Illinois: No Employer Liability for Advertising on Employee Vehicle

In September 2003, Michael Krewer, an employee of Leifer Builders, caused an automobile accident while driving his personal vehicle for personal reasons. At the time of the accident, Krewer’s vehicle was displaying magnetic signs that provided information about his employer.

The injured parties in the accident filed suit against Krewer, seeking damages for the injuries they sustained. They later amended their complaint to add Leifer as a defendant, alleging that Krewer was driving negligently within the scope of his employment.

Affidavits and deposition testimony submitted to the trial court revealed that Krewer was required by Leifer to have a personal vehicle at his disposal and that he used his vehicle to run errands for work and to travel between job sites. Several months before the accident, the owner of Leifer provided Krewer with two magnetic signs advertising the company. The signs were designed to adhere magnetically to a vehicle’s sides and included Leifer’s name, logo, catch phrase, and telephone number.

Leifer averred that no compensation was offered relative to use of the signs. The purpose was to allow employees to be identified on job sites as well as to advertise for Leifer. Employees were instructed to remove the signs when not working.

Leifer denied that Krewer was acting within the scope of his employment and filed a motion to dismiss. The trial court granted Leifer’s motion to dismiss as well as plaintiffs’ motion to reconsider and plaintiffs appealed.

The Appellate Court of Illinois affirmed the judgment of the trial court on July 17, issuing its opinion in Nulle v. Krewer, No. 2-06-0947. The Appellate Court found that it was undisputed that Krewer was not on duty as an employee when the collision occurred but was on a purely personal mission. Further, the court concluded that although Leifer Builders might have derived some incidental benefit from the magnetic advertising attached to Krewer’s vehicle, Krewer’s act was not within the time and space limits of his employment.

Direct questions to NAMIC's Regulatory Affairs Counsel Marsha Harrison.

Posted: Tuesday, July 31, 2007 12:00:00 AM. Modified: Tuesday, July 31, 2007 1:47:33 PM.

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