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

Commonwealth

• 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

Northern Territory

• Proportionate Liability Act 2005 (NT).

Queensland

•  Civil Liability Act 2003 (Qld), Part 2

South Australia

• Law Reform (Contributory Negligence and Apportionment of Liability) Act 2001 (SA), Part 3

Tasmania

• Civil Liability Act 2002 (Tas), Part 9A

Victoria

• Wrongs Act 1958 (Vic), Part IVAA

Western Australia

• Civil Liability Act 2002 (WA), Part 1F