NY Appellate Court Upholds Constitutionality of Graves Amendment

Alexandria, VA, February 1, 2008 - The Truck Renting and Leasing Association (TRALA), announced today the reversal of the Graham v Dunkley decision declaring the Graves Amendment (49 US 30106) unconstitutional by the Appellate Division, Second Judicial Department of the Supreme Court of New York.

“This is a major victory for the vehicle renting and leasing industry,” said TRALA president and CEO Peter Vroom. “In reaffirming the constitutionality of the Graves Amendment, New York’s Supreme Court has upheld a common-sense law eliminating liability without fault. We applaud the court’s action.”

In reversing the September 11, 2006 trial court decision in Graham v Dunkley, the Appellate Division of the New York Supreme Court declared unequivocally that “actions against rental and leasing companies based solely on vicarious liability may no longer be maintained.”

TRALA organized and led a coalition of industry allies in successfully seeking the enactment of federal legislation eliminating vicarious liability nationwide. The legislation, known as the Graves Amendment, was signed into law on August 10, 2005. Since enactment, the vast majority of state and federal court decisions in New York, Florida, Connecticut, Maine and Georgia have upheld the authority of the law.

The New York Supreme Court, Queens County, was one of the few courts to question the statute’s constitutionality. Following the 2006 decision in Graham v Dunkley declaring the Graves Amendment unconstitutional, TRALA and its Industry Council for Vehicle Renting and Leasing led a second industry coalition to help defend the federal law in court. TRALA and the coalition organized the filing of amicus briefs providing additional information for the court to consider in the appeal of the Graham v Dunkley decision. The information from those amicus briefs was cited in today’s court decision upholding the federal prohibition.

TRALA, based in Alexandria, VA, is a voluntary, non-profit national trade association, organized in 1978 to provide a unified and focused voice for the truck renting and leasing industry. TRALA's membership includes more than 500 leasing and rental firms and 120 suppliers that make up nearly the entire truck renting and leasing industry. The renting and leasing industry is responsible for approximately 35 percent of all new Class 3 through 8 commercial truck registrations.

###