1. What level of duty does CI owe to BTF, and has CI breached that duty?

2. To what extent is the concept of cause in fact versus proximate cause important in regard to CI’s liability?

3. At what point, if any, is CI’s liability cut off? Does OC assume full liability for the fire?

4. Assume that BTF had fired its night security guard on February 1 and never refilled the position. Thus, no guard was present when the fire started. Articulate a possible defense for CI and OC based on this fact. 

5. Suppose that after the incident the sales manager of Data Management Inc., one of CI’s competitors, is having lunch with Sheldon, the chief information officer of City Hospital. City Hospital has an existing contract with CI to maintain City Hospital’s network. During lunch, Data Management’s sales manager tells Sheldon about the fire incident and also states that, based on his personal knowledge, CI is a shoddy outfit that has a poor reputation in the industry. The sales manager then proposes a new Data Management information system for City Hospital at a lower price than CI’s. When Sheldon is reluctant to consider the offer, Data Management’s sales manager offers to pay any penalty that City Hospital suffers as a result of canceling the CI contract. Sheldon cancels the contract with CI, citing customer service problems. What possible torts have been committed? What are the requirements for CI to recover damages?

Computer Installers (CI) Inc. is a company that sells, installs, and maintains computer networks for organizations that have large numbers of users. CI entered into a contract with Big Time Firm (BTF) to replace the firm’s computer network. CI’s contract included routine installation tasks such as laying network cable and wiring in the various offices to facilitate numerous network users simultaneously, installing new PCs in one-third of the network user stations, and setting up an appropriate net-work server with sufficient backup capability. CI arrived on March 1 and began work on rewiring BTF’s office to facilitate the new computer system. In the process of installing the new cabling for the network, a CI technician accidentally rewired the system that controlled the fire sprinklers and rendered the sprinklers inoperable. 

Office Cleaners (OC) Inc. was cleaning BTF’s offices at night on March 2. One of OC’s employees left a lit cigarette in one of BTF’s restrooms. That night, as a result of the lit cigarette, a small fire began in the restroom. Because the sprinklers were inoper-able, the fire spread and caused damage to the entire office and equipment in the amount of $50,000.