Enterprise Liability: Justifying Vicarious Liability

Abstract

In Lister v Hesley Hall [2002] 1 AC 215 the House of Lords reformed the law on vicarious liability, in the context of a claim arising over the intentional infliction of harm, by introducing the ‘close connection’ test. The immediate catalyst was the desire to facilitate recovery of damages on the part of victims of child abuse. The precise form the revision assumed was derived from two Canadian Supreme Court cases: Bazley v Curry [1999] 174 DLR (4th) 45 and Jacobi v Griffiths [1999] 174 DLR (4th) 7. The Canadian jurisprudence contains a detailed review of the policy factors underpinning the law of vicarious liability and expresses the view that the most significant of these is ‘enterprise liability’. This article attempts to establish whether enterprise liability holds the same significance in the UK. And, on the assumption that it does, the article goes on to consider any difficulties that may ensue and any further common law reforms that may result. In particular it considers whether the law on vicarious liability for independent contractors is likely to change.