Trucking Company C.E.O. Personally Liable
In Casper v. American International South Insurance Co.
(2006AP1229), the plaintiffs sustained serious injuries when the
defendant rear-ended a minivan at about 40-45 MPH. At the time
of the accident, the defendant driver was operating a truck on a
route approved by the CEO of the trucking company. The court of
appeals found that the CEO of the trucking company could be
personally liable in negligence for approving the route which
was being traveled at the time of the accident.
The plaintiff alleged that the CEO knew that the route could not
be safely completed pursuant to federal regulations. The
plaintiff introduced evidence that the trucking company's client
was putting financial pressure on the trucking company to reduce
rates, but not services. The route being driven at the time of
the accident was for that client. The driver was to travel 536
miles through Wisconsin, Illinois and Indiana. He had driven
the route without incident for 18 to 24 months before the
accident.
However, the driver had told the company that the trip could not
be completed within the federal guidelines taking into account
unloading and loading. The company instructed the driver to
mark the loading and unloading as off duty time. At some time
prior to the accident, the driver was cited for falsifying his
books regarding the off duty time. Testimony was introduced
that the CEO was kept informed of all such logbook violations.
There was conflicting evidence as to whether the CEO personally
approved the route. At the time of the accident, the driver was
allowed actual driving time of ten hours per day and fifteen
hours of combined driving and on-duty work time.
The appellate court reiterated the basic tenet that "the
additional liability of the employer, however, does not shield
the negligent employee from his own personal liability, nor does
it supplant his liability with that of his employer. It
provides only an alternative source from which the injured party
may recover damages." To the extent the CEO negligently
approved the route, he could not hide from his own personal
liability because he is a corporate officer. An individual is
personally responsible for his own tortious conduct. A
corporate agent cannot shield himself from personal liability
for a tort he personally commits or participates in by hiding
behind the corporate entity. If he is shown to have been acting
for the corporation, the corporation also may be liable, but the
individual is not thereby relieved of his own responsibility.
The testimony that the CEO had final approval for the route and
was advised of all logbook violations was sufficient to raise a
question of fact for the jury as to the CEO's negligence.
