One of my technicians damaged a customer's car?

Question

We are paying in full for the repairs. I need this customer to sign a letter that we are no longer responsible and he can't come after my company for any further money. Without using a lawyer, does anyone have any suggestions on how to create this letter and what to include to protect myself? Thanks.

Answer 1

Letter of Acknowledgment

The purpose of this letter is to acknowledge that repairs have been made to restore (car owners name) (make, model, year of car) to it's original condition prior to the damage caused by (your companys name).

List the repairs & cost. (your company name) is resposible for paying all cost of repairs and is not liable for any future repairs or damage that may occur.

Have a date & signature for you, the car owner & a witness.

Answer 2

Unfortunately in today's litigious society, having a lawsuit for trying to help out another person is all too common. Because of this, indemnity clauses have started to work their way into contracts to prevent the customer to seek damages from the provider. Indemnity clauses also work very well based on the ethics of the person providing the service. If their ethics are low, most courts will not recognize the clause, but if the service provider proves that they have impeccable ethics, the indemnity clause tends to provide adequate protection.

Indemnity clauses need to be built into the contract of sale prior to the contract being executed. From the sound of what you are describing, you have already executed a contract in which in the process of the repairs, some extra damage (which, honestly, is to be expected) was incurred. You have offered to pay full restitution (KUDOs to you, most companies won't do that.) and looks like you are going to try to make it a full circle by asking for information on how to bring it to a close.

In most repair contracts, there is a block at the bottom that says "I am fully satisfied by the work that has been performed on my vehicle." Followed by a signature of the assuming person (typically the owner or an authorized agent of the owner). This means that the person who signs that line then assumes the liability for any further problems associated with that repair. This is generally adequate. However, the courts are starting to use the "common sense" rule which states that if appropriate repairs are not done, it doesn't matter what is signed or not signed, so make sure your work is up to snuff to begin with. Also, if you provide a limited warranty of parts and labor (generally up to a year is more than adequate) then trust between yourself and the customer will be bolstered.

I would start with the signature block, and a verbal agreement between you and the affected party. Both will stand up in court. (which is what you want to avoid, right?) Then I would build into your sale contract an indemnity clause that prevents the customer seeking excess damages from you. In that case, you will need a lawyer. Keeping a lawyer on retainer (a small fee per month for consultation/contract adjudication) is usually the best route to go. I hope you are able to get this resolved quickly and solidly for both parties

-- ShadowGate

Answer 3

BottleBlonde is the only halfway correct answer.

If you do NOT have an attorney draft such a release then you stand the chance of facing the client in court regardless of what the agreement/release states.

So, do you know what will happen if the damages caused by your employee result in secondary issues not directly affected by the actual damages?

Are you compensating the customer for loss of the vehicle due to the damages?

What jurisdiction will any further actions be heard in?

what dispute resolution will be required if future issues arise?

get the point?

Answer 4

You need a General Release. If you have an insurance agent, ask him if he can get a blank form from the claims department.

Answer 5

It would be foolish on your part to attempt to do so yourself; one incorrect word and you could leave yourself wide open for additional liability. Better option would be turn it over to your business insurance and let them handle it. Your premiums will go up but it is in their hands and they have deeper pockets than most business owners.

Answer 6

You may have to pay a small fee, but you can modify a form like this: