Risk Management Chapter 19

Legal Wrong

Violation of a persons legal rights, or a failure to perform a legal duty owed to a certain person, which may result in liability.

Types of Legal Wrongs

• Crime

• Breach of Contract

• Tort

Tort

Legal wrong for which the court allows a remedy in the form of monetary damages

Plantiff

Person who is injured

Tortfeasor

The alleged wrongdoer

• Intentional

• Strict Liability

• Negligence

Intentional Tort

Intentional act or omission resulting in harm or injury to another person or damage to their property

• Libel

• Slander

• Invasion or Privacy

• Assault

• Battery

Strict Liability

Liability imposed regardless of negligence or fault

• Defective products

• damages caused by animals

• hazardous activities

• workers compensation

Negligence

Failure to exercise the standard of care required by law to protect others from an unreasonable risk of harm

Standard of Care

Based on the care required by a reasonable prudent person

• Not the same for each wrongful act.

Elements of Negligence

1) Legal Duty breached

2) Breach of legal duty

3) Damage or injury

4) Proximate cause: Relationship between negligent act and the infliction of damages, which required an unbroken chain of events.

Compensatory Damages

Compensate the victim for losses actually incurred

Special Damages

Provide compensation for medical expenses, lost earnings, or property damages

General Damages

Can’t be specifically measured (pain and suffering)

Punitive Damages

Designed to punish people and organizations so that others are deterred from committing the same wrongful act.

Defenses for Negligence

• Contributory Negligence

• Comparative Negligence

• Last Clear Chance Rule

• Assumption of Risk

Contributory Negligence

Injured person can’t collect damages if his or her care falls below the standard care required for his or her protection. If they contributed in any ways to injury.

Comparative Negligence

Financial burden of the injury is shared by both parties according to their respective degrees of fault

• Pure rule

• 50% rule: Can’t recover if you are 50% or more at fault.

• 51% rule: Can’t recover if you are 51% or more at fault.

Pure Rule

Can collect damages even if negligent, but your reward is reduced in proportion to your fault

50% rule

Can’t recover if you are 50% or more at fault.

51% rule

Can’t recover if you are 51% or more at fault.

Last Clear Chance rule

Plaintiff who is endangered by his or her own negligence can still recover damages from the defendant if the defendant has a last clear chance to avoid accident but fails to do so

Assumption of Risk Doctrine

Person who understands and recognizes the danger inherent in a particular activity can’t recover damages in the event of an injury.

Imputed Negligence

Under certain conditions, the negligence of one person can be attributed to another.

• Vicarious liability law

• Family Purpose doctrine

• Joint Business Venture

• Dram Shop law

Res Ipsa Loquitur

“The thing speaks for itself”