Legal Question in Insurance Law in California

Re: leasing company liability for lessee acident

Unless there is an agency, employment or other relationship between the parties, the leasing company as the owner of the truck would only face statutory ownership liability of 15,000/30,000/5,000. Talk with your insurance agent about this. Again if there is anything wrong with the truck that caused the accident or there is any other legal theory against the leasing company there may be direct liability.

Re: leasing company liability for lessee acident

Yes, the lessor IS liable under federal law

if the lessor was/is certificated with what was

the ICC (now the DOT/FHWA). The liability is similar to the non-delegable duty doctrine.

Under state law, in California, the lessor might also be liable under that theory, but perhaps not.

Under both federal and state law, the lessor's insurance coverage is involved. Under federal law, it is primary for the lessee's accident since the lessor is at fault; under state law, it could be excess insurance depending on whether there is a tractor/trailer, or just a tractor, or what the rig is composed of.

Make sure you have your own attorney advise you so that the lessor's insurance is NOT used up for the lessee's benefit - it should be required to protect the lessor first. Your lawyer should really have a knowledge of transportation insurance law. It is very complex because it involves the interrelationship with federal and state regulation of transportation and insurance, with the states generally having the right to legislate exclusively about insurance. This transportation area is one of the exceptions to that rule, implicating McCarran-Ferguson.