Chapter 6 Flashcards

Liability against insurance - Part 1 General Legal Principles

1
Q

Give an example of an intervening cause that would provide a defendant with a defence of remoteness of cause.

A

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.

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2
Q

Describe the case of Scott v. Shepherd (1773) to illustrate a chain of events and the effect it has on proximate cause.

A

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.

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3
Q

Chains of events and intervening causes were subsequently dealt with in two Quebec cases. Describe the outcome of these two cases.

A

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.

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4
Q

Joint Tortfeasors

A

Two or more persons acting in concert for a common purpose and causing injury or damage to another.

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5
Q

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?

A

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.

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6
Q

How is apportionment of liability among joint tortfeasors handled in Quebec?

A

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.

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7
Q

Solidary Obligation

A

Corresponds to the common law principle of joint and several liability. Any one defendant may be liable for the entire share of a judgment.

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8
Q

Vicarious Liability

A

Responsibility for the acts of others.

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9
Q

What is the general rule outlining the responsibility of principals for the acts of their agents?

A

The principal is responsible for the acts of their agents acting on their behalf.

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10
Q

How is the concept of principal and agent referred to in Quebec?

A

Mandator and Mandatary

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11
Q

Explain four ways in which agency can be created.

A

By contract
By ratification
By estoppel
By necessity

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12
Q

Agency by contract (express)

A

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.

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13
Q

Agency by ratification

A

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.

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14
Q

Agency by estoppel

A

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.

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15
Q

Agency by necessity

A

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.

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16
Q

Under what circumstances in a principal-agent relationship can an agent be held liable to a third party?

A

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.

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17
Q

How does the Civil Code of Quebec define mandate?

A

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.

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18
Q

What legal liabilities arise out of the relationship between the mandator and mandatary?

A
  • 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.
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19
Q

What principle is demonstrated in Lockhart v. CPR (1941)?

A

Employer responsible for negligent employee.

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20
Q

How can responsibility remain with the employer when the employee’s actions are expressly forbidden?

A

When the action represents a way of doing what the employee was hired to do. If the employee was carrying out assigned duties, the employer will be held responsible.

21
Q

What is “a frolic of his own” and how would it affect an employer’s responsibility for damage arising from it?

A

If an employee, during business hours, abandons work and does something unrelated to it and in the process, negligently causes damage. The employer is not liable for an employee’s personal negligence.

22
Q

How would liability be assigned if an employee was using the employer’s property without authority to do so?

A

The employer is not responsible for the negligence of the employee if the property was for their own use.

23
Q

When are independent contractors not solely liable for damage they negligently cause others?

A

When:

a. Dangerous work is undertaken
b. Unlawful work is done
c. The principal interferes with the contractor

24
Q

General Contractors:

A

Hire and coordinate other independent contractors to get the job done.

25
Q

Subcontractor:

A

One that contracts to provide some service or material for the performance of a principal contractor’s contract.

26
Q

What principle was reinforced in Davie Shipbuilding v. Cargill Grain (1978)?

A

If the employer or principal “who knows better” interferes with the operation of a contractor, the principal will be liable for any consequences from their interference.

27
Q

How can municipal liability arise?

A

Statutes define the responsibility of cities and municipalities.

28
Q

Misfeasance

A

The improper performance of something that is legal to do.

29
Q

Nonfeasance

A

The omission to perform duties which by law one is bound to do. In other words, it is the failure to do something that ought to be done.

30
Q

Malfeasance

A

An act which in itself is unlawful and is conducted by someone in an official capacity as an official duty.

31
Q

What are some municipal liability exposures?

A

a. State of the highways and sidewalks
b. Weed and insect control
c. Public utilities
d. Persons working for the municipality

32
Q

How do requirements regarding notice differ between municipal and other types of liability?

A

The time period varies with the type of loss. The time limit is short; 7, 10 or 15 days from the time of loss. Often must be submitted in writing.

33
Q

How is municipal liability determined in Quebec?

A

Municipalities are liable like any individual in torts under CCQ Article 1457 and under statutes like the Cities and Towns Act, the Municipal Code, and specific city charters.

34
Q

What standard of conduct is enunciated in section 1457 of the Civil Code of Quebec?

A

Municipalities are liable like any individual in torts

35
Q

What must an insurer do to protect its subrogation rights?

A

Require that tenants must carry their own insurance.
If a tenant pays a portion of their landlord’s insurance premium, then the tenant becomes a joint insured, and the insurer will not have subrogation rights against the tenant.

36
Q

Who may bring an action in a class action?

A

A member of a group for the benefit of all members. A person has to obtain authorization from the court to institute such an action.

37
Q

Member:

A

A person being part of a group on whose behalf a person brings or intends to bring a class action.

38
Q

In general terms, who may launch a class action and how would they go about it?

A

When

  • Each member of the class has the same interest and not just a similar interest in the subject matter of the litigation.
  • The claim is against a discernible fund or an asset existing for the benefit of the class and there only remains to be determined the right of the plaintiffs to the asset in whole or in part and the right of the individual members of the class to a part of the total class entitlement.
39
Q

What procedures are involved in launching a class action in Quebec?

A
  • Prior authorization of the Superior Court must be obtained.
  • The plaintiff members must prove that the group shares an interest in identical, similar or related questions of law or fact.
  • The court must approve of the representatives of the members bringing the class action.
  • If the representatives don’t bring their demand within 3 months of this authorization, the court may declare it no longer valid.
40
Q

In a class action, what conditions does the court impose when the final judgment is given?

A
  • Every final judgment describes the group and binds the members who have not requested exclusion from the group.
  • The judgment ordering the collective recovery of the claim orders the debtor either to deposit the established amount with the court or to carry out the process in another appropriate way. The judgment may also fix terms and conditions of payment.
  • When final judgment acquires the authority of res judicata (which has the effect of barring another action by an individual to vindicate the same right), the court of first instance orders the publication of a notice. A member may, within one year following publication of the notice, file a claim.
41
Q

What is a limitation period?

A

A period of time after which a cause of legal action may no longer be enforced.

42
Q

Under common law, when does a cause of action time period begin?

A

From the date the damage is incurred.

43
Q

How have some limitation statutes modified the common law?

A

By specifying that the time begins to run from the date the conduct was discovered or some other event.

44
Q

What types of interest might an insurer be called upon to pay in addition to an actual loss?

A
  • Interest levied on the damage award up to the limit of the policy.
  • Interest accruing after the entry of judgment is payable over and above the limit of insurance - but only on the part of the judgment that falls within the limit of liability.
45
Q

How is interest computed on a postjudgment in Quebec?

A

From the day the action is filed to the day when it is paid.

46
Q

How is prejudgment interest on goods computed?

A

From the date that payment was due until the date of judgment.

47
Q

How is prejudgment interest on non pecuniary damages computed?

A

From the date of the notice of claim until the date of judgment. May be the date of the cause of action in some jurisdictions.

48
Q

How is interest computed on a postjudgment in the Common law provinces (usually)?

A

From the date judgment is rendered until the damages are paid.