PRIORITY
ISSUE:
Vicarious Liability
Status:
S.1410, The Business Council strongly supports this
bill.
Senate Calendar #177
Memo in support
Companion bill A.2620, - Assembly
Transportation |
Contact:
For more information,
phone 518/465-7511. |
|
Every sector of
New York's economy, including manufacturers, is adversely affected by
the virtually open ended liability created by the state's current tort
laws.
The cost of doing
business in New York State is being driven up by frivolous lawsuits forcing
companies to pay excessive damages, which are often baseless, irrational,
and unpredictable.
The Business Council,
as a long standing member and active participant of the statewide tort
reform coalition "New Yorkers for Civil Justice Reform", supports a comprehensive
reform program that will restore fairness and balance to the state's
tort system while protecting the rights of injured victims to recover
damages.
The option to
lease a vehicle has increasingly become popular for both consumers and
small businesses owners to satisfy their need for transportation. It
not only provides financial benefits, it also allows individuals the
frequent ability to replace their cars with newer and safer vehicles
for a reasonable price.
Under vicarious
liability in New York State, companies that lease automobiles can be
held liable for unlimited monetary damages if the cars are involved in
accidents, even if the company is in no way at fault.
In New York State,
when a vehicle is purchased, the owner is entirely liable in the event
of an accident. When a vehicle is leased and is in an accident, the lessee
is liable but the leasing company is also sued because their name is
on the vehicle title.
As a result of
this antiquated law, business costs for companies in this market have
skyrocketed. These Companies are struggling to find insurance coverage
to help offset these costs. However, the unacceptable losses have forced
companies to leave the state, or worse, go out of business entirely.
New York now
stands alone as the only state with this unlimited vicarious liability.
Previously, Rhode Island and Connecticut were also affected by similar
laws, but have rectified their situations by repealing their vicarious
liability laws in 2003.
S.1410/A.2620,
jointly sponsored by Senator Owen Johnson and Assemblyman Ron Canestrari,
is a reform bill that provides the lessor of a motor vehicle, for a term
of more than one year, shall be deemed to be the owner of such a vehicle
for the purposes of civil liability for the damage caused by the use
of such motor vehicle. The Business Council supports this bill.
The Business Council
of New York State, Inc. supports repeal of the state's unique "vicarious
liability" law or a compromise that would ease leasing companies' liability
burden. The goal being to protect leasing companies, small business,
and consumers around the state as well as bringing New York's statute
more in line with the rest of the country.
