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ARTICLE · 24 NOVEMBER 2017

Automatic Vicarious Liability Of Owner Only Applies To Accidents On Highways

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One of the first lessons that any student of personal injury law learns is that an owner of a motor vehicle is vicariously liable for the negligence of the vehicle's operator.

CanadaLitigation, Mediation & Arbitration

One of the first lessons that any student of personal injury law learns is that an owner of a motor vehicle is vicariously liable for the negligence of the vehicle's operator.  This vicarious liability is imposed by s. 192(2) of the Highway Traffic Act, which states:

192 (2) The owner of a motor vehicle or street car is liable for loss or damage sustained by any person by reason of negligence in the operation of the motor vehicle or street car on a highway, unless the motor vehicle or street car was without the owner's consent in the possession of some person other than the owner or the owner's chauffeur.

Built into the section is a broad exception: the owner is only vicariously liable if the operator had consent to possess the vehicle.  This exception has led to a great deal of litigation, culminating in the Ontario Court of Appeal's decision in Fernandes v. Araujo, 2015 ONCA 571, where it was held that vicarious liability will follow as long as the

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