New York Court Upholds Federal Liability Law

The New York Supreme Court earlier this month upheld the constitutionality of the 2005 Graves Amendment, a federal law that eliminates vicarious liability nationwide.

The court reversed a 2006 decision that declared the amendment unconstitutional.

Vicarious liability holds vehicle lessors responsible for financial losses in crashes caused by drivers of trucks and cars. Peter Vroom, president of the Truck Renting and Leasing Association, said the court’s decision has “upheld a common-sense law eliminating liability without fault. We applaud the court’s action.”