Yvonne Sanchez borrowed money from MBank to purchase an automobile. She gave MBank a security interest in
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Yvonne Sanchez borrowed money from MBank to purchase an automobile. She gave MBank a security interest in the vehicle as collateral to secure the loan. When Sanchez defaulted on the loan, MBank hired El Paso Recovery Service, an independent contractor, to repossess the automobile. The two men from El Paso who were dispatched to Sanchez’s house found the car parked in the driveway and hooked it to a tow truck. Sanchez approached them and demanded that they cease their efforts and leave the premises, but the men nonetheless continued with the repossession. Before the men could tow the automobile into the street, Sanchez jumped into the car, locked the doors, and refused to leave. The men towed the car at a high rate of speed to the repossession yard. They parked the car in the fenced repossession yard, with Sanchez inside, and padlocked the gate. Sanchez was left in the repossession lot with a Doberman Pinscher guard dog loose in the yard. Later, she was rescued by the police. Sanchez filed suit against MBank, alleging that it was liable for the tortious conduct of El Paso. MBank challenged it was not liable because El Paso was an independent contractor. Who wins? MBank El Paso, N. A. v. Sanchez, 836 S. W. 2d 151, 1992 Tex. Lexis 97 (Supreme Court of Texas)
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Sanchez wins Generally a principal is not liable for the negligent or intentional conduct of an inde...View the full answer
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