Overview

This bill amends the Compensation Act 2006. It introduces a presumption that defendants undertaking desirable activities have met the required standard of care in negligence or breach of statutory duty claims. This means the burden of proof shifts, making it harder to successfully sue in such cases.

Description

The bill modifies section 1 of the Compensation Act 2006. The amendment establishes a presumption that a defendant who was undertaking a "desirable activity" at the time of an alleged negligent act or breach of statutory duty has met the necessary standard of care. This presumption applies when courts consider claims of negligence or breach of statutory duty. The definition of "desirable activity" is not explicitly defined in the bill, leaving interpretation to the courts. The act comes into force two months after passing.

Government Spending

The bill is not expected to directly increase or decrease government spending. The potential impact is indirect and uncertain, depending on the number of successful and unsuccessful lawsuits and the interpretation of "desirable activity". No specific figures are provided in the bill text.

Groups Affected

The bill may affect:

• Individuals bringing negligence claims: It could make it more difficult for them to succeed in lawsuits against defendants engaged in activities deemed "desirable."
• Defendants in negligence claims: They would benefit from the presumption of having met the standard of care, potentially reducing their liability in legal cases.
• Courts: They will be responsible for interpreting the meaning of "desirable activity" and applying the presumption in individual cases.
• Insurers: The bill may lead to lower insurance premiums for those undertaking "desirable activities" but may increase costs for those that don't.

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