By Andrew Dixon
Last month, the Court of Appeal released an important judgment concerning the liability limit of motor vehicle lessors for accidents involving their lessees or drivers operating leased vehicles with the lessee’s permission.
Background
In British Columbia, the Motor Vehicle Act makes owners, lessees, and lessors of vehicles vicariously liable for accidents committed by drivers of leased vehicles. While a permitted driver or a lessee is liable for the full extant for any damages flowing from the accident, the Motor Vehicle Act limits the liability of lessors. The limit of liability is prescribed in the section 82.1 of the Insurance (Vehicle) Act (the “IV Act“) at $1 million (the “Lessor Cap”).
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