When you or your company is held financially liable for the activities of another person or party, this is known as vicarious liability. This is the legal framework that is most usually used when you are sued for mistakes committed by your contractors, employees, or agents.
What is the purpose of vicarious liability?
The goal of vicarious liability is to provide victims with equitable access to the resources they require after being injured in an accident. When someone is wounded as a result of someone else’s activities, it is only just that the persons who are responsible pay for the damages.
When one person acts at the request of another, it is more equitable to compel the person in charge to pay for the victim’s damages rather than expecting the victim to endure without remedy. A third party may have insurance plans or a higher ability to pay damages than the tortfeasor, allowing the victim to obtain the recompense they are entitled to.
What are the three elements of vicarious liability?
Essential Elements: Defendant employed a negligent person. The negligent person was operating within the course of his or her employment, or the employer allowed or subsequently confirmed the employee’s tortious activities. The value of the real damages.
What is the most common example of vicarious liability?
The employer-employee connection is probably the most typical case of vicarious liability. Respondeat superior is the term for it. If an employee’s illegal behavior occurs while the employee is performing his or her job, the employer is held accountable.
The Exxon Valdez oil spill is a good illustration. The Exxon Shipping Company owned the Exxon Valdez, an oil tanker in this case. The ship collided with a well-known reef on March 24, 1989. The ship’s hull was gashed in the accident, spilling approximately 11 million gallons of crude oil into the waters off Alaska’s coast. It was the greatest oil spill in American history at the time. The oil slick contaminated the waterways for 1300 km along the coast. Hundreds of thousands of whales, otters, and seals died as a result of the disaster.
The captain of the Exxon Valdez was apparently inebriated when the ship hit the reef. He also allowed an inexperienced third mate to pilot the massive vessel.
Exxon Shipping Company, the ship captain’s employer, was judged accountable for the misbehavior of his employee. The firm was forced to pay about $2 billion in cleanup expenditures, as well as nearly as much in habitat restoration and personal damages.
Joint Venturers
A joint venture is a legal entity that consists of a short-term partnership between two people who work together on a business for mutual benefit. In general, each joint venture participant is held vicariously accountable for the actions of the other.
Wayne and Jody, for example, organize a joint venture to open an ice cream shop chain. They use joint venture funds to purchase a business vehicle for ice cream delivery. Jody smashes a pedestrian while driving the sedan to a rendezvous with Wayne, gravely injuring her. The pedestrian sustains serious back injuries and is unable to walk independently. She files a lawsuit against both Wayne and Jody. If she can prove that Jody was at fault, Wayne and Jody could both be held accountable for her injuries. Wayne bears a share of the blame for Jody’s conduct.