Can you hold a corporation liable for negligent acts of an employee? What if the employee was driving a corporate vehicle and caused a collision?
A corporation may be liable for the negligent acts of its employees under certain circumstances. For example, the employee must be acting within the scope of employment, such as delivering goods on behalf of the corporation.
However, if the employee was driving the company vehicle home from a bar after work and was involved in a collision, the corporation may not be liable (especially if the employee was not permitted to drive the company vehicle after work hours).
Let's say you are injured in an employee-caused accident and the corporation is insolvent with no assets or insurance. Can you seek compensation from the corporation's shareholders? Usually not.
However, liability may be imposed upon the shareholders if you can prove that the corporation is merely a shell. In this instance, shareholders usually use the corporation's assets for personal reasons, or the corporation has inadequate capital.
When you are involved in a traffic collision, it is important to find out if the other driver is working at the time of the accident, and whether the vehicle is employer-owned. If the employer is a corporation, the corporation may be liable for your injuries if the employee was acting within the scope of employment when the accident occurred.
The attorneys of Roberts & Roberts have the skill, experience and resources to fully investigate any serious accidents or death. If you have a question about an accident involving a serious injury or fatality, please call 800-248-6000 or contact us for a free consultation.