Jennifer Josue
Business Law
1 November 2020
Worthing
Ricky Reckless delivers pizzas for Pizza Dude restaurant. During one of his delivery
runs, Ricky rear-ends Hannah Hurtneck. Hannah sues both Ricky and Pizza Dude,
alleging that she has sustained significant personal injuries, claiming $250,000 in
damages (medical bills, lost wages, damage to her car and pain and suffering) as a
result of the accident. Ricky admits he was negligent and caused the accident. Ricky’s
auto liability insurance limit is $15,000 and he has no way to pay anything more than
what is available from his insurance. In addition to being a well established and solvent,
valuable business, Pizza Dude has a CGL (Commercial General Liability) policy with a
liability limit of $1,000,000. Consequently, Hannah wants to establish that Pizza Dude
is also liable for her damages resulting from the accident so she can recover more than
the amount available from Ricky’s insurance.
Pizza Dude argues it is not liable for Ricky’s negligence based upon the following: (1)
Ricky drove his personal vehicle while delivering pizzas, and paid his own expenses
including gas and auto liability insurance; (2) Ricky was paid a “commission” for each
delivery and he was reimbursed $.50 per mile he drove while delivering pizzas; (3)
Ricky paid his own payroll (FICA) and income tax (“withholding”); (4) Ricky procured his
own worker’s compensation insurance but Pizza Dude paid the premium for it; and (5)
