Vicarious liability is when you are held partly responsible for the unlawful actions of a third party, despite that third party also carrying a share of the liability. This can arise in situations where one party oversees and controls another party and is negligent in fulfilling that responsibility. The supervisory party bears responsibility based on their relationship to the subordinate or associate.
Key Takeaways
- Vicarious liability is when a supervisory party is liable for the negligent actions of a third party for whom they are responsible.
- Employers can reduce the risk of vicarious liability by exercising reasonable care to prevent employee negligence.
- Parents can be held liable for the negligent or criminal actions of their children.
How Vicarious Liability Works
Vicarious liability, also known as imputed liability, pertains to indirect liability for the actions of another person, such as a subordinate or child. For instance, an employer can be held liable for the unlawful actions of an employee, such as workplace harassment or discrimination. The employer might also be liable if an employee negligently operates machinery, resulting in property damage or personal injury.
Imagine a construction worker mishandles crane controls, toppling the wall of a nearby building. The construction company overseeing the project will likely face vicarious liability. Similarly, if an engineer loses control of a train and it causes subsequent damage, the train-operating company may face vicarious liability for any injuries or damages.
The employer is held liable because it is considered:
- Responsible for its employees’ actions during the job
- Capable of preventing and/or limiting harmful acts by its employees
Employers might sidestep vicarious liability by being proactive in exercising reasonable care to curb unlawful behaviors.
Example of Vicarious Liability
A notable example is the 1989 Exxon Valdez oil spill, where Exxon Shipping Co. was held liable for 10.8 million gallons of crude oil spilling into the Alaskan sea due to a series of events that led to the disaster. The lack of supervision of the captain, crew fatigue, and faulty radar equipment were pivotal in holding the company accountable. Despite numerous appeals and the complex maritime law rules regarding ship owner responsibility for an employee’s actions, this case illustrates vicarious liability effectively.
Special Considerations
Another frequent source of vicarious liability occurs when a child acts negligently. Parents can sometimes hold responsibility for their child’s actions. For example, if a child injures someone while driving, parents could be liable for allowing the child access to a vehicle.
Is Malicious Intent Required for Vicarious Liability?
No, malicious intent is not necessary for vicarious liability. An accidental incident can still impose vicarious liability on the responsible party.
How to Protect Yourself from Vicarious Liability Lawsuits
Several business insurance options can help protect business owners from vicarious liability lawsuits. These include general liability, errors and omissions, and umbrella insurance, which covers scenarios beyond the scope of general liability insurance.
More Examples of Vicarious Liability
Many circumstances could lead to vicarious liability. For example, if you lend your car to someone who then causes a traffic accident, you could be vicariously liable. Additionally, police departments have faced vicarious liability when duty weapons were left unsecured during off-duty hours and subsequently used in crimes.
The Bottom Line
Vicarious liability can occur when one person holds legal responsibility for another’s actions, such as an employer for an employee. If you face a vicarious liability situation, consider consulting an attorney for guidance based on your specific circumstances.
References
- Cornell University. Legal Information Institute. “Vicarious Liability”.
- Digital Repository, Villanova University, Charles Widger School of Law. “Oil Over Troubled Waters: Exxon Shipping Co. v. Baker and the Supreme Court’s Determination of Punitive Damages in Maritime Law”, Page 249 (Page 4 of PDF).
- Exxon Valdez Oil Spill Trustee Council. “Details About the Accident”.
- Oyez. “Exxon Shipping Co. v. Baker”.
- California Accident Attorneys Blog. “Department Responsible for Officer’s Failure to Secure His Gun”.
