines to award damages on the basis of subsection (1), the following limitations apply to that award—

Part 2 (with the exception of Division 3 of that Part) applies with respect to the award of damages despite section 3B(1)(a), and

no damages may be awarded for non-economic loss.