Civil Liability of Banks for Employees’ Actions toward Customers

Abstract

If, following legal scholars, the principal objective of civil liability rules is considered to be compensation of the injured party and reparation of the damage incurred, then the State and municipalities cannot be regarded as exceptions to this rule. In general, damages resulting from the activities of governmental and municipal institutions may be categorized into three types: violations of the fundamental and public rights of citizens, damages arising from the economic activities of the government, and damages caused by deficiencies in the provision of public services. Acceptance of the principle of governmental and municipal liability alone is insufficient, because the State and municipalities themselves consist of a collection of individuals and agents. Consequently, when unlawful damage results from the performance of this collective body or one of its components, the injured party faces uncertainty as to whom recourse should be made against: the direct tortfeasor, who may be an insolvent employee, or the governmental organization, which possesses institutional capacity and resources. Accordingly, this article examines which entity should bear responsibility for compensating damages resulting from the personal fault and administrative fault of employees.