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Chapter 3, Pages 61-75 Chapter 4, Pages 81-87, 96-100 Chapter 5, Pages 110-122
Chapter 3, Pages 61-75 Chapter 4, Pages 81-87, 96-100 Chapter 5, Pages 110-122
During its early stages, the common law used a system of blood feud
Tort comes from the French word “tort” (meaning “wrong”), tort generally consists of a
failure to fulfill a private obligation that was imposed by law.
o refers to the breach of a private obligation.
An obligation in tort law is owed to a person
o tortfeasor—a person who has committed a tort.
Torts and Contracts: Similarities and Differences between torts and contracts
Source of Privity Compensatory Risk
Obligation Damages Management
Tort Imposed by law Enforceable Look backward May take a
regardless of to put the person by
any agreement plaintiff as if surprise
between the the tort had not May require
parties occurred more than a
person is able
to give
Contract Voluntarily Enforceable `look forward Always possible
created by only by or to place the to know the
parties against a party plaintiff as if obligations in
to the contract the contract advance
had been Always possible
performed to limit the
obligations to
promises that
can be fulfilled
Chapter 3, Pages 61-75; Chapter 4, Pages 81-87, 96-100; Chapter 5, Pages 110-122
Types of Torts
Intentional Torts o Assault
o battery
o false imprisonment
o trespass to land
o interference with chattels
o conspiracy
o intimidation
o interference with contractual relations
o unlawful means tort
o deceit
Negligence Torts o occupiers’ liability
o nuisance12
o negligence
o professional negligence
o product liability
Strict liability Torts o animals
o Rylands v Fletcher
Strict Liability
They do not require proof of any sort of intentional or careless wrongdoing.
o Liability is imposed simply because the defendant was responsible for the
situation that injured the plaintiff.
o Result = while special precautions may reduce the danger of liability, effective
risk management may require the defendant to simply avoid the relevant
activity altogether.
o Strict liability is therefore limited to situations in which the defendant is
involved in some extraordinarily dangerous activity.
Case Brief 3.1: Cowles v Balack (2005)
The court suggested that Jennifer and David would have been denied damages if they
had consented to the danger after being sufficiently warned.
o On the facts, however, it was not enough for ALS to simply post warning
signs.
o It should have taken steps to ensure its customers were fully aware of those
warnings.
General Principles of Tort Law
Liability Insurance
Contract in which an insurance company agrees, in exchange for a price, to pay
damages on behalf of a person who incurs liability
Chapter 3, Pages 61-75; Chapter 4, Pages 81-87, 96-100; Chapter 5, Pages 110-122
Creates the duty to defend requires thee insurance company to defend, an its own
expense, any lawsuit that is brought against the insured party
Liability insurance creates tension between 2 of tort law’s most important functions
o Compensation (compensatory function): aims to fully compensate people who
are wrongfully injured
If tortfeasor cannot personally afford to pay damages, then the plaintiff
will not receive full compensation unless the defendant is insured
o Deterrence (deterrence function): discourages people from committing torts
by threatening to hold them liable for the losses that they cause
Tort law has little deterrent effect because people know that if
something goes wrong then their insurance will pay for it
Vicarious Liability
Occurs when one person is held liable for a tort that was committed by another person
Public policy may require one person to be held responsible for another person’s torts
in certain circumstances
Compensation
o serves tort law’s compensatory function by increasing the chance that the
plaintiff will receive damages from either an employee and an employer
Deterrence
o serves tort law’s deterrence function by encouraging employers to avoid
unusually hazardous activities and to hire the best people available
Fairness
o It may be appropriate to require a business to bear responsibility for the losses
that its activities create, even if those losses are caused by misbehaving
employees
Ethical Perspective 3.: Bazley v Curry (1999) 174 DLR (4th) 45 (SCC)
The defendant was a charitable organization that operated a residential care facility for
emotionally troubled children
o The defendant conducted a reasonably thorough investigation before hiring Curry,
but it failed to discover that he was a pedophile
Sadly, Curry sexually assaulted a number of children, including the
plaintiff, while working for the defendant
The plaintiff argued that the defendant was vicariously liable for Curry’s actions
The Supreme Court of Canada held that an employer is vicariously liable for both (i) acts
that it authorized an employee to do, and (ii) other closely connected acts
The court found that Curry’s actions fell within the second category.
o While accepting that the employer certainly did not want its employees to
sexually abuse the children, the court held that the nature of the employer’s
operation significantly increased the risk of wrongdoing
Chapter 3, Pages 61-75; Chapter 4, Pages 81-87, 96-100; Chapter 5, Pages 110-122
1. An employer is not liable every time an employee does something wrong. As the
Supreme Court of Canada stressed in Bazley v Curry, an employer is not
vicariously liable if an employee’s tort occurred completely outside of the
employment relationship
2. An employer may be held vicariously liable for employees, but not for
independent contractors
o Independent contractor is a worker who is not as closely connected to the
employer’s business as is an employee
Several factors make it more likely that a worker will be classified as an employee:
Control
o The employer generally controls what is done, how it is done, when it is done, and
where it is done.
Property
o The worker uses the employer’s equipment and premises.
Regular Pay
o The worker is paid a regular wage or salary rather than a lump sum at the end of
each project.
Integration
o The worker is integrated into the employer’s business and does not carry on an
independent business
3. Vicarious liability does not relieve an employee of responsibility.
a. Rather, it allows the plaintiff to sue both the employer and the employee.
And if both defendants are held liable, the plaintiff is usually entitled to
demand payment from either one.
i. Furthermore, if the plaintiff receives damages from the employer,
the employer is usually entitled to receive the same amount from
the employee
4. an employer may be both vicariously liable and personally liable in the same
situation.
a. Vicarious liability occurs if the employer is responsible for an employee’s
tort. Personal liability occurs if the employer is responsible for its own tort
Business Decision 3.1: Vicarious Liability and Personal Liability
You suffer a serious injury after falling out of a chairlift at a ski resort. The evidence
indicates that the accident was caused by the fact that the lift was operated carelessly by
Alberto, an employee of the resort. The evidence also indicates that the resort failed to
properly train Alberto.
o Liability could arise in three ways. First, Alberto might be personally liable,
under the tort of negligence, because he operated the chairlift carelessly.
Second, the resort might be vicariously liable because it was Alberto’s
Chapter 3, Pages 61-75; Chapter 4, Pages 81-87, 96-100; Chapter 5, Pages 110-122
employer. And third, the resort might also be personally liable, under the tort
of negligence, because it carelessly failed to train its employee
Remoteness
o First, the defendant is responsible only for losses that the tort in fact caused.
o Second, even if the defendant’s tort caused the plaintiff to suffer a loss, the court
will not award damages if the connection between the tort and the loss is too
remote
loss is remote if it would be unfair to hold the defendant responsible for it.
The judge will ask whether a reasonable person in the defendant’s
position would have realized that a particular activity might cause
the sort of harm that the plaintiff suffered
It applies to most types of torts, but not to intentional torts.
Mitigation
o occurs when the plaintiff takes steps to minimize the losses that result from the
defendant’s tort.
o As a general rule, compensation is denied to the extent that the plaintiff
unreasonably failed to mitigate
Reasonable Steps
The plaintiff is responsible only for taking reasonable steps to
mitigate a loss. A court therefore would not expect the customer to
receive a type of treatment that carried a high risk of serious side
effects.
No Duty
Chapter 3, Pages 61-75; Chapter 4, Pages 81-87, 96-100; Chapter 5, Pages 110-122
o The new tort of intrusion upon seclusion requires the plaintiff to prove that the
defendant
intentionally
invaded the plaintiff’s private affairs without legal justification
in a way that a reasonable person would consider highly offensive
False Imprisonment
False imprisonment occurs when a person is confined within a fixed area without
justification
o Confinement
An actual prison is not necessary. The tort can be committed if a person is
trapped in a car, locked in a room, or set adrift in a boat. But in any event,
the confinement must be practically complete. The defendant does not
commit a false imprisonment by obstructing one path while leaving
another reasonable path open. Nor is the tort committed if the plaintiff can
easily escape.
o Psychology
Physical force is not necessary. The detention may be psychological.
o Risk Reduction
Because a police officer has a wider power of arrest than a private citizen,
a business person may reduce the risk of liability by calling a police
officer, instead of directly arresting a suspect. That tactic, however, will
not eliminate the risk. The business may still be held liable if it directed an
officer to make the arrest, rather than merely state the facts and allow the
officer to draw a conclusion.
o Malicious Prosecution
Malicious prosecution occurs when the defendant improperly causes the
plaintiff to be prosecuted. The focus is not on detention or imprisonment,
but rather on criminal proceedings.
The court has to be satisfied that
o the defendant started the proceedings
o out of malice, or for some improper purpose
o without honestly believing on reasonable grounds that a
crime had been committed
o the plaintiff was eventually acquitted of the alleged crime
o An imprisonment is false only if it is done without authority
Police Officer
o A police officer may arrest anyone who is reasonably suspected of
being in the act of committing a crime
having committed a serious crime in the past. If that test is satisfied, the
police officer cannot be held liable, even if the person who was arrested
was actually innocent.
Chapter 3, Pages 61-75; Chapter 4, Pages 81-87, 96-100; Chapter 5, Pages 110-122
Citizen
o The rules are much narrower for private citizens—including security guards.36 A
private citizen is entitled to make an arrest only if a crime is actually being
committed by the suspect. If, in fact, no crime is being committed, the arrest is
unjustified. An unjustified arrest may lead to tort liability, even if the person who
made the arrest acted honestly and reasonably. The law generally favors a
customer’s freedom of movement over a store’s desire to protect its property
Torts Related to Reputation
Deceit
o occurs if the defendant makes a false statement, which it knows to be untrue,
which it intends to mislead the plaintiff, and which causes the plaintiff to suffer a
loss
False statement
o The plaintiff must prove that the defendant made a false statement
o statement may take any form: a spoken word, a written document, a meaningful
gesture, and so on
Half-truth
A false statement may consist of a half-truth. That will be so if, in
persuading you to buy my business, I present gross profits as if
they were net profits. What I said was true, but misleading. I
effectively made a false statement.
Failure to Update Information
A false statement may consist of a failure to update information..
Caveat Emptor
The general rule in the commercial world is caveat emptor: “let the
buyer beware.” The seller usually has no obligation to volunteer
information. It is the buyer’s responsibility to ask questions and
undertake investigations
Knowledge
o The plaintiff must prove that the defendant knew, at the time of making the
statement, that it was false
Intention
o Deceit requires proof that the defendant made the false statement with the
intention of misleading the plaintiff. That does not mean, however, that the
defendant must make the statement directly to the plaintiff
Reasonable Reliance
o Deceit requires proof that the plaintiff suffered a loss as a result of reasonably
relying on the defendant’s statement. The plaintiff’s reliance is “reasonable” if a
reasonable person might have reacted to the defendant’s statement in the same
way
Past or Present Fact
Chapter 3, Pages 61-75; Chapter 4, Pages 81-87, 96-100; Chapter 5, Pages 110-122
that are offered on the premises (eg a hotel as safe as reasonably possible
guest, but not a restaurant diner)
Liability requires proof that the defendant committed a wrong against the
third party with the intention and for the purpose of causing the plaintiff to
suffer an economic loss.
o Actionable Wrong
Earlier cases adopted a very broad definition of “unlawful.” They merely
required the plaintiff to prove that the defendant was “not entitled” to treat
the third party as it did.
Defamation
Defamation occurs when the defendant makes a false statement that could lead a
reasonable person to have a lower opinion of the plaintiff
A statement is defamatory only if a reasonable person would have thought that it referred
to the plaintiff
o Reasonable Person
There is no need for proof that the defendant intended to defame the
plaintiff. It is enough if a reasonable person would believe that the
defendant was referring to the plaintiff
o Living Person
The tort of defamation is limited to living persons
o Groups
Liability may be imposed even if the defendant did not name or expressly
identify the plaintiff. The crucial question is whether a reasonable person
would think of the plaintiff after hearing the defendant’s comment
Slander is a defamatory statement that is spoken
Libel is a defamatory statement that is written
Chapter 3, Pages 61-75; Chapter 4, Pages 81-87, 96-100; Chapter 5, Pages 110-122
Defamation Defenses
Defense Elements
Justification statement must be true