Topic > Taru Power Station Case Study - 981

However, while the damage related to the power station and the injury suffered by the employee are causally linked to the negligent action, the payment of the penalty to Steel Smelting Ltd (SSL) is not directly related to TPS's negligence action. Even if the negligent act does not occur, TPS may be able to fulfill its obligations to SSL, but this is not final. Obviously, during the performance of a contract there are some risks that one has to face, such risks should not be easily transferred to a third party due to his negligence. It is TPS's responsibility to ensure that no power outages occur and must mitigate this risk by all means. By relying solely on Equipment J, TPS accepts the risk and even if the energy explosion occurs they must find a way to fix the problem, instead of relying on compensation for the tort of negligence. Furthermore, imposing a duty of care for such damage, in this case, exposes the defendant to an indeterminate liability that is not reasonable. Regarding employee personal injury claims, due to the ACC, TPS has been stripped of its right to claim payment in relation to negligent actions causing personal injury