Law on Compensation
Law on compensation for damages or injuries
Fault insurance based system:
o Previously used.
o Extremely difficult if someone is at fault in an accident
o Incredibly inefficient because of the amount of money, time, and energy needed. So much of
the money that should have gone to victims went to lawyers.
o Gave insurance companies enormous advantage over their clients.
No-fault insurance based system:
o If you have an injury, you are paid.
For catastrophic injuries, there are thresholds, but they are set extremely high
o Companies remain happy because they were allowed to raise rates.
o Lawyers not happy.
o Consumers, depend:
Formula: Future lost income is a multiple of current income
For most people, who fit into the formula, it is great.
For others, outside the formula (students who do not have work yet, but will start to
work in a few months), it is not!
In an employee – employer relationship, it is similar
o It is extremely difficult for an employee to sue their (ex) employer
o If the company is not directly in fault, it is not possible to get enough compensation.
o For such reasons, it is based on no fault.
Based on fault – one party must prove that the other has fault.
Based on precedent.
Negligible tort: Tort law that provides compensation despite lack of fault
Licarious liability: An employer is legally responsible for torts committed by their employee
o The employer could have prevented the situation somehow
o The employee probably is not able to provide meaningful compensation
o The employer is the one making the profits
Economically, tort law has modified economic behaviour to spread costs
o When I go to a bar and pay for $5 dollars for a drink instead of going to a liquor store, part that
money is spent to make sure that I don’t get thrown out by a bouncer.
Tort law is separate from criminal law. One may be successful and another may not.
Divisions of Tort
o For the plaintiff to be successful, he must successfully prove that the defendant was intentional.
o Not the intention to cause harm. The intention to do the thing that caused the harm.
Ex. A friend pushing me onto someone’s property – no intention
Ex. Getting lost and somehow getting onto someone’s property – intention o Burden of proof falls on the plaintiff. However, when the plaintiff p