Serves the Commercial Small Fleet Market of 10 – 50 Vehicles

Federal Ban on Vicarious Liability Not So Airtight

April 20, 2006

The federal ban on vicarious liability for vehicle rental and leasing companies took a major blow when a Florida judge ruled last month that a lessor still may be required to pay damages if a state has "financial responsibility" rules for companies that rent or lease vehicles, according to an Automotive News report.Florida law makes lessors responsible if their customers have less insurance than the state prescribes. Under the county judge’s ruling, Enterprise Leasing Co. may have to pay as much as $500,000 to Jo Ellen Poole and Robert Poole. Jo Ellen Poole was injured in a 2002 collision with a vehicle leased from Enterprise. Enterprise argued that the new federal law absolved the company of liability in the case. However, the judge ruled that Congress meant to block claims only in states with “unlimited” vicarious liability. Enterprise plans on appealing the judge’s ruling, according to Automotive News.
Twitter Facebook Google+

Comments

Please note that comments may be moderated. 
Leave this field empty:
 
 

Fleet Incentives

Determine the actual cost of owning and running a vehicle in your fleet. Compare vehicles by class and model.

FleetFAQ

Fleet Tracking And Telematics

Todd Ewing from Fleetmatics will answer your questions and challenges

View All

 

Fleet Management And Leasing

Merchants Experts will answer your questions and challenges

View All

 

Sponsored by

A program wherein the leasing company or fleet management supplier handles some or all aspects of an accident in which a covered vehicle is involved.

Read more

Up Next

More From The World's Largest Fleet Publisher