Management and Organizational Studies 2275A/B Lecture Notes - Lecture 5: Intentional Tort, Catastrophic Injury, The Employer

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Desmond Mc Keon

Document Summary

Fault insurance based system: previously used, extremely difficult if someone is at fault in an accident. 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: gave insurance companies enormous advantage over their clients. If you have an injury, you are paid. For catastrophic injuries, there are thresholds, but they are set extremely high: companies remain happy because they were allowed to raise rates, lawyers not happy, 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. It is extremely difficult for an employee to sue their (ex) employer.