Opinion ID: 900807
Heading Depth: 1
Heading Rank: 16

Heading: Amy Sylvester

Text: [¶ 32.] In the suit against Amy, Estate asserted that Amy negligently entrusted the Taurus to Mike. Estate argued that Amy had actual control over the Taurus via Juffer's express consent. [¶ 33.] South Dakota case law does not address the precise issue of who may be sued for a claim of negligent entrustment. See, Robe, 80 S.D. 597, 129 N.W.2d 47; Western Casualty, 273 N.W.2d 203; Great Central Ins. Co. v. Roemmich, 291 N.W.2d 772 (S.D.1980); Lundquist, 539 N.W.2d 871. Other courts considering this question have looked to the Restatement (Second) of Torts § 308 (1965) for guidance. That section provides: It is negligence to permit a third person to use a thing or to engage in an activity which is under the control of the actor, if the actor knows or should know that such person intends or is likely to use the thing or to conduct himself in the activity in such a manner as to create an unreasonable risk of harm to others. Comment (a) to § 308 interprets the phrase under the control of the actor: The words under the control of the actor are used to indicate that the third person is entitled to possess or use the thing or engage in the activity only by the consent of the actor, and that the actor has reason to believe that by withholding the consent he can prevent the third person from using the thing or engaging in the activity. See also, Mills v. Crone, 63 Ark.App. 45, 973 S.W.2d 828 (1998); Vilas v. Steavenson, 242 Neb. 801, 496 N.W.2d 543 (1993); Neary v. McDonald, 956 P.2d 1205 (Alaska 1998); Zedella v. Gibson, 165 Ill.2d 181, 209 Ill.Dec. 27, 650 N.E.2d 1000 (Ill 1995). [¶ 34.] Courts interpreting this language are split over the importance of actual ownership in a negligent entrustment case. The Nebraska Supreme Court determined that a son who allowed a friend to drive his father's vehicle could not be sued for negligent entrustment since he was not the owner of the vehicle. Vilas v. Steavenson, 496 N.W.2d at 550. However, the Restatement language regarding under the control of the actor has also been interpreted as not necessarily requiring ownership per se, but instead requiring proof that the defendant had sufficient control of the vehicle, and negligently supplied it to an incompetent third party; that in essence the defendant must have a greater right of possession or control than the `entrustee.' Neary v. McDonald, 956 P.2d at 1209; see also, Mills v. Crone, 973 S.W.2d at 831 (one is not liable for negligent entrustment of a thing if he has no right to control it.). The defendant must have the power to permit or prohibit the third party from using the vehicle. Neary v. McDonald, 956 P.2d at 1209 (citing Neale v. Wright, 322 Md. 8, 585 A.2d 196, 201 (1991)). The Neale court explained this power: [I]n order for [defendant] to ... be liable under a negligent entrustment theory, [defendant] had to have the power to permit or prohibit [entrustee] from using the vehicle. That power could emanate from a superior right to control the operation of the car, or from a special relationship between the entrustor and the driver, such as a parent-child relationship. Neale, 585 A.2d at 201. [¶ 35.] In the present case, Amy was given permission to operate the Taurus that was owned, licensed and insured by her father. Amy was allowed to use the vehicle, which was stored at her residence, providing her immediate access and physical possession of the car. Although Amy was not the legal owner of the Taurus, and there were some restrictions placed on her use of it, she was given permission to use the vehicle basically as if it was her own. It is reasonable to conclude that she had sufficient control of the vehicle to entrust it to another. [¶ 36.] Because Amy had the ability to entrust the vehicle, it must be determined whether Amy gave Mike permission to use the car and if she was aware of his problems with drinking and driving. Amy admitted in her deposition that she knew Mike had used the car on at least one occasion prior to the accident. Estate submitted an affidavit that Mike was observed driving the car with Amy as the passenger on two occasions. Additionally, Amy left the keys in the car the day of the accident. A jury could infer from this action that Amy was giving Mike permission to use the car. [¶ 37.] Regarding Amy's knowledge of Mike's proclivity for drinking and driving, Estate submitted affidavits establishing that Mike was a problem drinker and that he was prone to drink and drive. Additionally, Amy admitted that Mike told her he did not have a valid driver's license because the State of Iowa had revoked it for alcohol related offenses. There exists a genuine issue of material fact as to Amy's knowledge that Mike would become intoxicated and drive the vehicle in a manner creating an unreasonable risk of harm to others. Accordingly, the summary judgment is reversed.