Chapter 5 Torts and Cyber Privacy © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Copyright © 2004 by Prentice-Hall. All rights reserved. Introduction • Tort is the French word for a “wrong.” • Tort law protects a variety of injuries and provides remedies for them. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4-2 Introduction (continued) • Under tort law, an injured party can bring a civil lawsuit to seek compensation for a wrong done to the party or the party’s property. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4-3 Introduction (continued) • Tort damages are monetary damages that are sought from the offending party. • They are intended to compensate the injured party for the injury suffered. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4-4 Tort law imposes a duty on persons and business agents not to intentionally or negligently injure others in society. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4-5 Categories of Torts Intentional Torts Unintentional Torts (Negligence) Strict Liability Torts © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4-6 Intentional Torts Against Persons • The law protects a person from unauthorized touching, restraint, or other contact. • The law also protects a person’s reputation and privacy. • Violations of these rights are actionable as torts. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4-7 Intentional Torts Against Persons (continued) • Assault – The threat of immediate harm or offensive contact; or – Any action that arouses reasonable apprehension of imminent harm. – Actual physical contact is unnecessary. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4-8 Intentional Torts Against Persons (continued) • Battery – Unauthorized and harmful or offensive physical contact with another person. – Actual physical contact is unnecessary between victim and perpetrator. – May accompany assault. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4-9 Intentional Torts Against Persons (continued) • Doctrine of Transferred Intent – Party A intends to harm party B, but actually injures Party C. – Law transfers perpetrator’s intent from target to actual victim. – Victim can then sue perpetrator. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 10 Intentional Torts Against Persons (continued) • False Imprisonment – The intentional confinement or restraint of another person without authority or justification and without that person’s consent. • Physical force • Barriers • Threats of physical violence • False arrest © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 11 Intentional Torts Against Persons (continued) • False Imprisonment (continued) – Threat of future harm or moral pressure not enough – Must be complete imprisonment • Locking only one of several doors not sufficient © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 12 Intentional Torts Against Persons (continued) • False Imprisonment (continued) – Merchant Protection Statutesmerchants may stop, detain, and investigate suspected shoplifters without being held liable for false imprisonment. • There are reasonable grounds for the suspicion, • Suspects are detained for only a reasonable time, and • Investigations are conducted in a reasonable manner. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 13 Intentional Torts Against Persons (continued) • Misappropriation of the Right to Publicity – An attempt by another person to appropriate a living person’s name or identity for commercial purposes. – Also known as the tort of appropriation. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 14 Intentional Torts Against Persons (continued) • Invasion of the Right to Privacy – Tort that constitutes the violation of a person’s right to live his or her life without being subjected to unwanted and undesired publicity. – Placing one in a “false light” © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 15 Intentional Torts Against Persons (continued) • Defamation of Character – False statement(s) made by one person about another. The plaintiff must prove that: • The defendant made an an untrue statement of fact about the plaintiff; and • The statement was intentionally or accidentally published to a third party. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 16 Intentional Torts Against Persons (continued) • Defamation of Character (continued) – Slander – oral defamation of character. – Libel – a false statement that appears in a letter, newspaper, magazine, book, photo, video, etc. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 17 Intentional Torts Against Persons (continued) • Defamation of Character (continued) • In New York Times v. Sullivan, the U.S. Supreme Court held that public officials cannot recover for defamation unless they can prove that the defendant acted with actual malice. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 18 Intentional Torts Against Persons (continued) • Disparagement – Untrue statement made about products, services, property, or reputation of a business – Also called product disparagement, trade libel, or slander of title © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 19 Intentional Torts Against Persons (continued) • Intentional Misrepresentation (Fraud) – Wrongdoer deceives another person out of money, property, or something of value. – Injured party can recover damages. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 20 Intentional Torts Against Persons (continued) • Intentional Misrepresentation (Fraud) – Elements: • Wrongdoer made a false representation • Wrongdoer knew representation was false and intended to deceive other party • Party must justifiably rely on misrepresentation • Must have actual injury © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 21 Intentional Torts Against Persons (continued) • Intentional Infliction of Emotional Distress – Tort that says a person whose extreme and outrageous conduct intentionally or recklessly causes severe emotional distress to another person is liable for that emotional distress. – Also known as the tort of outrage. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 22 Intentional Torts Against Persons (continued) • Malicious Prosecution – Losing plaintiffs that have brought a frivolous lawsuit may be sued by the prevailing defendant – Civil action for damages – Must have suffered injury © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 23 Intentional Torts Against Property • There are two general categories of property: – Real Property • land and anything permanently attached to that land. – Personal Property • things that are movable. – – – – Automobiles Books Clothes Pets © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 24 Intentional Torts Against Property (continued) • Trespass to Land – A tort that interferes with an owner’s right to exclusive possession of land. – Unauthorized use of another person’s property © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 25 Intentional Torts Against Property (continued) • Trespass to and Conversion of Personal Property – Tort of trespass occurs: • Whenever one person injures another person’s personal property • When one interferes with a person’s enjoyment of his or her personal property. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 26 Intentional Torts Against Property (continued) • Trespass to and Conversion of Personal Property – A tort that deprives a true owner of the use and enjoyment of his or her personal property by: • Taking over such property; and • Exercising ownership rights over it. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 27 Unintentional Torts (Negligence) • Unintentional Tort – A doctrine that says a person is liable for harm that is the foreseeable consequence of his or her actions. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 28 Unintentional Torts (Negligence) (continued) • Negligence – Negligence is the omission to do something which a reasonable man would do, or something which a prudent and reasonable man would not do. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 29 Unintentional Torts (Negligence) (continued) To be successful in a negligence lawsuit, the plaintiff must prove that: 1. The defendant owed a duty of care to the plaintiff 2. The defendant breached the duty of care 3. The plaintiff suffered injury 4. The defendant’s negligent act caused the plaintiff’s injury © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 30 Unintentional Torts (Negligence) (continued) • Duty of Care – the obligation we all each other not to cause any unreasonable harm or risk of harm. – The courts apply a reasonable person standard. – Defendants with a particular expertise or competence are measured against a reasonable professional standard. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 31 Unintentional Torts (Negligence) (continued) • Breach of Duty – a failure to exercise care or to act as a reasonable person would act. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 32 Unintentional Torts (Negligence) (continued) • Causation – a person who commits a negligent act is not liable unless his or her act was the cause of the plaintiff’s injuries. – Causation in Fact (actual cause) – Proximate Cause (legal cause) © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 33 Unintentional Torts (Negligence) (continued) • Injury to Plaintiff – the plaintiff must suffer personal injury or damage to his or her property to recover monetary damages for the defendant’s negligence. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 34 Unintentional Torts (Negligence) (continued) • Actual Cause – Defendant’s negligent act must be causation in fact – The actual cause of negligence. – Must have cause-and effect relationship © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 35 Special Negligence Doctrines (continued) • Proximate Cause – Under the law, a negligent party is not necessarily liable for all damages set in motion by his or her negligent act. – The law establishes a point along the damage chain after which the negligent party is no longer legally responsible for the consequences of his or her actions. – General test is forseeability © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 36 Special Negligence Doctrines (continued) • Professional Malpractice – The liability of a professional who breaches his or her duty of ordinary care. – Reasonable professional standard • Medical malpractice • Legal malpractice • Accounting malpractice © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 37 Special Negligence Doctrines (continued) • Negligent Infliction of Emotional Distress – A tort that permits a person to recover for emotional distress caused by the defendant’s negligent conduct. – Some states require physical manifestation © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 38 Special Negligence Doctrines (continued) • Negligence Per Se • Res Ipsa Loquitur • Good Samaritan Laws • Dram Shop Acts • Guest Statutes • Fireman’s Rule • “Danger Invites Rescue” Doctrine • Social Host Liability • Liability of Landowners • Liability of Common Carriers and Innkeepers © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 39 Special Negligence Doctrines (continued) • Negligence Per Se – Violation of a statute that proximately causes an injury – Plaintiff must be within class intended to be protected – Statute enacted to prevent the type of injury suffered © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 40 Special Negligence Doctrines (continued) • Res Ipsa Loquitur – “The thing speaks for itself” – Defendant had exclusive control of situation that caused plaintiff’s injury – Injury would not have ordinarily occurred but for someone’s negligence © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 41 Special Negligence Doctrines (continued) • Good Samaritan Laws – Protects medical professionals that stop and render emergency first aid – Relieves them from liability for ordinary negligence – No relief for gross negligence or intentional or reckless conduct – Laypersons not trained in CPR not covered © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 42 Special Negligence Doctrines (continued) • Dram Shop Acts – Taverns and bartenders can be held civilly liable for injuries caused to or by patrons who were served too much alcohol. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 43 Special Negligence Doctrines (continued) • Guest Statutes – Driver voluntarily gives ride to another – No compensation paid – Driver not held liable for injuries caused by driver’s ordinary negligence – Driver still liable for gross negligence © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 44 Special Negligence Doctrines (continued) • Fireman’s Rule – Firefighters cannot sue negligent party for injuries incurred putting out fires – Applies to police and government workers – Specially trained to do their jobs – They have special medical and retirement programs paid for by public © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 45 Special Negligence Doctrines (continued) • “Danger Invites Rescue” Doctrine – Persons who are injured going to the rescue of another can sue the person who caused the dangerous situation © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 46 Special Negligence Doctrines (continued) • Social Host Liability – Social host liable for injuries caused by guests who are served alcohol at a social function – injure themselves or another due to intoxication © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 47 Special Negligence Doctrines (continued) • Liability of Landowners – Duty of ordinary care owed to invitees and licensees • Invitees on premises for mutual benefit of both parties with consent • Licensee on premises for own benefit, but with consent – Duty not to willfully or wantonly injure trespassers • Person has no invitation or right to be on property © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 48 Special Negligence Doctrines (continued) • Liability of Common Carriers and Innkeepers – Duty of utmost care to passengers and guests © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 49 Superseding or Assumption of Intervening the Risk Event DEFENSES AGAINST NEGLIGENCE Contributory Comparative Negligence Negligence © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 50 Strict Liability • Strict liability is liability without fault. • A participant in a covered activity will be held liable for any injuries caused by the activity even if he or she was not negligent. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 51 Strict Liability (continued) This doctrine holds that: 1. There are certain activities that can place the public at risk of injury even if reasonable care is taken; and 2. The public should have some means of compensation if such injury occurs. © 2006 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman 4 - 52