Florida Appeals Court Prohibits Vehicle Rental Company Liability When There is No Negligence

Alexandria, VA - October 9, 2007 - The Graves Amendment, a federal law protecting non-negligent vehicle rental companies from liability for their drivers’ actions, was upheld by a Florida Court of Appeals considering Kumarsingh v. Avis. Stating in its opinion-that “the Graves Amendment, by its clear and unambiguous wording, supercedes and abolishes state vicarious liability laws,” Florida’s Third District Court of Appeals on October 3 affirmed last year’s decision by a Florida Circuit Court that Florida’s antiquated vicarious liability laws are no longer in effect.

This court decision reaffirms the authority of the federal statute to preempt state vicarious liability laws. “The Florida Appellate Court should never have seen this case because the federal law is crystal clear. This failed appeal merely represents one more desperate maneuver by well-funded trial lawyers to preserve a gravy train of easy money from bad law. Trial attorneys in these cases will now have to earn their fees by actually proving negligence – no more hand outs. After hearing stories from trial lawyers themselves describing their “hitting the lottery” when the defendant in a case is a non-negligent vehicle leasing company, it’s hard to be sympathetic,” said Peter Vroom, President and CEO of the Truck Renting and Leasing Association (TRALA), which led the push for passage on the Graves Amendment.

Vicarious liability laws, dating back to the horse-and-buggy days, held vehicle renting and leasing companies liable for drivers’ negligent actions regardless of whether there was any negligence by the company. Relatively few states ever adopted vicarious liability laws, and through the years, most states, including Florida, repealed or reformed the laws. Passage of federal legislation in 2005, commonly referred to as the Graves Amendment, recognized the inherent unfairness of these laws that still existed to some degree in some 14 states. In passing the federal law, Congress stated its intentions to hold drivers liable for the accidents that they cause, regardless of whether or not they were driving a rented or leased vehicle.

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.

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