Chapter 6 Flashcards
Liability against insurance - Part 1 General Legal Principles
Give an example of an intervening cause that would provide a defendant with a defence of remoteness of cause.
A cyclist collides with a pedestrian walking on a sidewalk. The pedestrian sustains an arm injury as a result of the cyclist’s negligence. On the way to the doctor, the pedestrian sustains a leg fracture when he is hit by a car as he crosses the highway. The leg fracture resulted from an intervening cause.
Describe the case of Scott v. Shepherd (1773) to illustrate a chain of events and the effect it has on proximate cause.
The defendant threw a lighted firecracker (squib) into a crowded market where it fell on a stall. The occupier of the stall threw it away to avoid danger and it fell on another stall where it was similarly thrown away. This happened several times until the firecracker eventually exploded causing injury to the plaintiff. The defendant who lit and then threw the firecracker in the first place was held liable.
Chains of events and intervening causes were subsequently dealt with in two Quebec cases. Describe the outcome of these two cases.
Laperriere v. The King - the issue of proximate cause was upheld.
Beaudoin v. TW Hand Fireworks - the issue of intervening cause because of a break in the chain of events was upheld.
Joint Tortfeasors
Two or more persons acting in concert for a common purpose and causing injury or damage to another.
What right does a joint tortfeasor have when a plaintiff chooses to proceed against only them in an action where joint and several liability applies?
They can seek contribution from the other tortfeasors sharing fault. In practice, the tortfeasor named in the suit will bring third party proceedings against the other tortfeasors.
How is apportionment of liability among joint tortfeasors handled in Quebec?
The victim can claim the whole indemnity from one particular defendant. The defendants can resolve the distribution of damages amongst themselves, however, the law provides that the courts may determine the contribution owed by each of the parties at fault.
Solidary Obligation
Corresponds to the common law principle of joint and several liability. Any one defendant may be liable for the entire share of a judgment.
Vicarious Liability
Responsibility for the acts of others.
What is the general rule outlining the responsibility of principals for the acts of their agents?
The principal is responsible for the acts of their agents acting on their behalf.
How is the concept of principal and agent referred to in Quebec?
Mandator and Mandatary
Explain four ways in which agency can be created.
By contract
By ratification
By estoppel
By necessity
Agency by contract (express)
The legal liability of the principal for the activities of an agent depends upon the agency contract. However, the principal is not only bound by the express authority stated in the contract, but also by the apparent or ostensible authority which arises from the operation of the contract.
Agency by ratification
a. Authority to “act on behalf of” conceded later.
b. An agent may knowingly act for a principal without express authority to do so. If the principal later acquiesces, or, by some positive act demonstrates acceptance and approval of the agent’s actions, then ratification is said to have occurred and agency created between the two.
Agency by estoppel
a. The restraint which the law places on a person to prevent allegations that previous representations, either by word or action, were not truthful, when another person has relied on those representations assuming them to be true.
b. When a principal tacitly agrees to allow someone to act as an agent on a matter where, in fact, no authority has been given.
Agency by necessity
There are cases where no actual authority has been conferred by a principal to an agent, but because of the urgency of the situation, the law allows the person to act as an agent.
Under what circumstances in a principal-agent relationship can an agent be held liable to a third party?
a. On contracts in which the agent is improperly identified.
b. When the principal does not exist.
c. When the agent exceeds the conferred and apparent authority of the agency contract.
How does the Civil Code of Quebec define mandate?
A contract by which a person, the mandator, empowers another person, the mandatary, to represent him in the performance of a juridical act with a third person, and the mandatary, by his acceptance, binds himself to exercise the power.
What legal liabilities arise out of the relationship between the mandator and mandatary?
- The mandator is liable to third parties for all obligations contracted by the mandatary within the limits of the authority or mandate and for acts exceeding such authority when they have been ratified.
- The mandator is also responsible to third parties who, in good faith, contract with a person whom they believe to be a mandatary but who is not, when the mandator has given reasonable cause for such belief.
- The mandator is liable for any injury caused by the fault of the mandatary in performing the mandate (unless proven unpreventable).
- The mandatary cannot act beyond the authority expressed or implied in the mandate except for those acts which are incidental and necessary for execution of the mandate.
- The mandator is obliged to execute the mandate and is responsible for damages arising from the failure to do so.
What principle is demonstrated in Lockhart v. CPR (1941)?
Employer responsible for negligent employee.