Reference no: EM131789112

The Home Station, a multi-billion dollar home corporation with stores in 40 states, hired William, a 27 year old man with a known history of arrests for battery and arson. During the course of his employment with The Home Station, William began exhibiting signs of mental instability, and began acting irrationally. William told his manager that he'd like to blow the place up, but the manager was short-staffed and needed William to work, so he did nothing. One morning, during the peak shopping hours, William detonated a large supply of fertilizer in the garden center. The resulting explosion severely and catastrophically injured William, 3 other employees, and 15 innocent shoppers. A jury found that Home Station was negligent in their hiring and retention of William as an employee, and entered a verdict against Home Station for $75 million. The Home Station's liability policy provided insurance coverage to Home Station for only $50 million.

William will be able to collect worker's compensation benefits, because William was injured within the course and scope of his employment.

The employees will be able to collect worker's compensation benefits for their injuries, but will not be entitled to any of the $75 million in damages for Home Station's negligence in hiring William.

Home Station's shareholders may be personally liable for the remaining $25 million, because Home Station's severe acts of negligent hiring resulting in catastrophic harm to others.

The families of the shoppers will only be entitled to $50 million, because there was only $50 million in insurance coverage.