Employers: Beware of Vicarious Liability

The general rule of liability in personal injury cases is that only the tortfeasor (i.e., the person who commits the wrongful act) can be held liable for the injuries they cause. But, as with most legal rules, there are instances where third parties can be held liable. Parents, in some cases, can be held liable for the acts of their children. Likewise, social hosts who serve alcohol to their guests can be held liable for the injuries those guests cause to others. But one of the most common exceptions arises in the employer-employee context, wherein employers can be held responsible for the actions of their employees through vicarious liability. If you’re facing a lawsuit based on the actions of an employee or any other person, a North Carolina personal injury defense attorney can help you fight it. 

What Is Vicarious Liability, and Why Does It Matter? 

Vicarious liability is a legal doctrine wherein a third party can be held liable for the negligent actions of another party. It is an exception to the rule that third parties generally are not liable for the actions of others. It’s based on the third party’s relationship to the party who is accused of causing harm rather than the third party’s own actions. It often arises in the context of respondeat superior (“let the master answer”), a theory in which employers can be held liable for the wrongful acts of their employees. 

In North Carolina, it requires the plaintiff to show: 

1. The plaintiff was injured by the negligence of the alleged wrongdoer
2. An employer-employee relationship existed between the party the plaintiff seeks to hold liable (i.e., the employer) and the party who allegedly caused the harm (i.e., the employee)
3. The negligent action of the employee was done within the scope of their employment or the scope of their authority as an employee
4. The employee was engaged in the work of the employer and was engaged in the business of the employer at the time of the incident

Estes v. Comstock Homebuilding Companies, Inc., 195 N.C. App. 536 (2009).

As you can see, that’s a lot of conditions to meet. The plaintiff first must show that the employee was negligent (a significant hurdle to clear in itself) and must also show the rest of the elements. While this is a high bar to clear, it’s not impossible. That’s why, if you’re a business that is facing a personal injury lawsuit due to the actions of an employee, you should consult a North Carolina personal injury defense attorney. 

Vicarious liability matters for employers because, no matter how fastidiously they adhere to laws, rules, and regulations, they are still at constant risk of liability through the actions of their employees, who may or may not always be so scrupulous. 

Exceptions to Vicarious Liability

There are many and varied exceptions to vicarious liability, some of the most common of which are: 

Outside the Scope of Employment 

In the employer-employee context, a crucial issue in the application of vicarious liability is whether the employee was acting within the scope of their employment. One of the most common defenses to negligence based on vicarious liability, then, is that the employee was acting outside the scope of their employment. Generally, acting “within the scope” means that the employee’s actions were for the purpose of or in some way furthering the interests of the employer. Employers are not responsible for actions committed while employees are on “frolics” — a legal term for a major departure from the scope of employment that is undertaken for the employee’s own benefit.

However, they are responsible for actions committed on “detours” — a minor departure from work duties but still within the scope of employment. As you can imagine, these determinations are intensely fact-specific and vary considerably from case to case. Reasonable minds — and, more importantly, courts — can differ on which actions are within the scope of employment and whether an employee was on a frolic or a detour. However, North Carolina personal injury defense attorneys are skilled in presenting persuasive arguments that certain actions are not within the scope of employment in individual cases. 

No Employer-Employee Relationship 

A key element of the vicarious liability test is that an employer-employee relationship existed between the alleged wrongdoer and the party to be held accountable. As such, a common defense is to demonstrate that no employer-employee relationship existed by showing that the alleged wrongdoer was an independent contractor. However, there is an “exception to the exception” where the contractor is engaged in “non-delegable duties” — generally defined as duties to take precautions against inherently dangerous conditions involved in work delegated to a contractor. So, for example, if a contractor negligently repairs a water heater at a hotel and the water heater causes injury to a guest, the hotel could still be liable because it is the hotel owner’s duty to create a safe environment for their guests. 

Intentional Torts 

Most personal injury cases are based on negligence theories, or arguments that the responsible party made an avoidable mistake that caused injury. Some, however, are based on intentional conduct, which occurs when the responsible party deliberately causes harm to another person (e.g., assault, battery, false imprisonment, etc.). The general rule is that employers are not vicariously liable for the intentional torts of their employees. Of course, there is also an “exception to the exception” here. Employers may be held liable for the intentional torts of their employees if the intentional tort was foreseeable. So, for example, a grocery store owner likely would not be liable if one of its cashiers punched a customer in the face, but a nightclub owner may be held liable if one of its bouncers used excessive force in removing a patron. 

Fight Vicarious Liability With Help From a North Carolina Personal Injury Defense Attorney 

If you’re facing a lawsuit alleging that you were vicariously liable for the actions of an employee or anyone else, please speak to a North Carolina personal injury defense attorney at Harris, Creech, Ward & Blackerby by calling 252-638-6666 or using our online contact form.