![]() ![]() ![]() In sole negligence situations, no negligence or legal liability is assignable to the lower tier contractor. Approximately 19 states allow the upper tier contractor to transfer joint negligence back to the jointly-liable lower tier contractor via intermediate transfer.īroad Transfer : Sole negligence and liability exists when only the upper tier is found negligent and legally liable for the injury or damage. The term does not consider the “percentage” of fault assignable to both parties, only that the actions of both parties resulted in the injury or damage (remove the actions of one, and the injury or damage or the amount of injury or damage would not have occurred). Intermediate Transfer : Joint liability, as the name suggests, is injury or damage caused or attributable to both the upper tier and lower tier contractor. Every state allows vicarious liability to be transferred back to the at-fault lower tier contractor this is known as limited transfer. This control leaves them open to vicarious liability for the actions of lower-level entities in addition to liability for their own actions. Owners and general contractors (the upper tiers) hold a position with a certain amount of control over and responsibility for the actions of lower tier contractors. Without the opportunity or responsibility to control another’s actions, there can be no vicarious liability. Also required is the right, ability or duty to control the actions of the directly liable party. Such indirect liability can arise out of a relationship (parent/child, employer/employee, etc.), position or contract. Limited Transfer : Vicarious liability is created when one person or entity is or can be held legally liable for the results of another person’s or entity’s actions. The Three ‘Levels’ of Transfer Allowed/Attempted In extreme cases upper tier contractors may even endeavor to contractually relieve themselves of financial responsibility for their sole negligence and liability. And when allowed by statute, and sometimes even when not allowed, these upper tier contractors attempt to avoid the financial consequences arising out of injury or damage for which they and the lower tier contractor are jointly liable. ![]() In nearly every circumstance upper tier contractors seek to transfer responsibility for injury or damage for which they could be held vicariously liable. Upper tier contractors seek to avoid, through the use of various transfer mechanisms, the financial costs that can result from bodily injury or property damage to a third party caused or contributed to by other parties (lower tier contractors). ![]()
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