Combargo Go Karts have been trading for over 10 years and operates as a partnership
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Combargo Go Karts have been trading for over 10 years and operates as a partnership

PART C

CASE STUDY

Combargo Go Karts have been trading for over 10 years and operates as a partnership in a small regional town in NSW. There are very few attractions and activities for the local community, but one thing IS popular, it’s the Combargo Go Karts. They operate both 125cc, and 250cc go karts on an open track which is basically a converted former paddock. The track might best be described as made from bitumen (the same type of surface used on roads). There is evidence of lots of bumps and repairs to the surface with some parts of the track uneven making it hazardous and dangerous.

Depending on the time and day of the week, there are 1 to 3 full time counter staff, and between 8-10 persons whom supervise and control the running of the go kart races. Most of the track supervisors managing races are young teenagers and receive very little (sometimes no) induction training. There are no formal Standard Operating Procedures (SOP), Safety Procedures, or Policy Manuals in place, and while the go karts are regularly serviced (to remain functionality) very little else is attended too, especially with the track, and maintenance of the piles of rubber tyres used as safety-barriers on the perimeter of the track.

The track is especially popular on weekends and the local high school even takes students to the track once a week on a Tuesday as part of sport. The operators of the track recently spent over $30,000 on an electronic recording device system, which times and displays the results of each race on a large LED display board. This adds to the competitive nature of participants and most users try to either beat ‘best time’ of the track for the week or beat their ‘personal best-time’. All users of the track must sign a Waiver form which is intended to serve as a disclaimer, disclaiming any liability of the track operators for any loss, injury or damage by participants. (Mary O’Connor signed the form herself).

Late last Saturday afternoon, during one of the events, Mary O’Connor, a 19 year old female suffered a terrible injury. Mary had very long hair which was of a length which reached half-way down her back. Although she was wearing a helmet (supplied to each rider), her hair was not secured adequately within the helmet. During one of the races, her hair became loose from under the helmet and flowed freely out the back, for the time it took to complete one full lap of the course. Then, there was a pile up of five go karts and Mary’s go kart was caught amongst it. Her long hair somehow got caught in the motorised gearing mechanisms of one of the go karts and as a result, large portions of Mary’s hair ripped from her head causing severe scalp damage.

Mary was rushed by ambulance and hospitalised for over a week, suffering damage to her scalp including what was expected to be permanent scaring. It remains unknown whether her hair will grow back as normal. Additionally, she was traumatized over the incident and is requiring ongoing psychological counselling. It is estimated this might require 6 to 12 months ongoing counselling and support.

Mary is considering suing the owners and operators of the Combargo Go Kart track for one-million dollars, for pain, loss, injury and suffering, including medical expenses.

On closer review of the business, it was revealed that approval to operate as a go kart track had never been granted formal council approval by the local jurisdictional authority The Combargo Local Council. Moreover, allegedly this is not the first-time users of the track have been injured, especially from collisions, and when drivers run wild off the track slamming into the barrier walls. Although no records of injury or incidents have been kept, it has been suggested by regular users of the go kart track that they know of at least six other incidents resulting in injury and hospitalization.

Advise:

1. Mary of any claim she may have against Combargo Go Karts including what remedy she may seek. Fully explain each element of a claim for negligence to be successful.

2. Combargo Go Karts of any defence(s) they may raise and the effect on any damages if successfully argued.

3. The owner-operators of Combargo Go Karts as to the possibility of business and personal liability.

Hint
Business Negligence is the failure to act with the level of care that an individual would expect to be exercised under the same circumstances. It can consist of both actions and omissions where there needs to be a duty to act.  It involves harm that is caused due to ignorance or a form of carelessness in one’s line of duty. ...

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