Service providers and consumers - bailment relationships in the context of disasters in New South Wales

Resources for community lawyers on the disaster frontline - February 2024

  • Disasters
  • Disaster affected person
  • NSW

What is this resource?

This resource is for legal workers supporting service providers or consumers who are dealing with a legal problem arising from a bailment relationship in New South Wales (NSW). This information is relevant for:

  • service providers whose place of business was impacted by a disaster causing their customer’s property to be damaged (acting for the service provider); or
  • consumers who’s property has been damaged by a disaster while in the possession of a service provider (acting for the customer).

This resource will assist you in responding to requests for advice made by consumers or service providers impacted by a disaster, who may encounter legal issues associated with damaged or lost customer property.

  Why do disputes about bailment relationships arise after disasters?

Bailment relationships arise frequently in daily life, often without us being explicitly aware of them or understanding their legal foundations. If your client’s belongings are in the care of others, then they may be subject to a bailment relationship.

If your client has goods that are subject to a bailment relationship, then the law may provide your client with a degree of protection if those goods are damaged.

If the goods are damaged when a disaster hits, such as a flood or bushfire, there are more legal complexities that may impact the condition or safety of the entrusted goods.

Download the guidebook

We have compiled the complete “Service Providers and consumers – bailment relationships in the context of disasters in New South Wales” resource into this guidebook. It can be downloaded to assist you when you may need or prefer to work offline. 

JUSTICE CONNECT Service Providers and consumers – bailment relationships in the context of disasters in NSW – Resources for Community LawyersDownload PDF (544 KB)

Purpose of this resource

Justice Connect is coordinating the delivery of pro bono legal help to disaster-affected communities across Australia. We’re working closely with other organisations like legal aid commissions, community legal centres and law societies to ensure that people can access legal help as quickly and seamlessly as possible.

We’ve seen first-hand how legal need shifts during disasters and crises. In the wake of disasters and extreme weather events people, small business owners, and not-for-profit organisations can face unexpected legal problems. If left unresolved these legal problems can have serious consequences for people’s financial stability, relationships, health, and wellbeing. In these times of crises, people need ready access to legal support.

That’s why we’re creating resources to support community legal workers deliver place-based services to disaster affected communities. Through our Disaster Legal Support Resource Hub community lawyers can find high-quality legal information quickly, take steps to resolve their client’s legal problems, and refer their clients for pro bono legal support before their problems escalate.

If you have a client that you’d like to refer for pro bono legal support, visit our website: Make a referral – Justice Connect.

Disclaimers and scope of this document

This resource was last updated on 14 February 2024. This resource is designed and intended as a guide only, to provide an outline of the general principles on this topic, and does not constitute legal advice. This resource is limited to the status of the law in New South Wales.

We have included some client scenarios that are hypothetical (as well as real case law) to help you understand how the law might be applied in a disaster context. These hypothetical scenarios have not been considered or determined by a court but reflect how we think a court would apply bailment laws to that specific situation.

This resource is intended for use by legal professionals to support them in navigating the law.

Please view our full disclaimer for more information.

How to navigate a dispute arising from a bailment relationship

This resource will step you through each stage of managing a dispute related to damaged or lost customer goods in the possession of a service provider.

1. Is there a bailment relationship?

In this resource, we provide guidance on how to establish if there is a bailment relationship between a service provider and a consumer.

2. What are the obligations of service providers in a bailment relationship?

In this resource, we provide describe the obligations of service providers in bailment relationships and provide both real and hypothetical example scenarios.

 

3. Establishing liability for damage

In this resource, we explain what is required for a consumer to establish that a service provider is liable for damage caused by a disaster.

4. Has the common law bailment relationship been modified by contract?

In this resource, we explain when a common law bailment relationship will be modified by contract.

5. Practical considerations for service providers and consumers

In this resource we provide a brief and practical guide for legal professionals or support workers who may be approached by a service provider or a consumer seeking insight into bailment law. This guide is designed to be a quick and accessible resource, offering prompt information without all the detail. Where you require more detailed information, please consult the relevant resource (linked throughout).

6. Alternative Dispute Resolution

In this resource we consider the possibility that a dispute has arisen between a consumer and a service provider and examine the various ADR mechanisms, including negotiation, mediation, and conciliation.

7.  Making a claim in court

In this resource, we explain the way you might go about bringing a claim on behalf of the consumer, outlining the relevant jurisdictions and documents to be filed.

Refer someone to Justice Connect

If you’re a professional working with communities affected by disasters, and you’d like to connect your client with pro bono legal help or seek assistance for your own organisation, please make a referral to Justice Connect.

Make a referral

View our disaster response eligibility criteria.

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  This resource was last updated on 14 February 2024. This is legal information only and does not constitute legal advice. You should always contact a lawyer for advice specific to your situation. You can read our full disclaimer here: Disclaimer and copyright for our Disaster Legal Support Resource Hub – Justice Connect.