11:33 Done Week 6 - Extra Reading Tort L... W von Tumor vum Pupi TIR avvur wit haunty, ty TN HEST about how to avoid it. However, businesses themselves are often plaintiffs in lawsuits based on tort. When harm is suffered by your business due to the acts or omissions of another and no breach of contract is involved, there may be a remedy for your business in tort. Later in the chapter, we consider examples such as nuisance, occupiers' liability, and passing off. Vicarious Liability One of the most important principles in tort lawand a principle that business people must always keep in mind-is vicarious liability. Because of vicarious liability, businesses can be held responsible, or liable, for injuries that result from the actions of their employees or the independent contractors who provide services in connection with the business. For example, in the situation described above where vicarious liability liability imposed on one party (often an employer) for the harmful actions or omissions of another (often an employee) 1 For commentary on another case related to this issue, see Jeremy Daniel Schwartz, Using Independent Contractor Not a "Get out of Jail Free' Card," CanLII Connects (20 April 2017), online: . 68 CANADIAN BUSINESS LAW the purchasing manager was injured when she slipped on oil that was not properly cleaned up by a Val-Nam employee, Val-Nam may be held vicariously liable for the employee's negligence. The purchasing manager can sue the employee for negligence, but she can also sue Val-Nam. Vicarious liability holds an employer responsible for the torts that its employees commit while doing their jobs. CASE IN POINT Vicarious Liability Teskey v Toronto Transit Commission, 2003 Canlll 11726 (Ont Sup Ct J) Facts created an employer-employee relationship, and that more The Toronto Transit Commission (TTC) became concerned than one employer (the investigation agency and the TTC) about a drug problem among TTC night shift operators. To may be vicariously liable for the actions of a single employee address it, the TTC hired an agent through an investigation at the same time. It made no difference that the agent was hired to conduct an investigation. agency and trained him to work undercover, posing as a TTC employee. In the course of his employment, the agent reported on Business Lesson marijuana use and a marijuana sales transaction conducted Remember that your business is vicariously liable for the by a TTC employee. However, the agent's credibility was at actions of your employees and contractors. Whether a issue because of his own marijuana use. The TTC employee person is an employee or a contractor is not determinative of made a defamation claim against the agent and, based whether or not vicarious liability will applymore important on vicarious liability, against the TTC and the investigation factors are how much control the company has over the agency. person's work and how closely the tort was connected to that work. Result The TTC was held liable for the agent's actions. The court ruled that the contract between the TTC and the agent MINIMIZING YOUR RISK Train and Monitor Employees - Prevent employees and contractors from committing torts through clear policies, sufficient training, and adequate monitoring. Consider including indemnification clauses (provisions that require your employee := 11:33 Done Week - Extra Reading TortL.. ty = 11:33 Done Week 6 - Extra Reading Tort L... W von Tumor vum Pupi TIR avvur wit haunty, ty TN HEST about how to avoid it. However, businesses themselves are often plaintiffs in lawsuits based on tort. When harm is suffered by your business due to the acts or omissions of another and no breach of contract is involved, there may be a remedy for your business in tort. Later in the chapter, we consider examples such as nuisance, occupiers' liability, and passing off. Vicarious Liability One of the most important principles in tort lawand a principle that business people must always keep in mind-is vicarious liability. Because of vicarious liability, businesses can be held responsible, or liable, for injuries that result from the actions of their employees or the independent contractors who provide services in connection with the business. For example, in the situation described above where vicarious liability liability imposed on one party (often an employer) for the harmful actions or omissions of another (often an employee) 1 For commentary on another case related to this issue, see Jeremy Daniel Schwartz, Using Independent Contractor Not a "Get out of Jail Free' Card," CanLII Connects (20 April 2017), online: . 68 CANADIAN BUSINESS LAW the purchasing manager was injured when she slipped on oil that was not properly cleaned up by a Val-Nam employee, Val-Nam may be held vicariously liable for the employee's negligence. The purchasing manager can sue the employee for negligence, but she can also sue Val-Nam. Vicarious liability holds an employer responsible for the torts that its employees commit while doing their jobs. CASE IN POINT Vicarious Liability Teskey v Toronto Transit Commission, 2003 Canlll 11726 (Ont Sup Ct J) Facts created an employer-employee relationship, and that more The Toronto Transit Commission (TTC) became concerned than one employer (the investigation agency and the TTC) about a drug problem among TTC night shift operators. To may be vicariously liable for the actions of a single employee address it, the TTC hired an agent through an investigation at the same time. It made no difference that the agent was hired to conduct an investigation. agency and trained him to work undercover, posing as a TTC employee. In the course of his employment, the agent reported on Business Lesson marijuana use and a marijuana sales transaction conducted Remember that your business is vicariously liable for the by a TTC employee. However, the agent's credibility was at actions of your employees and contractors. Whether a issue because of his own marijuana use. The TTC employee person is an employee or a contractor is not determinative of made a defamation claim against the agent and, based whether or not vicarious liability will applymore important on vicarious liability, against the TTC and the investigation factors are how much control the company has over the agency. person's work and how closely the tort was connected to that work. Result The TTC was held liable for the agent's actions. The court ruled that the contract between the TTC and the agent MINIMIZING YOUR RISK Train and Monitor Employees - Prevent employees and contractors from committing torts through clear policies, sufficient training, and adequate monitoring. Consider including indemnification clauses (provisions that require your employee := 11:33 Done Week - Extra Reading TortL.. ty =