Tom and Harry, work in the Tourist Hospitality Industry in Melbourne. Tom owns and drives a Mercedes

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Question:

Tom and Harry, work in the Tourist Hospitality Industry in Melbourne. Tom owns and drives a Mercedes - which transports tourists from the Airport to the City. Harry was recently promoted to the position of General Manager of a chain of Hotels. Tom wanted to reward Harry with a gift- an 'all-expenses' paid dinner at the famous "Joseph's Restaurant" in Churchill, Victoria. Tom made the booking, and they drove together from Melbourne to Churchill. On arrival at the reception desk of the restaurant, they failed to notice a large Sign that stated ... "Warning - As a result of our refrigerator breaking down two days ago, our Prawns have not been freshly frozen. We exclude all Liability whatsoever, for any injuries caused by our Prawn meals."... Joseph, the owner and manager had not taken the prawns off the menu because he thought he might suffer a huge financial loss. He was already in financial difficulties as a result of the recent lockdowns and interruptions, due to the pandemic. Joseph, gave them a table - with a view - overlooking the bay. As he handed them the Menus, he made no comments about the prawns not being properly refrigerated. Harry ordered the "Prawns" and Tom ordered the "King Fish". While eating their meals, Harry drank beer and Tom drank red wine. As Tom poured the last glass of wine from the bottle, he suddenly saw in his glass, a dead decomposed Worm. He felt quite nauseous and complained of stomach pain. Likewise, after eating the Prawns, Harry also felt sick in his stomach, and was violently ill. As they were leaving in a hurry to get to the local hospital, Joseph demanded they pay for their meals and beverages. Tom paid under protest. Joseph, the restaurant owner blamed the Manufacturer of the Red Wine "Mystery Wines" for the Worm in the bottle. Tom and Harry both ended up having medical treatment for gastroenteritis, and skin rashes caused by the prawns and wine. Tom suffered the following losses -

a. Loss of Profits ($10,000);

b. Medical Expenses ($5000);

c. Loss of an 'Egyptian Government Contract' for the Sale of 2 tons of Australian Sheep Skins. (Tom had no previous exporting experience, but accepted the unusual Contract because his Mercedes Business was not going too well due to the Pandemic. As a result of the food poisoning and medical treatment Tom was unable to deliver, and therefore lost the Government Contract.) Harry's injuries resulted in the following losses

- a. Medical Costs ($4,000)'

b. Loss of Earnings ($40,000)';

c. Loss of his 'Hotel Accommodation Deposit' ($4,000). (Harry had paid the Deposit on his holiday Accommodation, at the Green Springs Hotel, in Sydney). As a result of the gastro and medical treatment, he had to cancel his holiday. The Hotel Accommodation Deposit was non-refundable.)

Questions-

1. Identify and discuss the 3 Elements of Negligence that Harry (as Plaintiff) must prove. Discuss the 2 Defences that Joseph (as the Defendant) may argue.

2. Explain and discuss whether Harry is likely to recover damages for his losses- 'Medical Costs', 'Loss of Earnings', and 'Loss of 'Hotel Accommodation Deposit'. Give your reasons with supporting case law precedents.

3. Identify and explain the 3 Elements of Negligence that Tom (as the Plaintiff) must prove. Discuss the 2 Defences that Joseph (as the Defendant) may argue.

4. Discuss and explain whether Tom is likely to be able to recover damages for his losses-Medical Costs, Loss of Profits, and Loss of an 'Egyptian Government Contract'. Give your reasons with supporting case law, precedents.