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ARTICLE · 17 JUNE 2012

Vicarious Liability - When Is An Employer Responsible?

At a time when employers are increasingly aware of their responsibility to prevent workplace discrimination and harassment.

CanadaEmployment and HR

At a time when employers are increasingly aware of their responsibility to prevent workplace discrimination and harassment, a recent decision out of Alberta (Hay v Platinum Equities Inc 2012 ABQB 204 (CanLII)) serves as a reminder to employers to think about vicarious liability for intentional torts committed by employees.

In this case, the Court held that a commercial real estate corporation, Platinum Equities Inc., was vicariously liable for the tort of 'appropriation of personality' when one of its employees forged a Review Engagement Report (RER) by cutting and pasting from a previous report prepared by a chartered accountant. The employer needed to secure financing quickly to purchase a commercial property. The CEO approached the employee about the RER and a turn around time of two days, though the RER's typically took weeks to complete. In finding Platinum vicariously liable, the Court emphasized that the employee's tortious conduct was 'sufficiently related"

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