Help resolve the following dispute that is actually happening right now between two people I know.

The Facts
The cab is a 2003 Ford Crown Victoria.

"Lease Driver" leases the cab from "Cab Owner."

There is a $500 deductible on damage caused by the lease driver.

Damage caused by wear and tear is the responsibility of the cab owner.

Lease Driver called me one day and said that he had an accident and that now the cab was making a noise. Lease Driver said he backed into something.

Lease Driver called Cab Owner and told him what happened.

Lease Driver took the car to a mechanic shop he knows. According to Lease Driver, the mechanic said the problem was the catalytic converter and that the piece was rusted and worn.

According to Lease Driver, the mechanic also said the damage was likely caused by running over something because the piece that was broken appeared to be pushed up and not pushed forward. Lease Driver said the mechanic also said that broken piece was old and worn, which contributed to the breakage. The cost to replace the piece would be $250.

Lease Driver said that after hearing all this information, he believed the damage was the responsibility of the Cab Owner and didn't think it was his responsibility to pay for it.

Cab Owner said it was the responsibility of the Lease Driver to fix it.

Lease Driver decided to take the cab to his personal mechanic to get a second opinion.

Lease Driver said that the second mechanic agreed with the first mechanic - that the damage was likely caused by possibly running over something. The second mechanic said he could patch patch the piece rather than replace it and it would only cost $100.

Lease Driver agreed to pay that. Lease Driver called cab owner and relayed this information.

Cab Owner told lease driver that the piece couldn't be patched and had to be replaced because a patch job wouldn't pass the upcoming city inspection and the piece would then have to be replaced anyway.

Lease Driver refused to replace the piece. There was a stalemate between Lease Driver and Cab Owner.

Lease Driver dropped the cab, refusing to pay to replace the piece. At the time Lease Driver dropped the cab, there were three days of paid weekly written lease on the cab.

According to Cab Owner, Lease Driver had an accident and when he found out how much it was going to cost, he didn't want to pay for it.

After the cab was dropped, Cab Owner took cab to his mechanic to be repaired.

Cab Owner said his mechanic said that it appeared that when Lease Driver backed into something, it hit the exhaust pipe, forcing the unit forward, which caused the damage.

Who is right? If you were the judge in this dispute, and both the Lease Driver and the Cab Owner had to accept your decision, how would you resolve this dispute?

George Lutfallah
Chicago Dispatcher

From the School of Hard Knox Lesson # 9,857.31215:

"When in doubt, blame the other guy and see if you can get away with it."

If that does not work, admit joint and severable culpability and pay your dues to the School of Hard Knox. $250 Each.

Yah yah, life on the streets is tough.

Since the equipment was in late stages of deterioration, and the driver's use of the vehicle made it worse both may be liable, unless the lease and the master lease say, imply or suggest otherwise.

(Disclaimer since I am no Solomon nor Clarence Darrow or Don Nathan, my remarks may be completely ignored in whole or in part.)

If the catalytic converter is rusted out, and it's required to be in good working order in order for the vehicle to be leased out, then the owner of the vehicle is responsible for fixing it.

The fact that it took an incident of some type to uncover the state of the converter does not make it the responsibility of the driver.

It is the responsibility of the owner to fix it and fight it with the insurance company to decide whether it is covered by the accident or not.

I agree with charles chambers, that, just because it took the accident to find out, it is not the drivers fault.

If you want to be an enterprenuer, there are some responsibilities that come with it. if you can not take the heat, well, you should be in business.