Lecture 11 STANDARDS OF PROFESSIONAL BEHAVIOUR The Tort of Negligence 1 Introduction and the Duty of Care Context - recap In commercial and business contracts there is a presumption that the parties intend to be bound by what they have agreed to do BUT : How well do the parties have to do it ? What happens if they perform poorly ? Contract :- express terms If a contractual term is broken , there will be a remedy for breach The remedy will depend on the nature of the breach Breach of condition – repudiation (rejection) and/or damages Breach of warranty – damages only Implied terms :- Supply of Goods and Services Act 1982 This Act applies if there are no express terms as to standards of performance S13 the work will be carried out with reasonable care and skill S14 the work will be carried out within a reasonable time s15 the price charged will be reasonable These are innominate terms and the remedy will depend on the impact of the breach : A large impact will be considered to be a breach of condition and give rise to repudiation and /or damages A small impact will be considered a breach of warranty and give rise to damages only BUT ……. What happens if : the breach of contract can be attributed to carelessness ??? carelessness has caused harm in a situation where there is no contract ??? Answer - The Law of Tort Tort seeks to provide a legal remedy for the victims of wrongful conduct A tort is a civil wrong and consists of a breach of duty imposed by the law rather than by agreement as in contract Liability is “fault based” and the claimant must prove that the defendant was blameworthy No fault liability Tortious liability may also be imposed where the defendant is not at fault i.e. 1) Tort of Strict Liability e.g. for injuries caused by defective products 2) Vicarious Liability where one person may be held liable for the torts of another e.g.………. ………an employer is vicariously liable for the torts of his employees committed during the course of their employment Vicarious liability may also arise between partners and between principals and agents Torts relevant to Business :- An understanding of responsibility under the law of tort is vital in business as liability is imposed by the court rather than agreed by the parties and may be imposed without fault The Tort of NEGLIGENCE The tort of negligence is concerned with careless conduct which causes damage i.e. situations where there was a a lack of reasonable care Meaning ? An unreasonable, careless act or mistake at work or in your private life can lead to legal liability for negligence ………. Components of Negligence To be successful in a claim of negligence the claimant must prove : 1) The defendant owed them a duty of care 2) The defendant breached that duty 3) There was consequential damage 1) THE DUTY OF CARE Who is owed a duty of care?? DONOGHUE v STEVENSON [1932] AC 562 Mrs Donoghue and a friend visited a café and the friend bought her a bottle of ginger beer manufactured by the defendant. The beer was in bottle made of dark opaque glass . Mrs Donoghue drank one glass but when she poured a second, the remains of a decomposing snail floated out. Mrs Donoghue suffered shock and gastro–enteritis. As she had not bought the ginger beer her self she was not able to sue the café for breach of contract and so sued the manufacturer for negligence HELD the manufacturer owed Mrs Donoghue a duty of care. As the user of the product , it was reasonably foreseeable that she would be affected by the manufacturers negligence This case established the test for determining the existence of a duty of care. It is called the “neighbour” principle Lord Atkin’s neighbour test You must take reasonable care to avoid acts or omissions which you can reasonably foresee would be likely to injure your neighbour who is your “neighbour” ? persons who are so closely and directly affected by my act that I ought reasonably to have them in contemplation as being so affected when I am directing my mind to the acts or omissions which are called in question ……….. A neighbour could be ………… Employer Co worker Family member Friend Stranger limits of the duty of care CAPARO INDUSTRIES plc V DICKMAN [1990] 1 All ER 568 HELD The following questions should be considered when establishing a duty of care : 1) was the harm suffered reasonably foreseeable 2) was there a relationship of proximity between the parties 3) is it fair, just and reasonable in all the circumstances to impose a duty of care duty of care imposed HOME OFFICE V DORSET YACHT CLUB [1970] AC 1004 HELD the home office owed a duty of care to the claimant when Borstal inmates escaped and caused damage to yachts moored at the club no duty of care imposed HILL V CHIEF CONSTABLE OF WEST YORKSHIRE [1988] 2 All ER 238 A student was murdered by the serial killer know as the “Yorkshire ripper” and her estate sued the defendant for negligence in not catching murderer Peter Sutcliff earlier. HELD there was insufficient proximity for a breach of duty as the risk to the deceased as a member of the public at large was the same as to any other woman. Duty of care – financial loss and negligent statements will be covered in the next lecture References:- Adams, A. (2014) ‘Law For Business Students’. 8th Edn. In SAM Core Reading Volume Two. 2nd Edn. ed. By Jeffree, D. Harlow: Palgrave, 205-266
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