Question 1 (50 marks) Project Runway Ltd is a limited company (‘the Company’) wh
ID: 2746665 • Letter: Q
Question
Question 1 (50 marks)
Project Runway Ltd is a limited company (‘the Company’) which engages in the business of designing and making ladies’ evening gowns. Recently, Miss Heidi, a designer in the Company, was using a sharp needle to sew material samples and negligently injured the left eye of Miss Gisele, a wealthy customer of the Company. Before the accident, Heidi had warned Gisele not to stand close to her, but Gisele ignored the warning. Gisele stood behind Heidi without Heidi noticing and the accident took place when Heidi pulled the needle backwards. Gisele was badly injured and suffered a permanent loss of vision in her left eye. Gisele wanted to sue the Company and Heidi. She estimated that her claim would be about HK$5 million. She wishes to know how the case should be processed and would like to seek some advice. Miss Gisele was previously a very successful business woman. Ever since she lost her eyesight in her left eye, she has been very depressed and wanted to appoint an agent to look after all her business. She knew nothing about the law of agency and consulted a lawyer for a legal opinion. Required:
a Advise Gisele in what cause of action she can sue Heidi and how she would proceed to prove her case. (20 marks)
b Is there any other party that Gisele can claim against besides Heidi? Is there any possible defence (s) available to Heidi if she is being sued by Gisele? In your answer, also explain the types of damages that Gisele can claim. (15 marks)
c Give an account in detail about the various kinds of authority of an agent and explain how Gisele can appoint an agent. (15 marks)
Explanation / Answer
a Advise Gisele in what cause of action she can sue Heidi and how she would proceed to prove her case. (20 marks)
In current scenario though Heidi is not much at fault but still the cause of the injury is due to actions of Heidi and hence she is the culprit for the accident though it was an un-intentional and no defined motive for the injury. She even had warned Gisele from coming closer to her still she came closer to her and stood close enough to her causing the injury and she herself was not even careful even after warning and did not took proper precautions while coming close to the work site. Gisele can sue the Organization since the accident occurred under the premises of the company. However since question is mainly related to Heidi and Gisele we can only say that inspite of all weak reasons Gisele can still file a case against her based on the points that the cause of her injury is Heidi and she has lost her eye permanently due to this.
b Is there any other party that Gisele can claim against besides Heidi? Is there any possible defence (s) available to Heidi if she is being sued by Gisele? In your answer, also explain the types of damages that Gisele can claim. (15 marks)
In current case even though the accident was caused by Heidi but site of accident was under the premises of Project Runaway Company and hence Gisele has full rights to claim all her loss and damages from the company. Company should have all the means and procedures in place to avoid all such major and minor accidents and still if something happens knowingly or unknowingly, intentionally or un-intentionally, Company has to take the responsibility of it and has to pay for the damages.
Heidi can have following points in her defence
1-She was warned Gisele about the consequences if she comes closer to her still she came close enough to her due to which accident occurred.
2-Accident was not intentional and un-intentionally while she was doing her job Gisele got hurt.
3-There was no personal or professional motive and it was just an accident.
4- Gisele came close to her from back side due to which she could not see her else she should have take full precaution and avoided such accident.
Gisele can claim for the
-Medical treatment of her eye
-Loss of capability in her vision
-Mental and Physical Harassment
-Loss of her income and earning potential due to loss of eye-sight.
c Give an account in detail about the various kinds of authority of an agent and explain how Gisele can appoint an agent.
Gisele can select any public or private prosecutor for the claim. She may also need a Medical Report or a Doctors advise on the estimates related to her eye’s treatment. She also needs help of some Wealth Manager or Advisor who can advise her on the loss of her earning potential due to this accident.
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