Limited Liability of Vicarious Liability: Time for a Reform
torts clat_ug beginner reform_ideaYou know that doctrine of Res ipsa loquitor? Yeah, it's still alive and kicking in our torts class. But what's really puzzling is the concept of vicarious liability. Company A hires an employee who causes harm to B. In theory, company A is liable as well. But here's the catch - there's a limit to how much liability they can be held for. In England, the House of Lords ruled in Tesco Supermarkets Ltd v Hodges (1998) that a company's liability cannot exceed £2 million.
Fast forward to 2025, and what does that mean? It means a big company can go 'oh, we're sorry, we can only pay £2 million'. Sorry, sorry. That's just not enough. What if the actual damages are £10 million or more? The person suffers and the company just walks away with a pat on the back.
Main problem toh bas yeh hai, limited liability under vicarious liability system ke andar toh hamesha se hi hain. Problem yeh hai ki yeh system company ko encourage karta hai exploitation aur neeche ki jagah kaam karte hain, kyunki unka financial liability limit hai. Isliye, is system ko reform karne se pahle hamein samajhna hoga ki yeh change aapke benefit ke liye hai ya company ke profit ke liye.