The federal Graves Amendment preempted Florida statute § 324.021(9)(b)(2), Fla. Stat. (2007), which eliminated vicarious liability for certain categories of rental car companies.
The petitioner motorist sued the respondents driver, lessee and the leasing company, seeking damages for injuries suffered in a motor vehicle accident. The trial court entered summary judgment in favor of the leasing company, ruling that the Graves Amendment, 49 U.S.C.S. § 30106, preempted § 324.021(9)(b)(2), Fla. Stat. (2007). The Court of Appeals of Florida, Fourth District, affirmed and certified a question. The motorist appealed, and the Florida Supreme Court affirmed the ruling. The leasing company had leased a motor vehicle to the lessee for a period of less than one year. The driver, who was the lessee's son, rear-ended the rental car into the plaintiff's vehicle. The plaintiff claimed that the leasing company was vicariously liable as the owner of the motor vehicle, pursuant to § 324.021(9)(b)2. The certified question asked whether the Graves Amendment preempted § 324.021(9)(b)2. The appellate court ruled that it did and answered the certified question in the affirmative. Section 324.021(9)(b)2 conflicted with and, thus, was preempted by the Graves Amendment. The Graves Amendment sought to eliminate vicarious liability for a specific category of owners/lessors that under Florida's reforms remained, to an extent, exposed – those engaged in the trade or business of renting or leasing motor vehicles. Section 324.021(9)(b)2 did not require insurance or its equivalent as a condition of licensing or registration and, thus, did not meet the preemption exception in the Graves Amendment. Under the Supremacy Clause, state laws may be preempted (1) where express federal statutory language so provides; (2) where federal law has so thoroughly occupied a legislative field as to create a reasonable inference that there is no room for the state to supplement it; or (3) where a state law conflicts with a federal law. This statute falls into the third category. The Florida statute is not exempted from preemption as a “financial responsibility law.”
Case Law Alert - 3rd Qtr 2011