HW_09

chapter19theliabilityrisk.ppt

Chapter 19

The Liability Risk

19-*

Agenda

19-*

Basis of Legal Liability

A legal wrong is a violation of a person’s legal rights, or a failure to perform a legal duty owed to a certain person or to society as a whole
Legal wrongs include:
Crime
Breach of contract
Tort

19-*

Basis of Legal Liability (Continued)

A tort is a legal wrong for which the court allows a remedy in the form of money damages
The person who is injured (plaintiff) by the action of another (tortfeasor) can sue for damages
Torts fall into three categories:
Intentional, e.g., fraud, assault
Strict liability means that liability is imposed regardless of negligence or fault
Negligence

19-*

Law of Negligence

Negligence is the failure to exercise the standard of care required by law to protect others from an unreasonable risk of harm
The standard of care is not the same for each wrongful act. It is based on the care required of a reasonably prudent person

19-*

Law of Negligence (Continued)

Elements of Negligence
Existence of a legal duty to use reasonable care
Failure to perform that duty
Damage or injury to the claimant
A proximate cause relationship between the negligent act and the infliction of damages, which requires an unbroken chain of events

Transparency Master 1.2

19-*

Law of Negligence (Continued)

Compensatory damages compensate the victim for losses actually incurred
Special damages provide compensation for medical expenses
General damages provide compensation for pain and suffering
Punitive damages are designed to punish people and organizations so that others are deterred from committing the same wrongful act

19-*

Exhibit 19.1 Types of Damages

19-*

Law of Negligence (Continued)

The ability to collect damages for negligence depends on state law
Under a contributory negligence law, the injured person cannot collect damages if his or her care falls below the standard of care required for his or her protection
Under strict application of common law, the injured cannot collect damages if his or her conduct contributed in any way to the injury

19-*

Law of Negligence (Continued)

Under a comparative negligence law, the financial burden of the injury is shared by both parties according to their respective degrees of fault
Under the pure rule, you can collect damages even if you are negligent, but your reward is reduced in proportion to your fault
Under the 50 percent rule, you cannot recover if you are 50 percent or more at fault
Under the 51 percent rule, you cannot recover if you are 51 percent or more at fault

19-*

Law of Negligence (Continued)

Some legal defenses can defeat a claim for damages:
The last clear chance rule states that a plaintiff who is endangered by his or her own negligence can still recover damages from the defendant if the defendant has a last clear chance to avoid the accident but fails to do so
Under the assumption of risk doctrine, a person who understands and recognizes the danger inherent in a particular activity cannot recover damages in the event of an injury

19-*

Imputed Negligence

Under certain conditions, the negligence of one person can be attributed to another
Under a vicarious liability law, a motorist’s negligence is imputed to the vehicle’s owner
Under the family purpose doctrine, the owner of an auto can be held liable for negligent acts committed by family members
Negligence may arise out of a joint business venture
Under a dram shop law, a business that sells liquor can be held liable for damages that may result from the sale of liquor

19-*

Res Ipsa Loquitur – “the thing speaks for itself”

Under this doctrine, the very fact that the injury or damage occurs establishes a presumption of negligence
Three requirements must be met for res ipsa loquitur to apply:
The event is one that normally does not occur in the absence of negligence
The defendant has exclusive control over the instrumentality causing the accident
The injured party has not contributed to the accident in any way

19-*

Specific Applications of the Law of Negligence

The standard of care owed to others depends upon the situation
A trespasser is a person who enters or remains on the owner’s property without the owner’s consent
The duty to refrain from injuring a trespasser is sometimes referred to as the duty of slight care

19-*