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4 Drake L. Rev. 98 (1954-1955)
Liability for Entrusting an Automobile to a Known Incompetent

handle is hein.journals/drklr4 and id is 100 raw text is: LIABILITY FOR ENTRUSTING AN AUTOMOBILE TO A KNOWN INCOMPETENT Until 1945, the Supreme Court of Iowa had never been called upon to decide whether there was a separate cause of action in this state for injuries arising out of entrusting an automobile to a known incompetent.1 It is the purpose of this article to discuss the historical development, the application and the possible rami- fications of the entrustment theory2 which was first used in Iowa in the case of Krausnick v. Haegg Roofing Co.3 In the Haegg Roofing Company case, the plaintiff's five year old intestate was killed when an intoxicated employee of the de- fendant Haegg Roofing Company ran into him while returning a truck to the defendant's garage at the end of the work day. The plaintiff's petition contained two counts, the first of which contained allegations of liability imputed to the defendant under the Iowa Owner's Liability Statute.4 The second count contained allegations urging direct negligence on the part of the defendant for entrusting an automobile to an incompetent. The defendant moved that the incompetency allegations be stricken for two reasons: that they were irrelevant and immaterial to a cause of action based upon respondeat superior and that the allegations constitute an attempt to plead a theory of liability 'unknown to the law'. The trial court struck the allegations supporting the incompe- tency theory, but did not state upon which of the two grounds it based its decision. Subsequently, before trial of the cause the plaintiff appealed the ruling to the Supreme Court.5 The court was reluctant to grant an unqualified affirmance because such a decision could be construed as a possible implication that the in- competency theory was a theory of liability unknown to the law and could not be raised as a separate cause of action in Iowa, and held that the incompetency allegations were proper. It was apparently for this reason that the court qualified its decision and ordered a remand of the case. Although the theory of liability for entrusting an automobile to a known incompetent is of comparatively recent development in Iowa motor vehicle law, many other states have entertained I But see, Neubrand v. Kraft, 169 Iowa 444, 151 N.W. 455, 457 (1915) where there is dicta to the effect that such a theory would be accepted if the proper facts were presented. 2 For the purpose of clarity and convenience the theory under dis- cussion will be referred to as the entrustment theory. 3 236 Iowa 985, 20 N.W.2d 432 (1945); See Lukehart v. Gleason, 207 F.2d 529 (C.A. 8th, 1953). 4 IOWA CODE § 321.493 (1954). In all cases where damage is done by any car by reason of negligence of the driver, and driven with the con- sent of the owner, the owner of the same shall be liable for such damage. 5 IOWA CODE, R.C.P. 332 (a) (1954). 98

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