Bazley v Curry

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Bazley v Curry

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Hearing: October 6, 1998
Judgment: June 17, 1999
Full case nameThe Children’s Foundation, the Superintendent of Family and Child Services in the Province of British Columbia and Her Majesty The Queen in Right of the Province of British Columbia as represented by the Ministry of Social Services and Housing v. Patrick Allan Bazley
Citations [1999] 2 SCR 534
Docket No. 26013
Prior history Judgment for Bazley in the British Columbia Court of Appeal
Ruling Appeal dismissed
Holding
Vicarious liability may be attached to non-profit organizations
Court Membership
Chief Justice: Antonio Lamer
Puisne Justices: Claire L'Heureux-Dubé, Charles Gonthier, Peter Cory, Beverley McLachlin, Frank Iacobucci, John C. Major, Michel Bastarache, Ian Binnie
Reasons given
Unanimous reasons by McLachlin J
Lamer CJ and Gonthier J took no part in the consideration or decision of the case.

Bazley v Curry, [1999] 2 SCR 534 is a Supreme Court of Canada decision on the topic of vicarious liability where the Court held that a non-profit organization may be held vicariously liable in tort law for sexual misconduct by one of its employees. The decision has widely influenced jurisprudence on vicarious liability outside of Canada. [1]

Supreme Court of Canada highest court of Canada

The Supreme Court of Canada is the highest court of Canada, the final court of appeals in the Canadian justice system. The court grants permission to between 40 and 75 litigants each year to appeal decisions rendered by provincial, territorial and federal appellate courts. Its decisions are the ultimate expression and application of Canadian law and binding upon all lower courts of Canada, except to the extent that they are overridden or otherwise made ineffective by an Act of Parliament or the Act of a provincial legislative assembly pursuant to section 33 of the Canadian Charter of Rights and Freedoms.

Vicarious liability is a form of a strict, secondary liability that arises under the common law doctrine of agency, respondeat superior, the responsibility of the superior for the acts of their subordinate or, in a broader sense, the responsibility of any third party that had the "right, ability or duty to control" the activities of a violator. It can be distinguished from contributory liability, another form of secondary liability, which is rooted in the tort theory of enterprise liability because, unlike contributory infringement, knowledge is not an element of vicarious liability. The law has developed the view that some relationships by their nature require the person who engages others to accept responsibility for the wrongdoing of those others. The most important such relationship for practical purposes is that of employer and employee

Contents

Facts

The Children's Foundation is a provincially funded, non-profit organization which operated two residential care facilities for children aged six to twelve. In April 1966, the foundation employed Leslie Charles Curry to work in its Vancouver home, where he was hired as a childcare counsellor practising "total intervention" in the lives of the children he was caring for. He worked there until March 1980, when the Foundation received a complaint. They investigated and discovered that Curry was in fact a paedophile and had been abusing the children under his care. In 1990 he was charged with 18 counts of gross indecency and two counts of buggery, and was convicted on all but one count, two of those convictions were in relation to the respondent in this case, Patrick Allen Bazley. Curry died not long thereafter. In this case, Bazley sought damages from The Children's Foundation, alleging that they are vicariously liable for the misconduct of its employee.

The main issue in this appeal was whether or not the Children's Foundation should be held vicariously liable for the actions of its employee. There were two questions before the court: May employers be held vicariously liable for sexual assaults on clients or persons within their care?; If so, should non-profit organizations be exempted from liability as a matter of policy?

Judgment

The Supreme Court was cautious to allow vicarious liability to be attached to a non-profit organization. McLachlin J (as she then was) points out that vicarious liability is a form of strict liability, or no-fault liability. The Court was very openly concerned with policy in this decision as vicarious liability can be used by litigants to "sue into deeper pockets" even though the litigant may be suing an employer that is not at fault. McLachlin J surveyed a number of possible policy reasons for the imposition of vicarious liability and adopted two of J. G. Fleming's policy rationales:

In criminal and civil law, strict liability is a standard of liability under which a person is legally responsible for the consequences flowing from an activity even in the absence of fault or criminal intent on the part of the defendant.

(1) providing a just and practical remedy, and
(2) deterring future harm. [2]

Test for vicarious liability

In determining if an employer can be found vicariously liable, courts will often use the Salmond test, which will find an employer liable for the actions of an employee which are:

(1) acts authorized by the employer or
(2) acts which are not authorized by the employer, but are so connected to authorized acts that they may be considered "modes" of acts authorized by the employer.

The Supreme Court here seems to express frustration at this test. It is possible to view Curry's actions either completely independently, or as a mode of performing an authorized act. The Salmond test does not give clear criterion for how differentiate these two. As such, the court clarified the test, saying that the court should consider:

(1) policy reasons in determining that vicarious liability should or should not apply
(2) whether the wrongful act is sufficiently related to the employment to justify imposing vicarious liability.

The court went on to explain that vicarious liability is generally appropriate where there is a significant connection between the creation or enhancement of risk and the wrong that flows from the risk. It will not be enough that the wrong took place on company property or through incidental connections.

In this case, because Curry was left alone for long periods of time unsupervised with his victims, was expected to bathe them and was placed by the foundation in a position of power over them, it can be said that there was a strong connection between what the employer was asking the employee to do and the wrongful act committed. The foundation significantly increased the risk of harm, and as such, should be found vicariously liable for Mr. Curry's actions.

Exception for non-profits?

The Foundation made three arguments that as a non-profit it should not be found vicariously liable

  • it is unfair to fix liability without fault on non-profit organizations performing needed services on behalf of the community as a whole
  • non-profit charitable organizations often work with volunteers and are thus less able than commercial enterprises to supervise what their agents do
  • vicarious liability will put many non-profit organizations out of business or make it difficult for them to carry on their good work

McLachlin dismissed these arguments as "crass and unsubstantiated utilitarianism" and pointed out:

The appeal was dismissed and the matter was sent back to trial to determine costs.

See also

<i>Armory v Delamirie</i>

Armory v Delamirie[1722] EWHC J94, (1722) 1 Strange 505, is a famous English case on personal property law and finder's rights. It is one of the first cases that established possession as a valuable property right and as evidence of ownership. The defendant in the case was Paul de Lamerie, a great producer of silverworks in the 18th century. His name was misspelled by the court reporter.

<i>Lister v Hesley Hall Ltd</i>

Lister v Hesley Hall Ltd [2001] UKHL 22 is an English tort law case, creating a new precedent for finding where an employer is vicariously liable for the torts of their employees. Prior to this decision, it had been found that sexual abuse by employees of others could not be seen as in the course of their employment, precluding recovery from the employer. The majority of the House of Lords however overruled the Court of Appeal, and these earlier decisions, establishing that the "relative closeness" connecting the tort and the nature of an individual's employment established liability.

Related Research Articles

Respondeat superior is a doctrine that a party is responsible for acts of their agents. For example, in the United States, there are circumstances when an employer is liable for acts of employees performed within the course of their employment. This rule is also called the master-servant rule, recognized in both common law and civil law jurisdictions.

English tort law

English tort law concerns the compensation for harm to people's rights to health and safety, a clean environment, property, their economic interests, or their reputations. A "tort" is a wrong in civil, rather than criminal law, that usually requires a payment of money to make up for damage that is caused. Alongside contracts and unjust enrichment, tort law is usually seen as forming one of the three main pillars of the law of obligations.

Secondary liability, or indirect infringement, arises when a party materially contributes to, facilitates, induces, or is otherwise responsible for directly infringing acts carried out by another party. The US has statutorily codified secondary liability rules for trademarks and patents, but for matters relating to copyright, this has solely been a product of case law developments. In other words, courts, rather than Congress, have been the primary developers of theories and policies concerning secondary liability.

<i>R v Canadian Dredge & Dock Co</i>

R v Canadian Dredge & Dock Co is a landmark Supreme Court of Canada decision on corporate liability where the Court adopted the English identification doctrine for liability, which states that culpability for acts and mental states of a corporation can be represented by employees and officers on the basis that they are the "directing mind" of the corporate entity.

The legal principle of vicarious liability applies to hold one person liable for the actions of another when engaged in some form of joint or collective activity.

<i>EB v Order of the Oblates of Mary Immaculate in the Province of British Columbia</i>

EB v Order of the Oblates of Mary Immaculate in the Province of British Columbia, [2005] 3 SCR 45; 2005 SCC 60 is a leading case decided by the Supreme Court of Canada on vicarious liability in employment law and on the application of Bazley v Curry. The Court held that a residential school could not be held liable for the sexual assaults committed by a support staff member because there was not enough connection between the employee's position and the risk of harm.

<i>London Drugs Ltd v Kuehne & Nagel International Ltd</i>

London Drugs Ltd v Kuehne & Nagel International Ltd, [1992] 3 SCR 299 is a leading decision of the Supreme Court of Canada on privity of contract.

Vicarious liability in English law is a doctrine of English tort law that imposes strict liability on employers for the wrongdoings of their employees. Generally, an employer will be held liable for any tort committed while an employee is conducting their duties. This liability has expanded in recent years following the decision in Lister v Hesley Hall Ltd to better cover intentional torts, such as sexual assault and deceit. Historically, it was held that most intentional wrongdoings were not in the course of ordinary employment, but recent case law suggests that where an action is closely connected with an employee's duties, an employer can be found vicariously liable. The leading case is now the Supreme Court decision in Catholic Child Welfare Society v Institute of the Brothers of the Christian Schools, which emphasised the concept of "enterprise risk".

<i>Rose v Plenty</i>

Rose v Plenty [1976] 1 WLR 141 is an English tort law case, on the issue of where an employee is acting within the course of their employment. Vicarious liability was tenuously found under John William Salmond's test for course of employment, which states that an employer will be held liable for either a wrongful act they have authorised, or a wrongful and unauthorised mode of an act that was authorised.

<i>Mattis v Pollock</i>

Mattis v Pollock [2003] 1 WLR 2158 is an English tort law case, establishing an employer's vicarious liability for assault, even where it may be intentional or pre-meditated. Previously, judges had been unwilling to impose liability where assaults were motivated by revenge or vengeance; it was established however that following the decision of Lister v Hesley Hall Ltd, that where an assault is closely linked to the duties of an employee, the employer should be held vicariously liable.

<i>Moore Stephens v Stone Rolls Ltd (in liq)</i>

Stone & Rolls Ltd v Moore Stephens[2009] UKHL 39 is a leading case relevant for UK company law and the law on fraud and ex turpi causa non oritur actio. The House of Lords decided by a majority of three to two that where the director and sole shareholder of a closely held private company deceived the auditors with fraud carried out on all creditors, subsequently the creditors of the insolvent company would be barred from suing the auditors for negligence from the shoes of the company. The Lords reasoned that where the company was only identifiable with one person, the fraud of that person would be attributable to the company, and the "company" could not rely on its own illegal fraud when bringing a claim for negligence against any auditors. It was the last case to be argued before the House of Lords.

<i>Doe v Bennett</i>

Doe v Bennett, 2004 SCC 17 is a legal ruling by the Supreme Court of Canada which upheld the lower court's decision that the ecclesiastical corporation, Roman Catholic Episcopal Corporation of St. George’s, was vicariously liable for sexual abuse by Father Bennett.

Dubai Aluminium Co Ltd v Salaam [2002] UKHL 48 is an English vicarious liability case, concerning also breach of trust and dishonest assistance.

K v Minister of Safety and Security is an important case in the South African law of delict and South African constitutional law. It was heard by the Constitutional Court on May 10, 2005, with judgment handed down on June 13. Langa CJ, Moseneke DCJ, Madala J, Mokgoro J, O'Regan J, Sachs J, Skweyiya J, Van der Westhuizen J and Yacoob J presided. W. Trengove SC appeared for the applicant; PF Louw SC appeared for the respondent. The applicant's counsel was instructed by the Women's Legal Centre, Cape Town. The respondent's attorney was the State Attorney, Johannesburg.

Minister of Safety and Security v Luiters is an important case in the South African law of delict. It was heard in the Supreme Court of Appeal (SCA) on March 7, 2006, with judgment delivered on March 17. Mpati DP, Farlam JA, Navsa JA, Cloete JA and Van Heerden JA presided. RT Williams SC appeared for the appellant and HM Raubenheimer SC for the respondent. The appellant's attorneys were the State Attorneys, Cape Town and Bloemfontein. The respondent's attorneys were Smith & De Jongh, Bellville; Milton de la Harpe, Cape Town; and Honey Attorneys, Bloemfontein. The case was an appeal from a decision in the Cape Provincial Division by Thring J. A subsequent application to appeal it further to the Constitutional Court was rejected.

Minister of Safety and Security v Luiters, an important case in the South African law of delict, was heard in the Constitutional Court on August 17, 2006. Langa CJ, Moseneke DCJ, Madala J, Mokgoro J, Nkabinde J, O'Regan J, Sachs J, Van Der Westhuizen J, Yacoob J and Kondile AJ presided, handing down judgment on November 30. W. Trengove SC and RT Williams SC appeared for the applicant, and HP Viljoen SC and HM Raubenheimer SC for the respondent. The State Attorneys, Cape Town, represented the applicant; the respondent's attorneys were Smith & De Jongh, Bellville.

Pembaur v. City of Cincinnati, 475 U.S. 469 (1986), is a United States Supreme Court case that clarified a previous case, Monell v. Department of Social Services (1978), and established that municipalities can be held liable even for a single decision that is improperly made.

Burlington Industries, Inc. v. Ellerth, 524 U.S. 742 (1998), is a landmark employment law case of the United States Supreme Court holding that employers are liable if supervisors create a hostile work environment for employees. Ellerth also introduced a two-part affirmative defense allowing employers to avoid sex discrimination liability if they follow best practices. Ellerth is often considered alongside Faragher.

References

  1. See for example: Lister v Hesley Hall Ltd , [2001] UKHL 22; and New South Wales v Lepore , [2003] HCA 4.
  2. Bazley v Curry, [1999] 2 SCR 534 at para 29. See also Fleming, John G. (1998). The Law of Torts (9th ed.). Sydney: LBC Information Services. p. 410. ISBN   9780455215334.
British Columbia Court of Appeal court of appeal of the province of British Columbia in Canada

The British Columbia Court of Appeal (BCCA) is the highest appellate court in the province of British Columbia, Canada. It was established in 1910 following the 1907 Court of Appeal Act.