PROJECT ON LAW OF TORTS

TORTIOUS LIABILITY IN PROPHECIES AND PREDICTIONS

SUBMITTED BY: SUBMITTED TO:Parikshit Shukla Ms. GUNJAN CHAWLAII SEMESTER (1281)(FACULTY OF LAW)

NATIONAL LAW UNIVERSITY, JODHPURWINTER SEMESTER

Acknoledgement

On the completion of this project, I take the opportunity of thanking the people who contributed in the completion of it, without whose aid, contribution and help this project wouldnt have seen practicability. First I extend my heartfelt gratitude to, my mentor and teacher, Ms Gunjan Chawla, Faculty of Law of Torts whose continuous guidance and support provided me with the much-needed impetus and gave me a better insight into the topic. I am grateful to the IT Staff for providing all necessary facilities for carrying out this work. I thank all members of the Library Staff for providing me the assistance anytime needed. I also thank my friends and batch mates for providing me the much needed aid whenever needed. Most importantly, I would like to thank my parents for providing me the much-needed force for accomplishing this project.

Table of content

Acknoledgement2Table of content3OBJECTIVES4RESEARCH METHODOLOGY4INTRODUCTION5BREACH OF CONTRACT AND BREACH OF DUTY FOR GIVING INCORRECT PREDICTIONS AND PROPHECIES8COMPARISION BETWEEN THE LEGAL STATUS OF PREDICTIONS AND PROPHECIES IN US AND UK WITH INDIA.14Conclusion18Independent Analysis19Bibliography21

OBJECTIVES

To examine the scope of tortious liabilities for predictions and prophecies in India i.e. whether a wrong prediction will amount to a breach of duty or a breach of contract or both. To examine the legal status of predictions and prophecies in India. To compare the legal status of predictions and prophecies in US and UK with India.

RESEARCH METHODOLOGY

The research methodology of this paper is mainly doctrinal. The research methodology is descriptive while also analysing the topic. Substantial reliance has been placed on secondary sources because of the scant amount of primary resources available. The mode of citation followed in this research is OSCOLA 4th Edition.

INTRODUCTION

Knowing about what is going to happen in the future has been a constant endeavour of human beings. Astrology, palmistry, Vastu Shastra, tarot cards etc. are the various ways in which man tries to predict the future. Astrology in India is regarded as an unexplored science[footnoteRef:1]. In other countries for e.g. USA, fortune telling is a form of livelihood and it is given proper recognition by the government[footnoteRef:2]. India is also famous for the prophecies of its famous Godmen[footnoteRef:3]. Godmen reportedly claim to have special powers to heal people, power to foresee the future and influence it, power to read minds of others[footnoteRef:4]. Godman actually is a very vast term and has a wide array of meanings depending on the context. A common form of claim by the Godmen is that they can heal people by magic. In some states like Maharashtra claiming to heal by magic remedies is illegal.[footnoteRef:5] Taking payments for treating someone magically and not being able to do so institutes into a crime[footnoteRef:6]/[footnoteRef:7]. [1: P.N Bhargava and Ors. Vs UGC and Anr AIR 2004 SC 3 478.] [2: Municipal Code of the City of Los Angeles, State of California, USA 1932 ss 43.30, 43.31 ] [3: "God-man". Oxford Dictionaries. http://www.oxforddictionaries.com/definition/english] [4: James G. Lochtefeld ,The Illustrated Encyclopaedia of Hinduism (2002) 253. ] [5: Maharashtra Prevention and Eradication of Human Sacrifice and other Inhuman, Evil and Aghori Practices and Black Magic Act 2013] [6: Sri Bhagwan S.S.V.V.V. Maharaj v. State of Andhra Pradesh AIR 1999 2 332] [7: Indian Penal Code 1860 ss 415, 420]

Regarding astrology different views exist in India. Among men with a scientific temper; astrology is thought of as a pseudo-science.[footnoteRef:8]While Bombay HC in a recent judgement has established that astrology is a 4000 year old science.. Astrology indeed has existed in India for very long. Even though it quite contrasts with the findings of western science; it is considered to be a science because it is associated with the observation of heavenly bodies and drawing inferences from it[footnoteRef:9]. Similar is the case with palmistry and other such methods to foresee the future. This is where the question arises that whether a person can be held liable for making wrong predictions. Are the astrologers and others under any form of contract[footnoteRef:10] with us? If yes then under which law will the offender[footnoteRef:11] be held liable and will it be a violation of right in personam[footnoteRef:12]? [8: Paul R. Thagard, 'Why Astrology is a Pseudoscience' [1978] PSA 2] [9: D Parthasarathy and R. Robinson, Science, Astrology, and Democratic Society 2001 E&PW 3186 ] [10: Indian Contracts Act 1872 s2(h)] [11: Code of Criminal Procedure 1908 s357 ] [12: Ratanlal and Dhirajlal, Law of Torts (26th Edition) 5]

Prophets are defined as men who speak the voice of God and can see the future. Throughout history man has been a witness to many prophets including Moses, Jesus Christ, Muhammad[footnoteRef:13] among others. The words they spoke were considered to be the voice of God[footnoteRef:14] and were so written in their respective religious books. But times have changed and man likes to question everything. Men who now pose as agents of God and give their prophecies are questioned. The biggest question which comes into picture is; what is then the legal standing of the prophecies of such men. Do they owe a duty of care [footnoteRef:15]towards their client for their services? Can they be held liable[footnoteRef:16] for the delivering a wrong prophecy? If so, then how will a person decide whether a prophecy is correct or not. Under what ambit of law will they be held liable? Will the damaged be awarded[footnoteRef:17]? [13: Wheeler, Brannon M., Prophets in the Quran: an introduction to the Quran and Muslim exegesis. Comparative Islamic studies (Continuum International Publishing Group 2002)] [14: Peters, F.E., The Words and Will of God (Princeton University Press) 1213.] [15: Clerk & Lindsell, Torts (19th Edition)] [16: LEGALLY LIABLE, Black's Law Dictionary (2nd edition)] [17: Charles Sweet, A dictionary of English Law 79]

There exists another form of prediction based on quantitative analysis of past and present data. Best examples of quantitative predictions include weather forecasts and stock market trading. Both are predictions made by cumbersome calculations. But it does not mean that they cannot be wrong. A person may suffer a personal injury[footnoteRef:18] due to a wrong forecast[footnoteRef:19]/[footnoteRef:20]. But will making a wrong forecast constitute to a tortious liability[footnoteRef:21]? [18: IPC 1860 s144] [19: Ingham v. U.S. FD 1967 USSC 227 ] [20: Brandt v. The Weather channel FD 1999 USSC 433] [21: Winfield and Jolowicz, Law on Tort (18th Edition) 1-4]

This project will try to answer to all these questions. In India, the law of tort is not developed to its full extent therefore there have been negligible amount of cases of this concern. Nevertheless, there will be a comparative study between the laws in India and other countries regarding the subject.

BREACH OF CONTRACT AND BREACH OF DUTY FOR GIVING INCORRECT PREDICTIONS AND PROPHECIES

A contract has a few essential points which need to be fulfilled before it is considered to be a legal contract. There are three major necessities in a contract which are: acceptance communication and revocation. The first essential condition is regarding the communication of the contract.

The communication of a proposal is complete when it becomes to the knowledge of the person to whom it is made. The communication of an acceptance is complete as against the proposer, when it is put in a course of transmission to him so at to be out of the power of the acceptor; as against the acceptor, when it comes to the knowledge of the proposer. The communication of a revocation is complete as against the person who makes it, when it is put into a course of transmission to the person to whom it is made, so as to be out of the power of the person who makes it; as against the person to whom it is made, when it comes to his knowledge[footnoteRef:22]. [22: Indian Contract Act 1872(ICA 1872), s 4]

In this current area of discussion we have to determine whether the act of prediction and prophecy has a proper communication i.e. whether the communication is expressed or implied by the offeror. In an ideal case of astrology (the most common form of prediction) a man comes to the astrologer to listen about his future. The astrologer makes an offer and the customer may accept the offer or further negotiate. Finally the offer is accepted and we can move on the next essential prerequisite for a contract.

Now when the acceptance has been given so that it is unconditional and absolute we can move to the legality of the contract.

All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void. Nothing herein contained shall affect any law in force in India, and not hereby expressly repealed, by which any contract is required to be made in writing or in the presence of witnesses, or any law relating to the registration of documents.[footnoteRef:23] [23: ICA 1872, s 10]

The biggest consideration here is whether practising astrology is legal in India. It was held by the Supreme Court in the famous case of P.M. Bhargava and Ors. Vs University Grants Commission and Anr had decided that astrology is a science and it can be allowed as a subject of study in the university[footnoteRef:24]. In another case of Smt. Aarti Vs State of Punjab through Principal Secretary and others it was decided that astrology as a science is well established and it cannot be challenged even though people who pretend to be astrologers can be held liable. In many other cases also astrology has been recognized as a profession.[footnoteRef:25]/[footnoteRef:26] Therefore the question whether astrology is a legal profession or not gets handled. [24: Bhargava (n 1)] [25: K. Sadasivam and another Vs B. Harikrishnan MLJ 2001 HCM 2 300] [26: Indra Sawhney Vs Union of India (UOI) and Ors. SCC 1992 SC 3 413]

But even after giving the consent by a reasonable man few conditions still need to be checked in a contract. Section 14 defines free consent as:Consent is said to be free when it is not caused by (1) Coercion, as defined in section 15, or (2) Undue influence, as defined in section 16, or (3) Fraud, as defined in section 17, or (4) Misrepresentation, as defined in section 18, or (5) Mistake, subject to the provisions of section 20, 21, and 22. Consent is said to be so caused when it would not have been given but for the existence of such coercion, undue influence, fraud, misrepresentation, or mistake[footnoteRef:27]. [27: ICA 1872, s 14]

The point which we must consider here is part 3 of the section i.e. regarding fraud.Fraud has been defined in the act as:"Fraud" means and includes any of the following acts committed by a party to a contract, or with his connivance, or by his agents, with intent to deceive another party thereto his agent, or to induce him to enter into the contract; (1) the suggestion as a fact, of that which is not true, by one who does not believe it to be true; (2) the active concealment of a fact by one having knowledge or belief of the fact;(3) a promise made without any intention of performing it; (4) any other act fitted to deceive; (5) any such act or omission as the law specially declares to be fraudulent[footnoteRef:28]. [28: ICA 1872, s 17]

Therefore a contract cannot be held valid if the astrologer understands that he is deceiving the customer by inducing him to hear his future when he knows that he is unable to tell the future. The astrologer is also liable if he knows that he will not be able to fulfill his promise.

But after considering all of the above if the astrologer and the customer have in good faith come to an agreement out of free consent and mutual understanding then astrology can be thought of as form of contract between the astrologer and the customer. Therefore the astrologer should be held liable for the breach of contract on non compliance on his part of the deal. But what exactly would be considered a breach of contract on the part of the predictor. The predictor had undertaken to predict the future of his client. In other word he had undertaken to advise his client. In other professions where the defendant is involved in advising the plaintiff the plaintiff is held liable for giving a wrong advice. In Caparo Industries Plc. Vs Dickman [footnoteRef:29]Lord Bridge had said about giving professional advices that the defendant must use all his skill to give advice and the defendant can be held liable if due to a direct consequence of the defendants prediction the plaintiff suffers any loss. In other professions having the need to give advices like doctors[footnoteRef:30], solicitors[footnoteRef:31], architects[footnoteRef:32] and auditors[footnoteRef:33] are held liable for breach of contract as well as the breach of duty on giving faulty advice. Lord Goff had observed in Henderson vs Merett Syndicate Ltd[footnoteRef:34]. that other professions apart from the medical profession should be held liable for breach of contract and breach of duty for giving faulty advice. [29: Caparo Industries Plc. Vs Dickman All ER 1990 1 568] [30: Fish (n 19)] [31: Groom (n 22)] [32: Bagot (n 24)] [33: Caparo (n 15)] [34: Henderson vs Merett Syndicate Ltd All ER 1994 3 506]

It is known to us that the same wrongful act can amount to a breach of contract as well as a breach of duty[footnoteRef:35]. Other professionals who are under a contract can also be held for the breach of duty like in the case of solicitors, doctors and other such people who are under a contract to skillfully discharge their duty undertaken in regards to the customer[footnoteRef:36]. In our case a predictor is also liable to give skillful recommendations to the customer. But what can be held to be skillful recommendations? Will making a wrong prediction amount to a legal wrong i.e. a breach of duty? [35: Coupland vs Arabian Gulf Co. Ltd. All ER 1986 CA 3 226.] [36: Ratanlal and Dhirajlal, Law of Torts (26th Edition, Lexis Nexis).]

It is of importance to note here that an inn keeper[footnoteRef:37], doctor[footnoteRef:38] is held liable for unskillfully doing their job. Earlier newer jobs of solicitor[footnoteRef:39] and architects[footnoteRef:40] were kept out of ambit of the breach of duty. But after the advancement of the area of torts this discrepancy has since been removed[footnoteRef:41]. [37: Constantine vs Imperial Hotel Service All ER 1944 2 171.] [38: Fish vs Kapur All ER 1948 2 176.] [39: Groom vs Crocker All ER 1938 2 384.] [40: Bagot vs Stevens Scanlar and Co. All ER 1964 3 577.] [41: Fleming, Law of Torts (6th Edition)]

When professionals like solicitors and auditors can be held liable for giving a wrong advice then there is no reason why a man who says he can predict the future of his client be not held liable for the breach of duty in giving a wrong prediction or prophecy. Giving a wrong prediction may cause harm to the plaintiff. Therefore a person giving a wrong prediction and a prophecy should be held liable for both the breach of contract as well as the breach of duty.

COMPARISION BETWEEN THE LEGAL STATUS OF PREDICTIONS AND PROPHECIES IN US AND UK WITH INDIA.

Liability in the area of prediction, prophecies or forecast is still not defined clearly in India. Same goes with many other countries in the world. There hasnt been any substantial case regarding this anywhere in the world. In India we have Godmen, astrologers, yogis etc. who make predictions and try to provide solutions to people which are illogical and still people are convinced that they have the remedy. But, when they go wrong no law dictates what the legal scenario should be. Even in the US there is no law which dictates tortious liability for a wrong prediction. But, there is a law which can fix the liability in certain cases. For government employees, liability for any misrepresentation even in weather forecasting is prohibited under FTCA[footnoteRef:42]. In general, there is no liability for providing information in the US. To hold anyone liable in US for a wrong prediction it needs to be proved that negligence has been a part of making that prediction. The burden of proof lies on the plaintiff in such cases as well. In Barite v. US[footnoteRef:43] where the plaintiff lost his wife and five children washed away in the tornado pleaded for a fair compensation for the negligence of weather forecast which eventually proved out to be wrong but he didnt get any compensation because he could not prove negligence on their part. Further testimony by an expert provided that the weather forecast was more or less reasonable at the point of time. It was also noted that if the harm is done it cannot be decisively said that a tort has been committed. Similarly, a ship sank during a storm near the Texas coast in the early morning[footnoteRef:44]. Even in this case the weather forecast company was not held liable for a wrong weather forecast on the grounds that it was a reasonable prediction on the defendants part. Also the defendant questioned the authenticity of the testimony that the sailors were exclusively dependant on weather forecast and listened to their particular forecast. [42: The Federal Torts Claims Act 1946.] [43: Bartie v. United States W.D. 1963 LA .] [44: Chanon v. United States S.D. 1972 TEX.]

There are many other cases relating to wrong weather forecast where the defendant was not held liable. Major part other than that of negligence which is hard to prove is whether the plaintiff listened to the forecast or not.

Aviation cases are an open and shut case in some matters as government employees are protected under the statute[footnoteRef:45]. But luckily, there have been a few cases where damages were awarded[footnoteRef:46]. In this case a single-engine aircraft was crashed on a busy airport due to a cryptic and wrongly predicted message given by the controller. The trial court held that it was the pilots negligence but when the matter went on appeal it was held that the controller had the duty to estimate correct time for take-off to direct the pilot accordingly. Also, that the controller had a legal duty to warn the pilot of the possible dangers. Other cases were also found which has a similar result[footnoteRef:47]/[footnoteRef:48]. From these cases it is evident that even a wrong prediction can lead to a persons death so this area of tort should be developed in India as well. [45: FTCA 1946] [46: Hartz v. United States 1968. ] [47: Furumizo v. United States 1965.] [48: Yates v. United States 1973.]

Another interesting area of tortious liability for wrong predictions can be that of stock brokers. Stock brokers are agents who suggest people to buy shares on their business acumen but if they go wrong liability will arise. There is certain standard by which a broker has to work and such standards have been imposed on a stockbroker by bodies such as the Association of Chartered Institute of Stockbrokers, the Investment Dealers Association and the Canadian Security Institute etc. Broker found in violation of these standards can be held liable. Brokerage firms for that matter can also be held vicariously liable.[footnoteRef:49] [49: Northey-Taylor v. Casey A.J. 2007 QB. 256 .]

According to the American tort law, Unless he represents that he has greater or less skill or knowledge, one who undertakes to render services in the practice of a profession or trade is required to exercise the skill and knowledge normally possessed by members of that profession or trade in good standing in similar circumstances[footnoteRef:50]. [50: Restatement (second) of Torts 1965 229A ]

In other words a stockbroker needs to have reasonable skills which are required for the trade. And if it is found that the broker didnt function is a way he was supposed to, he can be held liable. But if the prediction so made is not negligent and made in honest faith, the liability will not arise. Also, it is the duty of a broker to make suitable recommendations. The duty dictates that, In recommending to a customer the purchase the sale or exchange of any security, a member shall have reasonable grounds for believing that the recommendation is suitable for such customer upon the basis of facts, if any, disclosed by such customer to his other security holdings and as to his financial situation and needs[footnoteRef:51]. Even in India stockbrokers can be held liable for the same. At least in the matter of trade Indian laws are developed well enough. [51: NASDs Rule of Fair practices http://www.investopedia.com/terms/r/rulesoffairpractice.asp (viewed on 15/02/2015).]

India does not have laws for wrongful prophecies or predictions but it does have for the wrongful gain out of superstitious acts. Like in Maharashtra[footnoteRef:52] there is a legislation against superstitious acts which includes making financial profits by displaying so called miracles. In Karnataka [footnoteRef:53]a bill had been drafted following the footsteps of Maharashtra[footnoteRef:54]. [52: The Maharashtra Prevention and Eradication of Human Sacrifice and other Inhuman, Evil and Aghori Practices and Black Magic Act 2013.] [53: Karnataka Prevention of Superstitious Practices Bill 2013.] [54: Anti-Superstition Laws in India iPleaders http://blog.ipleaders.in/antisuperstition/ (viewed on 15/02/2015).]

Conclusion

It has been established in the project that there are damages that arise out of faulty/negligent predictions and prophecies, and these damages may range in any number as has been shown by various cases cited in the project. I would like to conclude the project by saying that there is an imperative need to develop all the laws related to the issue of negligent prediction and prophecies in India. It has been shown by comparison with various torts law of other countries that there are better ways to deal with this issue, and that way is amendments to the tort laws related to this issue and a better interpretation of them which should be done in a stricter way. There props up a bigger need to come up with amendments to torts law dealing with this issue in our country because of the peculiar situation of our country where we regularly deal with damages that arose out of superstitious prediction and prophecies, wherein it is a big, blooming industry with absolutely no liability attached to it. We have had various instances of superstition blooming and adversely affecting our country like in the case of Nirmal Baba wherein his prophecies led to a to widespread promotion of superstition and ultimately led to severe damages to certain individuals, the sad thing is that this industry blooms on the damages caused to individuals. Hence it can be concluded by saying that there is an urgent need of better laws on this particular issue, the researcher would also like to show that there have been steps to deal with this issue like in the instances of Superstition laws which were drafted in 2013 by Karnataka and implemented by Maharashtra in 2013 and an ordinance passed by the Maharashtra Government on the same issue, these steps could go a long way, but there is still a need of better laws. So, it can be conclusively said that tortious liabilities being an uncharted territory needs to be discovered step by step by the lawmakers.

Independent Analysis

Laws in India are unrealistically underdeveloped when it comes to the realm of predictions and prophecies. There is a need to make amendments in the current tort laws that govern the realm of prediction and prophecies in India. When comparing to the laws in US it was found that liabilities there are fixed according to respective statutes and similar cases can be found where compensation was awarded. But, in India, sadly no such instances and cases have been found when the reality is that India has ten times more instances of people being adversely affected by such superstitious practices than the United States, or any other country for that matter. Our backwardness on the issue of Superstition and laws related to it can be shown in by the Superstition laws which were drafted in 2013 by Karnataka and implemented by Maharashtra in 2013 have similar provisions that were available in The Witchcraft Act 1542 enacted by King Henry VIII. This shows that lot of development regarding laws is imperatively needed. To gain a better legal scenario laws should be made inspiring from the existing laws in other countries. It has been established in project that there are damages that arise out of the negligent practice of prediction and prophecies, and in our country, there are instances where these damages are astronomical in nature, therefore, the researcher as a law student has tried to give a few recommendation regarding the development of laws in the area of predictions and prophecies, which are Laws for the regulation of Astrology, Fortune telling and similar businesses should be made and liabilities thus arising should be discussed. Negligent weather forecast should be a punishable offence irrespective of the private or a government authority. Fraudulent acts of predicting future in order to make financial gain should be made a criminal offence. Astrology and similar businesses should also be conducted as per the laws of contract. Public awareness schemes should be introduced by the government regarding this. Professions which do not comply with reasonable standards of conduct should be held as illegal. A detailed study regarding the condition of laws regarding predictions and prophecies in other common law countries should be conducted to draw inspiration from them.

Theses recommendation can go a long way in solving the problem related to negligent prediction and prophecies. These act come under the ambit of a bigger problem we are facing in India i.e Superstition, which is something that is eating our nations roots, a small step to eradicate it one by one would go a long way to eradicate it completely out our nation. We would be able to live the dream of rationalist like Narendra Dhabholkar who was mercilessly murdered on the street of Mumbai, four days before the ordinance on Anti Superstition and Black magic was passes in the state. I, while making the project realized that this is not just a problem that begins and end under the ambit of the Tort law, this is national problem of greater importance and hence treading on the lines of martyrs like Mr. Dabolkar, we need to fight this problem in our own capacity, I consider this project that highlights the shortcomings in the law of Torts dealing with this subject and recommend ways to deal with these problems, as a small step toward eradicating the vicious problem of superstition in our country.

Bibliography

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