Legal Question in Insurance Law in California

Re: negligent entrustment

As usual, when a lawyer answers a question it is always, "It depends".

First, who is being sued for negligent entrustment? The Family Corporation that owned the vehicle? The officer of the Corporation that entrusted the keys?

This will be a fact based situation that will depend on the facts. Why was the boyfriend entrusted with the keys? Was he permitted to drive the vehicle but improperly allowed the daughter to get the keys and go on a joyride? How old is the daughter?

Did the daughter essentially steal the vehicle?

There are many facts here that need to be examined in detail. Additionally, if you are talking about vehicular manslaughter, I can only presume that you are dealing with someone suing over the death of a family member. The damages alleged here are likely to be VERY high. Thus, you should consult with an attorney As Soon As Possible!

J. Caleb Donner

805-494-6557

Re: negligent entrustment

The insurer might be liable. What was the purpose of the

"use" by the boyfriend? Is there any possible connection

with the business of the corporation?

There may be coverage under the permissive use law

separate from negligent entrustment. Not all policies

limit the permissive user to the minimums allowed

by statute.

What about the other vehicle policies which the

parents and daughter/boyfriend might have?

Please call if you want to discuss this. I would contact

a lawyer before you tell the insurer anything other

that reporting the accident. They will want all

of the details, and what you say can - and will -

be used against you to deny coverage. Because ther

appear to be some unsettled questions, looking at

the polic(y)(ies)first and then seeing how the coverages

could apply seems to be the most prudent thing to

do first. Remember, auto coverage is substantially

statutory unlike many other forms of liability

insurance.

Good luck.

Steven Murray

(818) 501-2277