We encounter company vehicles on the road every day. But who is responsible for damages when an employee driving a company vehicle is involved in an accident? It all boils down to what the employee was doing at the time of the accident. Some questions to consider:
- What was the employee’s destination?
- What time did the accident occur?
- Was the employee intoxicated or under the influence of drugs?
Generally, employers are liable for their employees’ actions under the legal doctrine of respondeat superior. Respondeat superior is a Latin phrase meaning “let the master answer.” Under this doctrine, an employer is liable for damages caused by its employee if the employee was performing within the course and scope of his or her employment at the time of the accident. It is important to remember that an employer is not liable for accidents caused by an independent contractor and that the analysis of whether the employee was acting within the course and scope of his employment requires the following:
- The accident took place within time and geographical limits of the assigned job;
- The accident involved actions involved with activities in the employee’s job description; and
- The accident involved employee activity at least partially intended to further the employer’s business.
Certain situations exist that would not give rise to liability for the employer, but instead, the employee may be held liable. First, if an employee commits an intentional tort, the employer will not be liable. However, this can be tricky. For instance, one would not expect the employer to be held liable if an employee painter’s assistant loses his temper and punches a customer. However, a nightclub may be held liable if security staff punches a patron. Second, an employer could escape liability if the employer’s formal policies prohibit the activity that caused damages. For example, an employee is speeding to drop off products needed by a customer before close of business. He runs a red light and collides with another vehicle. If the company has an existing formal policy that employees must obey all traffic laws at all times, even if doing so impedes the ability to perform their duties, the company may escape liability.
Other claims that may assign liability to the employer for negligent hiring, retention, and lending of vehicles. Generally, employers will attempt to minimize the chance that this category of claims will succeed by checking employee driving histories before hiring, requiring notification of any moving violations or accidents after employment, providing employee training, and purchasing insurance policies with sufficient policy limits. In addition, an employer may be held liable if the company vehicle was not properly maintained and that condition contributed to the cause of an accident. Company policies requiring a “walk around” before driving a company vehicle and ensuring vehicles receive regularly scheduled maintenance not only reduces the probability of vehicle-related accidents, but will limit your employer’s liability.
Written by*:
Jennifer Bruning
Approved by Francisco Guerra IV
WATTS GUERRA LLP
4 Dominion Drive, Bldg 3, Suite 100
San Antonio, Texas 78257
Phone (210) 447-0500
*This information is provided only to supply information and should not be received as legal advice. Legal advice is only given to persons or entities with whom Watts Guerra LLP has established an attorney-client relationship.
© Watts Guerra LLP 2015
