EMPLOYER CANNOT RATIFY CONDUCT OF NON-PERMISSIVE USER TO CREATE AUTO COVERAGE
ALLIED MUTUAL V. WEBB
In Allied Mutual Ins. Co. v. Webb (01 CDOS 7594), an employee used his employer's truck without permission to perform his duties as an employee. However, while driving to perform his duties as an employee, he also stopped to consume alcohol and to visit his sister. While traveling to visit his sister, he was involved in a motor vehicle collision. The injured party sued the employee and argued that the fact that the employer re-hired the employee after the accident and his subsequent jail term, meant that the employer had ratified the actions of its employee, triggering the employer's auto insurance coverage for the accident.
The court of appeal held that although the employer's actions could ratify the unauthorized acts of its agent, it could not retroactively impose liability on the employer's insurer. Thus, the employer's insurer had no obligation to provide coverage for the unauthorized acts of the employee despite the fact that the employer had re-hired the employee after the accident.
