The parents of a two-year-old boy who drowned in a holiday park pond has been ordered to return $52,000 in compensation after a judge ruled that "accidents do happen".
Toddler Matthew Marsden was found face down in a 45cm-deep pond at a caravan park in Wales.
He had wandered off with his 14-month-old brother as parents Philip and Tracey Marsden briefly chatted with other holidaymakers.
The Marsdens sued the owner of Greenacres Holiday Park over the 2004 incident and last year a judge awarded them £25,000 ($A52,000) for the psychological trauma and shock they suffered after finding their son's dead body.
But yesterday an appeal court ruled that the park owner was not to blame because any holiday park can pose a risk to an unaccompanied child, the Daily Mail reports.
"This was a tragic case and Matthew's death has been understandably devastating for his parents," Lord Justice Stanley Burnton was quoted as saying.
"But accidents may and do happen to young children without anyone being at fault.
"A toddler can disappear in a fleeting moment."
An earlier inquest heard that Matthew may have been chasing a duck before falling into the pond, which was surrounded by a 30cm-high timber railing.
Mr Marsden, a 43-year-old IT manager from northeast Wales, said he was disappointed in the court's decision to overturn the original judgement.
"I just hope people will realise that you cannot relax while on holiday with children, and don't expect others to give the same degree of thought into safety as you may do yourself," he said in a statement.
The Marsdens never received any compensation because it was held by their lawyers while the court appeal was underway.
In a further twist, the Marsdens are now also liable to pay for the holiday company's legal costs, estimated at $31,000.
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