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BUS 1044 Business Law

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BUS 1044 Business Law

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Course Code: BUS1044
University: George Brown College is not sponsored or endorsed by this college or university

Country: Canada


Discuss about the given article.
The stinky fish: Act of Negligence
Rancid fish tale sets off $750,000 legal battle
Kopun, Francine . Toronto Star ; Toronto, Ont. [Toronto, Ont]16 Sep 2018: A.1.


The plaintiff of the case, Albert Testa owned a fish-processing plant with his partner, which consisted cold storage inventory and heavy machineries to process the fish and market it. Both of the people i.e. Albert and his partner failed to repay their loans, which they took to finance the purchasing and operation of the plant from TD Bank. As the result of such failure, TD Bank has appointed a third party BDO Canada Ltd as a receiver with the objective to seize the subjective plant. Afterward Testa made a claim that BDO failed to maintain the security of the plant and because of poor caring and handing, the value of property diminished. The claims of Testa were that after the handover of the plan to the receiver entity, he found on a visit that there has been condensation in the freezer, which has caused icy stalagmites noticing fish, mush, hanging from the fixtures of light and stalagmites sprouting from the floor. The problems were further compounded when the receiver decided to store the mushy fish in the freezer with previously frozen fish that damaged the entire frozen and fresh fish inventory.
The Freezer was not working and the receiver has not allowed any time to Testa and his partner to give any instruction or to clarify anything to them. He further stated that the lead issue was a terrific smell that penetrated the ceiling, walls, furniture, equipment, and other areas of the property.
In the most significant claim Testa said that the available fish inventory at the time of taking the possession by BDO worth cost $50,00 and could be a sale for $200,000. In conjunction to this, the building was also valued as of $620,000 (and $750,000 later on), that was sold for just $290,000 later on and the reason behind the same negligence of BDO (, 2018). Being a receiver, BDO might act in a reasonable manner and might care about the value of inventory as well as of a building. Bank, in it, is clarification stated that the earlier valuation was as high as the same has been done before the 2008’s financial crises and the value has diminished for this reason.
The case discussed herewith is related to the subject of Tort law. According to the provisions of this law, a person is required to ensure that his/her act do not cause unreasonable harm to others (, 2018). Negligence is an important term of Tort Law. It refers to a situation where a person who was required to act with due care and in a reasonable manner fails to do so. For a valid claim of negligence, it is necessary that because of negligent act of defendant, plaintiff must be suffered with some kind of damage/loss and the same must be a direct result of the negligence of defendant. Here being the receiver of the property, BDO was expected to act in a reasonable manner. Although the plant was made out of the value taken from TD bank in the form of a loan, yet it was the property of Testa and his partner. BDO cannot take the defense of the same. All the requirements that are necessary for the claim of negligence are presented in the case. Here, BDO owed duty of care towards Testa and his partner and failed to do so. In addition to the same Testa and his partner faced damage in form of financial loss, which was a direct result of negligence of BDO. Further, contributory negligence is a term under Tort law, which reflects a situation where in addition to defendant, plaintiff also make failed to act as a reasonable person (, 2018). In the studied case, Testa cannot be held liable for the contributory negligence as the same tried to bring the issue of malfunctioning of the freezer.
To discuss the remedies under Tort Law, this is to be stated that a plaintiff can ask for the damages for loss accrued to him/her because of negligence of defendant.  However, claims of Testa have not been proven, yet this is to seem that he can ask for the remedies to BDO for the damage accrued to his business cause of the act of negligence of BDO. In the remedies, Testa can ask the diminished value of inventory and building as damages. Applying the provisions of vicarious liability, TD bank also can be held responsible as BOD was acting on behalf of the same. Vicarious liability rule brings a liability to employer/principles for the torts committed by their employees/agents (Steele, 2017).
References (2018). Contributory negligence. Retrieved From: (2018). What is negligence? Retrieved From: (2018). Rancid fish tale sets off $750,000 legal battle. Retrieved From:
Steele, J. (2017). Tort Law: Text, Cases, and Materials. UK: Oxford University Press.

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