One of the earliest reported cases under this cause of action, the 1915 Mississippi case of Winn v. Haliday,[1] concerned the negligence of the father in entrusting a dangerous agency to a son known to be negligent, based on the allegation that the appellant knew his son to be given to 'joyriding'.
The key allegation that must be proven in such a case can be described as follows: Negligent entrustment is generally found where the entrustee had a reputation or record that showed his propensity to be dangerous through possession of such an instrumentality.
The Supreme Court of the United States has held that negligent entrustment of a vehicle to a person with a criminal reputation will support the state's seizure of that vehicle as a penalty, if it is used in the commission of a crime.
Several jurisdictions have case law which explores the relationship between negligent entrustment of a motor vehicle and typical exclusion clauses in household or general commercial insurance policies of claims "arising out of" the use of a motor vehicle.
See, for example, the Illinois case of Insurance Co. of North America v. Krigos, 1990, which upheld the District Court finding that wording in the entrustor's household insurance policy, We will not cover claims that arise because you or another person entrusts a motor vehicle to any person, "clearly and unambiguously excluded coverage for negligent entrustment".