Vicarious Liability in Car Accidents

Vicarious liability  is a legal term that means to hold a party responsible for the actions of another person. When a company car is involved in an accident, vicarious liability would refer to holding the employer responsible for the actions of the employee who was driving the car. The reason an employer can be held responsible is because the employee is their agent – as long as they are on company time.

Fault Considerations

If your employer has paid for your company car, in order for the other party to recover from your employer, you, as the driver of the company car, must be at fault. If you are not at fault, then the other party will generally not be able to pursue your employer for damages.

When Vicarious Liability May Apply

Vicarious liability only applies in certain situations. Our car accident lawyer in Memphis, TN might first determine whether or not the employee was acting within the scope of their job at the time of the collision.

For instance, let’s say that an electrician service dispatches an electrician for a standard house call. On the way to the house, the electrician becomes distracted and collides with another driver. In this case, the other driver will likely be able to file a claim against the employer under vicarious liability.

Vicarious liability typically applies when at least one of the following holds true:

• The employee was running errands for the employer
• The employee was traveling to or from an appointment
• The employee was going to a training meeting
• The employee was directed to drive to a location at the request of the employer

Vicarious liability may not apply when:

• When the employee is driving to or from work
• When the employee was stopping for a break while driving to an appointment
• When the employee was going elsewhere from where the employer requested
• When the employee was under the influence
• When the employee was not working or on the clock

Who Will Make the Final Decision

Whether or not vicarious liability applies will largely depend on the facts of the case. Sometimes it will take a trial by jury to decide whether it will apply. In other situations, the employer or other party will agree on the facts and come to a settlement through negotiations. As a general rule of thumb, you should have a good car accident lawyer Memphis, TN trusts on your side if you were driving a company car or you were injured by another driver of a company car.

Assessing Liability in Tennessee Car Accidents

Our car accident lawyer Memphis, TN chooses for representation following a car accident will likely focus on determining which driver or entity is liable for causing the accident. Liability determines which party’s insurer will be responsible for paying the damages.

Tennessee has a modified comparative fault-based system. This means that liability for any damages caused by the at-fault driver is the responsibility of that driver and the damages will be paid by the at-fault driver’s insurance company. Damages are the total of personal injury-related costs and property damage costs resulting from the accident.

In Tennessee, when both drivers are at fault, the injured person who is deemed more than 50% responsible for the accident may not be entitled to compensation. The driver who is less than 50% at fault is entitled, but with a catch. In other “fault” states, liability is all-or-nothing; in Tennessee’s comparative fault system, the award is reduced for the driver who is less than 50% at fault by the percentage at which they are at fault. As an example, if one driver is 85% percent at fault, and another driver has been determined to be 15% at fault, the driver who is more at fault will be responsible for 85% of damages. No damages would be awarded to the driver who is 85% at fault.