In Vargas v. Enterprise Leasing Co., the Florida Supreme Court upheld the decisions of the lower Florida courts to grant Enterprise's summary judgment motion. By doing so the court held that the Florida law that holds car rental companies vicariously liable for the actions of drivers that rent from them is preempted by the federal Graves Amendment
Enacted in 2005, the Graves Amendment protects car rental companies from states' vicarious liability laws, with an exception for financial responsibility laws. A financial responsibility law would require a company seeking a license to rent cars to prove that it had the financial resources to be able to satisfy a judgment against them.
The Florida statute in question stated that if the driver of the rented car was uninsured or had insurance limits of less than $500,000 (a combination of bodily injury and property damage), then the rental company would be liable for "up to an additional $500,000 in economic damages," according to claimsjournal.com.
In the Vargas case, the court stated that the Florida law was a vicarious liability statute that did not meet the financial responsibility statute exception, as it did not require the car rental company to acquire insurance or prove its financial wherewithal before being licensed by the state.
Vicarious Liability
Black's Law Dictionary defines vicarious liability as "indirect legal responsibility." In the Vargas case, this means that, under a vicarious liability theory, Enterprise could be held liable in the car accident just for owning the vehicle, regardless of the actions of the driver.
While the court stated that a car rental company cannot be held vicariously liable, there are many others who may be vicariously liable for an accident. One of the more common circumstances of holding a party vicariously liable is in the realm of employment. For instance, a truck driver, deliveryman or even an employee who is traveling (no matter how far) for work may put his or her employer in the position of also being liable for the any accidents caused, depending on circumstances.
What This Means for You
If you have been injured by a person driving a rental car, the rental company will not be responsible for covering any excess judgments that are over the driver's insurance policy. All liability and financial responsibility is on the driver of the rental car. For motorists seriously injured by drivers of rental cars, it will be considerably more difficult to recover full compensation for their injuries.
Because these cases have become more challenging, speak to an experienced car accident attorney in your area to understand the options available to you. Do not settle your case for less than it is worth. There may be additional ways to recover the full extent of your damages.
