Today’s Lecture #19 Liability Exposures Types of Compensation Basis for Liability Elements of Negligence Defenses Modifications Significance of the Liability Risk Sources of Liability Current Issues

Forms of Compensation Special damages (economic damages) General damages (non economic damages) Punitive damages

Forms of Compensation - Example Which form of compensation is an award for pain and suffering? A)Special damages B)General damages C)Punitive damages D)Exemplatory damages E)None of the above

Basis of Liability Statutory law Common law Stare decisis Criminal and Civil Law Contractual liability

Negligence A failure to act reasonably that causes harm to others. Essential elements (all must be present to apply) 1 A duty to act (or not to act) in some way 2 Breach of that duty 3 Damage or injury to the one owed the duty 4 A causal connection (proximate cause) between the breach and the injury

Negligence - Example A friend is helping you move a couch down some stairs. While you are halfway down the stairs, your phone rings. You drop your end of the couch to answer the phone. The couch falls onto your friend’s foot, breaking it. In this case, which one, if any, of the essential elements for negligence is missing?

Negligence - Example A)A duty to act (or not to act) in some way B)Breach of that duty C)Damage or injury to the one owed the duty D)A causal connection (proximate cause) between the breach and the injury E)None of the elements are missing and you would be liable

Defenses Against Liability Assumption of risk Contributory negligence Comparative negligence Partial Complete Last clear chance Sovereign Immunity

Negligence Defenses - Example You are playing softball with some friends. You slide hard into third base, breaking the thirdbaseman’s ankle. If he sues you, what is your best defense? A)Assumption of risk B)Contributory negligence C)Comparative negligence D)Last clear chance E)You have no defense and will be found liable

Modifications of Negligence Res ipsa loquitur Strict Liability Vicarious Liability Joint and Several Liability

Significance of the Liability Risk Potential Size of Loss Vet med grad student injured in 1976 Fender-bender cases Back injury with no damage to vehicle Slow speed collision Chrysler minivan case $262.5 million Cost of defense Uncertainty of outcome

Sources of Liability Property Activities

Duty of Care Owed Trespasser Refrain from taking steps to harm Licensee Avoid harming Warn of dangers Invitee Maintain safe premises Warn of dangers that cannot be corrected

Other Property Issues Tenant’s Liability to Public Hold-harmless clause Tenant’s Liability to Owner Animals Attractive Nuisance Hazardous Waste

Activities Automobile Liability Professional Liability Operations Product Liability

Liability Issues Medical Malpractice Product Liability Suggested Revisions Changing contingency fee arrangements Shortening the statute of limitation Placing caps on damages Eliminating the collateral source rule