November 2010 Newsletter
Welcome to another newsletter. As you've probably noticed, there's new format to my newsletter which makes it easier to share with your friends and hopefully, easier to read as well. or to unsubscribe from my newsletter (I hope not).
$6 Million Office Party
I want to share some information with you which would be of particular benefit to business owners. It's with regards to liability, especially employer liability. We are now approaching the holiday season and a lot of employers are having Christmas parties.
The following information is a summary taken from the Elliot Special Risk LLP News Board Fall 2010 Newsletter.
This particular case comes from one of the company's we insure and it involves an articling student (studying to be a lawyer), a lawyer, an office party and a night club.
In 2001, a 32-year-old articling student was dancing behind her colleague at a law firm at a Vancouver nightclub after a firm-sponsored dinner at a different location.
Her colleague, 6'2" and 220 pounds man, stumbled backward and fell onto her, 5'4" and 110 pounds. She hit the back of her head against the floor and had her chin pinned between Poole’s shoulder blades. She lost consciousness briefly, witnesses said. Both had been drinking at the dinner and at the nightclub.
She claimed that after the fall she experienced ongoing problems, including nausea, vomiting, persistent and severe headaches, and cognitive defects such as poor memory and illegible handwriting. After eight months’ leave, she returned to work but had to take up to 30 pain-relief tablets a day to cope with her headaches.
Then in 2002, her car was hit from behind on the Lions Gate Bridge. Although she didn’t take any time off work after the accident, her lawyers argued that she was on the road to a full recovery at the time and that the collision exacerbated her injuries, resulting in chronic and debilitating headaches. She ultimately left the firm in 2004, unable to work.
She filed one claim for $285,400 against her colleague and one for more than $8 million against the owner and operator of the car.
She reached an agreement with her colleague that decreased his liability and increased the liability the law firm, against which he made a third-party claim.
The two accidents were consolidated for trial.
Despite taking issue with her credibility, Justice Kelleher awarded her $559,220 in past income loss, $185,000 in non-pecuniary damages and nearly $70,000 more in special damages and cost of future care in relation to the nightclub accident. Following witnesses’ testimony that she was an incredibly promising young lawyer who excelled at both handling existing clients and finding new ones, he also awarded her more than $5 million in loss of earning capacity.
In relation to the motor vehicle accident, he awarded her $10,000 in non-pecuniary damages and $595 in special damages.
The trial will enter a second phase in November to determine whether the law firm, as host of the party, was liable.
The Supreme Court of British Columbia judgment can be found at http://www.courts.gov.bc.ca/jdb-txt/ SC/10/11/2010BCSC1111.htm.
Lesson
The trial in November will determine whether the law firm is liable as host of the party. Although this incident happened after the dinner, if it can be proven that the party at the nightclub was an extension of the dinner, then the law firm will be liable for the $5 million in loss of earning capacity.
So what lesson can we learn about this incident? If you are setting up any office parties, make sure you draw the line when it starts and when it ends. Make sure you that you also get Special Event Liabiltiy or Party Alchohol Liability Insurance if you are serving alcohol.
We are not asking people not to have fun or to be too paranoid that they cancel their office parties. Just make sure you have enough liability coverage on your business insurance or get special coverage for certain events.
This is not just for office parties but also applies to private/house/birthday parties. There have been cases where alcohol was served in parties and the host was sued and found liable when the guest went home and got into an accident. The reason? Why didn't the host provide a designated driver or get a cab for the guest.
Read this article for more information and guidelines on how to host a safe party.
$6 Million Office Party
I want to share some information with you which would be of particular benefit to business owners. It's with regards to liability, especially employer liability. We are now approaching the holiday season and a lot of employers are having Christmas parties.
The following information is a summary taken from the Elliot Special Risk LLP News Board Fall 2010 Newsletter.
This particular case comes from one of the company's we insure and it involves an articling student (studying to be a lawyer), a lawyer, an office party and a night club.
In 2001, a 32-year-old articling student was dancing behind her colleague at a law firm at a Vancouver nightclub after a firm-sponsored dinner at a different location.
Her colleague, 6'2" and 220 pounds man, stumbled backward and fell onto her, 5'4" and 110 pounds. She hit the back of her head against the floor and had her chin pinned between Poole’s shoulder blades. She lost consciousness briefly, witnesses said. Both had been drinking at the dinner and at the nightclub.
She claimed that after the fall she experienced ongoing problems, including nausea, vomiting, persistent and severe headaches, and cognitive defects such as poor memory and illegible handwriting. After eight months’ leave, she returned to work but had to take up to 30 pain-relief tablets a day to cope with her headaches.
Then in 2002, her car was hit from behind on the Lions Gate Bridge. Although she didn’t take any time off work after the accident, her lawyers argued that she was on the road to a full recovery at the time and that the collision exacerbated her injuries, resulting in chronic and debilitating headaches. She ultimately left the firm in 2004, unable to work.
She filed one claim for $285,400 against her colleague and one for more than $8 million against the owner and operator of the car.
She reached an agreement with her colleague that decreased his liability and increased the liability the law firm, against which he made a third-party claim.
The two accidents were consolidated for trial.
Despite taking issue with her credibility, Justice Kelleher awarded her $559,220 in past income loss, $185,000 in non-pecuniary damages and nearly $70,000 more in special damages and cost of future care in relation to the nightclub accident. Following witnesses’ testimony that she was an incredibly promising young lawyer who excelled at both handling existing clients and finding new ones, he also awarded her more than $5 million in loss of earning capacity.
In relation to the motor vehicle accident, he awarded her $10,000 in non-pecuniary damages and $595 in special damages.
The trial will enter a second phase in November to determine whether the law firm, as host of the party, was liable.
The Supreme Court of British Columbia judgment can be found at http://www.courts.gov.bc.ca/jdb-txt/ SC/10/11/2010BCSC1111.htm.
Lesson
The trial in November will determine whether the law firm is liable as host of the party. Although this incident happened after the dinner, if it can be proven that the party at the nightclub was an extension of the dinner, then the law firm will be liable for the $5 million in loss of earning capacity.
So what lesson can we learn about this incident? If you are setting up any office parties, make sure you draw the line when it starts and when it ends. Make sure you that you also get Special Event Liabiltiy or Party Alchohol Liability Insurance if you are serving alcohol.
We are not asking people not to have fun or to be too paranoid that they cancel their office parties. Just make sure you have enough liability coverage on your business insurance or get special coverage for certain events.
This is not just for office parties but also applies to private/house/birthday parties. There have been cases where alcohol was served in parties and the host was sued and found liable when the guest went home and got into an accident. The reason? Why didn't the host provide a designated driver or get a cab for the guest.
Read this article for more information and guidelines on how to host a safe party.
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