ACTG Assignment

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School

Carleton University *

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000

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Law

Date

Feb 20, 2024

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pdf

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Uploaded by CommodoreProton13336

ACTG 2P40 ASSIGNMENT NO. 1 1. After reading the following case regarding the Welland fire that occurred on August 1st, 2023, and examining the evidence and facts presented I was able to determine who will endure the liabilities and fault of the damages that occurred during the fire. Andrea, the owner of the Coffee Shop on 52 Main Street that was damaged in the fire has the complete right to seek legal action against Bill, the owner of the Home Depot where the fire originated. My reasoning for this will be explained as I discuss the following legal actions Andrea should consider against Bill for his part in the cause of the fire. Firstly Andrea has the right to take legal action against Bill for his negligence in causing the fire although unintentional, his carelessness was a major factor in the origin of the fire which ultimately led to Andrea's property being damaged which also caused mental anguish that affects her life on a daily basis. Bill was negligent in leaving a shed with flammable and combustible chemicals unlocked and unmaintained which made the shed and its contents easily accessible to anyone as the shed was located in an unfenced area. He failed to show a duty of care as he knew an employee was smoking in the shed with combustible chemicals, and other people were accessing the shed and his careless actions ended up harming others. He failed to meet the standard of care required of a store manager, as a manager he is aware that he is responsible for his property and also the actions of his employees. He failed to fulfill his duties in ensuring his property was secured and that his employees were following safety regulations. The fire caused considerable damage to Andrea’s business, it destroyed the structure of the coffee shop which ended up totaling $1,000,000 in damage to the building itself, the fire also damaged around

$500,000 in inventory which totals the physical damage at a cost of $1,500,000. This is only considering the monetary value lost, as a result of the fire that destroyed Andrea’s livelihood, she has developed severe mental anguish that affects her every day. The trauma has caused her to develop a fear of sirens and in turn, she is afraid to leave her house in the event that she hears sirens, the sounds bring her back to the day she lost her business. Bill’s actions being negligent in leaving the shed unlocked and unsecured with knowledge people were accessing it was a principal cause of the damage that Andrea suffered as a result of this fire. Had Bill fulfilled his responsibilities as store manager and taken more appropriate steps to mitigate the risk of people accessing the shed with flammable chemicals, and stopped his employee from smoking in the shed, this fire certainly wouldn’t have happened. Andrea would likely be compensated for the $1,500,000 loss, and also be compensated for the emotional damage endured after the fire. Another thing that Andrea should consider is pursuing legal action against Bill for Unlawful Interference with her business's economic relations. Bill is making a deliberate attempt to interfere with Andrea’s current coffee supply contracts and is also making comments that could potentially discourage any potential business. Bill is trying to interfere by offering discounts on Home Depot supplies in turn for Andrea’s current clients to cancel their contracts with her. This deliberate attempt to interfere with Andrea’s business can be seen as an attempt to bribe clients into not doing business with Andrea. The offer of a discount on supplies to her clients would directly cause a loss of business for Andrea, and the defamation of calling her a bad business owner could also directly cause a loss of any current or future business. Bill’s attempt to deliberately interfere with Andrea’s business falls within the criteria of unlawful interference with economic relations. Andrea should pursue legal action against Bill to not only seek legal

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