At least in Australia, even if the speed limit is faster than what is deemed safe for the conditions, it is still the drivers responsibility to drive in a safe manner, even if that means they drive 20 kmh under the speed limit. Its called a speed LIMIT after all, its the maximum, not the 'do this speed whenever you want'. I don't understand the line of reasoning that the city is at fault for having the speed limit at 80, even if in this particular circumstance it was too fast. After all, if thats the case, then every speed limit would be super low because you can't change the speed limit for every potential circumstance. 'Well a meteorite might hit nearby and blanket the area in dust killing the visibility, better make the speed limit 10'.
Stuff like this is also why everyone in most states in Oz have to buy third party insurance up to $20 million coverage to cover the expenses if you hit anyone or anything, regardless of their insurance level. That way in the case of this, both parties can have at it and the insurance companies will pay it out.
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