A state trial-lawyers group is urging members with cases against car-rental firms to put the pedal to the metal and file suit immediately – or hit a brick wall.
That’s because they’re on a collision course with a provision in a new federal transportation law that will sharply limit the liability of car-leasing and rental companies in accidents involving their customers.
In an “urgent notice” posted on its Web site, the New York State Trial Lawyers Association warns members that President Bush is expected to sign the bill – passed by Congress last Friday – any day now.
The law “will not affect cases commenced before the enactment date,” the notice stresses.
But, “cases filed on the day [the president] signs the bill will come under the new law.”
In bold-face capital letters, the NYSTLA notice continues: “This could be the last day you can file a case against an automobile lessor or rental agency for liability based on ownership.”
Not quite. President Bush isn’t scheduled to sign the bill until next Wednesday.
That means lawyers have a green light until Tuesday to file suit.
An informal Post survey found no increase in lawsuits filed in city courts against car-leasing and rental companies since the NYSTLA notice was posted on Monday.
“The only people who will be rushing to file suits are those with cases involving catastrophic injuries because [the rental and leasing companies] have deeper pockets,” said Ken Mollins, a Nassau County lawyer and NYSTLA member who specializes in auto accidents.
The NYSTLA, in its notice, made clear it is not yielding to the new law without a fight, noting “we are looking for ways to challenge” it.
One avenue the group is expected to explore is whether the new federal law can constitutionally supercede current state law.
The provision that has NYSTLA officials blowing a gasket is aimed specifically at New York, the only state in the nation with a law that exposes auto-leasing and rental companies to unlimited vicarious liability for damages caused by customers.
The federal legislation awaiting the president’s signature would supercede that law, which was passed in the 1920s to get wealthy owners of livery and chauffeured vehicles to be careful hiring drivers.
Other states have either ditched their vicarious-liability laws or put a ceiling on the liability.
New York’s law has discouraged some car-rental and leasing firms from doing business here, and forced others to add exorbitant surcharges to their fees.
Efforts to ax the state law have failed in Albany for several years.
Critics of the law often argue that when a leased or rented car is involved in an accident, those injured should not be able to sue the leasing company unless it can be shown that the company was somehow at fault.
They cite the 1989 one-car crash in which Billy Martin died, noting that the widow of the five-time Yankee manager was able to sue the leasing company even though the family friend behind the wheel was convicted of alcohol-related charges.
Additional reporting by Alex Ginsberg and Denise Buffa
It’s a liability
Under the state’s “unlimited vicarious liability” law, car-leasing and rental companies can be sued for damages caused by their clients.
* New York is the only state with such a law still on the books.
* A provision in the new federal transportation law – to be signed next week by President Bush – would sharply limit the liability of leasing and rental companies.
* The New York State Trial Lawyers Association is reminding members to file suits against leasing companies before the federal law takes effect.