Carter v. Reynolds

815 A.2d 460, 175 N.J. 402, 2003 N.J. LEXIS 42
CourtSupreme Court of New Jersey
DecidedFebruary 19, 2003
StatusPublished
Cited by100 cases

This text of 815 A.2d 460 (Carter v. Reynolds) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carter v. Reynolds, 815 A.2d 460, 175 N.J. 402, 2003 N.J. LEXIS 42 (N.J. 2003).

Opinions

The opinion of the Court was delivered by

LONG, J.

In this appeal, we are called on to determine whether the doctrine of respondeat superior may be invoked to hold an employer vicariously liable for the tort of an employee. More particularly, we have been asked to decide whether the automobile negligence of an employee, who was required by her employer to use her personal car on mandatory client visits, subjected the employer to liability for an accident when the employee was on her way home from a client’s location. Applying well-established principles of our law, we have concluded that it does.

[406]*406I

The facts of the case are detañed in the Appeñate Division decision. Carter v. Reynolds, 345 N.J.Super. 67, 783 A.2d 724 (App.Div.2001), leave to appeal granted, 172 N.J. 170, 796 A.2d 889 (2002). We repeat only those that axe necessary to our disposition. Defendant Alice Reynolds was the owner and operator of a vehicle that struck plaintiff, David Carter, on January 15,1997, in Belmar, New Jersey. At the time of the accident, Reynolds, who resided in Brielle, New Jersey, was employed by the accounting firm of Stevens, Fluhr, Chismar, Alvino & Sehechter, CPA, (the firm), located in Neptune, New Jersey.

At the firm, Reynolds was a non-professional, part-time employee who conducted detaü work for auditors. She was responsible for the verification, checking, and preparation of bank reconciliations. Her job required her to work in the firm’s Neptune office, and also to visit clients. Vincent Alvino, a partner in the firm, testified that Reynolds spent approximately sixty to seventy percent of her time at the firm’s Neptune office and twenty-five to thirty percent at client locations. There was no office car avaüable to Reynolds; thus, she was required to use her own vehicle for travel, with business mileage reimbursed by the firm under the Internal Revenue Service’s (IRS) then prevailing allowance of 31/é cents per mñe. With respect to travel reimbursement, Alvino testified that, in accordance with IRS rules, Reynolds could

claim mileage from the office to the client assignment and from the client assignment back to the office and in the event that she was traveling from home, it would be the mileage from her home to the client or from the office to the client, whichever was closer, and that would also hold true for the return trip. If she was traveling from the client back home, she would get the shorter distance of the mileage from the client to home or the client to the office.

With respect to billing, on the days Reynolds traveled from her home to the client, she would begin billing when she arrived at the client’s destination. On the days that she went directly home after meeting with a client, she would stop bfiling when she left the client, not when she actually arrived at home. If she had to [407]*407return to the office after meeting with a client, she would bill for her travel time to the firm.

On the day in question, Reynolds spent the morning at, the firm, and then traveled to Deal to a client location. Reynolds spent the remainder of the day working in Deal. She testified that she was reimbursed for the mileage from Deal to Neptune, but that she was not paid wages for her travel time. At approximately 4:29 p.m., when Reynolds was traveling from Deal to her home, the accident occurred.

On November 3, 1997, Carter filed an automobile negligence action against Reynolds. Later, Carter filed an amended complaint adding the firm as a defendant, alleging that Reynolds was an employee, servant, and/or agent of the firm when the accident occurred because she was in the scope of her employment.

The firm filed a motion for summary judgment and Carter filed a cross-motion. The trial court granted the firm’s motion, leaving Reynolds as the sole defendant in the case. On Carter’s motion for reconsideration based on new precedent, the trial court determined that Reynolds was, in fact, acting within the scope of her employment when she struck him and thus, granted Carter’s motion for partial summary judgment with respect to respondeat superior liability.

The firm moved for leave to appeal the interlocutory order, which motion was granted. In a published opinion, the Appellate Division affirmed the trial court’s grant of partial summary judgment to Carter, reasoning that Reynolds was acting within the scope of her employment, thus making the firm liable under the doctrine of respondeat superior. Carter, supra, 345 N.J.Super. at 77, 783 A.2d 724. The firm then moved before us for leave to appeal, which motion we granted. 172 N.J. 170, 796 A.2d 889 (2002). We now affirm.

II

The heart of the firm’s argument is that the Appellate Division’s decision represents a fundamental change in the law regarding an [408]*408employer’s vicarious liability because the court jettisoned the element of control, which the firm maintains is a necessary aspect of the vicarious liability calculus. Carter counters that the Appellate Division merely recognized a well-established exception to the “going and coming” rule carved out for cases in which an employer requires an employee to use his or her own vehicle for work. Carter argues alternatively that Reynolds’ activity on the day in question fell within the “special mission” exception to the going and coming rule. Finally, Carter urges us to consider adopting the broad “enterprise liability” theory enunciated as the respondeat superior standard by the California Supreme Court. Hinman v. Westinghouse Elec. Co., 2 Cal.3d 956, 88 Cal.Rptr. 188, 471 P.2d 988 (1970) (in bank); Huntsinger v. Fell 22 Cal.App.3d 803, 99 Cal.Rptr. 666 (1972).

Ill

Although as a general rule of tort law, liability must be based on personal fault, the doctrine of respondeat superior recognizes a vicarious liability principle pursuant to which a master will be held liable in certain cases for the wrongful acts of his servants or employees. W. Page Keeton, et al., Prosser and Keeton on the Law of Torts §§ 4, 69 at 21-23, 499-501 (5th ed.1984); Rhett B. Franklin, Pouring New Wine into an Old Bottle: A Recommendation for Determining Liability of an Employer Under Respondeat Superior, 39 S.D.L.Rev. 570, 572 (1994). The theoretical underpinning of the doctrine of respondeat superior has been described as follows: that one who expects to derive a benefit or advantage from an act performed on his behalf by another must answer for any injury that a third person may sustain from it. Winkelstein v. Solitare, 129 N.J.L. 38, 40, 27 A.2d 868 (1942) (citations omitted), aff'd per curiam, 130 N.J.L. 158, 31 A.2d 843 (E. & A.1943); 27 Am.Jur.2d Employment Relationship § 459 (1996).

Under respondeat superior, an employer can be found liable for the negligence of an employee causing injuries to third [409]*409parties, if, at the time of the occurrence, the employee was acting within the scope of his or her employment. Lehmann v. Toys ‘R’ Us, Inc., 132 N.J.

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Bluebook (online)
815 A.2d 460, 175 N.J. 402, 2003 N.J. LEXIS 42, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carter-v-reynolds-nj-2003.