WHAT IS NEGLIGENT ENTRUSTMENT?
In the State of New Jersey, the owner of an automobile may be responsible for another's accident under two separate theories of liability. The first is called "respondeat superior". This is where the driver of a vehicle is carrying out business for the vehicle's owner and is involved in an accident. This would be the case where an employee is driving an employer's car for business purposes. Despite the fact that the employee was operating the vehicle, the employer would also be responsible for any damages.
The second theory is called "negligent entrustment". Basically, this theory is based upon the owner's own negligence for allowing another individual to operate their vehicle when the owner has reason to know that the other individual is irresponsible or has a greater propensity to operate the vehicle improperly given the owner's knowledge of prior conduct. For instance, if you allow an individual with a suspended license for 14 speeding violations to operate your car and they are involved in a high speed collision, it is likely that you will have some responsibility for the happening of that accident.
An Appellate Court of New Jersey recently discussed these theories of liability and a potential cause of action in the case of Jafar v. Elrac Inc. There, two teenagers were struck and killed by the driver of a vehicle who claimed that his company transferred him to an outside sales job despite the fact that the company had full and complete knowledge of his drinking problem. Thus, the theory was asserted that the employer should not have given this individual an outside sales job because it was foreseeable that he would be operating a motor vehicle and, with his drinking problem, may be operating that motor vehicle in an intoxicated state. Therefore, it was alleged, that the company was negligent in its own right for making this outside sales transfer.
The Court dismissed the claim against the employer not on the legal theory but, instead, on the facts of the case. There was no indication in the facts of the case that the employer knew that its employee was drunk on the night in question or that it had the ability to control his actions that evening. Based on those facts, the Court could not find liability.
It is important to note that the argument in favor of liability in this matter was a valiant attempt at stretching the present state of the law. In this regard, under different facts, it is likely that a court could find liability against an employer if that employer knowingly places an employee into a situation where it is foreseeable that the employee may cause injury to others. Obviously, in order to expand upon current law, you will require services of a trained and qualified attorney who can properly evaluate the facts of your case.