Smart and his friend Mahoney were in a department store. Security personnel observed the two young men near a third party, Murphy. They saw Mahoney, but not Smart, talking to Murphy. However, the officers noticed Smart making head gestures which they thought were signals to Murphy as to whether his actions were being watched.

When Smart moved to another part of the store, two security officers asked him to accompany them to an office. Smart complied, Murphy was already there, and the officers accused Smart of assisting him in the theft of various car accessories that had been found when Murphy was searched. Smart was required to empty his pockets and was detained for about 25 minutes by the time the police arrived. During this time, Smart was subjected to verbal harassment by the security officers.

A criminal charge laid against Smart was later withdrawn. Smart took action against the department store for damages.

a) On what grounds would Smart base his action?

b) What defence would the department store argue?

c) How would you rule in this case? Explain.