President Bush Signs Federal Vicarious Repeal Law
TRALA - Led Vehicle Renting and Leasing Fairness Alliance Scores Victory

Alexandria, VA, August 10, 2005 – President Bush today signed into law TRALA-sought federal legislation eliminating vicarious liability throughout the nation. The new law will go into effect immediately and will save the vehicle renting and leasing industry and its customers billions of dollars through savings in unfair liability awards, attorney’s fees, and supplemental insurance premiums. This legislation will also open or re-open markets previously avoided by vehicle lessors because of the threat of liability without fault.

In 2003, TRALA initiated this latest effort to pass federal legislation effectively repealing vicarious liability nationwide. TRALA brought together industry allies for the fight and formed the Vehicle Renting and Leasing Fairness Alliance (VRLFA). The VRLFA consists of TRALA, Penske Truck Leasing Co., Ryder System, Inc., Cendant Corp. (Avis/Budget), Enterprise Rent-A-Car, Dollar Thrifty Automotive Group, Vanguard Car Rental, Hertz Corp., and the American Automobile Leasing Association. TRALA’s Industry Council for Vehicle Renting and Leasing and other industry partners also played strong roles in this legislative victory. “This was a solid industry-wide effort,” said TRALA President and CEO Peter J. Vroom.

Under the new law, sponsored by Congressman Sam Graves (R-MO) as part of the federal highway bill (HR 3), non-negligent companies that rent and lease motor vehicles cannot be held liable for damages to persons or property solely on the basis of ownership. Congress passed the legislation on July 29.

“The interstate nature of our national rental and lease fleets made it essential that we seek federal action to create uniformity by establishing that no state can impose liability without fault,” said Vroom. “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.”

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.