Ed Sherwood Chevrolet, Inc. v. McAuley

298 S.E.2d 565, 164 Ga. App. 798, 1982 Ga. App. LEXIS 2946
CourtCourt of Appeals of Georgia
DecidedDecember 2, 1982
Docket63867
StatusPublished
Cited by9 cases

This text of 298 S.E.2d 565 (Ed Sherwood Chevrolet, Inc. v. McAuley) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ed Sherwood Chevrolet, Inc. v. McAuley, 298 S.E.2d 565, 164 Ga. App. 798, 1982 Ga. App. LEXIS 2946 (Ga. Ct. App. 1982).

Opinion

McMurray, Presiding Judge.

This is an action for personal injuries. Plaintiff was a passenger in the automobile when it left the roadway crashing into one or more trees.

As amended, plaintiffs complaint states claims against the driver, defendant Wills, on a theory of negligence; defendant Ed Sherwood Chevrolet, Inc., owner of the vehicle and employer of defendant Wills, an automobile salesman driving a demonstrator, on theories of respondeat superior and negligent entrustment; defendant Edward L. Sherwood, and defendant Charles J. Bradshaw, both individually, on the theory of negligent entrustment. Additionally, plaintiff alleges that defendants Ed Sherwood Chevrolet, Inc., and Edward L. Sherwood, and Charles J. Bradshaw, individually, conspired to furnish a vehicle to a known incompetent driver, defendant Wills. Plaintiff also names as defendant Universal Underwriters Insurance Company, which provided insurance coverage to defendant Ed Sherwood Chevrolet, Inc. on a theory that this defendant insurer had negligently performed a service it allegedly provided to defendant Ed Sherwood Chevrolet, Inc. of investigating the driving record of new employees.

Following discovery, defendant Ed Sherwood Chevrolet, Inc. moved for summary judgment as to the two counts, setting forth plaintiffs claims against it predicated upon theories of respondeat superior and negligent entrustment. After denial of its motion for partial summary judgment defendant properly petitioned and received this court’s permission to file this interlocutory appeal. Held:

1. First, with reference to negligent entrustment, defendant Ed Sherwood Chevrolet, Inc. has attempted to set forth a proper case for the grant of summary judgment in its favor by presenting evidence negating any actual knowledge of defendant Wills’ driving record prior to his employment.

The uncontroverted evidence shows that prior to his employment with defendant Ed Sherwood Chevrolet, Inc., defendant Wills resided in Tennessee where he was employed by another automobile dealership, a majority interest in which was owned by defendant Charles J. Bradshaw, a cousin of defendant Wills. While in Tennessee defendant Wills was involved in several incidents which cumulatively may fairly be described as amounting to a poor driving record, including accidents and convictions for driving under the influence resulting in defendant Wills serving a sentence in a county penal facility and having his driver’s license [799]*799suspended for a period of time.

Defendant Ed Sherwood Chevrolet, Inc. relies upon direct evidence in the record showing that neither its president, general manager, or sales manager had any actual knowledge of defendant Wills’ Tennessee driving record.

Plaintiff counters that the record contains sufficient circumstantial evidence to sustain her allegations. As this court has recognized in previous decisions, a plaintiff generally must rely upon circumstantial evidence in this type of case. “[I]t may be difficult to prove the existence of actual knowledge on the part of one who denies it (because in such case direct evidence is not attainable, unless he admits it).” Roebuck v. Payne, 109 Ga. App. 525, 527 (3) (136 SE2d 399).

In order to determine whether the plaintiff’s circumstantial evidence is sufficient to sustain her complaint by rebuttal of the direct evidence negating actual knowledge relied upon by defendant Ed Sherwood Chevrolet, Inc., we must first review the case law with regard to same. As our Supreme Court has recently stated: “The question of when, on motion for summary judgment, circumstantial evidence creates a genuine issue of a material fact shown by direct evidence is not an easy one. Compare Backus v. Ray Jones, Inc., 150 Ga. App. 753, 755-756 (258 SE2d 693) (1979), with McCurry v. Bailey, 224 Ga. 318 (1) (162 SE2d 9) (1968).” Wallace v. Lessard, 248 Ga. 575, 577 (285 SE2d 14). The anomaly apparent in the cases compared in Wallace is squarely submitted by the contention of the parties in the case sub judice.

Defendant Ed Sherwood Chevrolet, Inc. contends that the correct test is set forth in Lee v. Swann, 111 Ga. App. 88 (140 SE2d 562). The Lee case imposes upon the plaintiff, in the case sub judice, the requirement that plaintiffs circumstantial evidence “admit of no other reasonable conclusion than that the defendant’s denial of knowledge of the driver’s incompetency is untrue.” The plaintiff, although acknowledging defendant’s construction of our decision in Lee, contends that its ruling is no longer controlling as it has been superseded by our decision in Harris v. Smith, 119 Ga. App. 306, 308 (167 SE2d 198), citing and following McCurry v. Bailey, 224 Ga. 318 (162 SE2d 9). McCurry v. Bailey, 224 Ga. 318, reversed our decision in Bailey v. McCurry, 117 Ga. App. 100, 103 (3) (159 SE2d 425), wherein we had applied the test set forth in Lee, because in that case the evidence of the witness giving direct testimony was not perfectly consistent with the circumstantial evidence.

After a review of these cases, as well as additional case law, we conclude that neither of the parties is entirely correct nor wrong on this issue, but that each has chosen to focus on cases more favorable to [800]*800their positions. Rather, we believe the rule to be (at least in consideration of the evidence here), as set forth in Pantone v. Pantone, 206 Ga. 305 (2) (57 SE2d 77), as follows: “While direct and positive testimony, given by an unimpeached witness as to the existence of facts apparently within his own knowledge, and not in itself incredible, impossible, or inherently improbable, cannot be arbitrarily rejected by a jury or other trier of facts upon the mere surmise that it perhaps might not be in accord with the truth, yet, where such testimony is contradicted by proof of facts or circumstances that could be taken as incompatible with such testimony, the question of which theory thus presented by conflicting evidence will be accepted is a question to be determined by the jury or other trier of facts.” (Emphasis supplied.) Therein, Justice Hawkins, at page 307 quoted similarly from Lankford v. Holton, 187 Ga. 94, 102 (200 SE 243): “ ‘Direct and positive testimony, as distinguished from testimony circumstantial, opinionative, or actually negative in character, which is given by an unimpeached witness as to the existence of a fact apparently within his own knowledge, which is not in itself incredible, impossible, or inherently improbable, and which is not contradicted directly or by proof of facts or circumstances that could be taken as incompatible with such testimony, can not be arbitrarily rejected by a jury or other trier of the facts upon the mere surmise that it perhaps might not be in accord with the truth____’ ” In these cases the controlling word was “incompatible” in considering the circumstantial evidence with the direct testimony. In Myers v. Phillips, 197 Ga. 536 (4), 542 (29 SE2d 700), the language of Lankford v. Holton, supra, at page 102, was quoted in headnote 4. However, in the opinion at page 542, it stated that if the positive and uncontradicted direct testimony of unimpeached witnesses was “perfectly consistent” with the circumstantial evidence, then such direct testimony would control, making a question of law for the court unless the circumstantial evidence demanded a different finding. In McCurry v. Bailey, 224 Ga.

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Bluebook (online)
298 S.E.2d 565, 164 Ga. App. 798, 1982 Ga. App. LEXIS 2946, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ed-sherwood-chevrolet-inc-v-mcauley-gactapp-1982.