Monday, April 4, 2011

Negligence Act ~ Joint Tortfeasors' Liability


(Ontario Real Estate Source)

By Brian Madigan LL.B.

The Negligence Act sets out dealing with the matter of the liability between joint tortfeasors.

Here is the section 1:

Extent of liability, remedy over

1. Where damages have been caused or contributed to by the fault or neglect of two or more persons, the court shall determine the degree in which each of such persons is at fault or negligent, and, where two or more persons are found at fault or negligent, they are jointly and severally liable to the person suffering loss or damage for such fault or negligence, but as between themselves, in the absence of any contract express or implied, each is liable to make contribution and indemnify each other in the degree in which they are respectively found to be at fault or negligent.


So, what does that mean?

Let's assume that three cars. A, B and C are involved in an accident. They are following one another. The first vehicle A comes to a full stop. However, it's icy and the second car B fails to stop and collides with the rear of vehicle A. The third car is travelling far to fast and crashes into the rear of vehicle B, forcing it once again into vehicle A.

Let's assume that a court determined that the total damages sustained amounted to $50,000.

This particular section of the Negligence Act provides as follows:

•· The Court decides on an apportionment of liability between B and C for A's damages.

•· The Court might determine that B is 25% at fault and C is 75% at fault.

•· Both B and C are responsible or liable to A for $50,000.

•· As between themselves, B will be responsible for 25% of $50,000, or $12,500.

•· As between themselves, C will be responsible for 75% of $50,000, or $37,500.

•· The liability to A, is joint and several, that means they both together owe A $50,000 and each of B and C owe A, $50,000 individually.

•· Should either B or C pay A, the full $50,000, then they are entitled to contribution and indemnity from the other, for their share. B can get 75% from C, and C can get 25% from B.

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com