Ch8: Basics of Legal Liability Flashcards
What are the two types of legal systems in Canada
Criminal Law = not insurable
Civil Law
What is the purpose of civil law
addresses disputes between parties by compensating the wronged party
Define statute law?
written law - supersedes common law (created by legislation)
What are the two branches of civil law
Contract and Tort Law
What is contract law?
enforces contracts; remedies breach of contract by enforcing performance
What is Tort law
negligence, trespassing, false arrest etc
Define tort
private wrong other than breach of contract that causes damage
what are the three elements of Tort?
Legal duty owed, Legal duty breached and damages directly resulted
What are the two kinds of Torts?
Unintentional and Intentional torts
What happens when strict liability applies to your tort?
the person is considered automatically responsible - meaning if you get sued for strict liability the other person only has to prove damages resulted.
Define a Tortfeasor
someone who commits a wrong against an innocent party (defendant)
Define a Joint tortfeasor
two (or more) people acting together to cause damage
Define negligence
failure to use the care of a reasonable and prudent person given the circumstances
Define Foreseeability (applied to negligence)
the defendant is considered not negligent if the outcome wasn’t reasonably foreseeable
What is ownership of property
different common law duties owed to different types of people entering your premises
Define a trespasser and the duty owed?
someone who enters without the occupiers permission
owed: no traps or intentional harm
Define a licensee and the duty owed?
someone entering for their own purpose with permission from occupier
owed: warn of any hazards known to occupier
define an invitee and the duty owed?
invited in for the benefit of the occupier
owed: protect against dangers known or might reasonably discover
ie. business purpose + customers who purchase products
define the protections to children and the duty owed
are protected by the law (lack judgement to avoid risk)
owed: premises must be safe from all dangers (take all reasonable steps)
what is the occupiers liability act and the duties owed?
this combines both licensees and invitees into one category called “visitor”
duty: make sure they’re safe for the duration/purpose of their visit
define outside premises and the duty owed?
make sure nothing leaks out (safe for people to pass by)
owed: related to the use of the building as well as the maintenance of the build
what is the liability of the landlord
liable when incorrectly warrens fitness for a particular use or conceal an adverse condition
When is a landlord liable?
renting furnished premises, landlord agrees to maintain premises but fails after responsible notice was given, and common areas
describe the liability of tenant to landlord in Tort law
liable for damages caused by negligence
describe the liability of tenant to landlord in Contract Law
for liability assumed by tenant in the lease agreement
What are the liability for children
kids are responsible for their own actions unless you can prove lack of understanding of the consequences
When are parents liable for their children
- fail to supervise the child
damage was caused by a dangerous thing given to the child by parents
child acting on authority of parents
child working in a parents business (if damages result from duties given to child)
define a bailee for hire
one who has temporary custody of property of others for purpose other than sale and is compensated
describe the liabilities for bailees for hire
tort law requires ordinary care; liable when duty is breached by negligence and contractual liability
Describe employers liability
employees are vicariously liable for employee torts while in course of their duties
Employers are not liable when
employees delegate their duties to someone else without employers consent
on a frolic of their own: ie unauthorized time away from business
unauthorized use of employers property
what is an Employers liability for injuries
legal duties established in the Workers Compensation Act
when are contractors held liable (for contractor negligence)
work is inherently dangerous
insured supplies defective material or equipment
insured controls the work
work must be reasonable and insured must have been careful ehrn selecting a contractor
Describe the liability for Domestic and Wild animals
Domestic: owner is liable on the first bite
Wild: strictly liable for any damages caused by animal
Define joint liability
multiple parties act negligently together
explain an insuring agreement
pays legally obligated compensation to 3rd parties for losses in policy period + territory.
Define bodily injury
Bodily injury from an external source (physical)
sickness (internal)
death - resulting from the above sources
define property damage
physical injury to tangible property including loss of use to undamaged property.
Third party coverage only covers
parties not named on policy
define compensatory damage
meant to compensate the wronged party for injury (only kind of insurable damage)
describe coverage on occurrence basis
the policy in force at the time the loss is occurred is the one that pays
define occurrence
accident including long-time exposure
define accident
sudden and unexpected, occurs at a particular point in time.
define continuous exposure
occurs over a long period of time
describe the two limits of insurance
aggregate limit: max for all claims during policy period
split limits: separate limits for per-person injury (all people and property)
Describe the duties in an event of an occurrence or claim
Prompt notice to insurer
Assist in investigation, settlement, or defense
Legal papers: must be immediately forwarded to insurer
Authorize insurer to obtain information
Cannot make voluntary payment other than first aid
Define a supplementary payment
(paid on top of limit of insurance)
cost of defense + expenses of insured to assist + court costs + interest payable
List the 5 supplementary payment types
- reasonable expenses
- emergency medical expenses
- court costs
- bond premiums
- interest payable on the account
