Brief Fact Summary. An automobile owned by Hertz, leased to George A. Codling (Codling) and driven by David Lynn Means (Means) struck an automobile in which Shuck was a passenger. Means was uninsured and the parties stipulated he had been negligent.
Synopsis of Rule of Law. Under the Minnesota Safety Responsibility Act (the Act), when an owner gives permission to another to drive his car, who in turn gives permission to a third party, the owner will be liable for accidents caused by the third person.
Issue. Is a car rental agency liable under the Act when one of its cars is leased to one person, but operated by another in violation of the rental agreement?
Held. Yes. Judgment affirmed.
* Under the Act [Minn.St.1965, Section: 170.54], an owner-consent statute was enacted establishing liability in the owner of a vehicle for accidents caused by another driving the vehicle with the owners’ express or implied consent. The purpose of the Act was to give injured persons more assurance of recovery and to encourage owners to purchase appropriate liability insurance.
* In Foster v. Bock, 229 Minn. 428, 39 N.W.2d 862 (1949), this Court held that it would not read into the statute that the particular driver must be known by and his driving consented to by the owner. Proving a lack of consent when a permittee allows a subpermittee to drive requires a showing either that the car was being used by a permittee without the owner’s knowledge and contrary to his explicit instructions, or that the subpermittee was driving without the permission of the permittee under conditions that approach conversion or theft. Neither of these situations is apparent under the present facts.
The purpose of this provision is to make the owner liable to those injured where no such liability would otherwise exist, giving an injured person more certainty of recovery by encouraging owners to obtain appropriate liability coverage.View Full Point of Law