Articles Posted in Car, Truck & Motorcycle Accidents

avis rental agency.jpg49 U.S.C. Sec. 30106 (the “Graves Amendment”) shields those “engaged in the trade or business of renting or leasing motor vehicles [when] there is no negligence or criminal wrongdoing on the part of the owner” from vicarious liability for the rented or leased vehicle. Sec. 30106(a).

Given this language, does the Graves Amendment shield car dealerships from vicarious liability for accidents involving loaner vehicles? The one decision discussing the Graves Amendment vis-a-vis free service loaners, Zisersky v. Life Quality Motor Sales, Inc., 866 N.Y.S. 2d 501 (N.Y.. Sup. Ct. 2008), says No. Correctly, in our view, the court concluded that a loaner is neither a “lease” nor a “rental.”

The Graves Amendment has been used to shield rental agencies from vicarious liability for serious personal injuries caused by the drivers of their vehicles. We take issue with the Graves Amendment being applied under any circumstances, yet, sadly, it seems to be carrying the day in courts of most states with regard to rental agencies … at great harm to many individuals.

For example, our office is currently involved in a case where the negligent renter of an Enterprise vehicle caused it to flip over numerous times on I-75 near Gainesville, Florida. Enterprise is hiding behind the Graves Amendment to deny needed compensation to our client, an innocent passenger who was airlifted to Shands Hospital.
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legal document.jpgTypically, Florida automobile insurance policies recognize two classes of insureds. Mullis v. State Farm Mut. Auto. Ins. Co., 252 So. 2d 229, 238. (Fla. 1971). Class I insureds are named insureds, usually the owner of the vehicle, and their resident relatives. Travelers Ins. Co. v. Warren, 678 So. 2d 324, 326 n.2 (Fla. 1996) (citing Mullis, 252 So. 2d at 238; Quirk v. Anthony, 563 So. 2d 710, 713 n.2 (Fla. 2d DCA 1990), approved, 583 So. 2d 1026 (Fla. 1991); Florida Statute 627.732(4). Class II insureds are lawful occupants of an insured vehicle who are not named insureds or resident relatives of named insureds; essentially, they are “third-party beneficiaries to the named insureds’ policy. Id. Class II insureds “are insured only because they are drivers or passengers in an insured vehicle with the consent of the named insured.” Florida Farm Bureau Cas. Co. v. Hurtado, 587 So. 2d 1314, 1317 (Fla. 1991) (citations omitted).
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crushed vehicle.jpgOwners of motor vehicles registered and operated in Florida are vicariously liable for damages caused by their vehicles while operated by a consensual driver. Car rental companies are exempt from this rule.

This form of strict liability is derived from Florida’s Dangerous Instrumentality Doctrine, adopted in Southern Cotton Oil Co. v. Anderson, 80 Fla. 441, 86 So. 629 (1920), which is based on the proposition that motor vehicles operated on public highways are dangerous instruments and the owners who entrust them to others should be liable for injury to others caused by negligence of the persons to whom the instrumentalities are entrusted.

Until 2005, when the Bush Administration and the Republican Congress carved out an exemption, through the Graves Amendment (49 U.S.C. Sec. 30106), the doctrine applied to the car rental industry. To this writer, the exemption is dangerous because it removes nearly every motivation the industry might have to know who is driving its vehicles. (See this blog for an example of what I mean: Profits Over People – The Willful Ignorance of Florida Car Rental Companies.)
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burning van.jpgI have blogged here in the past that the 2011 Republican-controlled Florida Legislature seemed bound and determined to gut one of the state’s most important laws at holding vehicle manufacturers accountable for producing defective products. Although some within the legislature may have had this outcome as a goal, reasonable minds prevailed in the 2011 legislative session to the extent that the legislative body’s modifications did not eviscerate the law as many within the civil justice community had feared.

The principle of law under discussion is the crashworthiness doctrine. It stands for the proposition that vehicle manufacturers can be liable for harm caused by unsafe vehicles, even if the vehicle was put to the test by another negligent party. Kidron v. Carmona, 665 So. 2d 289 (Fla. 3rd DCA 1995) (following Larson v. General Motors, 391 F. 2d 495 (8th Cir. 1968)).

The principle was later bolstered by the holding in D’Amario v. Ford, 806 So. 2d 424 (Fla. 2001), which limited the use of comparative fault in crashworthiness cases.

In D’Amario a minor was the passenger in a vehicle that struck a tree. A fire began that ended in an explosion, causing the minor to lose three limbs and suffering burns to much of his body. The fire resulted from a defective relay switch manufactured by Ford.

The minor and his mother sued Ford for the damages resulting from the defective switch. They did not seek to recover compensation from Ford for injuries from striking the tree.

At trial, Ford sought to introduce evidence as to the cause of the initial accident, which was that another minor was intoxicated and negligently drove the vehicle into the tree. The plaintiffs (mother and son) argued that this evidence was irrelevant to the claim for damages caused by the defective switch. The trial court admitted the evidence, meaning that it allowed the jury to hear the evidence. The jury returned a verdict for Ford.

The case was appealed and made its way to the Florida Supreme Court. The court considered cases from other states and concluded that the majority view in the nation was that such impact evidence was relevant. Nevertheless, the Florida Supreme Court adopted the minority view, ruling in favor of the catastrophically injured minor and his mother.

Before D’Amario, in crashworthiness cases jurors were allowed to hear evidence of the driver’s fault and apportion damages against the driver. This tended to direct the focus of responsibility onto the negligent driver and take it off the manufacturer whose defective product caused the enhanced injury. D’Amario eliminated the chance of such evidence distracting, confusing, or angering juries.

Not surprisingly, automobile manufacturers have been trying for ten years to reverse D’Amario. Many thought their goal would be accomplished in the 2011 legislative session. Although a measure was proposed that would have satisfied the manufacturers, amendments filed on the Senate Floor by Senator David Simmons (R) and passed by both chambers of the Legislature prevented the crashworthiness doctrine from being eliminated altogether in Florida. The bill that passed, which does modify D’Amario, revised Florida Statute 768.81.

The revised 768.81(3)(b) provides as follows:

In a products liability action alleging that injuries received by a claimant in an accident were enhanced by a defective product, the trier of fact shall consider the fault of all persons who contributed to the accident when apportioning fault between or among them. The jury shall be appropriately instructed by the trial judge on the apportionment of fault in products liability actions where there are allegations that the injuries received by the claimant in an accident were enhanced by a defective product. The rules of evidence apply to these actions.

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drunk.jpgPersonal injury cases against drunk drivers present positive opportunities for Plaintiff lawyers to seek punitive damages and recover enhanced compensatory damages (e.g., pain & suffering; lost wages).

Punitive Damages

The procedure for claiming punitive damages and the standards for holding a defendant liable for punitive damages are set forth in Florida Statute 768.72.

A claim for punitive damages may not be plead in the initial complaint. Rather, the Plaintiff must seek leave of court to amend the complaint to claim punitive damages. The judge should allow the amendment if evidence in the record or proferred by the Plaintiff provides a reasonable basis for recovery of such damages. Simeon, Inc. v. Cox, 671 So.2d 158 (Fla.1996) and F.S. 768.72(1). Contrary to the proposition often put forward by Defendants, the statute does not require an evidentiary hearing to permit the amendment. Pursuant to section 768.72, a proffer of evidence can support a trial court’s determination. Strasser v. Yalamanchi, 677 So.2d 455 (Fla. 2d DCA 1981).

768.72 says this about what must be shown to establish liability:

(2) A defendant may be held liable for punitive damages only if the trier of fact, based on clear and convincing evidence, finds that the defendant was personally guilty of intentional misconduct or gross negligence. As used in this section, the term:

(a) “Intentional misconduct” means that the defendant had actual knowledge of the wrongfulness of the conduct and the high probability that injury or damage to the claimant would result and, despite that knowledge, intentionally pursued that course of conduct, resulting in injury or damage.

(b) “Gross negligence” means that the defendant’s conduct was so reckless or wanting in care that it constituted a conscious disregard or indifference to the life, safety, or rights of persons exposed to such conduct.

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hummer.jpgFlorida’s dangerous instrumentality doctrine imposes vicarious responsibility upon the owner or other possessor of a motor vehicle who voluntarily entrusts it to another for any subsequent negligent operation which injures a member of the traveling public. Jackson v. Hertz Corporation, 590 So.2d 929, 937. See Kraemer v. General Motors Acceptance Corp., 572 So.2d 1363 (Fla. 1990); Susco Car Rental Sys. v. Leonard, 112 So.2d 832 (Fla. 1959); Lynch v. Walker, 159 Fla. 188, 31 So.2d 268 (1947); Southern Cotton Oil Co. v. Anderson, 80 Fla. 441, 86 So. 629 (1920); Anderson v. Southern Cotton Oil Co., 73 Fla. 432, 74 So. 975 (1917).
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doctor.jpgUninsured Motorist (UM) coverage is 1st party insurance maintained for the benefit of individuals injured by uninsured motorists.

See these blogs:

An insurance policy is a contract. Unless preempted by a statute or case law, the terms of the policy determine the rights and responsibilities of the parties to the contract, namely the insurer and the insured.

A common policy requirement is for the insured to submit to what is called a Compulsory Medical Examination (CME). A CME is where the insured, who is seeking compensation under the policy for an injury or injuries, is examined by a doctor selected by the insurance company. When requested by the insurer, submitting to the CME is a condition precedent to receiving benefits under the policy, meaning that the insurance company can deny benefits to the insured for failing to attend the CME.

Disputes have arisen between insurer and insured over what is allowed by the CME provision. How frequently may the insurer force the insured to attend CMEs? How far can the carrier make the insured travel to attend the CME? Is there limit on the type of doctor who may perform the CME?
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airbag.jpgInflating airbags can cause serious harm or death. The damage occurs when the passenger’s head is struck by the airbag, which can travel at speeds up to 200 mph, before it has fully inflated.

A vehicle’s “occupant protection system” (OPS) consists of airbags, belt/shoulder restraints, and seat tracks. If the system is designed properly, occupants should not be harmed by deploying airbags. Instead of the head being struck by the airbag during deployment, the head should be cushioned by the fully deployed airbag. Two entirely different dynamics… and often the difference between life and death.

When a vehicle strikes an object, the human body continues to move forward at the pre-crash speed of the vehicle until it is restrained by a seatbelt/shoulder harness or comes into contact with the airbag, windshield, or instrument panel. The one factor common to all persons severely injured or killed by an airbag is that they are very close to the airbag at the time of deployment. A properly designed system prevents this from happening.

Seat tracking determines how far forward seats are able to be situated. If located too close to the airbag, the inflating airbag will impact the head before it has fully deployed. The solution to this problem is for manufacturers to limit how far forward seats can move on the track. When designing this aspect of the OPS, manufacturers must assume that the occupants will have their seats fully forward.

The other consideration to prevent occupants from being too close to airbags during deployment, is the seatbelt/shoulder harness system. Shoulder harness pre-tensioning should limit the body from moving forward into the deployment zone.
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Nationwide, roughly one in seven (13.8%) drivers are not covered by liability insurance and are therefore uninsured. Florida is tied in fourth place with Tennessee and Oklahoma at 24% with the highest percentage of uninsured drivers.

Part of Florida’s numbers are attributable to its motor vehicle insurance laws. Liability insurance is not required to operate a vehicle lawfully on Florida’s streets and highways. The coverage is optional and a premium will be charged to purchase it.

The only coverages that are required to obtain a vehicle registration and, thus, operate a vehicle lawfully, are Personal Injury Protection (PIP) and Property Damage – Liability. (However, in the event of an accident resulting in death or personal injury, if the uninsured motorcyclist or car/truck owner with only PIP/PD is charged with causing the accident, his/her drivers license and all vehicle registrations will be suspended. Sections 316.066(3)(a)1 and 324.051(2)(a) of Florida’s Statutes.) Neither coverage compensates the victim of an at-fault party’s negligence for personal injuries and economic losses.

Little can be done to prevent an accident caused by another person’s fault. However, safeguards can be taken to protect against the one in four chance of finding yourself without insurance coverage to compensate for serious personal injuries and economic losses. The answer is Uninsured Motorist/Underinsured Motorist Coverage. (Florida Statute 627.727.)
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stacking.jpgStacking coverage is one of the most misunderstood areas of Florida’s motor vehicle insurance laws. The goal of this blog is to help clear up the confusion.

Stacked coverage is a type of coverage that is available within the broader type of coverage known as uninsured/underinsured motorist (UM/UIM) insurance. Neither coverage is mandatory under Florida law.

In Florida, the only mandatory coverages are Personal Injury Protection (PIP) and Property Damage – Liability. Every other type of coverage is optional.

One type of optional coverage is Bodily Injury, or BI. BI coverage pays for personal injuries, death, and economic losses caused by the insured’s negligence. Because an additional premium is charged for BI coverage, it is not purchased by every insured.

Uninsured/Underinsured coverage protects against the negligent motorist who does not have BI coverage – UM takes its place – or whose BI coverage limits are not sufficient to cover the losses – UIM. In other words, it performs for the insured (the person who has been damaged) as the at-fault party’s BI coverage otherwise would have.

Whenever BI coverage is purchased, UM/UIM will be included in the policy unless waived in writing by the insured. Like BI, it is not mandatory and a premium will be charged for the coverage.

Stacked coverage is an optional type of coverage that is available with the purchase of UM/UIM coverage. Like UM/UIM, stacked coverage will be included in the policy unless waived in writing by the insured.
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