MGMT 224 (Fall 2011) – TORTS – Chapters 6 & 7 I. TORT: Means “wrong” in French. A civil wrong other than a breach of contract. Reasons for Tort Law…. A. Allocate Losses in society B. Influence Behavior II. ELEMENTS OF ANY TORT: All torts have elements. Two are common among all torts: CAUSATION and DAMAGES A. DAMAGES: 1. There are three kinds of Damages recoverable in Tort actions? a. NOMINAL b. COMPENSATORY c. PUNITIVE 2. Nominal: No actual harm – symbolic damages. (E.g. Someone runs across your front yard, TRESPASS occurred, but no actual harm) 3. Compensatory: To restore Plaintiff to position he or she was before the TORT -- to the extent it can be done with money. Two Kinds of Compensatory Damages: a. Special Damages: (Out of pocket expenses) P D, Medical Expenses, Past and Future Lost Wages. b. General Damages: Pain, suffering, emotional distress, etc. Intangible -- what breaking your neck and being unable to move your head for 3 months worth. c. MITIGATION: Plaintiff must take steps to “get better” (e.g. seek proper medical treatment) to lessen his injuries & damages. 4. Punitive Damages: Meant to punish the Defendant to make sure he or she doesn't do it again. Conduct must be either negligent or at lease wanton. 5. JOINT TORTFEASORS: Multiple Defendants, each one is responsible for 100% of damages. This is called Joint and Several Liability: B. CAUSATION: A relation between Defendant’s conduct & harm to Plaintiff: 1. What are two types of Causation: 1 a. Cause in Fact: Set forth using “but for” or “a substantial factor” tests b. Proximate Cause: Foreseeability III. TYPES OF TORTS: A. Types are: 1. Intentional Torts 2. Negligence 3. Strict Liability B. INTENTIONAL TORTS: 1. Assault – Placing someone in fear of an imminent fear of battery 2. Battery - Harmful or Offensive touching. Defenses: Consent, Defense (self/others) 3. False Imprisonment: Confinement without consent. Limited detention for retailers is allowed. 4. Intentional Infliction of Emotional Distress - Outrageous behavior meant to cause extreme emotional distress. Let’s look at the Khan v. Parsons Global case on P. 176 5. Fraud: False statement made with the intent to deceive (scienter) + reliance by a Plaintiff, who suffers damages. 6. Defamation c. Types: Libel (written/recorded) and Slander (spoken) d. Elements: (1) False Communication (2) Published (to a 3rd party) (3) Causes Damages to Plaintiff’s reputation e. Damages need not be proven if per se violation… (1) All libel is “per se” (2) Slander is “per se” if relates to 4 categories 2 Sex Crime Business/Profession Loathsome disease f. Defenses: (1) Truth (2) Privilege: (e.g. testifying in court, reporting a crime, employment setting) (3) Public figure – no defamation unless “actual malice” proven Let’s look at the Hearst case on P. 188 7. Invasion of Privacy 8. Property-related Intentional Torts a. Trespass – Land: Unlawful entry & interference with Real Property b. Trespass – Personal Property (chattel): Interference with use or damage to personal property. c. Conversion: Taking someone’s property (with intent to keep) d. Nuisance: Interference with use or enjoyment of property. 9. Business Torts: Interference with Prospective Business Advantage IV. STRICT LIABILITY: Defendant liable regardless of intent or fault. A. Types: 1. Abnormally Dangerous Activity: Dynamite, toxic waste transport, etc. 3. Statutorily-created: Worker's Comp, Sexual Harassment 4. Products Liability: a. Let’s look at Greenman v. Yuba in Course Reader b. Three types of “Causes of Action” (1) Negligence (2) Strict Liability in Tort (3) Breach of Implied Warranty 3 c. Elements of Strict Liability in Tort (1) Defendant is a merchant who sold the product (2) Product has DEFECT in… (a) Design -OR(b) Manufacture (3) Unreasonably Dangerous to users/consumers, etc. (4) Largely Unchanged (5) Causes Damages to Plaintiff d. Defenses: (1) Contributory/Comparative Negligence applies (2) Assumption of the Risk (3) Product Misuse V. NEGLIGENCE: What is it? (CONDUCT THAT IS CARELESS) A. Elements are as follows: 1. DUTY: Defendant must have a duty to injured party: a. Drivers to other drivers, manufacturers & retailers to consumers, homeowners & business owners to their guests, neighbors to neighbors, corporate directors & officers to the corporations & shareholders, etc. b. NOTE: Sometimes NO DUTY -- Passerby to drowning or injured person; doctor to injured person (BUT, once acts, then owes a duty to be careful) c. Law imposes greater duties to professionals or those in other special relationships: --Accountant, Lawyer, Doctor, Real Estate Broker, Architect and their clients/patients. --Parties to a contract (bad faith) --Sellers & buyers of real property 2. BREACH: Just because you owe a duty, doesn't mean a Plaintiff is entitled to damages --- duty must be breached: 4 ----e.g drive unsafely, sell a defective product, leave spilled milk on walkway, let your water drain onto your neighbor's property, make a negligent investment for your company, etc Let’s look at the Currie case on P. 211 3. CAUSATION 4. DAMAGES B. DEFENSES TO NEGLIGENCE: Affirmative Defenses 1. Contributory Negligence 2. Comparative Negligence 3. Assumption of the Risk Let’s look at the Davenport case on P. 233 C. RES IPSA LOQUITUR: What is it? Helps Plaintiff to establish negligence…ELEMENTS: 1. Elements: a. Negligent conduct has occurred. b. Agent/instrumentality under D's exclusive control c. No contributory negligence by Plaintiff 2. Most typically used in Medical Malpractice or Products cases: P. under surgery, or the exploding coke bottle. 3. BUT, BUT , BUT: Result is a SHIFT IN BURDEN OF PROOF to Defendant. Defendant can still get out of paying Plaintiff by proving no negligence on Defendant’s part. C. NEGLIGENCE PER SE: Defendant Violated Statute - automatically liable to Plaintiff. D. PREMISES LIABILITY - Notice (actual or constructive) of a dangerous condition on the premises. F. ATTRACTIVE NUISANCE: If likely to attract children to dangerous condition: Defendant will be liable. (e.g. unfenced pool) 5