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reg 41

Liability, insurance and indemnity

In force

41 Liability, insurance and indemnity

(1)

In this regulation —

direct damage suffered by a person means loss or damage suffered by the person which is not indirect damage;

indirect damage suffered by a person, means —

(a)

any consequential loss, consequential damage or special damages however caused suffered by the person including any —

(i)

loss of (or loss of anticipated) use, production, revenue, income, profits, business and savings; or

(ii)

business interruption,

whether or not the consequential loss or damage or special damages was foreseeable;

(b)

in respect of contractual damages, damages which would fall within the second limb of what is known as the rule in Hadley v Baxendale; and

(c)

any liability of the person to any other person, or any claim, demand, action or proceeding brought against the person by any other person, and the costs and expenses connected with the claim.

(2)

To the maximum extent permitted by law, the only warranties and terms which apply to the provision of access services by a corporation are those expressly contained in an access agreement, and all warranties and terms (except those expressly set out in an access agreement) implied by law, including implied by the provisions of the Trade Practices Act 1974 of the Commonwealth or any legislation (whether Commonwealth or otherwise) to similar effect, on the part of the corporation, do not apply to the provision of access services by the corporation.

(3)

If at law, the exclusion of any warranty or term is prohibited, then a corporation’s liability in respect of a breach of such warranty or term, is limited to the maximum extent permitted by law. For example, where any law permits a corporation to limit its liability in respect of a breach of an implied warranty or condition to the replacement or resupply of equivalent goods and services, then the corporation’s liability will be so limited.

(4)

A corporation or a user who is negligent, or defaults in respect of its obligations under an access agreement, is liable to the other party (including its directors, servants, consultants, independent contractors and agents) for, and is to indemnify the other party (including its directors, servants, consultants, independent contractors and agents) against, any direct damage caused by, consequent upon or arising out of the negligence or default.

(5)

A party to an access agreement who is fraudulent in respect of its obligations to the other party under the access agreement, is liable to the other party for, and is to indemnify the other party against, any direct damage or indirect damage caused by, consequent upon or arising out of the fraud.

(6)

Except as provided in subregulation (5), neither a corporation nor any user is in any circumstances to be liable to the other for indirect damage, however arising.

(7)

Each user must indemnify a corporation for all liability on the part of the corporation to any customer of the user or any generator of the user (including for direct and indirect damage) which the corporation may suffer because of the provision of or failure to provide access services to the user, except only to the extent that such liability is caused by, is consequent upon or arises out of the negligence of the corporation or the breach by the corporation of any term of the relevant access agreement.

(8)

Each user must indemnify a corporation for all liability (including direct and indirect damage) which the corporation may suffer to any third party by reason of the default of that user under these regulations or under the access agreement or the negligence of that user.

(9)

The terms of an access agreement may contain additional provisions relating to liability of a corporation and a user, including a cap on liability, the terms of an indemnity on the part of a user to the corporation and the requirement of a user to maintain insurances to the reasonable satisfaction of the corporation.

[Regulation 41 amended: Gazette 20 Jan 2006 p. 378; 31 Mar 2006 p. 1338-41.]

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