Opinion ID: 1241476
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Heading: milwaukee's common law right to sue its employees

Text: The trial court expressly ruled that Milwaukee did not have a common law cause of action against its employees for property damage arising out of ordinary acts of negligence committed within the scope of employment. We do not agree. Common law property damage actions by an employer against its negligent employees are uncommon. In the case of railroads, one probable reason is that the employee would be exposed to possible economic loss so great that it would effectively discourage persons from working in that industry. Also, in cases where there is no insurance coverage, suing an employee who negligently causes extensive property damage is ordinarily a useless act because of the limited funds and income available to the employee. Further, as noted by the trial court, employees are often included within an employer's insurance coverage, thereby barring litigation between the two. See Builders & Mfrs. Mut. Cas. Co. v. Preferred Auto. Ins. Co., 118 F.2d 118, 121-22 (6th Cir.1941). [1] Nevertheless, unless otherwise barred, it is well settled that an employer has a common law right of action against its own employees for property damage arising out of ordinary acts of negligence committed within the scope of employment. Greenleaf v. Huntington & B.T.M.R. & Coal Co., 3 F.R.D. 24, 25 (E.D. Pa. 1942); American S. Ins. Co. v. Dime Taxi Serv., Inc., 275 Ala. 51, 151 So.2d 783 (1963); Hiller v. Goodwin, 258 Ala. 700, 65 So.2d 152 (1953); Granquist v. Crystal Springs Lumber Co., 190 Miss. 572, 1 So.2d 216 (1941); Stulginski v. Cizauskas, 125 Conn. 293, 5 A.2d 10 (1939); Emerson v. Western Seed & Irrigation Co., 116 Neb. 180, 216 N.W. 297 (1927). See Monty v. Peterson, 85 Wn.2d 956, 958, 540 P.2d 1377 (1975); Doremus v. Root, 23 Wash. 710, 63 P. 572 (1901). See also 53 Am.Jur.2d Master and Servant § 108, p. 108-09 (1970); Restatement (Second) of Agency § 401 (1958). Accordingly, we conclude the trial court erred in ruling that Milwaukee did not have a common law cause of action for property damage occasioned by its employees' alleged acts of ordinary negligence committed within the scope of employment.