Question

In: Economics

Tim Kelly, Jack O’Connor and Ben Crater were general partners, operating the Tim Kelly Amusement Co.,...

Tim Kelly, Jack O’Connor and Ben Crater were general partners, operating the Tim Kelly Amusement Co., a partnership business which operated video game machines at various locations. On April 18, Tim Kelly was driving his own car, traveling to the various places where the partnership’s video game machines were located, to check on the maintenance of the machines. While traveling from one location to another, Tim Kelly negligently drove his car and struck and severely injured George Mitchell, a pedestrian.
An action was commenced against the partnership for personal injuries sustained by Mitchell. The partnership defended, claiming Tim Kelly was driving his own car and that he is the only one who should
(a) Is the partnership responsible for these damages? If the partnership pays Mitchell damages, does the partnership have any claim against Tim Kelly?
(b) Assume that Mitchell does not sue the partnership for his injuries, but instead commences an action against Jack O’Connor as one of the partners. Jack O’Connor defends, claiming that he was not responsible since he was not the person who was driving the car, and, moreover, was in Europe on vacation at the time of the accident? What result? Explain.

Solutions

Expert Solution

a. Tim kelly, jack O'Connor and Ben carter are the partners of Team Kelly ammusement Co. a partership business which operated video game machines. On April 18, Tim Kelly was visiting their partner's video game locations in his own car. But while driving from one place to another, Tim kelly negligently drove his car and severely injured a pedestrian named George Mitchell. Now an action was commenced against the partnership for personal injuries. But the partnership defended it by saying that Tem Kelly was driving his own car and he is the only one who is responsible for this. The partnership is not responsible for this.

Now if we explain the situation, we can see that there are two aspects of the problem. One is that Tim Kelly was driving his own car and he was not using any of the partnership property while meeting with the accident. And most importantly the accident was occured due to the negligency of Team kelly and the partnership was not responsible at all for the accident.

The other aspect is that Tim Kelly was visiting from one location to another for checking the maintenance of the machines that is provided by the partnership company.

We cannot say that the partnership is responsible for the accident. The one who is responsible for the accident is Tim kelly. The accident happened due to his negligence while driving. hence the partnership is not responsible for the damage. Team Kelly is responsible.

However the artnership might pay the damage on the ground that Team Kelly was driving from one location to another for company's work. This can be a valid reason for the partnership to pay the damage amount. But in this instance the amount should not be divided equally between the three persons. Team kelly shoul pay the lionshare of the amount as the accident took place due to his negligence and his partners had nothing to do with it. The amount of the damage claim should be divided into two equal part. One part should be given by Team Kelly and the other part should be divided equally between Jack O'Connor and Ben carter. Suppose the claimed damage amount is $1000. Hence Tim should pay $(1000/2) = $500 and rest $500 should be divided equally between Jack and Ben. They should pay $(500/2) = $250 each. Though the whole process must be implemented out of understanding among the partners. Tim cannot lawfully enforce his partners to pay for his negligence.

b. There is aninstance where Mictchell does not sue the partnership and instead he accuses jack O'Connor for the accident as one of the partners and jack defends claiming that he was not responsible for the accident as he was not driving the car and he was in europe for a vacation.

Mitchell can not win the case at all. First of all if Jack can produce proof of his vacation in europe at the very time by showing air ticket or hotel bill which includes the date of accident April 18, there is no way Mitchell can accuse jack. One cannot accuse a man for an accident who is not present at the accident spot and who has nothing to do with the cause of the accident i.e. negligence of Tim kelly.

Now even if Jack is unable to produce any solid proof that he was in europe on the day of accident, Mitchell cannot accuse Jack either. In this case the cause of the accident is the most important thing. The cause is negligence of Tim kelly. The cause is not that Tim Kelly was visiting one location to another for Team Kelly ammusement Co. work. One can visit the places of work easily without meeting with an acciden if he remains attentive while driving. The cause of the accident is important here. And Jack O'Connor has nothing to do with the cause. Hence if Mitchell takes an action against Jack O'Connor making him responsible for the accident, he can never prove Jack's guilt. Jack can easily get away from the accusation. Mitchell should take action against Tim Kelly. Tim Kelly is the only one who is responsible for the accident as his negligence caused the damage.


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