Employer’s liability for the criminal conduct of its employees

 

The High Court of Australia in a recent decision of Prince Alfred College Incorporated v ADC [2016] HCA 37 looked at the vexed issue of vicarious liability for institutions arising out of sexual abuse.

The majority of the High Court found that a criminal offence such as sexual abuse by an employee does not prevent the possibility that the institution will be liable vicariously.

The High Court determined that the relevant test to be considered is whether in this case the role of the housemaster placed him in a position of power and intimacy with a boarder, that gave the housemaster the occasion for the wrongful acts, and that because the housemaster took advantage of his role as housemaster, the abuse could be regarded as having been committed in the course or scope of his employment.

 Because much of the evidence to determine the actual role of the housemaster as assigned by the school has been lost, the school could not have a fair trial on the issue of liability.

The school was also prejudiced because the claimant conveyed the impression that he was not bringing proceedings and subsequently changed his mind.

Furthermore the claimant had brought actions against the direct wrongdoer and had resolved such actions.

Accordingly, it is clear that cases involving sexual abuse and the liability of an institution for the acts of its employees will be determined upon a careful consideration of the precise role of the employee and whether or not such a role gives the occasion for the wrongful act.

An examination of the role will include looking at the authority, power, trust, control and the ability provided by the employer to achieve intimacy with a victim.