Chapter 21 What is proportionate liability?
Proportionate liability replaces the common law principle of joint and several liability. Under joint and several liability, where more than one person by negligence causes another to suffer loss, each may be liable for 100% of that loss, irrespective of their individual degree of fault.
Proportionate liability divides responsibility between the various ‘concurrent wrongdoers’ according to the degree of responsibility of each for the loss. This means that a claimant will only be able to claim a portion of its total loss from each wrongdoer. From a defendant’s perspective this is a more equitable outcome.
Proportionate liability legislation
- Competition and Consumer Act 2010 (Cth), Part VIA
- Corporations Act 2001 (Cth), Division 2A
- Australian Securities and Investments Commission Act 2001 (Cth) Subdivision GA
- Corporations Act 2001 (Cth), Part 7.10, Division 2A
Australian Capital Territory
- Civil Law (Wrongs) Act 2002 (ACT), Chapter 7A
New South Wales
- Civil Liability Act 2002 (NSW), Part 4
- Proportionate Liability Act 2005 (NT).
- Civil Liability Act 2003 (Qld), Part 2
- Civil Liability Act 2002 (Tas), Part 9A
- Wrongs Act 1958 (Vic), Part IVAA
- Civil Liability Act 2002 (WA), Part 1F