California law imposes financial motor vehicle owner liability on the owner of a vehicle involved in an auto accident, even if the owner wasn’t driving or wasn’t in the vehicle at the time of the accident. According to California Vehicle Code Section 17150 vehicle owner is liable for damages to another people, which result from the negligence of another person operating the vehicle with the owner’s permission. The law limits a vehicle owner’s liability to $15,000 for injury or death to one person and $30,000 to several people. Property damage liability has a limit to $5,000.
According to CACI 720 to establish this claim, the plaintiff must be able to prove all of the following elements:
When the direct evidence of permission (also known as “explicit permission”) is in dispute, one can consider the relationship between the owner and the driver.
It is more likely that the owner granted permission if the owner and driver were married, had an employer-employee relationship, or were close friends. A fact-finder can reasonably conclude that the owner gave permission, even if the owner denies it and there is no direct evidence of prior permission. This is called “implied permission.”
According to CACI 721 in case the defendant claims that he is not responsible the plaintiff’s harm he must be able to prove the following elements:
Thus, if the defendant gives permission for a limited time, and the driver uses the vehicle beyond that time without consent, the owner cannot be liable for any resulting injuries, unless the circumstances suggest that the owner impliedly consented to further use.
In case the driver was acting on behalf of the owner, (for example, they were in employment relationship), then the limitations of damages under Vehicle Code Section 17515(a) doesn’t apply. The owner of the vehicle can be responsible for all the damages and injuries caused by the negligent conduct of the driver.
According to California Vehicle Code Section 14604(a) before lending a vehicle to another one the owner needs to make a reasonable effort to determine if the driver has a valid driver’s license. Thus, in case the owner of the vehicle acted with independent negligence by lending his car to another person, the damage limitation isn’t applicable.
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