South Florida Injury Lawyer Blog
A legal doctrine known as vicarious liability assigns responsibility for one person’s actions to another person in certain limited legal relationships, such as parent/child or employer/employee. For instance, if a minor child commits a crime, the parent may be liable; if an employee harms someone in the course of performing his work, the employer may be liable.
Another application of vicarious liability applies in the case of the ownership of a vehicle; when a vehicle is operated by someone other than the owner and it is involved in an accident, the owner of the vehicle can be held vicariously responsible for the accident. Naturally, this created a serious problem for car rental and leasing companies. If a customer caused an accident, the company could be sued, creating a serious financial burden on these companies.
This changed in 2005 when the U.S. Congress passed the Graves Amendment to alleviate what many perceived as an onerous burden on these companies. The Graves Amendment states, in part: