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In an important ruling analysing vicarious liability, the High Court has upheld an employer's appeal against a $432k damages award for an employee who suffered a psychological injury due to his co-worker's drunken misbehaviour.

The Court found the employer couldn't be held liable for the co-worker's negligent actions, as they were "not closely connected with any of his duties or powers of employment".

In November 2016, the Daydream Island Resort food and beverage manager, who lived in shared accommodation with the co-worker, woke in the early hours of the morning to the intoxicated co-worker standing next to his bed, urinating on his face. The employee choked and inhaled the urine, and suffered a cataplectic attack...