New Nirvana Ltd is a company controlled by the members of the hard rock band, N/N. A
number of wholly-owned subsidiaries of New Nirvana Ltd are involved in setting up and
running the band’s concerts. One of the subsidiary companies, Nuclear Blast Sounds Pty Ltd,
is responsible for setting up the sound equipment at N/N concerts in Australia. At a recent
N/N concert in Sydney, Nuclear Blast Sounds Pty Ltd negligently set the sound levels too
high with the result that five audience members suffered permanent hearing loss.
Unfortunately for those audience members, Nuclear Blast Sounds Pty Ltd had no negligence
insurance and cannot pay the likely damages claims.
Advise the injured audience members whether they can make New Nirvana Ltd liable for
Nuclear Blast Sounds Pty Ltd’s negligence.
Simon, Michael, and Don set up a project management company called Millennium Pty Ltd.
Don is a solicitor and the constitution of Millennium Pty Ltd nominates that Don will be the
solicitor for any land purchases or sales made by the company. The articles also provide that
any disputes which arise between the company and its members should be first referred to
an arbitrator before there are any court proceedings.
After a number of years, Simon and Michael meet another solicitor who they think is more
efficient than Don and they appoint him as solicitor for Millennium Pty Ltd.
Don brings legal action against Millennium Pty Ltd over the matter.
Advise the company as to their legal position.
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