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UK CASE – Lord Phillips: In England, the principles are that the judges can decided whether it
is fair, just and reasonable for duty to be imposed.
In Australia, we don’t give our judges too much discretion to decide whether duty is
imposed.
Policy reasons:
1. Why is employer liable? More means to compensate for the victim’s loss than the
employee and insure to compensation of liability.
Insurance is not a direct reason for liability. However, it is a matter of practical
reality that we couldn’t have the tort system if it wasn’t for compulsory third party
insurance (e.g. motor vehicle, work place) underwritten by insurance.
There is no point suing someone if they don’t have insurance.
BUT, whether someone is liable or not in negligence is a matter of law.
employer’s insurance to cover for employee’s liability.
2. Tort committed activity taken by the employee on behalf of the employer. Doing the
employer’s job; asked to do this job for the employer.
3. The employee’s activity is part of the employer’s business activity. (enterprise risk)
4. The employer, by employing the employee to carry on the activity will have created
the risk of the tort committed by the employee. (enterprise risk would lead to
strict liability, which is not the case. However, it underpins the reason for vicarious
liability)
5. The employee will, to a greater or lesser degree, have been under the control of the
employer. As a salient feature, control is a very important for imposing a duty. As a
rational for vicarious liability, it is also important. As the employer can control what
is going on, it is easier and reasonable to impose liability on the employer.
1. Employer/Employee
2. Principal/Agent
3. Partner/Partner
Employer/Employee
d. Australian court does not recognize dual vicarious liability. Day and ocean beach
hotel shell harbor case. Only one employer at once may be sued.
Organization test:
Whose business are they doing? Whose organization are they part of?
Multifactorial Approach
Why are we asking the question?
Hollis v Vabu
Question: Whether or not a bicycle courier is an employee or an independent contractor.
No compulsory insurance scheme for bicycle riders. Mr. Hollis couldn’t identify the biker,
however identified the courier company (Vabu) and sues Vabu.
Paragraph 41 Two fundamental concerns underlining the imposition of vicarious
liability
1. Provision of just and practical remedy for the harm suffered (enterprise liability of
wrongs)
2. Deterrence of future harm. Incentive given to the employees to reduce future harms
Bicycle couriers to be treated as employees. Therefore, Vabu is variously labile for Mr.
Hollis.
- Not running their own business
- little control in the manner to how they perform
- presented to the public as amination of vabu, Vabu superintended their finances (set
their amuneration)
- issue of who provided the equipment (beneficent employer would’ve provided the
bicycle)
- the couriers were not just supplementing the major work of Vabu, they were doing
the major work of Vabu.
Matter of deterrence: Vabu knew the dangers of riding the bicycle in public and did not take
action to reduce this risk. Ought to say, that vabu is vicariously liable, is when we put liability
on employer, they receive disciplinary orders to regulate safety and to achieve safety to all
cyclist of vabu. Reason to say why they should be vicariously liable overall, not why the
cyclist are considered as an employer rather than an independent contractor. It is an easier
way of regulating contract. Vabu could’ve done more. They could’ve had a safety system of
work. If his complaint is that Vabu did not have a safe system of work or didn’t instruct their
contractors properly, Mr. Hollist could’ve sued Vabu for personal negligence (not vicarious)
which endangered the pedestrians. They have the duty to check their independent
contractor.
Not only supplementing the major work of Vabu but carrying out the major task. only
business
MATTER OF DETERRENCE: Vabu knew the dangers of pedestrians
Failed to adopt effectives means for the personal identification of these couriers by the
public. (Canadian case: Vicarious liability is deterrence of future harm) disciplinary
actions which will regulate the way the business is ran, achieve safety if obligation is placed
on the employer.
Have to prove that what they did was in the course of employment
Traditional test: “Salmond test” – The course of employment includes an act authorized by
the employer and an act which constitutes an unauthorized mode of performing an
authorized act (merely an unauthorized mode performing an authorized act)
If it is an unconnected act that is not incidental to the acts the employee is engaged to
perform, the wrongful act is not in the course of employment “Frolic of his own” (Joel v
Morison)
Bugge v Brown
Case where some farm workers were sent out to work on the paddocks and were instructed
to use the kitchen of a homestay and not use the chimney next to their work. The farmers
used the chimney anyway, and this lead to a large fire and burnt down the neighbor’s
house. sued employers. Employer argued that the act of their employees was
unauthorized, thus he couldn’t be held liable.
Isaac J: The law recognizes that it is unjust to make the master responsible for every act the
servant chooses to do. On the other hand, the mere fact that something was forbidden does
not satisfy the question of liability. A prohibition (time, place, the act itself) does not limit
the sphere of employment so as to exclude the act of complaint of if the prohibition is
violated. An instruction may limit the prohibition, so distinctly remote and disconnect to put
the relation of the employer virtually a stranger. That was not the case here, thus the act
was in the course of employment. The employees were employed to cook a meal, they just
followed an unauthorized method. prohibited mode
Deatons v Flew
The plaintiff was in a pub and was drunk and unruly. Barmaid asked him to go away, the
plaintiff struck the barmaid. The Barmaid threw at him a beer glass and hit him broke, and
the plaintiff lost an eye. The plaintiff sues the barmaid and the bar. The barmaid did not
have a successive self-defense case. The judge treats her act as one of retaliation. The
barmaid did not mean to throw the glass. However, the act was an act of tort, not that of
self-defense. The judge wasn’t prepared to take the barmaid’s action as an implied intent of
the bar. In any event, she was not employed to keep order. Spontaneous personal act of
retribution of the barmaid. Dickson J states that the mere occasion provided to carry out
the act does not determine the course of employment.
Stars v RSM Security
Security guard at Bondi hotel was evicting a patron of a hotel. In this case, Mr. Starks was a
patron and was asked to leave. Did not show any violence etc. The security guard head-
butts Mr. Starks. Mr. Starks then sues the Security company and the hotel. The hotel has
outsourced its security to the company.
Was the security guard acting in his course of employment when head-butting Mr. Starks?
Beasily J The act was unreasonable, uncalled for, not the usual mode to persuade
a customer to leave. Nevertheless, he was acting the course of seeking to evict Mr. Starks. It
was directly connect to his authorized act, making the company vicariously liable for the
security guard’s tortious action. As the security was violent in doing what he was hired to
do.
2. Non-Delegable Duties
Where the courts have held that an employer cannot escape liability for negligence by
delegating the performance of the duty and will be personally liable if the delegate is
negligent.
Some aspects of their duty is non-delegable. It is a personally duty on them, and if they
delegated this duty upon someone, they themselves will be held liable.
Wilson & Clyde Coal Co v English
Vicarious liability was very narrow. The employment outsourced some task, they could just
say that they outsourced their duty to an independent contractor.
You had a situation where you have a worker who is injured by something an employer has
done. The employer can be vicariously liable only if it was in the course of employment. If an
independent contractor was used, the employer was not vicariously liable. This case says: as
an employer of a worker, the employer owes a duty to their worker and this duty cannot be
delegated to the employee. If the delegate is negligent, the employer will be liable.
Duty of an employer: safe system, safe equipment and safe premises
Kondis, Mason J