Proportionate Liability - Client Briefing

This Client Briefing has been developed for Consult Australia members to provide to their clients, to assist in knowledge sharing between the parties on proportionate liability and contracting out of it in agreements. Proportionate liability is a statutory right, which ensures that a person is only liable in damages for the proportion of the suffered loss that is attributable to that person. It only applies to financial harm and economic loss, not to cases involving personal injury or death. The majority of jurisdictions do not explicitly permit contracting out of proportionate liability, except NSW, Tas and WA. Contracting out of proportionate liability in professional services contracts undermines the policy goals of the proportionate liability law reform and risks another insurance crisis like the one that led to the civil liability reform.