Chapter 28 - § 28.8 • EMPLOYER LIABILITY FOR NEGLIGENT ENTRUSTMENT

• Jurisdiction: Colorado

§ 28.8 • EMPLOYER LIABILITY FOR NEGLIGENT ENTRUSTMENT

It is well-settled that an employer may be held liable for negligently entrusting a vehicle to an employee.⁷² However, in Ferrer v. Okbamicael,⁷³ the Colorado Supreme Court held that where an employer is sued under the doctrine of respondeat superior⁷⁴ and acknowledges vicarious liability for its employee's negligence, a plaintiff is thereby barred from also bringing direct claims such as negligent entrustment and negligent supervision against the employer.⁷⁵ As grounds for this ruling, the supreme court noted that respondeat superior claims and direct negligence claims both require proof of a tortious act by the employee, and that these two types of claims are therefore duplicative:

Under either theory, the liability of the principal is dependent on the negligence of the agent. If it is not disputed that the employee's negligence is to be imputed to the employer, there is no need to prove that the employer is liable. Once the principal has admitted its liability under a respondeat superior theory . . . the cause of action for negligent entrustment is duplicative and unnecessary. To allow both causes of action to stand would allow a jury to assess or apportion a principal's liability twice.⁷⁶

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Notes:

^[72] See Perkins v. Reg'l Transp. Dist., 907 P.2d 672 (Colo. App. 1995) (reversing summary judgment on negligent entrustment claim made against employer of bus driver responsible for bus accident); Casebolt, 829 P.2d 352 (reversing summary judgment on negligent entrustment claim made against employer who allowed employee to drive company car while intoxicated).

^[73] Ferrer v. Okbamicael, 2017 CO 14M.

^[74] Under the doctrine of respondeat superior, the employer is responsible for the negligent acts of the employee committed within the course and scope of employment. There is no requirement that the employer act in a negligent manner. Modern Tort Law, supra n. 1, at § 33:3.

^[75] Id.

^[76] Ferrer, 390 P.3d at 845 (quoting Gant v. L.U. Transp., Inc., 770 N.E.2d 1155, 1160 (Ill. 2002)).

§ 28.9 • DEFENSES

Negligent entrustment claims are subject to the same defenses applicable to standard negligence claims.⁷⁷ In negligent entrustment cases, these defenses will generally be presented in the same manner as they would be presented in standard negligence cases, and will have the same force and effect. However, with regard to claims brought by the entrustee against the entrustor, there are unique concerns...