Exam 5: Negligence, Professional Liability, and Insurance

Ms.Lam bought a lot next to a house owned by Mr.Dodson.She asked Mr.Dodson for permission to use his electricity while building a house on her property.He refused.He feared his house was too old to handle the electricity load needed.Later,a carpenter employed by Ms.Lam accidentally broke a window of Mr.Dodson's while moving lumber.Furthermore,the carpenter removed part of Dodson's fence to make room for needed materials,used Dodson's house to support the lumber and drove some nails into Dodson's tree to hold some wires.Dodson complained to Ms.Lam.Irritated by his stand on the electricity and his complaints,Lam began a civil action against him for the tort of defamation,although she had absolutely no grounds for alleging defamation.Which of the following is not supported by the facts given above?

What is the "but for" test used for?

In Heitsman v.Canadian Premier Life Insurance Co.,an insurance company denied coverage on the basis of an ambiguous exclusion of liability clause.What did the Court find?

What is the reasonable person test used for?

In which of the following situations will the insured be able to collect the entire amount of the insurance claimed?

An investor who wanted to build a duplex asked the city zoning officer whether Lot A of Plan 16,known as 1 Street,was zoned for a single-family house or a duplex.The zoning officer was distracted by a news report on the radio and accidentally gave the investor a printed copy of the zoning for the wrong lot that said "duplex," although 1 Street was only zoned for single-family houses.After the investor began building a duplex,the city stopped him for building contrary to the zoning by-laws.He lost $50 000.On these facts (assume all can be proven)which of the following is true?

We owe a duty to anyone we can reasonably anticipate might be harmed by our conduct.

Indicate under what circumstance the defence of voluntary assumption of risk or volenti will be available.

Health care services in Canada are funded through the government-sponsored medical system,which is often supplemented by plans providing extended coverage.

The institution of no fault insurance programs in some jurisdictions allows people to be compensated for their injuries only if they are not at fault.

An employee prepared an appraisal of a property for his real-estate development company.The employee had been told that the appraisal would be used by the company to attract a potential investor,Mr.Jones,for the company's client,Mr.Lee.Because the appraiser carelessly forgot to check the recent changes in the zoning by-laws,the appraisal was not accurate.Mr.Jones was misled about the value of the land and suffered a financial loss of $20 000.Given these facts,which of the following is true?

As a result of careless driving,Mr.Boz accidentally knocked Mr.Alder,a 70-year-old man,off his bike.Mr.Alder broke his arm and collar bone.Because of a rare disease,there was little likelihood that the breaks would heal properly,if at all.In effect,unlike most who would suffer those breaks,he lost the use of his right arm.Mr.Alder sued Boz for negligence.The court held Boz liable.What would be the amount of damages to be paid by the defendant?

Does liability vary with age? Explain.

A principle established in Donoghue v.Stevenson is the test used to determine the standard of care that must be exercised by the defendant to escape liability.

What is the last clear chance doctrine?

Most insurance contracts require insured parties to maintain certain safety and security standards to protect themselves against the risk of fire and theft.

Business interruption insurance covers the policy-holder when an unforeseen event causes a business to permanently cease operation.

When Joan visited her friend Clive,who was renting a small farm in Langly,she was injured by some dangerous cleaning solvent that Clive stores in very large quantities for Soapo Ltd.The solvent had leaked from just one of the massive 1000-litre drums.When she had walked toward the side door of the farmhouse,she stepped through a puddle of what turned out to be solvent.The solvent not only ruined her shoes,but also burned the skin when some splashed onto her legs.The solvent also drained down into the fish pond on the adjacent property owned by the Nelsons.Read each of the following separately and indicate which is true.

In Hodgkinson v.Simms,an accountant advised a client to invest in a real estate development while also acting for the developers.What did the Supreme Court of Canada find?

Which of the following statements does not describe the standard expected of experts?