Patterson v. Blair

172 S.W.3d 361, 2005 Ky. LEXIS 304, 2005 WL 2314361
CourtKentucky Supreme Court
DecidedSeptember 22, 2005
Docket2003-SC-000646-DG
StatusPublished
Cited by58 cases

This text of 172 S.W.3d 361 (Patterson v. Blair) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Patterson v. Blair, 172 S.W.3d 361, 2005 Ky. LEXIS 304, 2005 WL 2314361 (Ky. 2005).

Opinion

Opinion of the Court by

Justice ROACH.

I. INTRODUCTION

Tommie Lee Patterson brought suit against Thomas Blair, Jr. (“Blair, Jr.”) and Tommy Blair, Inc., d/b/a Courtesy Auto-plex (“Courtesy”). Patterson alleged several causes of action against Blair, Jr. and claimed that Courtesy was vicariously liable for the tortious acts of its employee, Blair, Jr. A jury awarded Patterson damages of $42,465.18 and found that Courtesy was vicariously liable for Blair, Jr.’s conduct. A divided panel of the Court of Appeals held that Blair, Jr. was not acting within the scope of his employment and therefore concluded that Courtesy could not be held liable under respondeat superi- or. The entire Court of Appeals panel, *363 however, agreed that the trial court’s denial of Patterson’s requested instruction on punitive damages was in error. 1 This Court granted discretionary review to consider whether the jury’s verdict, holding Courtesy vicariously hable for Blair, Jr.’s actions, should be upheld. Having determined that the jury correctly determined that Blair, Jr. was acting within the scope of employment when he assaulted Patterson, we reverse the Court of Appeals and reinstate the jury’s verdict against Courtesy.

II. FACTS

On September 28, 1995, Patterson entered into an agreement with Courtesy to trade his Camaro for a new 1995 GMC Jimmy. At the time of the trade, Patterson owed $12,402.82 on the Camaro. Despite this, he incorrectly informed Courtesy that he owed only $9,500.00 on the car. The transaction occurred at a time when the bank was closed and Courtesy could not verify the payoff amount on the loan. Courtesy allowed Patterson to take possession of the Jimmy, but did not transfer title. An agreement was also executed providing that Courtesy would credit Patterson if he had overstated his outstanding indebtedness on the Camaro and, likewise, that he would pay the difference if his figure understated that amount. When the bank opened the next day, Courtesy discovered the amount Patterson actually owed on the Camaro. When notified of this discrepancy, Patterson refused to pay the additional sum and refused to return the Jimmy. Courtesy subsequently tried unsuccessfully to repossess the truck on at least two occasions.

On October 4, 1995, after investigating where he could find Patterson, Blair, Jr. and another Courtesy employee encountered Patterson, who was driving the Jimmy, on a public road. At a stoplight, Blair, Jr. exited his car and knocked on the Jimmy’s driver-side window, demanding that Patterson get out of the vehicle. When Patterson refused, Blair, Jr. drew a pistol he was carrying and fired two shots in the front tire and two shots in the rear tire of the Jimmy. Ultimately, the disabled truck was impounded and returned to Courtesy by the police.

Courtesy obtained a judgment against Patterson for the Jimmy’s loss in value. Citizens Bank, which had financed the Ca-maro that had been traded-in, obtained a judgment against Patterson for the remaining sum owed on its loan. Blair, Jr. was criminally prosecuted and was convicted of wanton endangerment in the first degree, a felony. Patterson sued Blair, Jr. and Courtesy under several different tort theories. At trial, the jury was instructed on assault and the theory of vicarious liability, allowing the jury to impute liability to Courtesy for the actions of its agent, Blair, Jr.

III. DISCUSSION

Stated generally, the doctrine of respon-deat superior, also called vicarious liability, provides the legal rationale for holding a master responsible for a tort committed by his servant. The origins of the doctrine of respondeat superior run deep in the common law. As Blackstone explained: “As for those things which a servant may do on behalf of his master, they seem all to proceed upon this principle, that the master is answerable for the act of his servant if done by his command either expressly given or implied_” 1 William Blackstone, Commentaries on the Law of Eng *364 land 429 (1765). Not surprisingly, vicarious liability is a long-standing principle of Kentucky’s tort law.

A. The Rationale

Over the years, commentators have offered various justifications in support of respondeat superior liability. For instance, Judge Posner explained that the principle has sometimes been thought of as an example of the law’s sympathy to “deep-pocket” arguments. Richard A. Posner, Economic Analysis of Law § 6.8, at 204-05 (5th ed. 1998) [hereinafter Pos-ner, Economic Analysis]. Simply put, because employees often lack sufficient assets to pay tort judgments, respondeat superior is necessary to allow victims to reach into employers’ deep-pockets for compensation. Ultimately, however, this is an unsatisfactory, or at least incomplete, explanation, id., especially since the principle of respondeat superior evolved during a period in which the common law was not noted for its sympathy toward accident victims. Moreover, there are now limits on the employer’s liability. The employer is strictly liable only for damages resulting from the tortious acts of his employees. A victim injured by an employee who is exercising due care and who has not acted intentionally has no claim against the employer. And the employer is only liable for acts of his employee committed in the scope of the employment. See id. (specifically noting this requirement as proof of “the inadequacy of a pure deep-pocket explanation for respondeat superior”).

Thus, it is clear that the justification for the rule has to be more than just forcing the employer to compensate victims because he can afford to do so. Various judges and commentators have recognized this inadequacy and have offered myriad alternate, or at least supplemental, and more robust rationales for the rule. See W. Page Keeton et al., Prosser and Keeton on the Law of Torts 500 (5th ed. 1984) [hereinafter Prosser and Keeton] (discussing the “multitude of very ingenious reasons” in support of vicarious liability).

One of these supplemental rationales for respondeat superior liability can be found in the field of economics.

The economic explanation for respon-deat superior focuses first on the complete helplessness of the accident victim to avoid incorrect employment decisions by exercising care or by altering his activity. This in itself would be an insufficient reason for imposing strict liability if the employer could always or at least most of the time prevent negligence by his employees simply by exercising care in his selection and supervision of them. But employees will sometimes be careless even if they are carefully screened and supervised, if only because their lack of ready assets reduces their financial incentives to take care. And there are a number of activity measures (as distinct from care measures) that an employer can take to reduce accident behavior by his employees, including delegating more work to independent contractors and giving employees simpler tasks requiring less care.

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172 S.W.3d 361, 2005 Ky. LEXIS 304, 2005 WL 2314361, Counsel Stack Legal Research, https://law.counselstack.com/opinion/patterson-v-blair-ky-2005.