Legal Question in Personal Injury in California
Co-signer liability in traffic accident
I co-signed for a new car lease for my adult daughter. She caused a traffic accident resulting in totaling her as well as the other party's vehicle. My daughter's insurance lapsed prior to the accident. There were no aparent injuries. The intersection is noted for right angle type collisions (2 way stop). I know I am liable to pay off the full lease cost of my daughter's vehicle. My daughter is claiming bankruptcy. What is my legal exposure and responsibility to the other party? Am I legally considered at joint fault for this accident and as such, open to lawsuit by the other party and/or their insurance co.? If so, what must I do to protect my personal assets, etc.?
Any advise that you can provide will be appreciated.
2 Answers from Attorneys
Re: Co-signer liability in traffic accident
Ed is correct, you are not liable. I just want to add that your daughter should make sure that the other parties to the accident are listed as potential creditors on the Bankruptcy, even if a lawsuit has not yet been filed.
Re: Co-signer liability in traffic accident
Unless there is something surprising in the lease you co-signed or unless your daughter was acting on your behalf when she caused the accident, I don't see how you can be held responsible for anything more than the payments due under the lease.
Co-signing a lease makes you responsible for the borrower's monthly payments if she fails to meet her obligations, but it has nothing to do with her tort liability connected with use of the car.
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