Vicarious Liability for
homeowner
In an important decision rendered August 23, 2007,
the Appellate Division conclude d that where a car
rented in New York and driven by a New York resident
was involved in an accident in New Jersey with a New
Jersey driver, New Jersey law would apply to shield
the vehicle's owner, Avis, from liability.
In an important decision rendered August 23, 2007,
the Appellate Division conclude d that where a car
rented in New York and driven by a New York resident
was involved in an accident in New Jersey with a New
Jersey driver, New Jersey law would apply to shield
the vehicle's owner, Avis, from liability. In Aria v.
Figueroa, the defendant driver rented a van from Avis
in New York City and struck the plaintiff, a New
Jersey resident, while in New Jersey. There is a
significant distinction between New York and New
Jersey law concerning a plaintiff's ability to sue
the owner of a vehicle for negligence committed by
the driver. Under the New Jersey common law rule, so
long as the driver is not an agent of the owner, a
vehicle owner is not liable for the actions of the
driver. On the other hand, N.Y. Vehicle and Traffic
Law 388(1) provides: "[e]very owner of a vehicle used
or operated in [New York] for death or injuries to
person or property resulting from negligence in the
use or operation of such vehicle[,]" where such use
is permissive will be liable. The court held that
although New York and New Jersey both have interests
supporting the application of their respective law
regarding Avis' vicarious liability, given the
literal limitation on the scope of operation of the
New York statute, New Jersey law should apply. This
case is important for New Jersey auto carriers
insofar as plaintiff's attorneys will often attempt
to apply the New York statute whenever an accident
has any tie to New York. The Court was clear here
that unless the accident occurs in New York, the
statute is inapplicable.