In: Operations Management
Ann, an employee of GRP, Inc., negligently struck Bob, who was walking across an intersection in front of GRP, Inc.'s place of business. Ann was driving a company car, which she had permission to operate 24 hours a day. Fortunately, Bob was not severely injured. He did, however, sustain a broken leg. As a result of Bob's injuries, he was unable to perform the essential functions of his job as an Assembly Line Worker at ABC, Inc.. That company could not accommodate Bob's six - nine week recovery for the broken leg (the company employed less than thirty employees).
Bob is suing both Ann and her employer, GRP, Inc., for negligence. As it turns out, Ann's driver's license was revoked (convictions for DUI's). GRP, Inc. has since terminated Ann's employment, contending she failed to report the loss of her driver's license. A corporate policy, which she signs off on each year, requires all employees to notify GRP, Inc. about even minor traffic offenses if such employees are given use of corporate vehicles. GRP, Inc. denies it has any liability for Ann's alleged negligence. BoB is maintaining that GRP, Inc., which obviously has "deeper pockets" than Ann, is responsible for his pain and suffering, job loss and related damages totaling $50,000.00 or more.Analyze Bob's claims for both.What are the company's defenses against such claims? Who wins? Why / why not?
Bob's claims that the company and Ann are responsible for the damages caused to him and all the loss that he suffered is correct. Since at the time of accident, Ann was driving Company's vehicle and was on duty, hence the company was equally responsible for the accident since Ann was a representative of the company only. Hence any action on part of Ann also holds Company responsible for the consequences that the action caused.
Company's defense against such claim would be that since Ann was driving the vehicle and was negligent in her approach for which her license was also revoked, hence she was the one responsible for all the damages caused to Bob and the company had nothing to do with the accident. Moreover since Ann did not inform about the incident to the company, hence the company shall not be liable for it.
In my opinion, Bob wins the case since both Company and Ann were equally responsible for the accident. Since Ann represented the company at the time of accident, hence both should be held responsible for the damages caused to Bob as explained in the first paragraph.