Vicarious Liability

Question 1

What is Vicarious Liability and what is the only situation where vicarious liability can apply?

Answer 1

Method of making an employer LIABLE to pay damages instead of an employee

The only situation where vicarious liability can apply is where an employee has committed a tort, such as negligence.

Question 2

What defences are available to VL?

Answer 2

none! As it is a strict liability offence

Question 3

Who are the three parties in vicarious liability

Answer 3

Employer, Employee, Victim -

in the scenario you need mention of three different entities - usually

1: NAME OF COMPANY
2: EMPLOYEE
3: VICTIM

Question 4

What two things must be proved to establish vicarious liability?

Answer 4

1) The D is an employee
2) There is a sufficiently close connection between the employee’s field of activities (job) and the wrongful conduct

Question 5

(element 1) What test is used to establish if someone is an employee and what case established this

Answer 5

Economic Reality Test
Established in Ready Mixed Concrete v Minister of Pensions

Question 6

(element 1) What are the three stages of the Economic Reality Test

Answer 6

1) Employee provides work in return for a wage
2) The employee accepts that the work is subject to the employers control
3) All other factors are consistent with the existence of an employment contract

Use scenario to speculate on these might not always be clear.
For instance in one scenario it says ‘he has to wear protective clothing’ showing the second element of control

Question 7

(element 1) What is the real question when establishing if someone is an employee with case law example

Answer 7

We know from the scenario they are doing work for money, the question is if they are an INDEPENDENT CONTRACTOR (paid per job) or given a wage / salary regardless of work

Vicarious Claimants v Barclays - doctor found to be an IC as he got paid per medical

Question 8

What is the second element of VL and how is this established

Answer 8

Sufficiently close connection test originated Lister v Hesley Hall

Must establish there a sufficiently close connection between the field of activities (job) and the wrongful conduct to make the employer liable under the principle of social justice

Question 9

What is the term used for an employees action/ crime unrelated to the employment with case law

Answer 9

‘Frolic of his own’ Storey v Ashton

Question 10

How do you apply a close connection with case!
(2 things)

Answer 10

1) Identify the job
2) Establish if what they did has anything to do with what they are employed to do

is related to the job - Mohamud v Morrisons
is not related to the job - Morisons v Various Claimants