Lawsuits brought on by a company's own shareholders is a common type of corporate negligence claim. Negligence is a principal of civil tort law where a plaintiff alleges that a defendant breached a duty of care that caused harm. However, corporations may also be held accountable for negligent decisions in a civil lawsuit. In order for a corporation to be found liable for negligence, a plaintiff must demonstrate that the company breached a duty that it owed and that such acts or omissions caused harm.

For example, a credit card company that accidentally released confidential financial information of its customers thereby causing risk for identity theft may be found negligent. A parent corporation may found liable for the negligence of its subsidiary companies even if the Mercury Indemnity Company Of America company did not take part in any wrongful acts.

This vicarious liability may be established if a plaintiff demonstrates the parent company had an obligation Fire Cable Company oversee the actions of its subsidiary, or if the two components worked sufficiently close so as to be deemed one organization. A common scenario Company Sued For Negligence a negligence claim is brought against a corporation is when its own shareholders file suit claiming the company engaged in actions that were deceitful or otherwise harmed the value of the company's stock.

In the fallout from the Company Sued For Negligence crisis, Bank of America faced a multi-billion dollar lawsuit by its shareholders due to its acquisition of the failed investment company, Merrill Lynch.

Kevin Owen has been a professional writer since He earned Company Sued For Negligence Juris Doctor from American University. Skip to main content. The Corporation image by Benmm from Fotolia. Corporate Neglect In order for a corporation to be found liable for negligence, a plaintiff must demonstrate that the company breached a duty that it owed and that such acts or omissions caused harm. Vicarious Liability A parent corporation may found liable for the negligence of its subsidiary companies even if the parent company did not take part in any wrongful acts.

Shareholder Suits A common scenario where a negligence claim is brought against a corporation is when its own shareholders file suit claiming the company engaged in actions that were deceitful or otherwise harmed the value of the company's stock.

About the Author Kevin Owen has been a professional writer since Accessed 05 March Owen, Kevin. What Is Corporate Negligence?

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How to Sue for Negligence Legal Beagle

Generally, a party can sue you if your careless behavior causes another party bodily injury, property damage or death. Judges and juries can award compensation in negligence cases for actual losses and, depending on state law, compensation can include money for physical pain and suffering, emotional damages and lost wages.…

Proving Fault: What is Negligence? - FindLaw

Negligence is a legal theory that must be proved before you can hold a person or company legally responsible for the harm you suffered. Proving negligence is required in most claims from accidents or injuries, such as car accidents or "slip and fall" cases.Negligence claims must prove four things in court: duty, breach, causation, and damages/harm.…

Negligence - Wikipedia

Because Palsgraf was hurt by the falling scales, she sued the train company who employed the conductor for negligence. The defendant train company argued it should not be liable as a matter of law, because despite the fact that they employed the employee, who was negligent, his negligence was too remote from the plaintiff's injury.…

Five Signs You May Have a Case to Sue a ... - LawGuru.com

Oct 06, 2011 · A company can still be at fault if their negligence can be established as the reason an injury or some degree of financial harm occurred. Negligence can happen at a variety of levels; for example, a designer on a new product might be negligent as to a design flaw, or a quality control inspector can fail to notice one particular unsafe product ...…