![]() ![]() The court noted that Zipcar members pay for their use of vehicles and the company competes with traditional car-rental companies and serves a similar consumer need. The court disagreed, holding Zipcar was shielded from vicarious liability by the Graves Amendment. Thus, plaintiffs argued that Zipcar was not “in the trade or business of renting or leasing motor vehicles,” as required by the Graves Amendment. The plaintiffs focused on Zipcar’s advertising, which described itself as a car-sharing service, not a rental car company. Zipcar sought dismissal based on the Graves Amendment contending the statute prohibits claims for vicarious liability against a motor vehicle owner who rents vehicles. #Cancel zipcar membership driver#The statutory definition of owner included “A person, other than a lien holder, having the property in or title to a vehicle … and also includes any lessee or bailee of a motor vehicle or vessel having the exclusive use thereof, under a lease or otherwise, for a period greater than thirty days.” The statute “altered the common-law rule that a vehicle owner could only be held liable for the negligence of a permissive driver under agency or respondeat superior theories.” Id. Vehicle and Traffic Law § 388(1) makes every owner of a vehicle liable for injuries resulting from negligence “in the use or operation of such vehicle by any person using or operating the same with the permission, express or implied, of such owner.” Murdza v. One of the claims against Zipcar (and Donlen) was based on the New York owner liability statute (Vehicle and Traffic Law § 388), one of a dozen jurisdictions which impose vicarious liability upon the owner of a vehicle for the negligence of the driver. The plaintiffs commenced a lawsuit against the two drivers, Zipcar and Donlen. Zipcar, in turn, rented it to Josaphat pursuant to a “Zipcar Membership Contract.” The Altima had been owned by Donlen Corporation (Donlan) which leased the vehicle to Zipcar under a long-term lease. In that case, the plaintiffs were injured in a two-car accident while passengers in a 2010 Nissan Altima operated by Josaphat. 2013), the court addressed the issue of whether the Graves Amendment applied to Zipcar. Members can reserve vehicles online, over the phone, or through Zipcar’s mobile applications. Rental rates include gas, insurance, and roadside assistance-as outlined in the membership contract. Zipcar is a membership-based car-sharing company that provides short term car rentals to its members, where members pay fees and usage fees that are billable by the hour or day. (See “Leasing, Renting & Vicarious Liability: An Overview of the Graves Amendment”). Does the Graves Amendment apply to membership-based car-sharing companies like Zipcar? In a previous post, I provided an overview of the Transportation Equity Act of 2005 (49 USC § 30106) (a/k/a “Graves Amendment”), a federal law which preempts state law imposing liability on vehicle owners engaged in the business of renting or leasing motor vehicles absent negligence on the part of the vehicle owner. ![]()
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