House Approves National Repeal of Vicarious Liability
TRALA Leads Alliance to Victory

Alexandria, VA, July 29 2005 – The U.S. House of Representatives today approved federal legislation prohibiting the imposition of vicarious liability (liability without fault) against vehicle renting and leasing companies. The provision, sought by a TRALA-led alliance, was approved as part of H.R. 3, a comprehensive federal highway bill. Congressman Sam Graves (R-MO) worked with TRALA’s Alliance and TRALA’s Industry Council for Vehicle Renting and Leasing in spearheading the effort.

“This is a huge victory for the vehicle renting and leasing industry,” said TRALA Chairman Mark Siegal, president of Edart NationaLease in Hartford, CT. “Consumers and businesses will benefit enormously from passage of this legislation with lower costs and increased transportation options. Our industry will save billions of dollars that would otherwise be spent on litigation. Although the vast majority of states do not allow vicarious liability, those few that do create a serious nationwide problem for both our companies and our customers. In a few states, companies can be subject to unlimited liability, without any allegation of negligence on the part of the company.”

“This has been a long-fought battle,” said TRALA President and CEO Peter J. Vroom. “We have been successful in reforming vicarious liability laws at the state level for many years. But with the interstate nature of our national rental and lease fleets, it was essential that we seek federal action to create uniformity by establishing that no state can impose vicarious liability. This is simply common sense tort reform. Renting and leasing companies that put safe vehicles in the hands of eligible drivers should not be held liable for actions over which they have no control.”

“We are grateful for the support of the Vehicle Renting and Leasing Fairness Alliance, the group of truck and car rental and leasing companies and trade associations brought together by TRALA in early 2003 to lead this fight. The Alliance helped make this effort a reality” said Vroom.

The Senate is expected to vote later today on H.R. 3 and send the bill to President George W. Bush for his expected signature this weekend.

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 100 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.