Suffering physical harm or financial losses due to another person’s negligence feels unfair and unjust. But you may obtain relief by filing a claim for compensation from the at-fault party.
Sometimes a third party is also held responsible for compensation. This legal phenomenon, vicarious liability, allows you to receive the needed financial assistance even if the direct tortfeasor is not able to pay.
What Is Vicarious Liability?
Vicarious liability is a legal concept that assigns responsibility to someone without direct involvement in the event causing injury or loss. The concept is also referred to as “indirect liability” for a wrongful act. This occurs when an organization, business, or employer is held responsible for the actions of their agents or employees.
Examples of Vicarious Liability
Vicarious liability may apply in any situation where an individual or organization is in charge of another person’s actions. Some examples include;
Parent-Child Relationship
Suppose your child was playing with a friend and caused damage to their neighbor’s property. Or, your child recklessly hits another person while riding a bike. In certain of these cases, the parent may be held responsible for the harm caused and liable for any damages awarded to the injured party.
Employer-Employee Relationship
This law applies if the employee caused harm when doing something they were hired to do or following the directions of a supervisor. The employer may be liable for the damages caused by their employee, even if they didn’t explicitly encourage them to do anything wrong.
For example, suppose a surgeon employed by a hospital leaves foreign objects, such as a sponge or tool, inside a patient during surgery. In that case, the hospital may be liable for any damages caused to the patient. Similarly, if a delivery truck driver causes an accident while delivering goods, the company may pay for any damages resulting from the accident.
Contractual Relationship
When two parties enter a partnership, each party’s actions affect the other. If one partner breaches the contract, the other partner may be held vicariously liable for any damages caused by their counterpart.
“Vicarious liability is an extension of business risk that should not be overlooked,” says accident attorney John Eric Fulda. “Partners must understand that regardless of whether a company has explicitly encouraged its employees or partners to take certain actions, they can still be held liable in court if those actions hurt another party.”
Business Directors – Officers and Managers
Directors, managers, and officers are tasked with major decisions that can affect a company’s operations and reputation. As such, they are typically held to higher standards of conduct than other employees.
The company can be vicariously liable if these leaders’ actions or decisions hurt other parties.
What Are Some Exceptions and Exemptions?
While employers are held responsible for torts (civil wrongs) committed by their employees, there are some gray areas.
For example, if an employee commits intentional acts such as assault against another person while on the job, employers may not have to pay for their damages.
Additionally, business owners may avoid vicarious liability if they can show that the employee acted outside their scope of work when they committed the tort in question.
Final Thoughts
Vicarious liability is an important concept for employers, business owners, and employees alike to understand. And by understanding how this concept works, businesses can help protect themselves from financial liability. It, however, takes solid proof to get out of a vicarious liability situation.
Media Information:
Whetstone Perkins & Fulda
1620 Gervais St, Columbia, SC 29201
(803) 373-1182
