Can you be sued if you lend your car and it is involved in an accident?
Yes, you can. You can be sued under Vehicle Code section 17150 for up to $ 15,000 and you can also be sued for negligently trusting the person to drive.
There is a $ 15,000.00 liability under Vehicle Code § 17150 , as limited in amount by Vehicle Code, § 17151. This statutory liability does not limit the victims to those directly impacted by a vehicle. The Legislative Committee comments to § 17150 state that: “a vehicle owner will be liable for the damages caused by the willful misconduct or intoxication of an operator using the vehicle with the owner's permission.”
This is statutory liability in contrast to the negligent entrustment theory which is a common law doctrine. There can be liability under both theories. (See: Syah v. Johnson (1966) 247 Cal.App.2d 534)
Statutory Liability
The statutory liability clearly does not limit the victims to those directly impacted by a vehicle. The Legislative Committee comments to § 17150 state that: “a vehicle owner will be liable for the damages caused by the willful misconduct or intoxication of an operator using the vehicle with the owner's permission.” Under the statutory theory “[t]he liability of the owner imposed by Vehicle Code section 17150 is primary and direct as far as the injured third party is concerned. Because an owner's liability is secondary to that of the operator, the owner essentially serves as a guarantor of their joint liability. [Citation.]” (Rashtian v. BRAC–BH, Inc. (1992) 9 Cal.App.4th 1847, 1852–1853, emphasis added, fn. omitted.) See also: Enterprise Rent-A-Car Co. v. Workmen's Auto Ins. Co. (1997) 58 Cal.App.4th 1543, 1549
Negligent Entrustment
If you lend a car to someone who has been drinking or to someone who does not have a car because it was impounded due to driving violations, you are giving a loaded gun to an incompetent person. That is the theory of negligent entrustment. The elements of this tort (a tort is something done wrong that can get you sued) are:
Negligence of the Driver: The driver was negligent in operating the vehicle.
Ownership or Possession: The defendant owned the vehicle or had possession of it with the owner's permission.
Knowledge of Incompetence: The defendant knew, or should have known, that the driver was incompetent or unfit to drive.
Permission to Drive: The defendant permitted the driver to operate the vehicle.
Causation: The driver's incompetence or unfitness to drive was a substantial factor in causing harm to the plaintiff.
There are no limits on how much you can be forced to pay on the negligent entrustment theory.
Our office represents people injured in car accidents. We always consider whether the person who owned the car is liable on negligent entrustment grounds. Most of the time there is no basis to sue for negligent entrustment but when there is the "lender" is often very shocked at being involved.
If you have been in a car accident, the Horowitz law office has an team of legal experts who will get you the compensation that you need and deserve. Please us for help!