Textbook Notes (369,198)
Canada (162,457)
MGSC30H3 (57)
Jeff Rybak (14)

Legal Environment - Lecture 005

4 Pages

Management (MGS)
Course Code
Jeff Rybak

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INTRODUCTION TO TORTS 4 February 2014 (Chapter 3, p.63-77) INTRODUCTION TO TORT LAW TORT consists of a failure to fulfill a private obligation (owed to a person) that was imposed by law. Governs the general duty that every person in society owes to every other person (does not rely on pre-existing relationshipORTFEASOR is a person who has committed a tort. A tort can be compared with a crime. Whereas a tort occurs when a person breaks a private obligation (remedy: compensatory damages), a crime occurs if a person breaks a public obligation (punishment: fine, imprisonment). A public obligation is owed to society as a whole, rather than to any particular person. Damages intended to be equivalent to injury, no more or less (punitive damages are unusual in Canada, does not exceed value). TORTS AND C ONTRACTS Source of Privity Compensatory Risk Management Obligation Damages Tort Imposed by law Enforcable Place the plaintiff May take a person regardless of as if the tort had by surprise, may any agreement not occurred require more than a between parties person is able to give Contract Voluntarily created Enforceable only Place the plaintiff Always possible to by parties by or against a as if the contract know the party to contract had been obligations in performed advance, always possible to limit the obligations to promises that can be fulfilled TYPES OF TORTS Definition Examples Intentional Torts Occurs when person intentionally acts inAssault, battery, false certain ways (tried to hurt the plaintifimprisonment, trespass to act in certain way) land, interference with chattels, conspiracy, intimidation, deceit Negligence Torts Occurs when a person acts carelessly, Occupiers’ liability, nuisance, where no injury was intended but Unintentional Torts nevertheless occurred negligence, product liability Strict Liability TorOccurs when a person does something Animals trespassing on wrong without intending to do so and someone else’s property without acting carelessly makes owner responsible * Creates special problem for risk management ** Strict liability is rare *** Effective risk management may require defendant to simply avoid relevant activity altogether GENERAL PRINCIPLES OF TORT LAW LIABILITY INSURANCE (NOTE: DOES NOT COVER ALL TORTS – INTENTIONAL OR CRIMINAL ACTS) LIABILITY NSURANCE is a contract in which an insurance company agrees, in exchange for a price, to pay damages on behalf of a person who incurs liabilitUTY TO D EFEND requires the insurance company to pay the expenses that are associated with lawsuits brought against the insured party (so insurance companies not only pay for damages but also pay for needing to take it to court). • COMPENSATORY FUNCTION aims to fully compensate people who are wrongfully injured (if Tortfeasor cannot personally afford to pay damages, plaintiff will not receive full compensation unless defendant is insured) • DETERRENCE FUNCTION discourages people from committing torts by threatening to hold them liable for the losses they cause (but insurance undermines this because people have little reason to be afraid as they are insured) **NOTE: Liability insurance is a good idea, especially for businesses that have employees (may be relevant to corporation cases, etc.) VICARIOUS LIABILITY VICARIOUS LIABILITY occurs when one person is held liable for a tort that was committed by anot
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