negligent entrustment – policy and educa5on...negligent liability carries some of the most serious...
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Negligent Entrustment – Policy and Educa5on JanisChristensen,CAFM
SeniorManagerMercuryAssociates,Inc.
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I N T R O D U C T I O N
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Synopsis
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Negligent Liability carries some of themost serious risk that fleetmanagers areexposed to. Awards as a result of negligent entrustment can be very large. Thisoccurswhenadriver isentrustedwithavehiclethat isowned(or leased)bythefleetanddrivenbyanemployee(orotherauthorized individual).Yourfleetmaybe liable if it knew, or should have known, that a driver was not able to safelyoperate a vehicle, but was allowed to drive anyway. Generally, the courtsdeterminewhetherthebehaviorwasconsistentwithacceptedindustrystandards.ThissessionwillhelpgovernmentfleetsavoidlawsuitsbyeducaMngfleetmanagershowto insMtuteastandardofcarethat includesthingssuchasproperlyverifieddriver records, reasonable safety programs and appropriate driver policies andprocedures.
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Ques5on #1
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Aregovernmentfleetmanagersprotectedfromcivillawsuitsunderthedoctrineofsovereignimmunity?Answer:FleetmanagersacCngwithinthescopeoftheiremploymentareprotectedbyfederalandstatetortclaimsactsandindemnificaMonbytheiremployer
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Ques5on #2
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Couldyoupersonallybeheldliableundercivillawif:
• Avehiclewasn’tproperlymaintained?
• Passengersarehurtbyequipmentdislodgedasaresultofacrash?
• Thetypeofsafetyequipmentyouchosetoinstallfailedandthevehicleisinvolvedinacrash?
Answer:Generally,no,unlessyouractwasegregiousorgrosslynegligentandtakenwithintent,oryouactedforyourpersonalbenefit,oryouractwasillegal
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Ques5on #3
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• Ifyouprocureunsafevehicles?• Ifyoufailtoproperlymaintainandrepairvehicles?• Ifyouhireincompetentservicetechnicians?• Ifdriversareimproperlytrainedtooperatevehicles? YES
Couldyouremployerbenegligentif:
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Disclaimer ThispresentaConisnotdeliveredbyanaGorneyandthetopicissubjecttofrequentchangesinlaw,regulaMon,andpracMce.UsersofthematerialsandinformaMon provided herein are strongly advised to make their owndeterminaMon of legality, appropriateness, and other consideraMons.Mercury Associates makes no representaMons about the accuracy andsuitability of the materials and informaMon or their applicability for anypurpose. In no event shallMercury be liable to the aWendee, user or anyperson, firm, corporaMon, government body or enMty with respect to anyliability,lossanddamageofanykindcausedorallegedtohavebeencaused,directly or indirectly, by the materials and informaMon contained in thispresentaMonand theiruseornonuse for any reasonwhatsoever.Byusingthesematerials and informaMon, all aWendees andusershaveassumedallrisk of loss or damages with respect thereto in full understanding of theforegoing.
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D E F I N I T I O N S
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Criminal Law vs. Civil Law
Criminal Civil
BurdenofProofisPreponderanceofEvidence
Reimburse/MakeWholePlainMffforLosses
PrivateParty(PlainMff)
BurdenofProofisBeyondReasonableDoubt
Fine,IncarceraMon,ExecuMon
Government(ProsecuMon)
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What’s Scope of Employment?
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InScope NotinScope
• Benefittheemployer?• ArewithinyourwriWenorunderstoodgeneralresponsibiliMes?
• Areperformedduringworkhours?• Areperformedatworkplace?
• Egregiousorgrosslynegligentactstakenwithintent?
• Actsforyourpersonalbenefit?• Illegalacts?
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Intent
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What’s Negligence?
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• FailuretousereasonablecareinacMngthatwouldbeexpectedfromareasonablyprudentpersoninsimilarcircumstancesthatcausesunreasonableriskofharmtoothers• GreatestriskforfleetorganizaMons,sincevehiclesareinherentlydangerousequipment
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Elements of Negligence
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• PlainMffmustprove:• ExistenceofadutyonthepartofthedefendanttoconformtoaspecificstandardofcarefortheprotecMonoftheplainMffagainstanunreasonablerisk;
• Breachofthatdutybythedefendant;• ThatthebreachofdutybythedefendantwastheactualandproximatecauseofplainMff’sinjury;and
• ThatdamagewascausedtoplainMff’spersonorproperty.
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Employer Liability
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• NegligentHiring• Failuretouseduecarewhenhiring• Employerkneworoughttohaveknown
• NegligentEntrustment• Failuretouseduecareinretainingonlysafeandcompetentemployeesorcontractors• Basedonentrustment
• Notnecessarytoestablishemployer/employeerelaMonship• Employerkneworoughttohaveknownofperson’sincompetence
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What is Ordinary vs. Gross Negligence?
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• Failuretoexercisereasonablecare(“reasonablepersonstandard”),and
• CondiMoncontributedtothecrash.
• Consciousandvoluntarydisregardtousereasonablecare,and
• CondiMonwaslikelytocauseforeseeablegraveinjuryorharm.
Ordinary Gross
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Ignorance of the Law
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• Ignoranceisnotanexcuse• “Ididn’tknowitwaswrongorillegal.”
• “Willfulblindness”isequivalenttoknowledge• Shouldhaveknownandcouldhaveasked
• Deliberatelychosenottoask
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What is Vicarious Liability?
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• Onepersoncommitsanact(infleet,usuallythedriver)harmingasecondpersonandathirdparty(theemployer)willbeliable• LaMntermforthislegaldoctrineis“RespondeatSuperior,”meaning“Letthemasterrespond”• EmployerisresponsibleforemployeeactswithinthescopeofemploymentandCedtotheemployer
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What is Tort Liability?
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• A“tort”isacivilwrong–breachoflegalduty• TortLawisabodyofrights,obligaMons,andremediesappliedbycivilcourts• Elementsareduty,breach,causaMon,andinjury• VicMmseeksremedyfordamages
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Sovereign Immunity and Federal Tort Claims Act
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• Thedoctrineofsovereignimmunityholdsthatgovernmentscannotbesuedfortortliabilitywithouttheirexpressconsent• FederalTortClaimsAct(1946)grantsthatconsent(28U.S.C.SecMon1346[b])
• ItstatesthatthefederalgovernmentcanbesuedforwrongfulactsornegligenceoromissionbyanyemployeeoftheGovernmentwhileacMngunderthescopeofhisofficeoremploymentundercircumstanceswheretheU.S.,ifaprivateperson,wouldbeliable• FTCAcompliedwithsovereignimmunitybycreaMngtherequired“expressconsent”
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State Tort Claims Acts
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• Allstateshaveadoptedtortclaimsacts• ManysimilartoFTCA• Moststateshavelimitedrecovery• 35stateslimitorcaprecovery,someaslowas$100,000• Somecaprecoveryat$100,000exceptfornegligenceinvolvingmotorvehiclesthatarenotcappedatall
Source:NaMonalConferenceofStateLegislatures
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Note About Pursuits and Emergency Response
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• Statecourtsgenerallyheldpursuitmustbeconductedwithgrossnegligenceforgovernmenttobeliable• Orahigherstandard:plainMffmustshowpoliceofficeractedwillfullyandwantonly,withconductthat“shockstheconscience”*• CaliforniarequirespolicedepartmentstoadoptwriWenpursuitpolices*U.S.SupremeCourtinLewisv.SacramentohasheldthatinsuitsbroughtunderU.S.C.1983(lawsuitsforviolaMonsofaperson’sconsMtuMonalrights).**USAToday.ThomasFrank.July30,2015.
Specialcircumstancesduetoimportancetogeneralpublic
>11,500PursuitDeathsSince1979** Deaths
Police 139
FleeingSuspects 6,301
Bystanders/Passengers 5,066
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S A M P L E C A S E S
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State of South Carolina
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Clarkv.SouthCarolinaDept.ofPublicSafety,No.25926,608S.E.573(S.C.2005)
Case:Statetrooperinhigh-speedpursuitofDUIsuspectresultedindeathofpursuedsuspectJudgment:troopergrosslynegligentforbeginningandfailingtoendthepursuit(jury)
Damages:$3.75million,laterreducedto$250,000underSouthCarolina‘sTortClaimsAct
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University of Connec5cut
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DavidPlamondon(family)v.StateofConnecCcut(2011)
Case:StudentkilledwhileinacrosswalkbycampusshuWlebusdrivenbyanotherstudentJudgment:driverpleadednocontesttonegligenthomicideandsentencedtotwoyearsprobaMon
Damages:$5.5millionseWlement(September2013)
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Federal
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Roarkv.U.S.,No.6:05CV00041,2006U.S.Dist.Lexis74784(W.D.Va.)
Case:FBIagentrear-endedanothervehiclethatsubsequentlyrear-endedtheplainMff’svehicleJudgment:negligence(underFederalTortClaimsAct)Damages:$1.16millionplusmedicalexpenses
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S TA N D A R D O F C A R E
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Standard of Care for Fleet Professionals
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• Judgedaswhatthereasonable,prudentfleetprofessionalinthefleetfieldwoulddoundersimilarcircumstances• IfthecourtfindsthatthefleetorganizaMon’sbehaviordoesnotmeetthestandardsinthefleetindustry,theemployercanbeliablefornegligence
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Recommenda5ons
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1. Develop,publish,andenforcefleetsafetypoliciesfordriverandvehicle• ProhibitpersonaluseinwriMng
2. EnactreasonabletrainingandeducaMonprograms• Driverandservicetechnician
3. Verifydriverrecords(MVR,background,references)• Beforeemploymentandongoing
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C H A L L E N G E S F O R F L E E T M A N A G E R S
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Hurry...takethepicture!!!
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AutoAp Launches Recall Notification ServiceBy Chris Brown, September/October 2015 - Also by this author
Automotive software developer AutoAp Inc. has released a recall notification service designed to allow fleet managers to more
easily assess the daily recall status of their vehicles.
AutoAp’s Dynamic Recall Management service is a multi-source, VIN-specific, daily safety recall repair status database, says
Ross Macdonald, chief marketing officer for AutoAp.
“Last year’s record 63.9 million vehicles, affected by NHTSA-issued safety recalls, have made it abundantly clear that auto
manufacturing defects will remain a significant issue,” says Macdonald. “We created this recall management service to address
the difficulty in obtaining accurate, timely and consistent safety recall information from the OEMs and the National Highway Traffic
Safety Administration [NHTSA].”
Addressing the GapSafety recall data is held by two groups: the vehicle manufacturers and NHTSA. Fleet managers attempting to assess the recall
status of their fleet VINs with information available from the OEMs or NHTSA could get inaccurate and potentially false negative
results, Macdonald says.
AutoAp’s ongoing analysis of recall data found on NHTSA’s safercar.gov website finds numerous errors, including safety recalls
tied to erroneous years, wrong models, wrong manufacturers and multiple models affected but not identified — and, in some
cases, missing altogether.
Out of 29,620 passenger vehicle safety recalls stemming from 4,922 unique NHTSA recall IDs, as many as 1,500 — about 30%
— are found to be inaccurate, the company’s research found.
Ongoing, daily analysis of NHTSA’s safety recall data continues to yield significant numbers of attribution errors, including
particularly worrisome false negative recall results where NHTSA does not show an open safety recall on a specific vehicle when,
in fact, there is.
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C O N TA C T I N F O
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JanisChristensen,CAFMSeniorManagerMercuryAssociates,[email protected]
ForacopyofthispresentaCon,visithGp://mercury-assoc.com/resources/presentaCons/