In a landmark ruling, Jean Francois Huchon and Florida plaintiffs, United States District Judge K. Michael Moore has held that the federal rental car immunity statute, 49 U.S.C. § 30106, commonly known as the Graves Amendment, which purports to regulate vicarious tort liability of car rental companies, is an unconstitutional overreaching of Congress' power under the Commerce Clause. In his well-analyzed opinion, Judge Moore held that the Graves Amendment directly indicates an intention to pre-empt state law. The Court concluded that Congress exceeded the authority granted by the Commerce Clause because the statute regulates tort liability but does not directly regulate either channels of interstate commerce or the use of those channels; does not regulate the use of instrumentalities of interstate commerce; and does not substantially affect interstate commerce.
The Court found that there is no evidence that vicarious tort liability for car rental or leasing companies would undercut some larger federal regulatory scheme for the car rental industry. Nor is vicarious tort liability for car rental or leasing companies being used by states to control interstate commerce in rental cars. Nor has any argument been raised that the car rental or leasing industry requires protection, or is in the least bit of danger.
Jean Huchon was severely injured in February 2006 when the motorcycle he was riding was struck by the driver of an Alamo rental car in Marathon, Florida. Jean Huchon suffered closed head injury and cervical spine fractures due to the rental car driver's negligence. The personal injury action filed in the Circuit Court for Monroe County, Florida was removed to the United States District Court on diversity jurisdiction grounds. Alamo's parent, Vanguard Car Rental USA, Inc. filed an action for declaratory judgment claiming immunity from liability based on the Graves Amendment. The Court consolidated the underlying tort and declaratory judgment actions. The tort action is currently pending before Judge Moore and awaiting a trial date.
If you have any questions, please contact Ronald D. Ingber, a long island personal injury attorney located in Garden City, New York.
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