Tort law

How BC law treats it

Most tort law in BC is judge made common law, supported by statutes. The Negligence Act apportions liability among defendants and reduces damages for a plaintiff's own contributory fault. The Occupiers Liability Act sets the duty of care owed by those who occupy premises. The Privacy Act creates a tort of wilful violation of privacy, and the Protection of Public Participation Act allows early dismissal of defamation and similar suits that target public interest expression. Negligence requires a duty of care, a breach of the standard of care, damage, and damage caused by the breach that was not too remote (Mustapha v Culligan of Canada Ltd). Business torts include deceit, conspiracy, inducing breach of contract, passing off and unlawful means interference, the last confined by the Supreme Court of Canada in A.I. Enterprises Ltd v Bram Enterprises Ltd. Breach of contract is not a tort, although the same facts can support claims in both contract and tort (Central Trust Co v Rafuse). Under the Limitation Act, the basic limitation period is two years from when the claim is discovered (s. 6), with an ultimate limit of 15 years (s. 21). Small claims up to $5,000 go to the Civil Resolution Tribunal, claims up to $35,000 to the Provincial Court, and larger claims to the BC Supreme Court. Defamation claims cannot be brought in the Civil Resolution Tribunal or Provincial Court and must be started in the BC Supreme Court. Since May 1, 2021, most motor vehicle injury claims fall under the no-fault Enhanced Care scheme rather than tort.

What it means for your business

Businesses face tort exposure from customers injured on premises, from negligent advice or products, and from competitors alleging deceit, passing off or interference with contracts. They can also use tort claims against former employees, competitors and fraudsters. Insurance, clear contracts that allocate risk, and prompt action within the two year limitation period are the main tools for managing that exposure. Example: A Vancouver supplier learns that a competitor persuaded its key distributor to break an exclusive contract early. The supplier sues the distributor for breach of contract and the competitor in tort for inducing breach of contract.

Risks and common mistakes

Calling a breach of contract a tort, or suing only in tort where the contract governs the relationship. Missing the two year limitation period by waiting for negotiations to finish. Assuming a contract's limitation of liability clause automatically blocks a concurrent negligence claim without reading its wording. Suing for defamation over criticism on a matter of public interest without considering a Protection of Public Participation Act dismissal application. Overlooking the Negligence Act's apportionment of fault among several wrongdoers.