case study 5

 

In the case of Coker v. Pershad, Terence Pershad, the driver of a tow truck for Five Star Auto Service, responded to a call to AAA North Jersey, Inc. for road assistance by the driver of a car involved in an accident.  Pershad got into a fight with Nicholas Coker, a passenger in the car.  Coker filed a suit in a New Jersey state court against Pershad, Five Star, and AAA.  The court ruled that Pershad was an employee of Five Star, not AAA, and that Five Star was an independent contractor, and concluded that AAA was "not responsible for the alleged negligence of its independent contractor, defendant Five Star, in hiring Mr. Pershad."  Coker appealed.

A state intermediate appellate court affirmed.  "It is clear AAA did not control the manner and means of Five Star's work."

Give and discuss the reasons that AAA would want to avoid liability for Coker's injuries.