es 4498g lecture 7 - 2010

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ES 4498G

Engineering Ethics,

Sustainable Development andthe Law

March 1, 2010

TheThe UniversityUniversity of of Western OntarioWestern Ontario

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Last Class


• Introduction to the Canadian legal system

• Business organization• Tort law

• Princiles

• !e"eloment and recedents• Products lia#ility

• $ther torts

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Today%s Class


• Tort law• Limitation eriods

• Burden o& roo& • The engineer as e'ert witness

• (riting law e'ams

• Tort law case studies

• Contract law• Basic elements

• )nen&orcea#le contracts

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Tort Law


• !e&inition o& tort

• * ri"ate or ci"il wrong or in+ury other than #reach o&

contract &or which a court o& law will a&&ord a remedy in the&orm o& an action &or damages- .(illiam Prosser/

• undamental urose o& tort law is to compensate

victims of torts, not to unish negligent wrongdoers

• Basis &or tort lia#ility

a/The de&endant owed the lainti&& a duty o& care,

#/The de&endant #reached that duty #y his or her conduct, and

c/The de&endant%s conduct caused the in+ury to the lainti&&

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Limitation Periods


• *ctions &or tort and #reach o& contract must #ecommenced within a rescri#ed eriod o& time a&terthe time the cause o& action arose

• Purose is to #alance rights o& lainti&& andde&endant

• Certainty rationale 3 otential de&endants should #e securein 4nowing they will not #e sued a&ter a eriod o& time

• 5"idence rationale 3 claims should not #e #rought #ased

on stale- e"idence• !iligence rationale 3 lainti&&s should #e encouraged to

#ring claims in a timely &ashion• airness to lainti&& re6uires that they should not #e

statute7#arred &rom #ringing a claim #e&ore they are awareo& its e'istence

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!e"eloment o& Limitation Periods


• Tort actions

• Based on common law, si' years a&ter cause o&

action arose

• Contract actions

• Basic 3 8 years

•)nder seal- 3 20 years• Modi&ied limitations tyically seci&ied in contract

• Pro&essional 5ngineers *ct

• 12 months a&ter ser"ice er&ormed

*#o"e has #een suerseded #y $ntario Limitations *ct 2002 and2008 re"isions

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!isco"era#ility


• 9uestion #ecomes when does limitation eriod #egin:-, iewhen does the cause o& action- arise:

• 1;

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$ntario Limitations *ct, 2002


• !ltimate "i"teen-ear limitation period• uns &rom the date that the act or omission on which the

claim is #ased too4 lace

• There&ore, e"en claims that may not ha"e #een disco"ered.and still not #arred under the #asic two7year limitationeriod/ may still #e #arred #y this ultimate limitation eriod

• #o $ontracting %ut• )nli4e &ormer limitation eriods, the *ct states that the new

limitation eriods aly desite any agreement to "ary ore'clude them

• 5"en i& arties to a contract agree to e'clude or change thelimitation eriods that will aly #etween them, the *ctDslimitation eriod will ta4e recedence

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2008 *mendments


• $ontracting %ut

• Parties to #usiness agreements are now entitled

to agree uon di&&erent limitation eriods• Can e'tend or shorten #asic 27yr eriod, can

shorten or e'tend ultimate 1E7yr eriod

• $#"iously, where no contract e'ists .ie tort

cases/, limitation eriods cannot #e changed

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Burden o& Proo&


• Ci"il roceedings .tort or contract/

• #alance o& ro#a#ilities-

• More ro#a#le than not

• Criminal roceedings

• #eyond a reasona#le dou#t-

• reasona#le erson- .+udge or +ury/ would notha"e a dou#t

• 5g 3 $A @imson

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The 5ngineer as 5'ert (itness


• 5ngineering is racticed in an increasingly

litigious en"ironment

• 5ngineers ha"e secial 4nowledge- which

is o&ten relied uon in court roceedings

• Legal and ethical imlications otentially

serious 3 P5$ de"eloed Fuideline toin&orm engineers a#out their o#ligations,

conduct and otential conse6uences• www.peo.on.ca/publications/Guidelines/PEng.AsAnExpertWitness.pdf

http://www.peo.on.ca/publications/Guidelines/PEng.AsAnExpertWitness.pdfhttp://www.peo.on.ca/publications/Guidelines/PEng.AsAnExpertWitness.pdf

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• Tyes o& *earances• 5'amination &or !isco"ery

• Interrogatory

• Courts o& Law

• Pu#lic Tri#unals

• Audicial 5n6uiries

• oyal Commissions

• Coroner%s In6uests• *r#itrations

• Pro&essional !iscilinary >earings

• *eal >earings

• *micus Curiae

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• *cceting an *ssignment• 5thical Considerations

• Cometence

• Con&lict o& Interest

• Conditions

• estrictions

• Con&identiality

• *greement and ees

• Conducting In"estigations and ield (or4• !egree o& Thoroughness

• !ata to #e $#tained

• !ocumentation

• *ccess

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• !e&ining the Pro#lem• Testing

• *nalysis• ormulating Conclusions• Preser"ation o& 5"idence• eorts• Fi"ing o& 5"idence

• Prearation &or the *earance• !ress and Beha"iour • (hat to 5'ect in the Courtroom• Procedures and ules

• Conduct )nder 5'amination

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(riting Law 5'ams


• Pro&essional Practice 5'am .PP5/

• Part * 3 Pro&essional Practice and 5thics

• Part B 3 5ngineering Law and Pro&essional

Lia#ility

• inal e'am in this class

• Learn &undamental legal rinciles and

aly them to &actual situations

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(riting Law 5'ams


1/ The acts• ead care&ully, #ut do not restate

• !iagram to illustrate relationshis may #e hel&ul

• !o not assume additional &acts not gi"en in the 6uestion

2/ Fi"e easons• Communicate your understanding o& rele"ant legal rinciles

• @tate rele"ant rinciles &irst

• !iscuss aroach court would ta4e• *ly rinciles to &acts identi&ied in 1/ and come to a

reasona#le conclusion

• Possi#ility &or more than one correct- answer

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(riting Law 5'ams


G/ ormat• Length and &ormat is u to you

• Point &orm usually acceta#le

• 5&&ecti"e communication is 4ey

?/ e&erences• Hot a#solutely necessary, #ut a good added em#ellishment- i&

ossi#le

• @ome 4ey cases may #e use&ul to 4now and aly wherealica#le

E/ ocus on Chaters 1, 2, ?72?, 2=, G0, G2, GG, G8

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5'amle


• @te"e Moore 3 Todd Bertuzzi case

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5'amle


• @te"e Moore 3 Todd Bertuzzi case

• Tort re6uirements

• icarious lia#ility

• Limitation eriod

• Monetary damages

• Location

• (hat do you thin4 the li4ely outcome will #e:

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5'amle Tort Case @tudy


• Case 1 3 Pg 8E o& Marston Te't .?th 5d/• Manu&acturing comany retained architect to design a

new lant• *rchitect retained structural engineer • @tructural engineer designed steel &rame structure• *&ter lant oened, crac4s de"eloed and &loor had to

#e relaced

• Consultant hired to redesign &loor &ound seriousde&iciencies in original design• (hat otential lia#ilities in tort law arise:

• 5'amle answer ro"ided

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i"e 5ssential 5lements


or a #inding and en&orcea#le contract

1 $&&er made and acceted

2 Mutual intent to enter into the contract

G Consideration

? Caacity to contract

E Law&ul urose

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1 $&&er and *ccetance


• *n o&&er is a romise made #y the o&&eror to the o&&eree

• $&&er need not #e in writing

• Pre&era#le &or en&orcement reasons• (ithdrawal

• $&&er may #e withdrawn #y o&&eror #e&ore #eing acceted #yo&&eree, unless irre"oca#le

• $&&er will lase i& not acceted a&ter a reasona#le length o&

time• *ccetance

• Must #e clearly communicated

• *n accetance which includes "ariations in the termsconstitutes a countero&&er and does not &orm a contract

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1 $&&er and *ccetance


• Timing• Means o& communication can #e seci&ied in contract and a&&ects

timing issues•

Mail 3 accetance e&&ected when osted• $ther 3 accetance e&&ected when actually recei"ed #y o&&eror • e"ocation only e&&ecti"e when o&&eree actually recei"es notice o&

re"ocation 3 can create comlications• 5'amle

• Fo"erning law

• Law o& location where o&&er is acceted alies• Better to seci&y clearly in contract

• Terms and conditions• *n accetance- that does not accet the terms and conditions

set out in the o&&er is actually a counter7o&&er • Imortant to not o"erloo4 &ine rint-

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2 Intent


• Both arties must mutually intend to enter

into the contract under the seci&ic terms

• Imortant to communicate e&&ecti"ely

• Letters o& intent

• 5'ress interest in roceeding

• *greements to agree• Hot en&orcea#le contracts

• Consult a lawyer to ensure letter o& intent is not

in &act a contract

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G Consideration


• The cause, moti"e, rice or imelling in&luence that

induces a contracting arty to enter into a contract-

• @omething o& "alue that is e'changed #y contractingarties .money, romises that reresent "alue/

• *de6uacy not imortant

• In lace o& consideration, a contract may #e made

under seal- .eg tendering/• Hote this seal is di&&erent &rom the 5ngineer%s seal

• (ithout consideration or seal, an o&&er is a gratuitous

romise and not en&orcea#le

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G Consideration


• E&uitable Estoppel

• 5"en though no legal re6uirement to &ul&ill gratuitous

romises, there is a moral o#ligation• In cases where a gratuitous romise is relied uon

and su#se6uently re"o4ed to the detriment o& the

arty that relied uon it, there may #e e6uita#le

reasons &or the court to en&orce the gratuitousromise

• !eends strongly on the &acts o& the articular case

• 5'amle

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? Caacity


• *ll arties must ha"e the necessary legal caacity tocontract

• Minors• Contract en&orcea#le #y minor #ut unen&orcea#le #y other arty

.unless necessary/• Contract can #e rati&ied #y minor uon reaching age o& ma+ority

• !run4s and Lunatics• )nen&orcea#le ro"ided so#er arty is aware o& the inso#riety

or lunacy and the incaacitated arty reudiates the contractwithin a reasona#le eriod o& time

• Cororations• Must #e within owers o& contracting cororation to carry out

o#ligations 3 use caution

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E Legality


• Contract is unen&orcea#le i& the urose isunlaw&ul

• Contrary to statute law• )nlicensed ractice

• Ban4rutcy *ct

• (or4ers% Comensation *ct

• Cometition *ct• Contrary to common law

• Hon7cometition agreements

• 5'amle

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@tatute o& rauds


• In general, contracts need not #e in writing to #e en&orcea#le.although ad"isa#le/

• @tatute o& rauds .ro"incial/ stiulates that certain tyes o&

contracts must #e in writing to #e en&orcea#le• @ale o& land

• *greements that are not to #e er&ormed within a year

• 5g some construction contracts

• Fuarantees o& inde#tedness

• Indemni&ication need not #e in writing .#ut ro#a#ly a good idea/• *lthough a contract may #e unen&orcea#le under the @tatute o&

rauds, it will not #e treated as "oid .eg cannot retain deositche6ue &or "er#al sale o& land agreement/

• $#"iously, written is re&erred

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)nen&orcea#le Contracts


• In addition to @tatute o& rauds, there are

other situations that may result in

unen&orcea#le contracts• Misreresentation

• !uress

• )ndue in&luence

• Mista4e

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Misreresentation


• raudulent misreresentation

• * &alse statement made 4nowingly or without

#elie& in its truth or rec4lessly, careless whether it#e true or &alse

• !ecei"ed arty is entitled to rescind the contract

and to claim comensation &or reasona#le costs

They can also sue &or damages &or deceit

• May also #e lia#le in tort

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!uress and )ndue In&luence


• !uress• Intimidation used to induce a arty to enter into a

contract• Threatened or actual "iolence or imrisonment• 5conomic duress ossi#le• esults in contract #eing "oida#le

• )ndue In&luence• @imilar to duress, #ut less drastic• $ne arty has an un&air dominance o"er the other • are in #usiness, o&ten in"ol"es related arties

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He't Class


'opics

3 More Contract Law

(eadings

3 Marston, Chaters 1E 3 22, G0, *endi'

es 4498g lecture 7 - 2010

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