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ARTICLE · 29 JUNE 2021

What Are You Suing Me For? I Had No Control: Lessor Fleet Liability

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This bulletin summarizes the decision and key takeaways for lessors of vehicles.

CanadaLitigation, Mediation & Arbitration
Rachel Cooper
Rachel Cooper
Preet Saini
Preet Saini
Andrew Stead
Andrew Stead
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In Barz v Driving Force Inc, 1 the Court of Queen's Bench of Alberta ("Court") held that a vehicle rental company ("Lessor") was not liable to compensate a passenger ("Passenger") injured in one of its rented vehicles as part of a workplace accident. Lessors of vehicles are often held vicariously liable for accidents caused by a lessee driver. However, an accident that occurs in a workplace setting changes the legal landscape for lessor liability. This bulletin summarizes the decision and key takeaways for lessors of vehicles.

Background

The facts are simple:

  • A truck was rented by Magna Electric Corporation ("Lessee") on a month-to-month rental agreement.
  • Two of the Lessee's employees were in the truck: the Passenger and the driver ("Driver").

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The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

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