Supreme Court: vicarious liability can be imposed outside the sphere of employment (Catholic Child Welfare Society v various claimants and the Institute of the Brothers of the Christian Schools)

Article summary

The principle of vicarious liability can apply outside the sphere of employment. A two-stage test applies: (1) consider whether the relationship between the wrongdoer and the party alleged to be vicariously liable is one that is capable of giving rise to vicarious liability, and (2) consider whether the act done is connected to that relationship in such a way as to give rise to vicarious liability. The first stage will be satisfied where the relationship (although not employment) has all the essential elements of the relationship between employer and employees. Satisfaction of the second stage test (a) will usually involve an act that is required or requested of the wrongdoer pursuant to the relationship, done in a manner that is negligent, but (b) may also occur where commission of the act (eg sexual abuse) is facilitated by the relationship.