Question

In: Finance

1.  Kerry’s vehicle was struck by a drunk driver who ran a stop sign.  Kerry’s husband, who was...

1.  Kerry’s vehicle was struck by a drunk driver who ran a stop sign.  Kerry’s husband, who was a passenger in Kerry’s car, was killed in the accident.  Kerry was hospitalized after the accident and her medical bills totaled $22,600.  Due to the injuries Kerry suffered in the accident, she was unable to work for two months.  She lost $10,000 in work earnings.  Six months after the accident, Kerry was still experiencing severe pain in her lower back.  Kerry sued the driver of the other vehicle.  The other driver did not have a driver’s license or auto insurance because he had been arrested previously for driving while intoxicated three times.       

   a.  Kerry won the lawsuit because the other driver was determined to have been negligent.  Explain how the four-part test of whether an act is negligent was satisfied in this case.  (2 points)    

   b.  What type of damages:  general damages, special damages, or punitive damages   do each of the following represent?  (half-point each, provide one answer for each part – general damages, special damages, or punitive damages)

      1.  The judge ordered the drunk driver to pay Kerry $100,000 for the loss of her spouse / life partner.   

     2.  The judge was so angry at the repeat-offender drunk driver that he ordered him to pay Kerry an additional $100,000 to “make an example out of his egregious behavior.”

   3.  The judge ordered the drunk driver to pay Kerry $22,600 for her medical expenses.  

Solutions

Expert Solution

A)

Essential Part of the four-part test to determine whether an act is negligent or not?

1. Duty:
Duty is simply a legal obligation. To be sued for negligence, the defendant must have owed a duty to the plaintiff. There are two kinds of duty that a defendant could owe the plaintiff. The first is the general “duty of care.” The second duty is a “special duty” imposed by statute or case law that may exist either in addition to or in place of the regular duty of care.

Impact on Our case: It is visible that the defendant owed a general “duty of care” to the plaintiff. Since Kerry’s vehicle was struck by a drunk driver who ran a stop sign, there was a general duty of the plaintiff to follow traffic rules.

2. Breach:
A breach is a violation of a law or a duty. The defendant must breach his duty to be liable for negligence. A defendant can breach his duty both by acting in a certain manner or by failing to act in a certain manner.

Impact on Our case: Since Kerry’s vehicle was struck by a drunk driver who ran a stop sign, it is a breach of general duty by the defendant. He was unable to act in a certain manner, i.e., to follow traffic rules.

3. Cause:
The breach of duty must have caused harm to the plaintiff.

Impact on Our case: This Condition is satisfied with the Data given in the question. Kerry’s husband was killed in the accident, and she was hospitalized after the accident.

4. Harm:
The plaintiff must suffer harm to sue for negligence. If he suffers no harm, he cannot sue.

Impact on Our case: this Condition is also clearly satisfied by the Data given in the question. Medical bills totaled $22,600. She was unable to work for two months, due to which she lost $10,000 in work earnings.  Even after six months, she was still experiencing severe pain in her lower back.

Conclusion: It is quite evident after discussing the above Four point that the defendant is negligent on his part.

B)

1. The judge ordered the drunk driver to pay Kerry $100,000 for the loss of her spouse / life partner.

Special Damages: Special damages compensate for monetary expenses incurred because of an injury.

  

2. The judge was so angry at the repeat-offender drunk driver that he ordered him to pay Kerry an additional $100,000 to “make an example out of his egregious behavior.

Punitive damages: Punitives are in no way tied to the type of harm that has been suffered but are awarded to Punish the Defendant.

3. The judge ordered the drunk driver to pay Kerry $22,600 for her medical expenses.

Special Damages: Special damages compensate for monetary expenses incurred because of an injury. Eg.: Medical Expenses.


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