fourth heat treatment workshop pest control: liabilities and risk management august 5, 2003 by...

51
Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Upload: gary-franklin

Post on 26-Dec-2015

215 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Fourth Heat Treatment Workshop

Pest Control:Liabilities and Risk Management

August 5, 2003by

Michael T. Olexa

Food and Resource Economics Department

Page 2: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

This is a Teaching Lecture Based on Hypotheticals and Actual Case Law and is Not an Offering of Legal Advice or Opinion.

Page 3: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

The Playing Field

Increase in Lawsuits

Increase in Regulations

Pest Control: Liabilities & Risk Mgmt. --

Page 4: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Pest Control: Liabilities & Risk Mgmt. --

Page 5: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Pest Control: Liabilities & Risk Mgmt. -- Increase in Lawsuits

Page 6: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Pest Control: Liabilities & Risk Mgmt. -- Increase in Lawsuits

Page 7: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

On bread pudding:

“Product will be hot after heating”.

Pest Control: Liabilities & Risk Mgmt. -- Increase in Lawsuits

Page 8: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

On clothes iron:

“Do not iron clothes on body”.

Pest Control: Liabilities & Risk Mgmt. -- Increase in Lawsuits

Page 9: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

On a sleep aid:

“Warning...may cause drowsiness”.

Pest Control: Liabilities & Risk Mgmt. -- Increase in Lawsuits

Page 10: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

On a chainsaw:

“Do not attempt to stop chain with your hands or genitals”.

Pest Control: Liabilities & Risk Mgmt. -- Increase in Lawsuits

Page 11: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Pest Control: Liabilities & Risk Mgmt.--

Branches of government

Page 12: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Pest Control: Liabilities & Risk Mgmt.--

Fourth Branch of Government

Page 13: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Pest Control: Liabilities & Risk Mgmt.-- Administrative Agencies

Pythagorean theorem: 24 words

The Ten Commandments: 179 words

The Gettysburg Address: 286 words

The Declaration of Independence: 1,300 words

Page 14: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Pest Control: Liabilities & Risk Mgmt.-- Administrative Agencies

U.S. Government regulations on the sale of cabbage:26,911 words

Page 15: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Pest Control: Liabilities & Risk Mgmt.--

Risk Management

Liability Awareness

Page 16: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Pest Control: Liabilities & Risk Mgmt.--

EDUCATION

Training

TrainingTraining

TrainingTraining

Page 17: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Outline:

I. Risk Management

Assessment

Communication

Take Action

Pest Control: Liabilities & Risk Mgmt. --

Page 18: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Outline:II. Risk Management

Case Study One:Negligence/Workplace Fatality

Case Study Two:Pest Control/Independent Contractors

Case Study Three:Employer/Employee-Vicarious Liability

Pest Control: Liabilities & Risk Mgmt. --

Page 19: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Pest Control: Liabilities & Risk Mgmt.--

AAssessmentssessment

CCommunicationommunication

TTake Actionake Action

Page 20: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Pest Control: Liabilities & Risk Mgmt.-- Risk Management/Assessment

I. Risk Management

A. AssessmentHazard Identification Established by law and experience

Example:

Law-Pesticide label

Experience-Safe application

Page 21: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Pest Control: Liabilities & Risk Mgmt.-- Risk Management/Assessment

Hazard Characterization Consider potential hazards in

different situations

Example:

Fumigation versus Heat Treatment

Page 22: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Pest Control: Liabilities & Risk Mgmt.-- Risk Management/Communication

B. CommunicationImportant during risk assessment and taking action phase

Example:Providing Information

Education Training,

Training, Training

Page 23: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

C. Take ActionObjective: Reduce risk to the lowest practical or achievable level

Example:

Once risk is identified, follow through with recommended procedures to handle the risk.

If recommended alternatives exist, select the best alternative.

Implement, and

Keep informed, evaluate, and review.

Pest Control: Liabilities & Risk Mgmt.-- Risk Management/ Take Action

Page 24: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Pest Control: Liabilities & Risk Mgmt.--

Page 25: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Pest Control: Liabilities & Risk Mgmt.--

StructuredStructured

CommonCommon

SenseSense

Page 26: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Pest Control: Liabilities & Risk Mgmt.--

Page 27: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Liability Exposure

Cost of doing business.

Pest Control: Liabilities & Risk Mgmt. --

Page 28: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Fumigation or Heat Treatment

Both carry inherent liability risks.

Pest Control: Liabilities & Risk Mgmt. --

Page 29: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Pest Control: Liabilities & Risk Mgmt. --

NegligenceNegligence

Page 30: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Negligence

Omitting to do something that a reasonable person would do under “ like circumstances” or the doing of something which a reasonable person would not do.

Point: Foreseeability

Pest Control: Liabilities & Risk Mgmt. -- Legal Basics/Negligence

Page 31: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Negligence

Elements of:Duty

Breach of duty

Causation

Damages or injury

Pest Control: Liabilities & Risk Mgmt. -- Legal Basics/Negligence

Page 32: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Pest Control: Liabilities & Risk Mgmt. -- Legal Basics/Negligence

Page 33: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department
Page 34: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Case Study One - Negligence/Workplace Fatality

Summary of Facts:Victim, a 55 year old male, died of suffocation after

becoming engulfed in soybean hulls in a storage bin. Deceased and his co-workers attempted to unload a bin’s compartment containing 18.6 tons of soybean hulls by opening the side gate under the compartment hopper and pounding on the hopper sides to dislodge the hulls. The effort failed to dislodge the hulls. Victim entered the bin to dislodge bridged material with a metal rod. Grain began to flow. When victim failed to join co-workers at lunch, the co-workers decided to look for the victim.

Pest Control: Liabilities & Risk Mgmt. -- Legal Basics/Negligence

Page 35: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Case Study One - Negligence/Workplace Fatality

Results: Defendant employer liable.

Legal Cause: Negligence

Pest Control: Liabilities & Risk Mgmt. -- Legal Basics/Negligence

Page 36: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Case Study One - Negligence/Workplace Fatality

Negligence

Duty

Breach of Duty

Caused

Victim’s death

Pest Control: Liabilities & Risk Mgmt. -- Legal Basics/Negligence

Page 37: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Case Study One - Negligence/Workplace Fatality

Rationale

Duty

To protect employees from injury.

Pest Control: Liabilities & Risk Mgmt. -- Legal Basics/Negligence

Page 38: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Case Study One - Negligence/Workplace Fatality

RationaleBreach of duty

FAILED to develop, implement and enforce a written safety program.

FAILED to ensure that workers entering storage areas wear safety belts or harnesses equipped and properly fastened life lines.

FAILED to ensure that safety signs were posted to warn of workplace hazards

Caused

Victim’s death

Pest Control: Liabilities & Risk Mgmt. -- Legal Basics/Negligence

Page 39: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Pest Control: Liabilities & Risk Mgmt. -- Legal Basics/Negligence

Page 40: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Case Study Two - Pest Control/Independent Contractors

Summary of Facts:

Defendant, owner of milling complex, hired a fumigator to treat the complex. Shortly after the fumigation, several students visiting the complex became ill. The students sued the owner. Defendant owner argues protection from liability because injury caused by hired independent contractor.

Pest Control: Liabilities & Risk Mgmt. -- Legal Basics/Negligence

Page 41: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Results: Defendant owner liable

Pest Control: Liabilities & Risk Mgmt. -- Legal Basics/Negligence

Case Study Two - Pest Control/Independent Contractor

Page 42: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Rationale: Nondelegation Rule

In general, a party is not liable for the negligent act of an independent contractor

Exception generally recognized:

When party employs a contractor to carry on an inherently dangerous activity, that party cannot insulate themselves from liability.

Pest Control: Liabilities & Risk Mgmt. -- Legal Basics/Negligence

Case Study Two - Pest Control/Independent Contractor

Page 43: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

FumigationDefendant-Milling Complex Owner

Fumigator/Independent Contractor

Plaintiff-Injured Parties

Heat TreatmentDefendant-Milling Complex Owner

Heat Applicator/Independent Contractor

Plaintiff-Injured Parties

Pest Control: Liabilities & Risk Mgmt. -- Legal Basics/Negligence

Case Study Two - Pest Control/Independent Contractor

Page 44: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Pest Control: Liabilities & Risk Mgmt. -- Legal Basics

Page 45: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Case Study Three - Employer/Employee

Summary of Facts:At 8:30am in August of 1996, plaintiff placed her pet

snakes on the outdoor deck of her house. All snakes were healthy when placed on the deck. At noon, the defendant’s employee arrived and sprayed the home and a portion of the deck. When the plaintiff arrived home, all the reptiles were dead. The pesticide used was toxic to reptiles. Plaintiff sued. Defendant employer found vicariously liable for the actions of its employee.

Pest Control: Liabilities & Risk Mgmt. -- Employer/Employee--Vicarious Liability

Page 46: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Case Study Three - Employer/Employee Vicarious Liability: Defined

Employer is held liable to a third party for the civil wrong of the employee for no other reason than the fact that their exists a job relationship between the employer and employee and that the employee was acting within the scope of that relationship when she committed the civil wrong.

Pest Control: Liabilities & Risk Mgmt. -- Employer/Employee--Vicarious Liability

Page 47: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Case Study Three - Employer/Employee

A Form of Strict Liability

Employer may be sued for injuries caused by the employee to a third party even though the employer was totally innocent of personal fault in the third party’s injuries.

Pest Control: Liabilities & Risk Mgmt. -- Employer/Employee--Vicarious Liability

Page 48: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Case Study Three - Employer/Employee Justification

Employer has some control over the employee’s conductEmployer started the activity from which the civil wrong happenedEmployer selected the employeeVicarious liability comes with the privilege of employing someone

$ Employer likely to have more money than employee

Pest Control: Liabilities & Risk Mgmt. -- Employer/Employee--Vicarious Liability

Page 49: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Case Study Three - Employer/Employee

Pest Control: Liabilities & Risk Mgmt. -- Employer/Employee--Vicarious Liability

Page 50: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department

Conclusion

Page 51: Fourth Heat Treatment Workshop Pest Control: Liabilities and Risk Management August 5, 2003 by Michael T. Olexa Food and Resource Economics Department