Académique Documents
Professionnel Documents
Culture Documents
SEMINAR10
Torts
Atortisarecognised civilwrong(otherthanbreachof
contract)whichgivesrisetoacivilremedy.
Some examplesoftortsinclude:
AssaultandBattery
Defamation
Deceit
Conversion
Confidence
PassingOff
VicariousLiability
Negligence
A.TortofNegligence
Themostcommontortaffecting
businesses,isthetortofnegligence.
Fortheretobeliabilityin
negligence,theredoesnothaveto
beacontractbetweentheparties,
butthefollowing4factorsmustbe
established:
(2)
Breach
(1)
DutyofCare
Negligence
(4)
Remoteness
(3)
Causation
(1)DutyofCare:Test
Inordertoestablishthatthedefendantowesthe
plaintiffadutyofcare,inlaw:
(a) Therelationshipbetweentheplaintiffandthe
defendantmustbecloseandproximateand
(b) Theremustnotbeanypolicyconsiderations
negatingadutyofcare.
(1)DutyofCare:Somewellestablished
areas
Roadusers tootherroadusers
Doctors/lawyers/accountants/bankers/service
providers totheirclients
Manufactures/distributors/importers to
consumerswherethereisdeath,physicalinjuryor
propertydamage
Transporters toownersofgoods/passengers
Employers toemployees
Ownersofpremises tovisitors
(1)DutyofCare
Insomeareas:wellestablishedthatthereisaduty
ofcare.
Insomeareas:wellestablishedthatthereisno
dutyofcare.
Buttherearemanycategoriesinbetween.
Twosuchsituations:
(a) Negligentmisstatements
(b) Pureeconomicloss
(1)aDutyofCare:NegligentMisstatements
Cantherebeliabilityforanegligence
misstatementasopposedtoanegligent
act?
Theansweris______.
However,thereisapossibilityof
unlimitedliabilityandhencecourtsare
morehesitanttofindadutyofcare.
(1)aDutyofCare:Negligent
Misstatements
Dutyofcareinrespectofnegligentmisstatements
islikelytobeestablishedinmoreconstrained
circumstancessuchaswhen(Caparos case):
(a) Thedefendantknowsthattheinformationwas
requiredforthetransactioncontemplated,
(b) Thedefendantknowsthatitwouldbe
communicatedtotheplaintiff,
(c) Thedefendantknowsthattheplaintiffwouldrely
and
(d) Theplaintiffdidrely.
(1)bDutyofCare:PureEconomicLoss
Pureeconomiclossreferstopure
financiallosswhichisnotaccompanied
byphysicalinjury,deathorproperty
damage.
Ifpureeconomiclossisclaimable,there
couldbeunlimitedliabilityandhence
courtsaremorehesitanttofindaduty
ofcare.
(1)bDutyofCare:PureEconomicLoss
However,whereitisnotacaseof
unlimitedliabilityandthereisvery
closeproximitybetweentheparties
(eg:notanunknownpersonsuing)
itmaybeclaimable(RSPArchitects
case).
(2)BreachofDutyofCare:Test
Toseeifthedutyofcarehasbeen
breached:mustseehowanother
reasonablemanwouldhaveactedinthe
circumstances.
Eg:ifyouaredrivingandknock
someonedown,isitaforgone
conclusionthatyouhavebreachedyour
dutyofcareandhenceareliable?
(2)BreachofDutyofCare
Ifthedefendantprofessestohavesomeskill,whowould
anotherreasonablemanrefertointhiscontext?
Indetermininghowanotherreasonablemanwouldhaveacted,
itmaybenecessarytobalance:riskandcostoftaking
preventivemeasures.
Eg:Ifachildfallsoveratigersenclosureinazooandismauled
bythetiger,hasthezoobreacheditsdutyofcare?Whatelse
couldthezoohavedone,takingintoaccountcostandrisk?
(3)Causation
Thismeansthateventhoughthe
defendantowedadutyofcareand
hebreachedit,ifthelossthe
plaintiffissuingforisnotcaused by
thedefendant,thedefendantwould
notbeliable.
BarnettvChelsea&KensingtonHospital
Plaintiffshusbandcametodefendantshospital,complaining
ofvomiting,buthospitaltoldhimtogohomeandconsulthis
owngeneralpractitioner.
Laterplaintiffshusbanddied becauseofarsenicpoisoning.
Plaintiffsuedhospitalfornottreatingherhusband.
Courtheldthehospitalbreachedtheduty,butwasnotliable.
Thiswasbecausetherewasmedicalevidencethatevenifthe
hospitalhadtreatedthehusband,thehusbandwouldhave
diedanywaybecausehecametothehospitalataverylate
stage.
ThusthehospitalsnegligencedidnotCAUSEhisdeath.
(4)Remoteness
Damagescannotbetooremote.
Itwouldbetooremoteifitwasnot
reasonablyforeseeable.
Eg:ifyouknockdownapersonandhe
dies,canhisparentsueyouthecost
ofhavinganotherchildthroughIVF
oristhattooremote?
Defences
Therearesomedefences opentothedefendant
whensuedinnegligence:
(a) VoluntaryAssumptionofRisk;ie:theplaintiff
voluntarilyagreedtoorconsentedtotheloss.If
established,defendantwilltotallynotbeliable.
(b) Contributorynegligence:theplaintiffalso
contributedtotheloss.Ifestablished,damageswill
bereduced.
CaseExample:SayersvHarlow
Plaintifffoundherselflockedinsidea
toilet.
So inanattempttoclimbout she
steppedonthetoiletroll whichtrueto
itsmechanicalrequirementsrotated.
Shefellandinjuredherself.
Wasshecontributorily negligent?
Defences
(c)Anotherdefence:Exclusion/limitation
Clause:
UnderUCTA cannotexcludeliability
for________________.
UnderUCTA canexcludeliabilityfor
otherlossesiftheclauseis__________.
B.TortofVicariousLiability
Theemployer/principalcanbevicariouslyliablefor
employees/agentsactions,if:
(a) Theemployee/agenthascommittedalegalwrong
and
(b) Thewrongtakesplaceinthecourseof
employment/duty.
Note:awrongfulactcantakeplaceinthecourseof
employment/dutyevenifitisnegligentlyor
fraudulentlyorintentionallydone.
However,whatisandwhatisntinthecourseof
employment/dutyisaquestionofdegree.
CaseExample:KohGetKee vLowBengHui
Anoffdutypoliceofficerwhowasin
uniformandarmed,wentona
drinkingspreewithhisfriend.
Hethenaccidentallyshotthefriend.
Werehisemployersvicariouslyliable?
Whatifthepoliceofficerhadshothis
wifeathomeafteraquarrel?
Whatiftherewasalsosomething
wrongwiththerevolverduetothe
employersfault?
B.TortofVicariousLiability
Iftheemployer/principalismade
vicariouslyliable,canheinturntake
actionagainsttheemployee/agent?
Notealso:whileanemployer/principal
canbevicariouslyliableforthewrongful
actsofhisemployee/agent,hewould
notbevicariouslyliableforwrongful
actsonindependentcontractors.Why?
C.TortofPassingOff
Toestablishtortofpassingoff,thefollowing3factorsmustbesatisfied:
Good
Will
Misrepr
esentati
on
Passing
Off
Likelyto
Goodwill:
suffer
loss
Whatcanabusinesshaveagoodwillover?
Canabusinesshavegoodwillovercommondescriptive words(eg:
Coffeemixforcoffeemixturesor3in1 forpaints)?
Howcanabusinessproofthatithasgoodwill?
Misrepresentation:Isthepublicdeceived?
TortofPassingOff
Ifthetortofpassingoffis
established,thedefendant:
maybeliableforlosses,
mayhavereturnprofitsand
maybesubjecttoan
injunction.
TortofPassingOff
Note:insteadoforinadditionto
suinginpassingoff,itmaybe
possiblefortheplaintifftosue
fortrademarkinfringementin
somecircumstances,underthe
TradeMarksAct.
InternationalComparisons
Istherecivil liability formattersother
thanbreachofcontract;ie:torts?
India
Yes
China
Yes butnotsowide/morelimited
US
Yes
Malaysia
Yes
Summary
Atortisarecognised civilwrong(otherthanbreachof
contract)whichgivesrisetoacivilremedy.
Therearemanykindsoftorts,butinthebusinesscontext,
thefollowing3areverycommon:
(a) Negligence
(b) VicariousLiability
(c) PassingOff
Eachofthesearesubjecttotheirownrules.
Note:Itmaysometimesbepossibleforaplaintifftosue
undercontractandtortoronetortandanothertort but
theplaintiffwillonlygetonesetofdamages.
Reading
Chapter13ofRCand/orChapter18of
TB.
Note:tortofconspiracyisnotinthe
syllabus,butyoumaywishtoreaditfor
yourownpurposes.