LAW1113 Lecture Notes - Lecture 19: Mersey Docks And Harbour Company, Vicarious Liability, Independent Contractor
LAW1113&TORTS&-&CASE&SUMMARIES&AND&KEY&POINTS&
NEGLIGENCE&–&VICARIOUS&LIABILITY&
• Strict&liability&
• Pursuant&to&the&doctrine&of&vicarious&liability&one&person&may&be&liable&for&the&tort&of&another.&&
• This&means,&a&person&‘stands&in&the&place’&of&another&
• To&be&vicariously&liable,&there&must&be&a&requisite&relationship&between&the&tortfeasor&and&other&person&
• Principal&context&is&employer-employee&
• The&tortfeasor&remains&liable,&despite&the&vicarious&liability&of&another&for&the&same&tort&(joint&
tortfeasors)&
• Can&sue&either&the&employer&or&employee&
&
RATIONALE&
1. Employer&is&better&placed&to&carry&costs;&
o Enables&just&and&practical&remedy&for&harm&
2. Deters&future&harm&by&incentivising&safe&practice;&
3. The&employer&is&less&innocent&than&the&victim&of&the&tort:&the&employer&benefits&from&the&enterprise&
from&which&harm&flows;&set&it&in&motion;&has&capacity&to&minimise&risk.&
&
*Note:&Employer&can&be&careful,&but&vicarious&liability&will&still&apply&
&
VICARIOUS&LIABILITY&
• An&employer&will&be&vicariously&liable&for&the&torts&committed&by&an&employee&in&the&course&of&the&
employee’s&employment.&
• The&law&draws&a&distinction,&for&the&purposes&of&vicarious&liability,&between&employees&and&independent&
contractors&
• Employers&may&be&vicariously&liable&for&the&acts&of&employees,&but¬&for&the&actions&of&independent&
contractors&
&
EMPLOYEE&V&INDEPENDENT&CONTRACTORS&
• Contract&of&service&(Employee)&v&Contract&for&services&(Independent&Contractor)&
• Historical&Position&–&a&narrow&control&test:&Employer&must&be&in&a&position¬&only&to&tell&the&worker&
what&to&do,&but&also&how&to&do&it&
• Today&–&balancing&a&variety&of&indicia&to&determine&the&character&of&the&worker:&Hollis(v(Vabu&
&
Indicia&of&relationship&(!"##$%&'&()*+)&
Indicia&
Example&
Control&
Ø Emphasis&being&on&capacity&to&exercise,&rather&
than&actual,&control&(Broad)&
• Considered&control&over&couriers&and&how&they&
performed&his&work?&&
o How&work&is&done&
o Order&
o Cannot&refuse&work&&
o Were&the&core&business&of&the&company&
Holidays&and&other&independence&over&working&hours&
Ø More&independence,&more&likely&to&be&an&independent&contractor&
Skill&level&&
Ø More&skill&needed&tends&toward&independent&contractor&
Identification&
Ø Whether&the&worker&is&presented&as&an&
emanation&of&the&person&paying&her&(i.e.&who&
do&they&belong&to?)&
• Crisis&couriers&emblazoned&on&shirt&points&
towards&an&employee&
The&provision&of&equipment&(specialist)&and&how&
expensive&it&is/&its&nature&
• Bikes&are¬&expensive&and¬&work&tools&
does¬&show&independent&contractor&
LAW1113&TORTS&-&CASE&SUMMARIES&AND&KEY&POINTS&
Ø Provision&of&equipment&points&towards&an&
employee&
Pay&arrangements&
• Tax&invoice&(independent&contractor)&
Ability&to&delegate&and&obligations&to&work&
Ø Assistance,&choice,&etc.&points&towards&and&independent&contractor&
&
The&organisation&test&
• Is&the&worker&engaged&as&part&of&the&business&or&is&the&work&done&for&the&business&but&the&worker&is¬&
integrated&into&the&business?&
• Different&uses&of&the&organisation&test:&
o As&evidence&of&control&
o As&a&separate&test&
&
Borrowed&employees&&
Case&
Details&
,-.%-/&0"12%&&3&!).*"+.&4").5&'&6"77$8%&3&
9.$::$;<%&
Ø Consideration:&Control&remains&the&principal&
consideration&of&who&is&the&employer&and&any&
declaration&between&the&parties&is¬&the&
relevant&issue.&
Facts&
• Harbour&authority&had&let&out&worker&that&
operated&crane&to&Mersey&Docks&
• Crane&and&operator&hiring&provided&&
• Misery&Docks&has&responsibility&as&per&the&
contract&
• Crane&operator&injures&3rd&party&–&&
• Borrower&had&no&direct&control&of&how&to&
operate&crane&
• Harbour&Authority&let&out&is&liable&due&to&them&
training&him&and&having&a&greater&control&over&
their&worker&
&
Scope&of&employment:&Salmond&Test&
• Employer&is&only&liable&for&torts&of&the&employee&committed&in&the&course&or&scope&of&her&employment&
• The&employee&acted&within&the&scope&of&her&employment&if&her&action&was:&
o an&authorised&act;&or&
o an&improper&mode&of&performing&an&authorised&act&
&
Authorised&acts&
• Actual&authority&&
o Express&
o Implied:&having&a&lunch&break&
• Apparent&authority&
o Third&party&is&entitled&to&assume&that&the&employee&had&authority&to&perform&a&particular&task,&in&
circumstances&where&the&employer&has&behaved&in&such&a&way&as&to&create&the&impression&that&the&
act&was&authorised&
&
Scope&of&employment:&Negligent&acts&
Scope&
Cases&
An&act&may&be&in&the&course&of&
employment&even&if&the&employer&has&
expressly&forbidden&the&act&
Facts&(4+77-&'&4."=8)&
• D&(Brown)&instructed&to&worker&X&to&work&a&distance&away&
• Told&X¬&to&cook&at&place,&but&back&at&the&house&&
o Place&was&considered&unsafe&
• X&ignores&the&instructions&and&causes&fire&that&spreads&to&
Document Summary
Rationale: deters future harm by incentivising safe practice, the employer is less innocent than the victim of the tort: the employer benefits from the enterprise from which harm flows; set it in motion; has capacity to minimise risk. *note: employer can be careful, but vicarious liability will still apply. Emphasis being on capacity to exercise, rather than actual, control (broad) Example: considered control over couriers and how they performed his work, how work is done, order, cannot refuse work, were the core business of the company. More independence, more likely to be an independent contractor. More skill needed tends toward independent contractor. Whether the worker is presented as an towards an employee. Identification: crisis couriers emblazoned on shirt points emanation of the person paying her (i. e. who do they belong to?) The provision of equipment (specialist) and how: bikes are not expensive and not work tools expensive it is/ its nature does not show independent contractor.
