Big 3 Motors, Inc. v. Hawie

895 So. 2d 349, 2004 Ala. Civ. App. LEXIS 570, 2004 WL 1587215
CourtCourt of Civil Appeals of Alabama
DecidedJuly 16, 2004
Docket2020578
StatusPublished
Cited by1 cases

This text of 895 So. 2d 349 (Big 3 Motors, Inc. v. Hawie) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Big 3 Motors, Inc. v. Hawie, 895 So. 2d 349, 2004 Ala. Civ. App. LEXIS 570, 2004 WL 1587215 (Ala. Ct. App. 2004).

Opinion

On Rehearing Ex Mero Motu

MURDOCK, Judge.

This court’s opinion dated June 30, 2004, is withdrawn, and the following opinion is substituted therefor.

Big 3 Motors, Inc. (hereinafter sometimes referred to as “the company”), appeals from a judgment entered by the Mobile Circuit Court on a jury verdict in favor of Paul Hawie and Scott Kennedy (“the plaintiffs”) on claims of negligent en-trustment and wanton entrustment. We reverse the judgment and remand the case.

Big 3 Motors is a corporation owned by the Roan family. Fred Roan, Jr., had worked for Big 3 Motors “pretty much all [his] life” and was the treasurer of the company. His duties involved every aspect of the business, including driving company vehicles when it was necessary. It is undisputed that on the day of the accident made the basis of this action, Roan was acting in his capacity as an officer and an employee of the corporation.

On March 7, 2000, “Mardi Gras Day,” a “skeleton” crew was working for the company and Roan was the “top man on the totem pole” that day. Roan decided to [351]*351close the shop down at around noon because of the lack of business on that day. Roan testified that he decided to go pick up a tow truck that was being repaired and bring it back to the place of business before closing for the day. As he drove east on Highway 90 in the company’s tow truck, Roan saw Hawie’s vehicle ahead of him. Roan testified that he believed Haw-ie’s vehicle was going to continue traveling through an intersection but that Hawie then made an erratic stop that forced Roan to slam on his brakes. The tow truck collided with the rear of Hawie’s vehicle, in which Kennedy was a passenger; both Hawie and Kennedy were injured.

Hawie and Kennedy filed a complaint against Roan and Big 3 Motors, alleging claims of negligence and wantonness against Roan and alleging that Big 3 Motors had negligently and wantonly entrusted the company’s vehicle to Roan. At trial, the plaintiffs introduced evidence demonstrating that Roan had been convicted of driving under the influence (“DUI”) on eight previous occasions. Evidence was also presented indicating that Roan had been charged and tried for criminal DUI as a result of the accident in this case but that he was acquitted of the charge.

A jury returned a verdict on the negligence and wantonness claims against Roan and in favor of Hawie and Kennedy. The jury awarded compensatory damages in the amount of $2,000 to Hawie and $750 to Kennedy. The jury also awarded punitive damages in the amount of $15,000 against Roan.

The jury also returned a verdict on the negligent- and wanton-entrustment claims against Big 3 Motors and in favor of Hawie and Kennedy. The jury awarded $0 in compensatory damages against Big 3 Motors, but it awarded punitive damages in the amount of $20,000 against Big 3 Motors. The trial court entered a judgment on the jury’s verdict. Big 3 Motors appeals.

Big 3 Motors raises only two issues on appeal. We first turn to Big 3 Motors’ contention that the plaintiffs failed to present sufficient evidence of negligent en-trustment.

“The essential ingredients of a cause of action for negligent entrustment are: (1) an entrustment of the vehicle; (2) to an incompetent; (3) with knowledge that he is incompetent; (4) negligent or wanton use of the entrusted vehicle which proximately caused the plaintiffs damages; and (5) damages.” Jackson v. Searcy, 628 So.2d 887, 889 (Ala.Civ.App.1993). “[I]n reviewing a judgment based upon a jury verdict, this Court must review the record in a light most favorable to the appellee.” CSX Transp., Inc. v. Dansby, 659 So.2d 35, 37 (Ala.1995).

Big 3 Motors’ sole argument regarding the sufficiency of the evidence as to negligent entrustment is that no evidence was presented indicating that any officer or agent of the company entrusted the company vehicle to Roan on March 7, 2000, or that any officer or agent of the company knew that Roan was driving the vehicle that day. However, it was undisputed that Roan’s duties as an officer and an employee of the company included driving the company vehicles when it was needed.

“ ‘Sometimes the past conduct of the entrustor who allowed an incompetent to use his vehicle at will on previous occasions is sufficient to raise an implied consent on the particular occasion of the accident.
“ ‘ “If the entrustor had manifested continuing consent or permission for the incompetent to drive the vehicle [352]*352there is a continuing entrustment.” 23 A.L.R. 733 at 738 (1971).’ ”

Penland v. Allsup, 527 So.2d 715, 716 (Ala.1988) (quoting Chiniche v. Smith, 374 So.2d 872, 877 (Ala.1979) (Torbert, C.J., concurring specially)). Roan was an officer and an employee of the company whom the company allowed to carry out all aspects of corporate business as needed. Viewing the evidence in the light most favorable to Hawie and Kennedy, as the appellees, we conclude that Big 3 Motors’ plea of ignorance regarding Roan’s driving a company tow truck on the day of the accident or, for that matter, on any particular day, must fail. See, e.g., Thorington v. Gould, 59 Ala. 461 (Ala.1877) (“W officers of the corporation openly exercise a power which presupposes a delegated authority for the purpose, and other corporate acts show that the corporation must have contemplated the legal existence of such authority, the acts of such officers will be deemed rightful, and the delegated authority will be presumed.’ ”) (Quoting Bank of the United States v. Dandridge, 25 U.S. (12 Wheat.) 64, 70, 6 L.Ed. 552 (1827)).

In addition, it is undeniable that Roan, as an officer of the company, entrusted care of the vehicle to himself. Big 3 Motors contends that one cannot entrust a vehicle to himself. However, the cases Big 3 Motors cites in support of this argument do not stand for such a proposition.

In Tuskegee Institute v. May Refrigeration Co., 57 Ala.App. 344, 328 So.2d 598 (Civ.1976) (reversed in part on other grounds), this court determined in a fraud case that the evidence was insufficient to show that a teacher had acted with actual or apparent authority to bind the defendant-college. Thus, the case turned on the principles of agency, not on the issue whether a corporate officer or employee can entrust a company vehicle or other instrumentality to himself or herself. In Wilbanks v. Brazil, 425 So.2d 1123 (Ala.1983), the defendant-parent was sued by a mother and her injured son; the plaintiffs asserted a negligent-entrustment claim against the defendant-parent arising out of her child’s hitting the plaintiff-child in the head with a golf club. Our Supreme Court ruled that the defendant-parent could not be held liable for negligent entrustment because

“[i]f it is found to be negligent to entrust golf clubs to an ordinary eight-year-old, then parents would have to keep the golf clubs and similar sports equipment such as baseball bats, tennis rackets, and hockey sticks under lock and key and never allow a child to play with them except when he or she is under some sort of expert supervision.”

Wilbanks, 425 So.2d at 1125. Wilbanks did not involve or turn on the principle that a person may not entrust something to himself or herself.

Thus, Big 3 Motors has failed to cite any authority that supports its contention that a person may not entrust something to himself or herself.

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895 So. 2d 349, 2004 Ala. Civ. App. LEXIS 570, 2004 WL 1587215, Counsel Stack Legal Research, https://law.counselstack.com/opinion/big-3-motors-inc-v-hawie-alacivapp-2004.