Liability for Accidents Caused by Workers Personal Use of Company Cars

An employer let a worker use a company car to drive directly to and from work, but prohibited him from using the car for personal business. One evening, the worker left work and drove the company car to a restaurant where he met his girlfriend for dinner. He had a few drinks. After they had a quarrel, the worker drove to a co-worker’s house, where he drank some more. While driving home, he rear-ended another car, injuring a couple. The worker pleaded guilty to impaired driving. The couple sued the worker’s employer under the Alberta Highway Traffic Act (Act). The court ruled that the employer was liable for the worker’s negligence. Under the Act, vehicle owners are responsible for damage caused by people using their vehicles. The purpose of this rule, the court explained, is to make owners exercise greater care over who they let drive their cars. The fact that the worker was driving the car on personal business even though the employer had told him to drive it only for work didn’t absolve the employer of liability for the accident, the court added [Mugford v. Kodiak Construction Ltd.].