Law of Tort and Law of Contract Essay Needed
Tort Law Reading Notes
Week 1 Mon Sep 8 Damages pp697-729
- aim of damages: restore plaintiff to position he would have been had the wrong not occurred o as this is impossible in cases of personal injury, monetary compensation is used o total amount is the amount that will release the target amount over the given span of years - assessment is a matter if calculation, not impression (SCC 1978) - 3 probs: o 1) what kinds of items must a defendant compensate for o 2) how does the court determine a present sum that will compensate into future o 3) what is the effect of insurance proceeds/other compensation on tort award
- non-fatal accident may have 3 economic consequences for victim – medical/related expenses, impaired earning capacity, pain/suffering - courts pay lump sums, not periodic payments o but, lump sum equal to the price victim would have had to pay in order to purchase an annuity (income, allowance) calculated to yield the periodic payment for the expected duration of the disability, and no more o why lump sum? 2 reasons. 1) economizes on administrative expenses 2) avoids disincentive of continuing money tied to continuing disability
- re: future lost earnings, assumptions about future changes in victims income and choice of interest rate (discount rate) greatly affect size of reward - how to determine? o Step 1 – age profile (remaining working years, etc) o Step 2 – foresee wage change, a) secularly rise in labour productivity b) secular rise in inflation ▪ Most other factors are unforeseeable o Step 3 – multiply each years wages (steps 1,2) by actuarial probability he will still be alive the following year o Therefore to determine wages lost by a 25 year old truck-driver in his 35th year, we would multiple today’s wages of a 35 year old truck driver by 1.07 (0.3 expected productivity
Week 1 Mon Sep 8 Damages pp697-729
- aim of damages: restore plaintiff to position he would have been had the wrong not occurred o as this is impossible in cases of personal injury, monetary compensation is used o total amount is the amount that will release the target amount over the given span of years - assessment is a matter if calculation, not impression (SCC 1978) - 3 probs: o 1) what kinds of items must a defendant compensate for o 2) how does the court determine a present sum that will compensate into future o 3) what is the effect of insurance proceeds/other compensation on tort award
- non-fatal accident may have 3 economic consequences for victim – medical/related expenses, impaired earning capacity, pain/suffering - courts pay lump sums, not periodic payments o but, lump sum equal to the price victim would have had to pay in order to purchase an annuity (income, allowance) calculated to yield the periodic payment for the expected duration of the disability, and no more o why lump sum? 2 reasons. 1) economizes on administrative expenses 2) avoids disincentive of continuing money tied to continuing disability
- re: future lost earnings, assumptions about future changes in victims income and choice of interest rate (discount rate) greatly affect size of reward - how to determine? o Step 1 – age profile (remaining working years, etc) o Step 2 – foresee wage change, a) secularly rise in labour productivity b) secular rise in inflation ▪ Most other factors are unforeseeable o Step 3 – multiply each years wages (steps 1,2) by actuarial probability he will still be alive the following year o Therefore to determine wages lost by a 25 year old truck-driver in his 35th year, we would multiple today’s wages of a 35 year old truck driver by 1.07 (0.3 expected productivity