re: Hypothetical legal question regarding a driving scenario

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I'm still confused about C. What do you mean they lose?

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I see C as the innocent victim in your scenario. He enters the intersection on a green light and hits A who enters on a red to avoid being hit by B. I assume that C will sue A and B for the property damage and any injuries he sustained.

What I am saying is, just because there is an accident does not mean that C will recover from either A or B.

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A jury would either find A at fault for entering the intersection,

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A jury can find that A was not negligent because he entered the intersection against a red light due to an emergency situation. The issue is
"Did A act reasonably?" If the answer is "yes" A is not negligent.

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or B at fault for being the proximate cause

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A jury can find that while B may have been negligent, his negligence was not the proximate cause of the accident. Can a jury find B's negligence was the proximate cause? Maybe yes, maybe no.

C has nothing to do with it, unless C was negligent in not avoiding the accident if he had a chance to do so.