Legislative Update

Legal Challenges to Federal Law Preempting Vicarious Liability

In August 2008 a U.S. appellate court hearing in Garcia v. Vanguard upheld the federal law eliminating vicarious liability nationwide (the Graves Amendment). Citing arguments presented by TRALA in an amicus brief, the federal court affirmed the constitutionality of the Graves Amendment, as well as its preemption of Florida law allowing limited vicarious liability. The Florida Supreme Court on May 19 denied plaintiff's request to review the Kumarsingh v. PV Holding and Avis Rent-A-Car System case in which two lower court decisions upheld the Graves Amendment. the New York Court of Appeals on April 29 dismissed plantiff's request to review the decision of a lower appellate court in Graham v. Dunkley and NILT, Inc. that earlier upheld the Graves Amendment's preemption of the state's unlimited vicarious liability law. TRALA filed amicus briefs supporting the industry position in all of these cases. TRALA has filed six detailed amicus briefs in key cases. In five of these cases the courts have agreed with TRALA's arguments. One case is still pending.