Generally, the owner of a motor vehicle is vicariously liable for death or injury to person or property resulting from wrongful (negligent or intentional) operation of the vehicle by any person using it with the owner’s express or implied permission.

Veh.C. § 17150

“Every owner of a motor vehicle is liable and responsible for death or injury to person or property resulting from a negligent or wrongful act or omission in the operation of the motor vehicle, in the business of the owner or otherwise, by any person using or operating the same with the permission, express or implied, of the owner.”

Accordingly, there will always be recourse against both the owner and the permissive-use driver under the owner’s auto insurance policy. Indeed, the permissive use statutes require the driver to be joined as defendant in an action against the owner, so long as the driver is subject to the court’s personal jurisdiction.

However, Veh.C. § 17150 does not create “true” vicarious liability … because the statute also puts a dollar cap on the owner’s exposure: Permissive use liability cannot exceed $15,000 per injury, $30,000 per occurrence, and $5,000 for property damage; nor can the driver’s punitive damages liability be imputed to the owner.

Veh.C. § 17151

“(a) The liability of an owner, bailee of an owner, or personal representative of a decedent imposed by this chapter and not arising through the relationship of principal and agent or master and servant is limited to the amount of fifteen thousand dollars ($15,000) for the death of or injury to one person in any one accident and, subject to the limit as to one person, is limited to the amount of thirty thousand dollars ($30,000) for the death of or injury to more than one person in any one accident and is limited to the amount of five thousand dollars ($5,000) for damage to property of others in any one accident.

(b) An owner, bailee of an owner, or personal representative of a decedent is not liable under this chapter for damages imposed for the sake of example and by way of punishing the operator of the vehicle. Nothing in this subdivision makes an owner, bailee, or personal representative immune from liability for damages imposed for the sake of example and by way of punishing him for his own wrongful conduct.”

Veh.C. § 17155

“If two or more persons are injured or killed in one accident, the owner, bailee of an owner, or personal representative of a decedent may settle and pay any bona fide claims for damages arising out of personal injuries or death, whether reduced by judgment or not, and the payments shall diminish, to the extent of those payments, the person’s total liability on account of the accident. Payments aggregating the full sum of thirty thousand dollars ($30,000) shall extinguish all liability of the owner, bailee of an owner, or personal representative of a decedent for death or personal injury arising out of the accident that exists pursuant to this chapter, and did not arise through the negligent or wrongful act or omission of the owner, bailee of an owner, or personal representative of a decedent nor through the relationship of principal and agent or master and servant.”

Following a damages recovery against the owner, the owner is subrogated to the rights of the injured party and may recover from the driver the amount of any judgment and costs he or she paid the injured party.

Veh.C. § 17153

“If there is recovery under this chapter against an owner, bailee of an owner, or personal representative of a decedent, the owner, bailee of an owner, or personal representative of a decedent is subrogated to all the rights of the person injured or whose property has been injured and may recover from the operator the total amount of any judgment and costs recovered against the owner, bailee of an owner, or personal representative of a decedent.”

This statutory subrogation right is in addition to the owner’s common law equitable indemnity rights against the operator after a judgment or settlement [Metro U.S. Services, Inc. v. City of Los Angeles (1979)].

To be properly guided and represented, work with an experienced personal injury lawyer to know more about the formalities and issues involving permissive use liability.