Torts 2nd half semester w/o negligence

Vicarious Liability

Joint Tortfeasors

Strict Liability

Strict Liability Elements

DUTY (FOUND VIA SL)

  • When is one person/entity responsible for the acts of another?
  • And specifically the torts of another
  • Vicarious liability does not relieve tortfeasor, but adds the liability of the vicariously liable party

Vicarious liability largely grows out of the law of agency. Concept that one person (the agent) can be acting on behalf or in the name of another (the principal)

If an agency relationship exists, then generally things done by the agent are viewed in the eyes of the law as if they are done directly by the principal.

So, find a relationship exists and that tort was in some manner connected to that relationship

But can be different types of relationships that give rise to vicarious liability

Main Types of Relationships RESPONDEAT SUPERIOR

Employer / Employee (historically: Master/Servant) relationships

Apparent Agency

Employer / independent contractor

Joint Enterprises

Bailments

Was the conduct of the same general nature as, or incident to, that which the servant was employed to perform?

Today, mere prohibitions by ER on a behavior are generally of little help to ER (taxi owner prohibiting freelancing and taxi crashes while freelancing)

Whether the conduct was motivated at least in part by a purpose to serve the master

“Frolic and detour”

Frolic = employer not liable

Detour = employer liable

Foreseeability Approach?

  1. If some harm is foreseeable: Liability, even if the particular type of harm was unforeseeable
  1. The conduct must still relate to the employment in some way
    If conduct is something that occurs normally in every day life, then not liable for that

Intentional Torts?

Restatement 2d § 228(1)(d):

Intentional torts involving the use of force result in liability if use of force “not unexpectable by master”

Restatement 2d § 231:

Consciously criminal or tortious acts not per se excluded from scope of employment

Most courts now require a “total abandonment” of the employment context for frolic and detour

Restatement (Second) Agency § 267 provides that: “One who represents that another is his servant or other agent and thereby causes a third person justifiably to rely upon the care or skill of such apparent agent is subject to liability to the third person for harm caused by the lack of care or skill of the one appearing to be a servant or other agent as if he were such.”


Hence, even in the absence of actual agency, a purported principal may be vicariously liable for the tortious conduct of its apparent agent.

Unlike an EE, generally, vicarious liability does not attach to an independent contractor.

How to distinguish between an IC and an EE?

Typically based on degree of control ER exercises over manner in which work is conducted. See, Murrell v. Goertz, p. 760

IC does work on his own time, manner and without direction

BUT, even if tortfeasor is an IC, still may be liability for person hiring IC if an exception applies.

Person hiring (Principal) Liable IF:

  1. Principal actually exerts control over manner and means of doing work (even if no legal right to control)
  1. Principal engages an incompetent IC

3.Nature of Work:


-Work is “inherently dangerous” (i.e., can be carried on safely only with special skill and grave risks if done negligently) – Principal Liable if IC was negligent


-Work is “ultra hazardous” or “abnormally dangerous” (i.e., can’t eliminate risk of harm even if use utmost care – so strict liability) – Principal Liable REGARDLESS of IC negligence.

  1. Non delegable duties (delegate work but not legal responsibility therefor), See note 2.A., p.764

Partners in a partnership can be liable for each other’s torts.

Similarly, persons involved in a joint enterprise (or joint venture) can be found liable

Elements

2) a common purpose to be carried out by the group;

(3) a community of pecuniary interest in that purpose, among the members; and

4) an equal right to a voice in the direction of the enterprise, which gives an equal right of control.

(1) an agreement, express or implied, among the members of the group;

Bailment: voluntary transfer by a person (Bailor) of possession of goods to another (Bailee) for some purpose

Generally, just the fact that goods are used by another does not make the owner liable for the bailee’s tort

Neighbor borrows my bicycle and negligently crashes into a pedestrian. I am not liable.

But, some exceptions for automobiles

Family cars (note 2.A., p. 773)

Contrast: Negligent entrustment (owner negligent in letting Bailee drive car)

  • If single defendant, it is clear who to sue, and if prima facie case established, then the damage award is the responsibility of the defendant alone
  • But, in the real world there are many cases where more than one person might be sued and more than one might be found liable
  • We touched on this when we looked at factual causation treatment of CONCURRENT and ALTERNATIVE causes

Joinder

Historically ability to join multiple Defendants into a single suit was limited to situations where the defendants actually acted in concert

Today, substantially easier to sue all the relevant parties in a single action

Which Defendants pay?

For this we need to examine the forms of liability, and determine which applies.

Several Liability

Joint Liability

Joint and Several Liability

Defendant liable the damage that he caused (traditionally included full harm even if others contributed, but today generally considered to be proportionate share of harm)

Impossible to know who caused damage, so all Defendants liable jointly for the harm

.

Show group jointly caused harm and treat each Defendant as also severally responsible for entire harm.

Thus any ONE D can be sued for ENTIRE award

Right of contribution between Ds

applies in THREE fact patterns:

Joint Duty (including vicarious liability situations)

Indivisible Harm



Concerted action (whether or not tortious aim)

D’s act independently but still cause a single unified harm


Truck parks in traffic lane without blinkers, Driver inattentive and doesn’t see truck in time to avoid it, passenger harmed in the resulting collision

If defective product designed, manufactured and sold by unrelated persons, then the designers, manufacturers and sellers are still each under a duty to ensure the product is safe, so joint duty exists – See Note 7, p. 418

Gang mugs plaintiff – see Note 5, p. 417

CONTRIBUTION

Today

Joint and Several liability was the traditional approach since it was plaintiff centered and helped ensure compensation to P

But, Can be very unfair to a wealthy D

Penny harmed by negligence of Joe (90% responsible) and Daddy Warbucks (10% responsible), but Joe is insolvent, so Warbucks has to pay 100% and gets no contribution from Joe

And, as the law moves more toward comparative negligence, does retaining joint and several make sense?

WHO PAYS?

If ALL defendants can be joined AND all are credit worthy, then really irrelevant whether or not J&S liability applies.

If J&S, one pays and other pay him their contribution

If no J&S, each pays plaintiff their share

TYPE OF TORT RELEVANT?

If Intentional Tort or Action in Concert, then generally J&S still applies

If vicarious liability, then J&S still applies

BUT, if CONCURRENT torts where several defendants all contributed INDEPENDENTLY, then states take a variety of approaches

Release

Traditional Common Law rule was release of one tortfeasor acted as the release of all

Today, rule mitigated in most jurisdictions in various ways that permit one D to be released without releasing others

MARY CATER AGREEMENTS

Effectively, the settling defendant and the Plaintiff have aligned interests and act jointly to place more blame/liability on the non-settling defendants

If such agreements are SECRET, then the non-settling defendant is at a grave disadvantage and Jury and Court can be deceived.

Hence, most jurisdictions require such agreements to be disclosed. But, some make them entirely void

Contribution

Almost all states now allow the paying tortfeasor to pursue other tortfeasors for contribution (generally based on their relative share of fault)

BUT, generally no right of contribution between Defendants for INTENTIONAL torts

Of course, irrelevant if jurisdiction has eliminated joint and several liability

Loosely based on concepts of fault.

But, obviously, some intentional or negligent torts don’t necessarily require “fault” (e.g., innocent trespass to property)

SL torts, not so dangerous as to prohibit entirely, but sufficient risk that person has to undertake them at his own peril. Essentially, must insure society against the risks created regardless of fault

Products liability

Breach (FOUND VIA SL)

Causation

Product Liability

Damages

Abnormally dangerous activities

Contractual Claims

Dangerous Animals

Factual

Proximate

2-4 same rules as in Negligence
BUT, Remember, even if SL case proven, Defenses previously discussed may apply!

Traditionally, SL for harms from animals, but over time see general shift toward fault approach

Rules apply to anyone who keeps, possesses, or harbors animal. NOT just owner of animal.

Several dimensions of analysis

Trespass on property of another

Type of animal (Domesticated vs. Wild)

Local customs/expectations

Trespassing Animals

Generally: keeper of animal is SL for physical harm caused by trespass to property


Exceptions:

Cats and dogs: liable only if negligence shown or specific statute on point

Livestock driven along highway: liable only if negligence for damages to property next to road and for accidents on the road

Fencing statutes: in jurisdictions where farm animals allowed to roam freely (no SL default rule), may define liability by whether (1) plaintiff “fenced out” animals (i.e., SL for D if P had fencing) or (2) D “fenced in” animals (i.e., SL only if D did not fence in)

Domesticated Animals

Domesticated animals (determined by region’s customs) only SL if keeper had actual knowledge of reason to know (Scienter) that the particular animal had propensity to cause harm.

Collogually, the “one bite rule”, but know, can show propensity from OTHER facts too. That is, keeper can sometimes still be SL for even the first bite!

Some states may have statutory SL regardless of knowledge

Wild animals

Keepers of Wild animals (determined by region’s customs) are SL for harm caused whether or not animal is known to be dangerous.

Considered wild even if well trained and allegedly domesticated

While US courts slow to adopt, today most jurisdictions recognize idea that an abnormally Dangerous activity results in strict liability when it results in damage to another

RESTATEMENT SECOND
Abnormally Dangerous if:

High degree of risk of harm

Great gravity of likely harm

Risk cannot be eliminated by exercising reas. care

Activity not matter of common usage

Activity inappropriate to place carried on

value of activity to community not proportionate to risks

Case by case determinations; fact sensitive weighing of factors. Not all required.

Importance of Location

Blasting. Typically Abnormally dangerous, but if in remote location maybe not

Restatement 3d, sec. 20

Abnormally Dangerous if:

Activity creates a foreseeable and highly significant risk of physical harm even when reasonable care is exercised, and

Activity is not one of common usage

But, Assumption of Risk can be a defense

As discussed previously, while plaintiff’s contributory negligence was a defense to a normal negligence case, it was NOT a defense to a strict liability case

But, in most comparative negligence jurisdictions, fault is still assigned between a SL defendant and the Plaintiff

Strict Liability

Negligence of Manufacturer

Express Warranty

Implied Warranty

Contract based approach

Privity: Only sue those actually party to a contract

Concept of fairness of tracing each link in chain from design to ultimate consumer purchase

But, creates needless litigation

And, in practice, just ended up in manufacturers escaping liablility

Why use Negligence?

Duty to avoid foreseeable risks

Rejection of “inherently dangerous” requirement

Thus, duty to not manufacture, sell or distribute a foreseeably dangerous product

If breached duty and rest of negligence elements met (causation and damages), then liability follows

A manufacturer is liable to a consumer for breach of an express warranty, when the manufacturer made explicit representations about the goods, even if the consumer bought the goods from a third party

Note, this is NOT negligence. It is a misrepresentation and founded in the incorrectness of a statement that the plaintiff relied upon.

Express Warranty Claims today?

Generally can bring such claims still.

Historically, P needed to show actual reliance on D’s statement (subjective). Today, some courts relax so just need to show a reasonable person would have relied (objective). Note 3, p. 828

Similarly, originally the statement relied upon had to be very specific (e.g., glass WILL not break). Today, often allow recovery for less specific claims.

Every item sold is impliedly fit for the purpose it was intended.

Consequently, if this implied representation is untrue, liability should result

consumer goods generally cannot limit personal injury damages

modern trend (as reflected in the 3d restatement) is to limit implied warranty claims to commercial settings and use the “strict liability” approach to products liability (which we turn to now) to address most product liability situations.

Remember, can still pursue negligence also!

Restatement 3rd of Torts sect 1 and 2 (see p. 841) provides that a person selling or distributing a “defective product” is liable for the harm caused

Still need to prove causation and damages though

APPROACH

Duty to NOT sell or distribute a “defective product

In defining “defective product”, there are three categories of defect, each with their own rules

Failure to Warn defects

Manufacturing defects

That is, this single product was not manufactured to the design specifications.

Since this is strict liability, the plaintiff does not need to show that manufacturing defect is traceable to any specific act of negligence

Covers situations where the specific product that harmed the Plaintiff is defective for reasons peculiar to itself

Breach of Duty

Causation

Factual Causation

Proximate Causation

Damages

Design defects

EITHER

Product departs from intended design ( 3rd Restatement approach)

AND was defective when left M’s hands

Defective product unreasonably dangerous for its intended use (Older 2nd restatement)

There is not fault in following a flawed design Hence, the desire to move toward a negligence based approach for design defects.

OK, but …. exactly when is design defective?

CONSUMER EXPECTATION TEST

RISK UTILITY TEST

Would a reasonable consumer have viewed product as defectively designed?

Foreseeable risks outweigh utility of product to society

But if complex product, is consumer view of soundness of design even relevant?

BUT, in either case, most jurisdictions require showing of Reasonable Alternative Design with burden of proof on the Plaintiff

Reasonable Alternative Design

  1. Safer alternative design:

Would have prevented or significantly reduced risk that materialized

Not less safe in other circumstances/increase risk other users

  1. Alternative design does not substantially impair product’s utility
  1. At time of manufacture, safer alternative was both

Technologically feasible and

Economically feasible

Manifestly Unreasonable Design

Sometimes, it is conceivable that a product’s utility is so small and the harm so great, that product really should never have been produced

Perhaps situation where the harm is part of the INTENDED purpose of product (e.g., bullets designed to maim) so looking for an Alternative Design is a non-sequitur.

Query whether determinations like this really should be reserved for the province of the legislature.

1Foreseeable risk of harm,

2Risk reduced or avoided if provide reasonable warning,

3Reasonable and prudent manufacturer would give warning, and

4 Warning given is adequate

A manufacturer must have knowledge of a potential risk or danger inherent in its product before strict liability can be imposed for failure to warn.

NOTE: To win a warning defect case, still need to show that the warning, if given, would have made a difference. That is, that the plaintiff would have heeded the warning and the harm would not have occurred.


However, that is often only provable by self-serving testimony, and maybe not at all if plaintiff has died

So, most states have a presumption that warning would be read and heeded

A good warning should accomplish at least three things:

Get the user’s attention;

Explain what the hazard is (e.g., it may cause blindness);

Show the user how to avoid the risk (e.g., only use outdoors)

Other warnings serve solely an informative function: There is no way to use product in a way that reduces the health risk to the user.

Defenses

Generally, comparative fault approach also applies in strict liability products cases

That is, assumption of risk just a factor in weighing comparative fault, not a complete bar to recovery

Even though conceptually it seems impossible to compare one’s negligence (where degree of fault can be determined) to another’s strict liability (where technically there might be NO FAULT at all), in the products liability context “strict liability” still has a heavy underpinning in fault and negligence concepts

Manufacturer not liable for unforeseeable abnormal use of product (sometimes couched as lack of factual cause or finding of no defect in design of product, rather than a defense)

Statutes of repose

NON MANUFACTURER LIABILITY

retailer of the original product is ALSO generally StrictlyL for the sale of a defective product
But often can seek indemnity from Manufacturer

Generally, treat everyone in the vertical chain of distribution as SL
But, in many states legislation modifies and limits Wholesaler/retailer liability to own negligence

Who is a “seller” in the chain?

Mere occasional sales not treated as a seller

Merely acting as “agent” or “processor” shouldn’t be seller (since merely “rendering services to facilitate the sale”)

Amazon “marketplace”?

Sevice Providers

Generally, services involve skill and therefore associated torts fall within the realm of negligence.

But, if skill involves a “product” then an argument “could” be made that the service provider is also a “seller” in the distribution chain, and therefore become strictly liable

INJURY TO WHICH SL APPLIES

Generally products liability encompasses personal injury or damage to property (other than the product itself, but there may be a breach of contract claim for that value)

But other losses not recoverable under SL claim:

Failure of product to perform its intended function (but might be an express warranty claim)

Parents and Their Children

Generally: Parents are not liable for the torts of their minor children.

Exceptions:
• A plaintiff could prove the parent was himself or herself negligent

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Courts in limited circumstances allowed a paying defendant to sue

for contribution, which if successful would allow for a pro rata sharing

of liability among the defendants.

• In a pro rata system, each defendant bears an equal share of the

amount paid.

indemnification

In other limited circumstances, a paying defendant could seek indemnification
If successful, the non-paying defendant would have to reimburse the paying defendant for all funds that have been paid.

partial equitable indemnification.

This allows paying defendants to obtain a portion of the amounts paid
based upon the relative responsibility of the parties.