Vicarious Liability
Vicarious Liability
Vicarious Liability
The general norm is that a person is responsible for his own wrongdoings,
and no one else could be held responsible for his or her actions but this is
not the rule in all cases and in some circumstances, one person could be
held liable for the actions of another as well, which is when the concept of
vicarious liability arises.
VICARIOUS LIABILITY
Before delving into the concept of vicarious liability, it's vital to remember
that this one of the types of tortious liability, and it literally means "liability of
a person for the tort committed by another." To further comprehend,
consider the following scenario: X is an employee of Y, and while doing his
work, a third party is injured as a result of his negligence. Here, because X
was under the employment of Y, this case falls under the idea of vicarious
liability and Y would be held liable for X's act for two reasons: first, it was
done in the course of employment, and secondly, Y had permitted him to
do so.
The important thing to note here is that vicarious liability does not occur in
all cases. For instance, in this given example itself, just because X
committed something wrong does not automatically render Y liable. Only
when there is a particular relationship between two people does the
concept of vicarious liability come into play. So, in this example, if X and Y
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are in a relationship that is protected by vicarious liability, Y could be held
accountable.
After seeing the above example, it is clear that vicarious liability cannot
occur in any case and that certain conditions must be met in order for it to
fall into this category. The following are the essentials that are required to
be present in the case of vicarious liability:
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activity in the principal's absence that benefits the principal, he will be held
liable because the agent acted for the principal.
In the case of State Bank of India vs Shyama Devi (1978), Shyama Devi's
husband gave money to a friend who worked at the State Bank of India to
be put in Shyama Devi's account. It was observed that the respondents did
not obtain a formal receipt for the deposits, which shows that the employee
misappropriated the money. Therefore, the Supreme Court held that the
employee was not operating in the course of his employment with the bank
when he committed the fraud, but rather in his personal position as the
depositor's friend, and thus the bank could not be held liable.
Further, in the case of Trilok Singh vs. Kailash (1986), the owner of the
motorcycle was outside the country and without his knowledge or
permission, his younger brother rode the motorcycle and caused an
accident. The court held that the younger brother could not be held
vicariously accountable for the accident since he was not deemed to be the
agent of the motorcycle's owner.
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liable despite being in the master-servant relationship. To understand this
better a few instances have been explained below:
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immediate control of the stevedores at the time of the accident,
it held the Harbour Board, the driver's general and permanent
employer, was liable to A and the stevedores were not because
the stevedores had no power to direct the driver how to operate
the crane.
Partners
The wrongs committed by one partner will make the other partner
accountable in the same way as the principal is held liable for the wrongful
act of his agent. In other words, if one partner of the firm does a wrongful
act, all other partners will be held liable to the same amount as the guilty
partner. The case to cite here is Hamlyn vs. Houston (1903), where it was
found that one of the partnership firm’s partners had bribed the plaintiff's
clerk to provide him with confidential information about the plaintiff's
business. The court here held that both the partners of the firm would be
held liable for inciting a breach of contract, which is a wrongful act, even if it
was one of them who had committed the act.
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VICARIOUS LIABILITY OF STATE
Looking at the law in England, earlier the Crown could not be sued in tort
for wrongs that it had actually authorized or that its workers had committed
while in employment. But, the Crown, is now liable for the torts committed
by its servants, just like a private individual, according to the Crown
Proceeding Act, 1947.
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CONCLUSION
To summarize, tortious liability arises from a breach of a legal obligation,
and one type of it is vicarious liability, which allows one person to be held
liable for the torts committed by another if they have a master-servant,
principal-agent, partners of a firm, or employer-independent contractor
relationship. Apart from the conditions that make a person vicariously
liable, there are a few exceptions where the master or principal is not liable
for their employee's actions. The Court uses its discretionary power to
determine the relationship and whether vicarious liability can be applied or
not is decided on the facts of the case. Additionally, how the state could be
held vicariously liable for the servant's act has also been made clear citing
the landmark cases.