1. Principles of Business Law
Principles of Business Law - AY 2015/2016
Principles of Business Law
Session 7
Law of Tort 2
AY 2016/2017 Apr Sem
(c) 2016 Ngee Ann Polytechnic
(c) 2015 Ngee Ann Polytechnic

2. Principles of Business Law - AY 2015/2016
Learning Outcomes
At the end of this session, you are able to:
Evaluate when psychiatric damage is claimable
Recognise the situations giving rise to vicarious liability
Explain the defences in tort law
Explain when an adviser is liable for negligent misstatement
Identify the elements required for the tort of defamation
Explain the defences and remedies for defamation
Appreciate the difficulties in claiming for online defamation
AY 2016/2017 Apr Sem
(c) 2016 Ngee Ann Polytechnic
(c) 2015 Ngee Ann Polytechnic

3. (c) 2016 Ngee Ann Polytechnic
Required Reading
Chapter 8
Law of Tort
AY 2016/2017 Apr Sem
(c) 2016 Ngee Ann Polytechnic

4. Negligence – Psychiatric Harm
Primary Victim
- Physical Injury 
- Psychiatric Injury
Secondary Victim
- Grief & sorrow 
- Psychiatric harm ?
AY 2016/2017 Apr Sem
(c) 2016 Ngee Ann Polytechnic

5. Negligence – Psychiatric Harm
P suffers anxiety, distress or psychiatric illness after witnessing or hearing an accident caused by negligently D.
Courts reluctant to allow such claims by secondary victims
Only allowed
If psychiatric illness resulted
Sufficient proximity between P & D based on 3 elements in McLoughlin v O’Brian
AY 2016/2017 Apr Sem
(c) 2016 Ngee Ann Polytechnic

6. Negligence – Psychiatric Harm
McLoughlin v O’Brian (1983) – p 174
The woman with mental trauma case
Held : P could claim for her psychiatric harm from D who negligently killed her child and seriously injured her husband and 2 other children because (1) P was sufficiently close in relationship to primary victims; (2) P was sufficiently close in time and space to the accident and (3) P was sufficiently close by sight or hearing as she saw her family’s suffering in accident’s immediate aftermath.
Court of Appeal in Ngiam Kong Seng v Lim Chiew Hock (2008) ruled that in psychiatric harm cases the 3 elements in McLoughlin’s case should be used to decide legal proximity in the Spandeck test
AY 2016/2017 Apr Sem
(c) 2016 Ngee Ann Polytechnic

7. (c) 2016 Ngee Ann Polytechnic
AY 2016/2017 Apr Sem
(c) 2016 Ngee Ann Polytechnic