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Are Demands from Retailers for Payment Connected to Shoplifting Legal?

A family member, such as a minor child, steals something from a retailer and is successfully prosecuted for shoplifting. Likely the theft was for less than $20.00 and the retailer retrieved the goods as part of preventing the shoplifting. A little while later, you, as parent, receive a letter receive a letter from the retailer demanding payment of a significantly larger amount i.e. a few hundred dollars. The retailer's lawyer claims the amount demanded is based on the cost of security and loss prevention.

Many parents will pay the amount just to make the problem go away. Paying a few hundred dollars can be significantly less than hiring a lawyer and finding out one's legal rights or of fighting this type of demand. Unfortunately for the parents there is little legal basis in the demand.

First, parents are not vicariously responsible for the tortious actions of their minor children. Second, at least one court in Alberta has rejected the argument of awarding a retailer damages based on anticipated costs associated with a potential wrong. (See Southland Canada Inc. v Lylik - below) In other words, unless the amounts claimed can be specifically connected to the costs associated with preventing the child (not all children) from shoplifting, the retailer is unlikely to be successful.

The Lesson: Since there is little legal basis for the demand the best solution is to write the person who sent the letter and question the legal basis for the demand (Keep a copy of the letter in case the retailer does take you to court) . In the letter ask for specific statutory provisions and case law that allows them to make the demand. If they cannot provide any basis for the demand to you they will not be able to provide any to a judge either. It is possible that the demand will go away or that you will be able to negotiate a reduced settlement, if you are willing to pay to make the problem disappear.

The content and the opinions expressed here is informational purposes only and does not constitute legal or professional advice. Nor does reading or commenting on it create a lawyer/client relationship with the author. I encourage you to contact me directly at adrianlawoffice@gmail.com if you have specific legal questions or concerns.

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