Noting an ominous silence surrounding the topic of tort reform
Believing that tort reform serves as an effective alternative to industry regulation by providing an opportunity for injured individuals to hold liable their institutional tortfeasors,
Holding that expanding the duty of business entities to the actions of their employees protects employees, allows adequate compensation to victims, promotes higher standards for safe conduct, and spreads the cost of risk equitably,
Disdainful of industry practices that allow business to use employees as shields against incentivized or overt negligence, and
Determined to prevent it,
The World Assembly hereby enacts the following:
- A plaintiff in a noncriminal case against a single defendant may enjoin and hold liable the defendant's employer where the defendant:
- had an employer-employee relationship with the enjoined business;
- Was acting in the scope of employment at that time; and
- Was the proximate cause of the damage to the plaintiff.
- A plaintiff who wins a judgment in such a case may enforce judgment against both the employer and employee, jointly and severally.
- An employer may seek indemnity from an employee for costs incurred only when the employee’s actions were reckless or intentional. In situations where a cross-claim is procedurally inappropriate, member states may not hold such claims precluded until that claim is tried on its merits.
- Member states may award non-compensatory damages in such a case only when failing to do so would be a manifest injustice.
