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socrateaser
socrateaser, Attorney
Category: Business Law
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Experience:  Retired (mostly)
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Continuing my exploration of boat sharing - now looking at

Resolved Question:

Continuing my exploration of boat sharing - now looking at liability. Specifically who is responsible / likely to get sued under the following scenarios.

The situation would be something like a group of people partying on the boat and someone was seriously injuried or killed. Who is responsible under each of the following scenarios:

1. The accident ocurred when I loaned the boat to a friend.
2. One of my partners was driving the boat when the accident ocurred.
3. One of my partners loaned the boat to his friend when the accident ocurred.

I realize there are a million different facts that would determine actual liability - just really trying to figure out if it is likely they would come after me in any of these scenarios.

Thanks.
Submitted: 9 months ago.
Category: Business Law
Expert:  socrateaser replied 9 months ago.

Hello again. You asked: Who is responsible under each of the following scenarios:

1. The accident ocurred when I loaned the boat to a friend.

A: The friend for the wrongful injury; possibly you, for negligent entrustment.

2. One of my partners was driving the boat when the accident ocurred.

A: All partners are jointly and severally liable for the wrongful acts done on behalf of the partnership. If the partner was just piloting the boat inadvertently, then you're not liable as a partner, but you could still be liable for negligent entrustment. If the partner was piloting as a service to the person borrowing the boat, then you're directly liable, along with the other partners.

Note: General partners (partners who are not members of a LLP or LLC), are personally liable for the partnership errors -- meaning that if the partnership can't pay, then the plaintiff can reach your personal assets. Otherwise, liability is limited to the property owned by the partnership.

3. One of my partners loaned the boat to his friend when the accident occurred.

A: Put your partner "in your shoes," and re-read #2 above.

Hope this helps.

socrateaser, Attorney
Category: Business Law
Satisfied Customers: 32878
Experience: Retired (mostly)
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