Alberta Employer Liable for Employee’s Negligent Driving of Company Vehicle – Even Though Employer Told Him Not to Drive It

Alberta employers should heed a recent appeal decision in which an employer was held liable for damage caused by an employee while driving a company vehicle – even though he was told not to drive it.

The employee worked for a roofing company. He was working on a residential roof. The employer gave him access to a company truck and trailer which were parked at the site, but only to access supplies and to keep warm. The employer told him not to drive the truck.

The employee disobeyed the instructions and drove the truck and got into an accident.

Section 187(2) of the Alberta Traffic Safety Act makes the owner of a vehicle liable if, at the time of the accident, the driver was in “possession” of the motor vehicle with the consent of the owner.

The appeal court decided that even though the employee did not have permission to drive the truck, he did have permission to use the truck for supplies and to keep warm. Thus, he was “in possession of” the truck, and the employer was liable for any damages caused by him in the accident. As long as the employee had consent to be in possession of the truck, which he did, the employer was liable.

In light of this decision, employers in Alberta – and across Canada – should review their policies on the use and “possession” of company vehicles. Especially where the employee does not have enough assets to satisfy a court judgment, plaintiff lawyers may seek to have the employer also declared liable.

Mustafi v. All-Pitch Roofing Ltd., 2014 ABCA 265 (CanLII)

Adrian Miedema

About Adrian Miedema

Adrian is a partner in the Toronto Employment group of Dentons Canada LLP. He advises and represents public- and private-sector employers in employment, health and safety and human rights matters. He appears before employment tribunals and all levels of the Ontario courts on behalf of employers. He also advises employers on strategic and risk management considerations in employment policy and contracts.

Full bio