What could happen? Worst case scenario?

[threephase]

Say your own/operate a small electrical contracting business on the side.

Let's pretend you installed two receps, checked for correct operation, etc,etc.

Then you get a call a week later saying their son was somehow electricuted on those receptacles. Next thing you know, they are trying to sue you.......If you're company is one that offers some sort of liability protection, does that help in the big scheme of things.

At what point can it personally affect YOU either financially or thru accusations of negligence? If they can prove you were at fault, what exactly COULD happen to you? Any ideas?

 

[edamico11]

Is the business a sole proprietorship, LLC, S-corp or something else?

Is the owner of the business a licensed electrician?

 

[threephase]

LLC or S-Corp

Yes, in this situation he's a license Master Electrician.

 

[jeff43222]

My lawyer told me the type of business organization generally doesn't matter for one-man shops when it comes to liability. If the corporation is owned by one person, and the corporation doesn't really have any assets to speak of, the courts can "pierce the corporate veil" and hold the owner personally liable for any financial obligations of the corporation. Things might be difference in other states, but that's the advice I received here when I started out.

In this case, I'd say the owner/operator of the side business better have a good liability policy if they can prove he was at fault. Also, if there's any evidence he was violating any laws (didn't have the proper licensing, didn't pull a permit if required, etc.), the authorities would probably come down on him hard. He'd likely be facing criminal (e.g., negligent homicide) and civil (sued big time) penalties. I think it's lot easier to believe someone is negligent/guilty if there's already evidence that he's breaking other laws in relation to the work in question.

 

[growler]

Say your own/operate a small electrical contracting business on the side.

Let's pretend you installed two receps, checked for correct operation, etc,etc.

Then you get a call a week later saying their son was somehow electricuted on those receptacles.

If the receptacles were installed to Code standards I doubt if there would be a real problem. Get a good lawyer.

If it were say a Non-GFCI protected receptacle in a bathroom. You have a problem. Leave the country and change your identity.

What happens if a child steps out in front of your truck on the way to work tomorrow and the child is killed. You pay your insurance, drive carefully and hope for the best. You may end up in prison anyway. That's for the courts to decide.

 

[edamico11]

Did I mention!!!!!

Did I mention!!!!!

I am not a lawyer,, my wife happens to be a contractual lawyer and my answers are based on our discussions, in NO WAY is this legal advise, this response is only based on a hypothetical situation.

First part: The company that the person works for, does not have to cover that person if the person was working without the companies knowledge. This would include "on the side" work.

Ok,, the LLC or S-corp is supposed to protect the individual from a personal suit, as long as the individual was doing work within the scope of the company. (Doing electrical work and having and electrical company would qualify). That being said, if the company has an insurance policy, (which I hope it would) it can be used for the company's protection and the individual working for the company (even if it is the owner). If it does not, the companies assets are at risk, not the individuals.

FYI:

It is common practice to have an attorney respond for the individual and the company separately, even though there is protection (S-corp, LLC etc.) This is just good lawyering and should not be confused with personal liability.

Again this is hypothetical and based on NY and NJ law. I am sure that other states have different statutes.

 

[e57]

saying their son was somehow electricuted on those receptacles. Next thing you know, they are trying to sue you.......

The Liability company and your lawyer would both be saying the same as you... PROVE IT! Unless you had a hot ground or other defect.... They not supervising or otherwise child-proofing the installation - or requesting such when you installed it - I would see the burden unfortunately with them. Or with what ever utilization equipment that was plugged into it, if it was at fault.

 

[iwire]

The Liability company and your lawyer would both be saying the same as you... PROVE IT!

Mark you did grow up in America correct?:wink:

I would say anyone that had anything to do with it will be hauled into court, the burden of proof for civil damages is much lower than for criminal court.

If the jury feels sympathetic to the victim and thinks it will be the insurance company taking the hit they may just go with their heart and not their head.

The verdicts do not always make sense.

 

[kbrandt]

You never said if the kid was dead or alive.That might make a difference.
You play with rattlesnakes you might get bit.

 

[jeff43222]

"Electrocuted" means "died from electric shock." Many people use the word incorrectly when they mean to say "shocked but didn't die."

 

[e57]

Yep American born and raised Bob - True about the civil vs. criminal but there would have to be some extenuating defect or any installation would be a hazard. As IMO the long outstanding precident of kids jamming forks and the like in outlets is well established - otherwise all outlets would be child-proofed in some way by now, and required by law....

 

[iwire]

Yep American born and raised Bob -

I know, I was only joking around, no offense meant.

True about the civil vs. criminal but there would have to be some extenuating defect or any installation would be a hazard.

Mark IMO to think you will be found 'not liable' in civil court just because you did no wrong is wishfull thinking.

IMO you could lose a civil case for a perfect installation.

As IMO the long outstanding precedent of kids jamming forks and the like in outlets is well established - otherwise all outlets would be child-proofed in some way by now, and required by law....

You do know that there was a proposal for the 2008 NEC to require all receptacles in dwelling units to be tamper proof?

As I remember it was on its way to becoming code.

 

[e57]

I know, I was only joking around, no offense meant.

Even if I were not - I wouldn't be - unless I was required to be


Mark IMO to think you will be found 'not liable' in civil court just because you did no wrong is wishfull thinking.

IMO you could lose a civil case for a perfect installation.

Pesimist....... :grin:

You do know that there was a proposal for the 2008 NEC to require all receptacles in dwelling units to be tamper proof?

As I remember it was on its way to becoming code.

Yikes, that is frieghtening.....

Response shown in red...

 

[celtic]

Then you get a call a week later saying their son was somehow electricuted on those receptacles. Next thing you know, they are trying to sue you.......

I wouldn't get excited.
Anyone can sue anybody for any reason.

Before the suit is even brought before a judge, there is a long road that must be traveled.

 

[JohnE]

Well said, Celtic.