Legal Question in Civil Litigation in California

Re: acting as an agent

When a friend allows you to drive their car, and you get in a wreck, your friend is liable up to a total of $15k (injury to one person) or $30k (injury to 2 or more people) under the "permissive use" laws. If your friend negligently entrusted you with the vehicle, your friend's liability is not capped at all. If you were acting as an agent for your friend when the accident occurred, there is also no cap on your friend's liability. Thus, if there was no negligent entrustment or agency relationship (or other facts), the injured party or parties are stuck with the permissive use liability caps mentioned above with respect to your friend. However, if there was negligent entrustment or agency, then your friend's liability is not capped.