A former friend hired me (through my C-corporation) to drive one of
his company vehicles (semi and trailer) to help him out of a bind. We
had no written contract, only our verbal agreement. The only
discussion we had regarding liability was that I was "not to worry
about the trailer, it was fully insured" and that I was to deny the
additional insurance when signing for the rental semi tractor his
company had rented because his business insurance policy covered such
rentals.
I had a minor accident that resulted in a flat tire. The client has
refused to pay the agreed upon wages for my time, claiming that I was
liable for the tire damage (it was my fault) and has withheld the cost
of replacing the tire. As it is a semi tractor, the cost of the tire
has effectively eliminated two days wages.
He claims that by nature of being a subcontracting company that I am
automatically liable for the damages. I contend that while the
accident is unfortunate and I regret the additonal costs incurred, the
costs are his as I did not agree to indemnify his company or to insure
the equipment. I also contend that our verbal agreements were exactly
the opposite - that I would be indemnified because his insurance was
in place. Had I been a company employee, not a friend willing to bill
through my company, his withholding the wages would have been clearly
illegal.
At this time I am confident that I would win a small claims case
seeking payment for services rendered but want to ask if I'm missing
something. Specifically, is there any standard by which I, as a
subcontractor (subcontracting corporation actually) would be liable
for these damages by nature of being a subcontractor even though I
never agreed - either in writing or verbally - to assume the financial
liability or insure the equipment.
Both companies operate in Colorado so state law would apply. I
understand in advance that this is not to be deemed specific legal
advice... but go ahead and reference the proper disclaimers anyway.
:) |
