O’REGAN J foundation had operated a children’s residential care facility and the employee had been employed as a “substitute parent”. The employee had sexually abused the children in his care. The Court held that – “[t]he opportunity for intimate private control and the parental relationship and power required by the terms of employment created the special environment that nurtured and brought to fruition [the employee’s] sexual abuse. The employer’s enterprise created and fostered the risk that led to the ultimate harm. The abuse was not a mere accident of time and place, but the product of the special relationship of intimacy and respect the employer fostered, as well as the special opportunities for exploitation of that relationship it furnished. Indeed, it is difficult to imagine a job with a greater risk for child sexual abuse. This is not to suggest that future cases must rise to the same level to impose vicarious liability. Fairness and the need for deterrence in this critical area of human conduct – the care of vulnerable children – suggest that as between the Foundation that created and managed the risk and the innocent victim, the Foundation should bear the loss.”50 [40] In Jacobi, however, which also concerned the vicarious liability of an employer for the sexual abuse of children by an employee, the Court split and a majority held that on the test set in Bazley, the employer was not liable on the facts of that case. In that case, an employee of a non-profit organisation which organised group recreational facilities for children had abused children by enticing them outside of club activities outside of club hours to his home where he had abused them. The majority of the Court held that the activities of the employer were not sufficiently connected to the wrongs performed by the employee to result in the vicarious liability of the employer. 50 Id at para 58. 29