Negligent entrustment is an issue that frequently arises in car accident cases. The basic idea is that if the defendant “entrusts” his own vehicle to someone who subsequently injures a third party, the third party can seek damages against the defendant if he had “actual knowledge that the driver is incompetent or habitually reckless,” according to a 2010 decision by the Georgia Court of Appeals. So, for example, if you loan your car to someone you know has a history of drunk driving, and that person proceeds to get drunk and plow your car into a minivan, the passengers in the minivan can sue you under the theory of negligent entrustment.
Cullara v. Building & Earth Sciences, Inc.
The Court of Appeals recently addressed the applicability of negligent entrustment in another case where the defendant disputes whether it had actual knowledge of a driver’s recklessness.