LAWOFTORTS

SEMINAR10

Torts
Atortisarecognised civilwrong(otherthanbreachof
contract)whichgivesrisetoacivilremedy.
Some examplesoftortsinclude:
AssaultandBattery
Defamation
Deceit
Conversion
Confidence
PassingOff
VicariousLiability
Negligence

A.TortofNegligence

Themostcommontortaffecting
businesses,isthetortofnegligence.
Fortheretobeliabilityin
negligence,theredoesnothaveto
beacontractbetweentheparties,
butthefollowing4factorsmustbe
established:

(2)
Breach

(1)
DutyofCare

Negligence

(4)
Remoteness

(3)
Causation

(1)DutyofCare:Test
Inordertoestablishthatthedefendantowesthe
plaintiffadutyofcare,inlaw:
(a) Therelationshipbetweentheplaintiffandthe
defendantmustbecloseandproximateand
(b) Theremustnotbeanypolicyconsiderations
negatingadutyofcare.

(1)DutyofCare:Somewellestablished
areas
Roadusers tootherroadusers
Doctors/lawyers/accountants/bankers/service
providers totheirclients
Manufactures/distributors/importers to
consumerswherethereisdeath,physicalinjuryor
propertydamage
Transporters toownersofgoods/passengers
Employers toemployees
Ownersofpremises tovisitors

(1)DutyofCare
Insomeareas:wellestablishedthatthereisaduty
ofcare.
Insomeareas:wellestablishedthatthereisno
dutyofcare.
Buttherearemanycategoriesinbetween.
Twosuchsituations:
(a) Negligentmisstatements
(b) Pureeconomicloss

(1)aDutyofCare:NegligentMisstatements

Cantherebeliabilityforanegligence
misstatementasopposedtoanegligent
act?
Theansweris______.
However,thereisapossibilityof
unlimitedliabilityandhencecourtsare
morehesitanttofindadutyofcare.

(1)aDutyofCare:Negligent
Misstatements
Dutyofcareinrespectofnegligentmisstatements
islikelytobeestablishedinmoreconstrained
circumstancessuchaswhen(Caparos case):
(a) Thedefendantknowsthattheinformationwas
requiredforthetransactioncontemplated,
(b) Thedefendantknowsthatitwouldbe
communicatedtotheplaintiff,
(c) Thedefendantknowsthattheplaintiffwouldrely
and
(d) Theplaintiffdidrely.

(1)bDutyofCare:PureEconomicLoss
Pureeconomiclossreferstopure
financiallosswhichisnotaccompanied
byphysicalinjury,deathorproperty
damage.
Ifpureeconomiclossisclaimable,there
couldbeunlimitedliabilityandhence
courtsaremorehesitanttofindaduty
ofcare.

(1)bDutyofCare:PureEconomicLoss

However,whereitisnotacaseof
unlimitedliabilityandthereisvery
closeproximitybetweentheparties
(eg:notanunknownpersonsuing)
itmaybeclaimable(RSPArchitects
case).

(2)BreachofDutyofCare:Test

Toseeifthedutyofcarehasbeen
breached:mustseehowanother
reasonablemanwouldhaveactedinthe
circumstances.
Eg:ifyouaredrivingandknock
someonedown,isitaforgone
conclusionthatyouhavebreachedyour
dutyofcareandhenceareliable?

(2)BreachofDutyofCare
Ifthedefendantprofessestohavesomeskill,whowould
anotherreasonablemanrefertointhiscontext?
Indetermininghowanotherreasonablemanwouldhaveacted,
itmaybenecessarytobalance:riskandcostoftaking
preventivemeasures.
Eg:Ifachildfallsoveratigersenclosureinazooandismauled
bythetiger,hasthezoobreacheditsdutyofcare?Whatelse
couldthezoohavedone,takingintoaccountcostandrisk?

(3)Causation

Thismeansthateventhoughthe
defendantowedadutyofcareand
hebreachedit,ifthelossthe
plaintiffissuingforisnotcaused by
thedefendant,thedefendantwould
notbeliable.

BarnettvChelsea&KensingtonHospital
Plaintiffshusbandcametodefendantshospital,complaining
ofvomiting,buthospitaltoldhimtogohomeandconsulthis
owngeneralpractitioner.
Laterplaintiffshusbanddied becauseofarsenicpoisoning.
Plaintiffsuedhospitalfornottreatingherhusband.
Courtheldthehospitalbreachedtheduty,butwasnotliable.
Thiswasbecausetherewasmedicalevidencethatevenifthe
hospitalhadtreatedthehusband,thehusbandwouldhave
diedanywaybecausehecametothehospitalataverylate
stage.
ThusthehospitalsnegligencedidnotCAUSEhisdeath.

(4)Remoteness

Damagescannotbetooremote.
Itwouldbetooremoteifitwasnot
reasonablyforeseeable.
Eg:ifyouknockdownapersonandhe
dies,canhisparentsueyouthecost
ofhavinganotherchildthroughIVF
oristhattooremote?

Defences
Therearesomedefences opentothedefendant
whensuedinnegligence:
(a) VoluntaryAssumptionofRisk;ie:theplaintiff
voluntarilyagreedtoorconsentedtotheloss.If
established,defendantwilltotallynotbeliable.
(b) Contributorynegligence:theplaintiffalso
contributedtotheloss.Ifestablished,damageswill
bereduced.

CaseExample:SayersvHarlow
Plaintifffoundherselflockedinsidea
toilet.
So inanattempttoclimbout she
steppedonthetoiletroll whichtrueto
itsmechanicalrequirementsrotated.
Shefellandinjuredherself.
Wasshecontributorily negligent?

Defences

(c)Anotherdefence:Exclusion/limitation
Clause:
UnderUCTA cannotexcludeliability
for________________.
UnderUCTA canexcludeliabilityfor
otherlossesiftheclauseis__________.

B.TortofVicariousLiability
Theemployer/principalcanbevicariouslyliablefor
employees/agentsactions,if:
(a) Theemployee/agenthascommittedalegalwrong
and
(b) Thewrongtakesplaceinthecourseof
employment/duty.
Note:awrongfulactcantakeplaceinthecourseof
employment/dutyevenifitisnegligentlyor
fraudulentlyorintentionallydone.
However,whatisandwhatisntinthecourseof
employment/dutyisaquestionofdegree.

CaseExample:KohGetKee vLowBengHui

Anoffdutypoliceofficerwhowasin
uniformandarmed,wentona
drinkingspreewithhisfriend.
Hethenaccidentallyshotthefriend.
Werehisemployersvicariouslyliable?
Whatifthepoliceofficerhadshothis
wifeathomeafteraquarrel?
Whatiftherewasalsosomething
wrongwiththerevolverduetothe
employersfault?

B.TortofVicariousLiability

Iftheemployer/principalismade
vicariouslyliable,canheinturntake
actionagainsttheemployee/agent?
Notealso:whileanemployer/principal
canbevicariouslyliableforthewrongful
actsofhisemployee/agent,hewould
notbevicariouslyliableforwrongful
actsonindependentcontractors.Why?

C.TortofPassingOff
Toestablishtortofpassingoff,thefollowing3factorsmustbesatisfied:
Good
Will

Misrepr
esentati
on

Passing
Off

Likelyto
Goodwill:
suffer
loss
Whatcanabusinesshaveagoodwillover?
Canabusinesshavegoodwillovercommondescriptive words(eg:
Coffeemixforcoffeemixturesor3in1 forpaints)?
Howcanabusinessproofthatithasgoodwill?
Misrepresentation:Isthepublicdeceived?

TortofPassingOff

Ifthetortofpassingoffis
established,thedefendant:
maybeliableforlosses,
mayhavereturnprofitsand
maybesubjecttoan
injunction.

TortofPassingOff

Note:insteadoforinadditionto
suinginpassingoff,itmaybe
possiblefortheplaintifftosue
fortrademarkinfringementin
somecircumstances,underthe
TradeMarksAct.

InternationalComparisons
Istherecivil liability formattersother
thanbreachofcontract;ie:torts?

India

Yes

China

Yes butnotsowide/morelimited

US

Yes

Malaysia

Yes

Summary
Atortisarecognised civilwrong(otherthanbreachof
contract)whichgivesrisetoacivilremedy.
Therearemanykindsoftorts,butinthebusinesscontext,
thefollowing3areverycommon:
(a) Negligence
(b) VicariousLiability
(c) PassingOff
Eachofthesearesubjecttotheirownrules.
Note:Itmaysometimesbepossibleforaplaintifftosue
undercontractandtortoronetortandanothertort but
theplaintiffwillonlygetonesetofdamages.

Reading

Chapter13ofRCand/orChapter18of
TB.
Note:tortofconspiracyisnotinthe
syllabus,butyoumaywishtoreaditfor
yourownpurposes.