LAWS 204 - vicarious liability

Front

What does 'non-delegable' mean?

Back

'Non-delegable' is a principle of law which states that regardless of the fact that an entity or an individual has hired a third party to complete their responsibilities/duties, they themselves are ultimately responsible for ensuring that their tasks (which might entail resolving their debt to another) are sufficiently completed. Any consequences arising out of that duty cannot be imposed on the third party.

Front

What does vicarious liability entail?

Back

Vicarious liability entails that even if the negligent act that caused the plaintiff harm was conducted by the agent and not the principal himself, the claim for vicarious liability can still succeed, due to the relationship between the principal and the person who committed the tortious misconduct.

Front

What does vicarious liability not entail?

Back

The courts do not assess whether the defendant was liable for negligence in a vicarious liability claim!

Front

What is the first policy reason for granting damages for claims of vicarious liablity?

Back

Unlike the agent, who does not have deep enough pockets to recompense the plaintiff, the principal on the other hand, may be more financially stable to pay the victim for his agents negligence.

Front

What is the second policy reason for granting damages for claims of vicarious liablity?

Back

The principal often has insurance, insuring them for negligent acts of the agent.

Front

What is the third policy reason for granting damages for claims of vicarious liability?

Back

When committing the negligent act, the agent is often in the process of conducting the performance of their duties / acting in the principals best interests.

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What is the fourth policy reason for granting damages for claims of vicarious liability?

Back

By operating a business/ having a contract of agency with the third party, the principal accumulated the possibility/ risk that their agent may commit a negligent act, thus causing harm to the plaintiff.

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What is the fifth policy reason for granting damages for claims of vicarious liability?

Back

Because the principal obtains a level of control over the agent, it is only reasonable for a court to hold that the defendant is vicariously liable for a negligent act of their agent.

Front

What type of vicarious liability claims can/cannot succeed in NZ? Why/ Why not?

Back

Vicarious liability claims arising out of personal injuries are struck out by the courts because of the existence of the ACC. However, any other form of claims, such as claims arising out of a plaintiff suffering damage to his property, can proceed to court.

Front

What are independent contractors?

Back

IC are individuals who work for their employer, but they have no particular employment contract as they often set their own hours and locations to complete their set tasks.