Skerlec

Plaintiffs appeal from judgment of dismissal following the sustaining of a demurrer to their complaint without leave to amend. Plaintiffs allege that they were injured in a vehicle by the negligence of Nancy Lee Bourguignon, driver of another vehicle. The only defendant present in this appeal is respondent Wells Fargo Bank, National Association, which as lender financed the sale to Nancy Lee Bourguignon by an automobile dealer of the vehicle which she was driving. The action is on two theories—vicarious liability of the lender and negligent entrustment. The two theories somewhat overlap, but may be discussed separately.

Theory of Lender’s Liability

Appellants’ proposition is that respondent bank assumed a business relationship with an automobile dealer (also a defendant, but not an appellant) whereby, through making individual loans for purchase of vehicles, the bank places automobiles in the hands of persons regardless of their ability to respond in damages “as required by the California Financial Responsibility Law (section 16000 et seq. of the California Vehicle Code)”; that the bank did finance the purchase of the Bourguignon vehicle and that the bank knew that…