De Facto IAS
Vicarious Liability
Vicarious Liability is an established legal
doctrine in tort law that assigns responsibility ➢ Master and Servant
to one individual for the wrongful acts (Employer-Employee):
committed by another, based on their A notable case is Century Insurance
relationship. The essence of vicarious liability Co. Ltd. v. Northern Ireland Road
lies in its focus on relationships where one Transport Board, where an employer
party has the right, ability, or duty to control was held liable for the negligent acts
the activities of another. of an employee who caused damage
during the course of his employment.
Relationships and Examples This relationship underscores the
➢ Principal and Agent breadth of vicarious liability within
A classic example is seen in the case employment settings.
of Lloyd v. Grace, Smith & Co.,
where a firm was held liable for the
fraudulent acts of its managing clerk. Course of Employment
The clerk's actions, though fraudulent, An employee's act is considered within the
were performed within the scope of course of employment if it is authorised by
his employment duties, thus making the employer or is a wrongful execution of an
the firm vicariously liable. authorised act.
➢ Partnership Independent Contractor vs. Servant
In a partnership, all partners can be Distinctions are critical here; employers are
held jointly and severally responsible generally not liable for the torts committed by
for tortious acts committed by any one independent contractors due to the lack of
of them during the ordinary course of control over how their work is performed.
business. This shared liability ensures However, liability for employees (servants) is
that victims of torts can seek redress maintained because of the control employers
from any or all members of the have over their actions.
partnership.
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De Facto IAS
Notable Cases
Mersey Docks and Harbour Board v. Smt. Kundan Kaur v. S. Shankar Singh
Coggins & Griffiths (Liverpool) Ltd. This case further reinforces the principle of
This case highlighted that the determining vicarious liability based on the control over
factor for liability is control over how the work the servant’s actions. It provided clarity on
is performed. The decision reinforced the how deeply the concept of control influences
importance of defining who acts as a 'servant' liability judgments.
under direct control of the employer.
Vicarious liability remains a fundamental
aspect of modern tort law, emphasising
accountability and responsibility in
professional and commercial relationships. It
ensures that entities and individuals in
positions of power and authority are
motivated to maintain rigorous standards of
oversight and conduct within their operations.
This doctrine is instrumental in promoting
ethical practices and protecting the rights of
individuals from the actions of others within
a controlled relationship.
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