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11/14/23, 9:39 PM Vicarious Liability in Tort
This principle holds that the employer is responsible for the actions of his/her
employees or agents, who are acting within the scope of their employment or
agency. This principle is important as it provides a means of holding an employer
accountable for the acts of his/her employees, who may cause harm to others.
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Contents [ hide ]
1. Meaning of Vicarious Liability in Tort
2. Relations in which Vicarious Liability arises
2.1. Employer-Employee Relationship
2.2. Principal-Agent Relationship
2.3. Partnership Relationship
2.4. Parent-Child Relationship
2.5. Independent Contractor Relationship
3. Conditions for Vicarious Liability in Tort
3.1. Employer-Employee or Principal-Agent Relationship
3.2. Tortious Act Committed Within the Scope of Employment or Agency
3.3. Connection Between the Tortious Act and the Employment or Agency
3.4. No Personal Motive on the Part of the Employee or Agent
4. Exceptions to Vicarious Liability in Tort
4.1. Frolic and Detour
4.2. Intentional Torts
4.3. Independent Contractors
4.4. Acts Outside the Course of Employment or Agency
4.5. Acts of a Borrowed Servant
5. Tests for determining the master-servant relationship
5.1. Hire and Fire Test
5.2. Direction and Control Test
5.3. Multiple Test
6. Respondeat Superior
7. Various ways in which the liability of Master arises
7.1. Wrong done as a natural consequence of an act by Servant for Master with
due care
7.2. Wrong due to Negligence of Worker
7.3. Wrong by excess or mistaken execution of a lawful authority
7.4. Wrong committed willfully by a servant with the intention of serving the
purpose of the master
7.5. Wrong by Servant’s Fraudulent Act
8. Independent contractor
8.1. Conclusion
employees. The term “tort” refers to any civil wrong that causes harm or injury to
another person, and the term “vicarious liability” refers to the legal responsibility
that an employer has for the actions of his/her employees.
Employer-Employee Relationship
Under the doctrine of vicarious liability, an employer can be held responsible for
the tortious acts of its employees. For example, if an employee of a company
negligently causes an accident while driving a company vehicle, the company
may be held liable for any resulting damages. This is because the employee was
acting within the scope of their employment at the time of the accident.
Principal-Agent Relationship
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Partnership Relationship
In a partnership, each partner can be held vicariously liable for the tortious acts
committed by their fellow partners. This means that if one partner commits a tort
while acting on behalf of the partnership, all partners may be held responsible for
any resulting damages.
Parent-Child Relationship
In certain circumstances, a parent can be held vicariously liable for the tortious
acts committed by their child. For example, if a minor child causes a car accident
while driving a family vehicle, the parent who owns the vehicle may be held
responsible for any resulting damages.
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In order for vicarious liability in tort to apply, certain conditions must be met.
These conditions include:
It is important to note that the relationship must be a legal one, meaning that the
employee or agent must be working under a contract or agreement with the
employer or principal.
If the act was committed outside the scope of employment or agency, the
employer or principal may not be held liable.
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For example, if an employee is tasked with making deliveries for a company and
causes an accident while driving a company vehicle, the employer may be held
liable because the accident occurred while the employee was performing duties
related to the employer’s business.
The tortious act committed by the employee or agent must not have been done
for personal reasons or motives.
For example, if an employee commits a theft during work hours but the theft was
not related to the employer’s business, the employer may not be held liable.
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Intentional Torts
Generally, employers or principals are not held liable for intentional torts
committed by their employees or agents. This includes acts such as assault,
battery, and defamation. However, if the employer or principal knew or should
have known about the employee’s propensity for such behavior, they may still be
held liable.
Independent Contractors
As previously mentioned, an employer or principal is generally not held
vicariously liable for the tortious acts committed by an independent contractor.
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However, there are exceptions to this rule, such as when the contractor is
engaged in inherently dangerous activities or when the employer or principal has
retained control over the contractor’s work.
The hire and fire test is a common law test used to determine whether a master-
servant relationship exists. Under this test, if an employer has the power to hire
and fire an employee, the employer is considered the master and the employee is
considered the servant. The rationale behind this test is that the power to hire
and fire an employee implies a level of control over the employee’s work.
This test is relatively simple, but it may not be determinative in all cases.
The direction and control test is another common law test used to determine
whether a master-servant relationship exists. Under this test, a master-servant
relationship exists if the employer has the right to direct and control the
employee’s work. This includes the ability to give instructions, the power to
supervise the work, and the authority to determine the methods and procedures
used in performing the work.
The direction and control test is often used in cases where the employee is an
independent contractor. In such cases, the employer may not have the power to
hire and fire the contractor, but they may still have the ability to direct and
control their work.
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considered the master, and the independent contractor would be considered the
servant.
Multiple Test
The test for distinguishing between a contract of service and a contract for
service involves determining whether an individual is an employee or an
independent contractor. In Ready Mixed Concrete v Minister of Pensions and
National Insurance (1968) 2 QB 497, the court laid out three conditions that
must be met for a contract of service to exist:
The worker agrees to provide their skills and work to the employer in
exchange for wages or other compensation.
The worker agrees to be subject to a certain degree of control by the
employer in the performance of their work, indicating a master-servant
relationship.
The other provisions of the contract must be consistent with the notion of a
contract of service.
This same test was reaffirmed in The Management of Indian Bank v. The
Presiding Officer.
Other important factors may also be considered when determining the master-
servant relationship, including who owns the tools used in the work, whether the
employee is paid on a daily or monthly basis, and other relevant factors.
Respondeat Superior
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The doctrine of respondeat superior is the most common way in which the
liability of a master arises. Respondeat superior means “let the master answer.”
Under this doctrine, a master is held liable for the torts committed by a servant if
the tort was committed in the course of the servant’s employment.
This is also known as the “course of employment” test. If the tort was committed
outside the course of employment, the master will not be liable.
Under this scenario, the master may be held liable for the wrongful act of their
servant if the act was done in the course of employment and in a careful manner,
but still resulted in harm to a third party.
For example, if a delivery driver who was driving carefully and within the speed
limit accidentally hits a pedestrian while making a delivery, the master may be
held liable for the harm caused to the pedestrian. This is because the driver was
acting in the course of employment, even though they were being careful.
If the servant was negligent in their actions, and this negligence caused harm to a
third party, the master may be held liable for the harm caused. For example, if a
construction worker was negligent in securing a scaffold, and the scaffold
collapses and injures a pedestrian, the employer may be held liable for the harm
caused by their employee’s negligence.
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If the servant commits a fraudulent act in the course of their employment, the
master may be held liable for the harm caused.
For example, if a bank teller embezzles money from a customer’s account, the
bank may be held liable for the harm caused by their employee’s fraudulent act.
Independent contractor
An independent contractor is a person who provides services to a business or
individual as a self-employed individual, rather than as an employee.
Independent contractors are typically hired to perform a specific job or task, and
are not subject to the same level of control and supervision as an employee.
Vicarious liability typically does not apply to independent contractors, as they are
not considered employees of the hiring party. Rather, independent contractors
are responsible for their own actions and are generally liable for any harm or
damages they cause while performing their work.
However, there are some situations where an employer may still be held
vicariously liable for the actions of an independent contractor. For example, if the
employer provides inadequate supervision or training to the independent
contractor, or if the employer directs the independent contractor to perform a
task that results in harm to a third party, the employer may be held liable for the
contractor’s actions.
Conclusion
Vicarious liability in tort arises when specific conditions are met, including the
existence of an employer-employee or principal-agent relationship, the tortious
act is committed within the scope of employment or agency, a connection
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between the act and the employer’s or principal’s business, and no personal
motive on the part of the employee or agent.
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