Vicarious liability

Definition: Legal concept that someone in a supervisory role, such as an employer or parent, may be held liable for harm done by their subordinates or employees

Significance: Under the concept of vicarious liability, supervisors may be held responsible for injuries or damage caused by the negligent acts or omissions of their subordinates, whether or not those acts or omissions are specifically authorized by the employers.

Vicarious liability is based on the doctrine of respondeat superior, wherein a supervisor can be held liable for harm done by subordinates while acting within the scope of their agency or employment. Criteria for whether such an action may constitute a vicarious liability include such factors as whether it was related to what the subordinate was hired to do, whether it was done with the intention of serving the employer in some manner, and whether it occurred in an employment-sanctioned time and location. The superior must have either actual or apparent agency in their ability to stop or rectify the damaging behavior. The intent behind the concept of vicarious liability is that the proper party must be held responsible when harm is done, even if that party is not directly involved.

There are many situations, both in business and beyond, in which a party may be charged with vicarious liability. Contractors may face vicarious liability if their subcontractors perform a job incorrectly or are found guilty of contract violations; however, a businessperson who hires an independent contractor typically cannot be held responsible for the contractor's actions. Parents may face vicarious liability when the actions of their children cause harm or damage. Employers may be liable vicariously for sexual harassment or workplace discrimination by an employee, even if that employee acts against the employer’s policies. Vicarious liability suits have expanded; for example, manufacturers of mobile phones whose use contributes to car crashes have been being charged with vicarious liability.

In Faragher v. City of Boca Raton and Burlington Industries v. Ellerth, the U.S. Supreme Court decided that an employer is responsible for sexual harassment or other unlawful actions of its employees, unless the employer had taken steps to prevent workplace harassment and employees failed to take advantage of preventive opportunities provided by the employer.

Vicarious liability is not always clear cut. Some of these murky situations include sexual abuse in institutional settings, such as churches, schools, or social organizations; medical errors; or negligence or harm by the employee of a franchise. Such cases often hinge on the court's interpretation of the criteria for liability, such as whether there was a motive to serve the employer or what level of agency a franchisor has over a franchisee.

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Bibliography

Buckley, William, Cathy Okrent, and Cathy J. Okrent. Torts and Personal Injury Law. 3d ed. Albany, N.Y.: Delmar, 2003.

Chamallas, Martha. "Vicarious Liability in Torts: The Sex Exception." Valparaiso University Law Review 48.1 (2013): 133–93. PDF file.

Gish, Will. "What Is the Difference between Vicarious & Employers' Liability?" Chron. Houston Chronicle, n.d. Web. 3 June 2016.

Graham, Daniel A. "Mobile Apps within a Franchise System: The Vicarious Liability Risk." Franchise Law Journal 34.2 (2014): 213–21. Index to Legal Periodicals & Books Full Text (H.W. Wilson). Web. 3 June 2016.

Hall, Daniel E. Criminal Law and Procedure. 4th ed. Albany, N.Y.: Delmar, 2003.