This question has been addressed in 1 Texas court opinion:
COA10 — January 29, 2026
After a catastrophic motor vehicle accident involving an intoxicated employee, the Tenth Court of Appeals affirmed findings of negligent entrustment and respondeat superior liability against a business owner and his entity. The court analyzed whether the owner's direction for the employee to return a vehicle to a "company yard" fell under the "mission" exception to the coming-and-going rule, concluding the employee was acting within the scope of his employment. Ultimately, the court held that the owner was individually liable for negligent entrustment because the duty of care extends to the specific circumstances of the entrustment, and it upheld multi-million dollar noneconomic damage awards for physical impairment and mental anguish.
Litigation Takeaway
“Business owners and their spouses must be aware that individual liability for 'negligent entrustment' can create massive community debts that may liquidate family assets during a divorce; however, an innocent spouse may have a claim for 'waste' or 'reconstitution' if the other spouse's gross negligence led to the liability.”