1. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Chapter 5: Torts andChapter 5: Torts and Cyber TortsCyber Torts © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

2. The Basis of Tort Law  Doing business today involves risks, both legal and financial.  Purpose of Tort Law. A tort is a civil injury designed to provide a remedy (damages) for injury to a protected interest.  2

3. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. The Basis of Tort Law  Damages Available in Tort Actions. Compensatory: reimburse plaintiff for actual losses. Special: quantifiable losses, such as medical expenses, lost wages, and benefits. General: non-monetary, such as pain and suffering, reputation. 3

4. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. The Basis of Tort Law  Damages Available in Tort Actions. Punitive: punish the wrongdoer. Appropriate when defendant’s actions were particularly egregious (actions were intentional or grossly negligent). CASE 5.1 H AMLIN V. H AMPTON L UMBER M ILLS, I NC. (2011). CASE 5.1 H AMLIN V. H AMPTON L UMBER M ILLS, I NC. (2011). What is the formula the court used to determine the fairness of the punitive damages? 4

5. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. The Basis of Tort Law  Tort Reform. Tort Reform Goals. Tort Reform Legislation.  Classification of Torts. Intentional Torts. Unintentional Torts (negligence). 5

6. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Persons  Tortfeasor must “intend” to commit the act, which means: He intended the consequences of his act; or He knew with substantial certainty that certain consequences would result. 6

7. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Persons  Assault and Battery.   False Imprisonment.   Infliction of Emotional Distress.   Defamation.   Invasion of Privacy.   Business Torts.  7

8. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Persons  Assault and Battery. ASSAULT is an intentional, unexcused act that: Creates a reasonable apprehension or fear of, Immediate harmful or offensive contact. NO CONTACT NECESSARY.  8

9. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Persons  Assault and Battery. BATTERY is the completion of the Assault: Intentional or Unexcused. Harmful, Offensive or Unwelcome, Physical Contact.  Plaintiff may be compensated for physical and emotional harm. 9

10. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Persons  Defenses to Assault and Battery. Consent. Self-Defense (reasonable force). Defense of Others (reasonable force). Defense of Property. 10

11. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Persons  False Imprisonment is the intentional: Confinement or restraint. Of another person’s activities. Without justification.  Merchants may reasonably detain customers if there is probable cause. 11

12. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Persons  Intentional Infliction of Emotional Distress. An intentional act that is: Extreme and outrageous, that Results in severe emotional distress in another. Most courts require some physical symptom or illness. 12

13. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Persons  Defamation. Wrongfully hurting a person’s good reputation. Law imposes duty to refrain from making false statements of fact about others. Orally breaching this duty is slander; breaching it in print or media (and internet) is libel. 13

14. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Persons  Defamation. Published statement must be a fact. Opinions are protected speech under the First Amendment, and not actionable. CASE 5.2 O RLANDO V. C OLE (2010). CASE 5.2 O RLANDO V. C OLE (2010). Why did the court allow the case to move forward to trial?  14

15. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Persons  Defamation. Publication Requirement. Basis of defamation is the “publication” of a false statement that holds an individual up to hatred, contempt or ridicule in the community. Publication requires communication to a 3 rd party. 15

16. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Persons  Defamation. Damages for Libel. General Damages are presumed; Plaintiff does not have to show actual injury. General damages include compensation for disgrace, dishonor, humiliation, injury to reputation and emotional distress. 16

17. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Persons  Defamation. Damages for Slander: General Rule: Plaintiff must prove “special damages” (actual economic loss) to prevail for slander. Exception: Slander Per Se. No proof of damages: loathsome disease, business improprieties, serious crime, or unchaste woman. 17

18. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Persons  Defenses to Defamation. Truth is generally an absolute defense. Privileged (or Immune) Speech. Absolute: judicial & legislative proceedings. Qualified: Employee Evaluations. 18

19. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Persons  Defenses to Defamation. Public Figures: Exercise substantial governmental power or are otherwise in the public limelight. To prevail, they must show “actual malice”, i.e., the statement was made with either knowledge of falsity or reckless disregard for the truth. 19

20. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Persons  Invasion of the Right to Privacy. Every person has a fundamental right to freedom from public scrutiny, such as: Appropriation of Identity. Intrusion on Individual’s Affairs or Seclusion. False Light. Public Disclosure of Private Facts. 20

21. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Persons  Appropriation. Use of another’s name, likeness or other identifying characteristic for commercial purposes without the owner’s consent. Issues: Degree of Likeness. Right of Publicity as a Property Right. 21

22. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Persons  Fraudulent Misrepresentation. Elements: Misrepresentation of material fact; Intent to induce another to rely; Justifiable reliance by innocent party; Damages as a result of reliance; Causal connection. Distinguish Fact vs. Opinion (not puffery). 22

23. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Persons  Abusive or Frivolous Litigation. Generally, each of us has the right to sue when we have been legally injured. Torts related to abusive or frivolous litigation include: Malicious prosecution, and Abuse of process. 23

24. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Persons  Wrongful Interference With a Contractual Relationship occurs when: Defendant knows about contract between A and B; Intentionally induces either A or B to breach the contract; and Defendant benefits from breach. 24

25. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Persons  Wrongful Interference With a Business Relationship occurs when: There is an established business relationship; The tortfeasor, using predatory methods, causes relationship to end; and Plaintiff suffers damages. 25

26. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Persons  Defenses to Wrongful Interference include: Interference with justified or permissible. Bona fide competitive behavior is a permissible interference even if it results in the breaking of a contract. 26

27. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Property  Trespass to Land occurs when a person, without permission: Physically enters onto, above or below the surface of another’s land; or Causes anything to enter onto the land; or Remains, or permits anything to remain, on the land. Defenses  27

28. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Property  Trespass to Land Defenses to Trespass to Land: Trespass is necessary, or trespasser is a licensee.  Trespass to Personal Property. Intentional interference with another’s use or enjoyment of personal property without consent or privilege. 28

29. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intentional Torts Against Property  Conversion. Wrongful possession or use of property without permission.  Disparagement of Property. Slander of Quality: publication of false information about another’s product (trade libel). Slander of Title: publication falsely denies or casts doubt on another’s legal ownership of property, resulting in financial loss. 29

30. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Unintentional Torts: Negligence  Tortfeasor does not intend the consequences of the act or believes they will occur. Actor’s conduct merely creates a foreseeable risk of injury.  30

31. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Unintentional Torts: Negligence  Four-Step Analysis: Duty: Defendant owed Plaintiff a duty of care; Breach: Defendant breached that duty; Causation: Defendant’s breach caused the injury; Damages: Plaintiff suffered legal injury. 31

32. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Unintentional Torts: Negligence  Duty of Care and Breach. Defendant owes duty to protect Plaintiff from foreseeable risks that he knew or should have known about. Reasonable Person Standard. A foreseeable risk is one in which the reasonable person would anticipate and guard against. 32

33. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Unintentional Torts: Negligence  Duty of Care and Breach.. 33

34. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Unintentional Torts: Negligence  Duty of Care and Breach. Duty of Landowners. Duty to Warn Business Invitees of Foreseeable Risks (knew or should have known). Duty to discover and remove hidden dangers that might injure invitees. EXCEPTION: Obvious Risks. 34

35. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Unintentional Torts: Negligence  Duty of Care and Breach. Duty of Professionals. Professionals may owe higher duty of care based on special education, skill or intelligence. Breach of duty is called professional malpractice. 35

36. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Unintentional Torts: Negligence  Causation. Even though a tortfeasor owes a duty of care and breaches the duty of care, the act must have caused the Plaintiff’s injuries. Causation is both: Causation in Fact, and Proximate Cause. 36

37. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Unintentional Torts: Negligence  Causation. Is there causation in fact? Did the injury occur because of the Defendant’s act, or would the injury have occurred anyway? Usually determined by the “but for” test, i.e., but for the Defendant’s act the injury would not have occurred. 37

38. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Unintentional Torts: Negligence  Causation. Proximate Cause: An act is the proximate (or legal) cause of the injury when the causal connection between the act and injury is strong enough to impose liability. Were the injuries foreseeable? Judges use proximate cause to limit liability of defendants.  38

39. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Unintentional Torts: Negligence  Causation. Proximate Cause. Proximate cause is limited by foreseeability in the interests of justice and fairness. Consider the landmark case of Palsgraf v. Long Island Railroad Co. (1928). Were the plaintiff’s injuries foreseeable? 39

40. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Unintentional Torts: Negligence  Injury Requirement and Damages. To recover, Plaintiff must show legally recognizable injury. Compensatory Damages are designed to reimburse Plaintiff for actual losses. Punitive Damages are designed to punish the tortfeasor and deter others from wrongdoing. 40

41. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Unintentional Torts: Negligence  Defenses to Negligence. Assumption of Risk.  Superseding Intervening Cause . Contributory or Comparative Negligence.  41

42. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Unintentional Torts: Negligence  Defenses to Negligence. Assumption of Risk. Plaintiff has knowledge of the risk, and voluntarily engages in the act anyway. Defense can be used by participants, as well as spectators and bystanders.  42

43. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Unintentional Torts: Negligence  Defenses to Negligence. Assumption of Risk. Assumption of the risk can be express or implied. CASE 5.3 P FENNING V. L INEMAN (2010). CASE 5.3 P FENNING V. L INEMAN (2010). Is the driver of a beverage cart a “participant” at a golfing event? Generally, courts do not apply assumption of the risk in emergency situations. 43

44. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Unintentional Torts: Negligence  Defenses to Negligence. Superseding Cause. A unforeseeable, intervening act that breaks the causal link between defendant’s act and plaintiff’s injury, relieving defendant of liability. 44

45. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Unintentional Torts: Negligence  Defenses to Negligence. Contributory and Comparative Negligence. Under the common law doctrine of contributory negligence, if Plaintiff in any way caused his injury, he was barred from recovery.  45

46. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Unintentional Torts: Negligence  Defenses to Negligence. Contributory and Comparative Negligence. Most states have replaced contributory negligence with the doctrine of comparative negligence.  46

47. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Unintentional Torts: Negligence  Defenses to Negligence. Contributory and Comparative Negligence. Comparative negligence computes liability of Plaintiff and Defendant and apportions damages. Pure Comparative Negligence States (CA & NY) allow plaintiff to recover even if his liability is greater than that of defendant.  47

48. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Unintentional Torts: Negligence  Defenses to Negligence. Contributory and Comparative Negligence. Modified Comparative Negligence States: percent of damages caused by plaintiff is subtracted from the total award. – 50 Percent Rule: Plaintiff recovers only if liability is less than 50%. – 51 Percent Rule: Plaintiff recovers nothing if liability is greater than 50%. 48

49. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Unintentional Torts: Negligence  Special Negligence Doctrines and Statutes. Res Ipsa Loquitur. Facts and circumstances create presumption of negligence by Defendant. Burden of proof shifts to Defendant to show he was not negligent. 49

50. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Unintentional Torts: Negligence  Special Negligence Doctrines and Statutes. Negligence Per Se: Defendant violates a statute designed to protect Plaintiff. Statute sets out standard of care. Plaintiff is member of class intended to be protected by statute. Statute designed to prevent Plaintiff’s injury. 50

51. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Unintentional Torts: Negligence  Special Negligence Doctrines and Statutes. “Danger Invites Rescue.” Special Negligence Statutes: Good Samaritan Statutes: physicians and medical personnel cannot be sued by victim. Dram Shop Acts. 51

52. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Strict Liability  Liability without fault.  Abnormally Dangerous Activities. Ultrahazardous activities involve serious risk of harm to persons or property that cannot be guarded against by exercise of reasonable care.  Other Applications of Strict Liability. Wild animals, and Product Liability (Ch. 11). 52

53. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Cyber Torts—Online Defamation  Identifying the Author of Online Defamation: usually a threshold barrier to filing suit.  What about the Liability of Internet Service Providers? Communications Decency Act. 53