Torts From Business Operations

Business operations involve many activities from which torts can occur, especially involving customers and competitors. The most important tort involving customers is negligence, including product liability and professional negligence. Negligence will be discussed separately later. The intentional torts outlined above may also be perpetrated in a business context, as several of the examples illustrated.

Figure outlines the main business torts and what the plaintiff must prove to win the lawsuit. Although the torts in the previous section were labelled “intentional,” the court must normally be satisfied that the defendant in these business torts either intended to hurt the plaintiff or at least knew that loss or harm was reasonably foreseeable. Some of these business torts may also give rise to an action for breach of contract. While the victim may sue the defendant for both a tort and a breach of contract, the plaintiff cannot recover full damages under both actions. This will be discussed in more detail in the section on contract law.

Figure 2-11: Business Torts

In Ontario, Alberta, British Columbia, Manitoba, Nova Scotia, and Prince Edward Island, occupiers’ liability is now covered by legislation. The basic principles of such legislation are that it covers both activities that occur on the premises as well as the condition of the premises (only the latter is covered under common law). The same standard of reasonable care applies to all visitors, but the standard imposed depends on the potential danger to the visitor, the occupier’s cost of removing the danger, the purpose of the visit, and the nature of the premises. For example, in Ontario, an exemption within the statute requires only that the occupier refrain from intentionally hurting certain types of trespassers. Occupiers can normally avoid liability by issuing a warning, such as the warning signs posted at a ski resort or parking garage.