1. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 10-1 CANADIAN BUSINESS AND THE LAW Second Edition by Dorothy Duplessis Steven Enman Shannon O’Byrne Sally Gunz Presentation prepared by Allan Elliott, Southern Alberta Institute of Technology

2. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 10-2 CHAPTER TEN INTRODUCTION TO TORT LAW OBJECTIVES:  The broad scope of tort law  The difference between a civil action and a criminal action  The purpose of tort remedies  How business can manage its potential liability in tort

3. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 10-3 TORT LAW DEFINED TORT  a harm caused by one person to another, other than through breach of contract, and for which the law provides a remedy HOW TORTS ARE CATEGORIZED  intentional torts – a harmful act that is committed on purpose  assault – the threat of imminent physical harm  battery – nonconsensual physical contact that violates an individual’s bodily security

4. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 10-4 TORT LAW DEFINED NEGLIGENCE  unreasonable conduct, including a careless act or omission, that causes harm to another  tort-feasor – a person who commits a tort STATUTORY CHANGES TO TORT LAW  certain legislation, such as Worker’s Compensation legislation, provides no-fault compensation for injuries, instead of a right to sue in tort

5. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 10-5 TORT LAW DEFINED TORT LAW AND CRIMINAL LAW Type of Action assault and battery as tort Commencing the Action claim based on tort of assault and battery Proving the Action must prove on the balance of probabilities Outcome pay compensation for injuries caused Type of Action aggravated assault as a crime Commencing the Action Crown Attorney prosecutes crime Proving the Action Crown must prove guilt beyond a reasonable doubt Outcome fine, imprisonment, or both

6. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 10-6 LIABILITY IN TORT PRIMARY AND VICARIOUS LIABILITY Two kinds of liability in tort law: –primary –vicarious liability – the liability of an employer for the tortious acts of an employee committed in the normal course of employment

7. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 10-7 LIABILITY IN TORT LIABILITY AND JOINT TORT-FEASORS Joint tort-feasors – when two or more persons whom a court has held to be jointly responsible for the plaintiff’s loss or injuries

8. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 10-8 LIABILITY IN TORT LIABILITY AND CONTRIBUTORY NEGLIGENCE Contributory Negligence – a defence claiming that the plaintiff is at least partially responsible for the harm that has occured

9. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 10-9 DAMAGES IN TORT PURPOSE OF DAMAGES  to compensate a victim for loss caused by the defendant Damages  pecuniary damages – compensation for out- of-pocket expenses, such as loss of future income, and the cost of future care  nonpecuniary damages – compensation for pain and suffering, loss of enjoyment of life, and loss of life expectancy

10. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 10-10 LIABILITY IN TORT DAMAGES IN TORT  punitive damages (also known as exemplary damages) – compensation awarded to the plaintiff to punish the defendant for particularly offensive behaviour  aggravated damages – compensation for intangible injuries such as distress and humiliation caused by the defendant’s reprehensible conduct

11. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 10-11 MANAGING TORT RISK RISK MANAGEMENT PLAN SHOULD INCLUDE: 1. careful hiring of employees and continuing training programs for them 2. reduce risks through maintenance and safety programs 3. transfer the risk by use of insurance to cover liability