Vicarious Liability

When someone negligently injures another person, they typically bear sole financial responsibility (legally speaking)

However, in cases of vicarious liability, Texas law may hold a third party liable. 

Vicarious liability is a form of indirect liability that occurs when there is a particular relationship or agency between the parties. Common examples include:

• An employer being liable for injuries caused by an employee during their employment.
• A parent being liable for injuries caused by their minor child.
• A bar or restaurant being liable for injuries caused by a drunk customer or a customer under the age of 21.
• The owner of a commercial vehicle being liable for injuries caused by a renter without a commercial driver’s license.

Someone found vicariously liable does not need to be aware of the accident causing the injury. This misconduct can involve an illegal act or a failure to act when required. 

In personal injury claims involving vicarious liability, the accident victim can win their claim against the third party without proving that the third party personally committed any form of negligence. The third party can face liability even if they were not present at the accident scene.

Relationships Invoking Vicarious Liability in Texas

Texas law imposes vicarious liability on three primary types of relationships:

• Employer/employee
• Parent/minor child
• Alcohol vendor/customer

Other forms of vicarious liability exist but are less common. Vicarious liability is the exception rather than the rule under Texas personal injury law.

Employee Vicarious Liability

Texas holds employers liable for their employees’ misconduct under the doctrine of respondeat superior. This applies when the employee acts within the scope of employment.. Employers may escape liability if their employee, though on duty, was not acting within their scope of duties during the accident.

For example, if an employee causes a car accident while using their employer’s vehicle, the injured party can sue both the employee and the employer if the employee was performing their duties at the time. If the victim dies, a wrongful death lawsuit may be filed.

Vicarious Liability and the “Deep-Pockets” Strategy

If an accident victim suffers a catastrophic injury due to a minimum-wage pizza delivery driver’s misconduct, suing the employer makes sense because the driver cannot afford to pay a large claim. Vicarious liability seeks a “deep-pockets” defendant who can afford to pay a large personal injury claim.

The Independent Contractor Exception

Employers are not vicariously liable for independent contractors. Determining the difference between an employee and an independent contractor can be complicated.

Most commercial truck drivers are independent contractors, not employees of trucking companies, but they typically carry high-value insurance policies, which matters in most truck accident cases.

Parent/Child Vicarious Liability

Parents can bear financial responsibility for their minor children’s misconduct. In Texas, a minor is under 18 years of age. The Texas Family Code imposes vicarious liability for property damage caused by minors under two circumstances:

• Parents negligently failed to discipline or control their child.
• The child, at least ten years old, willfully and maliciously committed the property damage.

Under these circumstances, parental liability is limited to actual damages, not exceeding $25,000 plus court costs and attorneys’ fees. Texas does not have a statute imposing vicarious liability on parents for personal injuries caused by their children, but common law could hold parents responsible if they failed to discipline and control their child, especially if the child had known propensities for dangerous behavior.

Alcohol Vendor/Customer Vicarious Liability

Texas’s “dram shop law” holds alcohol vendors and hosts (people throwing a party, for example) liable for DUI accidents. An alcohol vendor (bar or nightclub) can be liable for serving alcohol to an obviously intoxicated customer if the alcohol contributed to a DUI accident. Texas also holds party hosts liable for serving alcohol to a guest who later causes an accident if the guest was under 18, the defendant was not a parent or custodian of the minor, and the defendant contributed to the minor’s intoxication.

Contact Funk With Your Questions About Liability

Vicarious liability is complex, and determining liability is not always straightforward. If you believe you are in a situation that might trigger vicarious liability, you should speak with an attorney. Funk and Associates is a Austin personal injury law firm that has been helping Austin-area accident victims navigate liability issues for more than 20 years. 

If you have been injured in an accident in Austin, TX, contact us for a free, no-obligation consultation at 512-472-3865.

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