Articles Tagged with Graves Amendment

Georgia law regarding owner liability for U-Haul, Enterprise, and other rented vehicle wrecks is very complex. 49 U.S.C. 30106 makes these laws even more complex. In the wake of several large verdicts in the 1990s, including one that involved a fireball Enterprise Rent-a-Car wreck in Connecticut, lawmakers added the Graves Amendment to a large transportation bill in 2002. Rep. Sam Graves and his colleagues wanted this amendment to immunize owners of rented vehicles from liability lawsuits. However, as outlined below, the Graves Amendment contains some large holes.

In most cases, a Marietta personal injury attorney can use the complex Georgia laws to hold U-Haul, Enterprise, and other vehicle rental companies responsible for damages if they rent vehicles to individuals who cause crashes. This third-party liability is important because, in most cases, rented vehicle drivers have little or no insurance. Vicarious liability gives injured victims another way to obtain compensation for their economic losses, such as medical bills, and noneconomic losses, such as pain and suffering.

Negligent Entrustment

This federal law often affects U-Haul and other rental vehicle collision claims. A fully-loaded, 26-foot U-Haul truck weighs about 36,000 pounds. When these trucks are involved in high-speed collisions, the resulting injuries are often catastrophic.

Frequently, U-Haul drivers have little or no insurance. This lack of insurance is normally not a problem. Under the negligent entrustment rule, vehicle owners are financially responsible for damages if they knowingly allow incompetent operators to drive their motor vehicles. 

Given the size of U-Haul trucks and the fact that the drivers normally do not have commercial licenses, many U-Haul drivers are incompetent. However, an obscure provision of federal law, the Graves Amendment, protects some U-Haul owners in some cases.

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