Vicarious liability of lessor
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Statutes
“Owner” means a person who holds the legal title of a vehicle, or in the event a vehicle is the subject of an agreement for the conditional sale or lease thereof with the right of purchase upon performance of the conditions stated in the agreement and with an immediate right of possession vested in the conditional vendee or lessee, or in the event a mortgagor of a vehicle is entitled to possession, then such conditional vendee or lessee or mortgagor shall be deemed the owner. (DC ST § 50-1301.02)
Cases
More specifically, whenever a motor vehicle is operated in the District by a person other than the owner, with either the express or implied consent of the owner, the operator of the vehicle is deemed to be an agent of the owner, and proof of ownership of the vehicle is prima facie evidence that the person operated the vehicle with the owner's consent. Johnson v. Agnant 480 F. Supp. 2d 1 (D.D.C. 2006)
Comments
Under Section 50-1301.02, when the lessee has the "right of purchase," it becomes an "owner" without holding legal title to the motor vehicle. U-Haul Co. of East Bay, Inc. v. State Farm Mut. Ins. Co., 616 A.2d 1264, 1265-66 (D.C. 1992). A short-term rental contract, such as one between a truck rental company and its customer, does not create a virtual ownership arrangement for the customer if it was not a long-term lease. Under such circumstances, the customer is not liable as an owner for an accident in the truck. Id. at 1266.
Contributors
Steven N. Leitess
Leitess Friedberg PC
The statutory information was edited and reviewed with the support of MultiState
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