How do I break down this exercise with the aid of the IRAC method?

Erin runs a pleasure boat, The Southern Belle, taking holidaymakers along the south coast. She wishes to make as many trips as possible each day to maximise her profit. Erin generally checks the boat for damage after each trip but one day she has no time to make the customary checks before the boat sets off. She does not notice that there is a hole in the hull of the boat, which was made when the boat hit a rock on a previous trip. The boat begins to take on water at a fast rate. The holidaymakers are forced to abandon ship and they are swimming in the sea. Some of them do not have time to put on life belts and two people, Rio and Anya, drown before help can arrive. Wayne, a passenger on the boat had tried to rescue Rio but failed. Rio's fiance, Sneha, watches from the shore as Rio's body is lifted from the water. Anya's husband, Zak, receives a call from their daughter, Pippa and rushes to the hospital mortuary, where Anya's body has been taken. She has been cleaned up a little, but there is still oil and seaweed attached to her body. Sneha, Wayne and Zak suffer mental breakdowns. Advise Erin of her liability for the events.