Is it gross negligence if you allow an employee with a bad driving record to drive one of your company vehicles?

The case of Joe Roane Grain Company vs. McFarland (Tyler Court of Civic Appeals) cited in 381 S.W. 2D220, points to the clear use of the personal driving record of an employee in seeking punitive damage against the employer on the basis of gross negligence. In this case the plaintiff alleged that the employer was negligent in letting an employee with such a poor driving record (13 violations) drive a company-owned vehicle upon the public highway. The trial limited such evidence to the effect of gross negligence. The jury then found the employer guilty of gross negligence. The punitive damage award (non-insurable from an insurance industry standpoint was $24,611 to a 21-year old man with $420.00 in medical expense and a whiplash injury. The judgment was affirmed by the Court of Appeals.

A recent survey of the accident and conviction records chosen at random for various groups shows conclusively that as the number of motor vehicle convictions increases, so does does the ratio of accidents to drivers increase. In the group with no prior conviction there were only nine accidents per one hundred drivers. In the one prior conviction group, accidents were 28 per hundred drivers, and in the three conviction group there were 51 accidents per hundred drivers. The four or more group showed an accident rate of 62 accidents per hundred drivers.

It must be remembered that the courts upheld that a liability policy does not cover punitive awards in all cases, nor excess judgments over policy limits. It’s difficult to understand why an employer would turn over to a new employee equipment valued in the thousands of dollars without first checking his driving record. It is even more difficult to understand why he would let an employee subject him to a large punitive damages award.

The message comes through loud and clear from this case. Get the driving records of all who drive for you. Review them periodically. A little investigation goes a long way.....

Article Reprinted with Permission From: John Russel, AON Risk Services 7801 Folsom Blvd., Suite 210 Sacramento, CA 95826

Reference: Vol. 34 No. 1 UHCA Newsletter Highway -TrkCoSued