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James was operating his cabin cruiser with his family a kilometer off the coast when he needed to go below to prepare a meal. He left his twelve-year-old son to drive the boat. While James was below the cruiser struck a small, dark-coloured rubber dinghy which contained Ned, a diver in a wet suit, who was resting between dives that he had been making in the area. There were no marker buoys, and the dinghy was difficult to see in the swells. (Ned’s diving companions had taken their boat to the nearest settlement to refill their tanks.) Ned suffered a leg injury in the collision and as soon as James heard the screams, he came up from below, stopped the boat and rescued Ned. It was clear that the leg was broken and James took Ned as quickly as possible back to the town where he was immediately transferred to the local hospital. Ned was admitted and examined by Dr. Green. The doctor noted and treated Ned for a broken ankle, but failed to notice that the leg had also been injured above the knee where a small bone protruded from the skin. Because of this failure the wound became infected and it became necessary to amputate the leg. Green was not a surgeon and so gave clear instructions to Dr. Blade the local surgeon as to what was required. In the operating room Blade not mixed up and amputated the wrong leg. When the error was discovered, Blade then amputated the correct leg.

Ned then sued the owner of the boat, his son who was driving at the time of the accident, Drs. Green and Blade, and also the hospital for the injuries he suffered. Explain what torts had been committed, the arguments that can be used as defense and the likely liability which will be imposed on each of the parties.

Operation Management, Management Studies

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