However, in 2005, Congress passed the Transportation Equity Act of 2005 (49 USC § 30106) (a/k/a “Gra

By 2005, only eleven states kenny chesney tour schedule imposed vicarious liability on the owner of motor vehicle (California, Connecticut, Florida, Idaho, Iowa, Maine, Michigan, Minnesota, Nevada, New York and Rhode Island) as did the District of Columbia.  Under a vicarious liability law, the vehicle owner becomes kenny chesney tour schedule legally liable for injuries and damages kenny chesney tour schedule caused by a permissive driver of the motor vehicle. "[V]icarious liability is the 'imposition of liability on one person for the actionable conduct of another, based solely on a relationship kenny chesney tour schedule between kenny chesney tour schedule the two persons.'" Sutherland v. Barton , 570 N.W.2d 1, 5 (Minn.1997) (quoting Black s Law Dictionary 1566 (6th ed.1990)). Vicarious liability differs from direct negligence claims, such as negligent maintenance or negligent entrustment of a vehicle, which impose liability on the vehicle owner for its active fault.  The Minnesota vicarious liability law is found in Minn. Stat. § 169.09, subd. 5a (previously Minn. Stat. § 170.54), which sets forth the general rule as follows:
Whenever any motor vehicle shall be operated within this state, by any person other than the owner, with the consent of the owner, express or implied, the operator thereof shall in case of accident, be deemed the agent of the owner of such motor vehicle in the operation thereof.
The Minnesota kenny chesney tour schedule vicarious liability statute only applies to the "owner" (Minn. Stat. § 65B.43, subd. 4) of a "motor vehicle" (Minn. Stat. §169.011, subd. 42) which is involved in an accident in Minnesota. Boatwright v. Budak , 625 N.W.2d kenny chesney tour schedule 483, 488 (Minn. Ct. App. 2001). ("[e]mploying a plain-meaning approach," court held statute only applies "to accidents that occur within Minnesota"); Avis Rent-A-Car System v. Vang , 123 F.Supp.2d 504 (D. Minn. 2000) (Minnesota statute creating liability on part of owner for damages resulting from operation of automobile by another with owner s consent did not apply to automobile accident in Michigan); West Bend Mut. Ins. Co. v. American Family Mut. Ins. Co ., 586 N.W.2d kenny chesney tour schedule 584 (Minn. Ct. App. 1998) (garage liability policy insuring Minnesota dealership's vehicles did not afford any liability coverage for accident occurring involving dealership vehicle in Louisiana, a jurisdiction which did not impose vicarious liability); Vee v. Ibrahim ,  769 N.W.2d kenny chesney tour schedule 770, 771-775 (Minn. Ct. App. 2009) (motor vehicle for purposes of vicarious liability kenny chesney tour schedule statute). The statute is to be interpreted liberally to achieve its purpose. Christensen v. Milbank Ins. Co ., 643 N.W.2d 639, 642 -645 (Minn. kenny chesney tour schedule Ct. App. 2002). The statute imposes liability on the owner where it would not otherwise exist, thereby giving kenny chesney tour schedule an injured person more certainty of recovery by encouraging vehicle kenny chesney tour schedule owners to obtain appropriate liability insurance coverage. Boatwright , 625 N.W.2d at 486.
Some of the jurisdictions which imposed vicarious liability on the owner of a motor vehicle enacted statutes kenny chesney tour schedule which capped the liability of the owner of a rented vehicle under certain kenny chesney tour schedule circumstances. Minnesota Statute § 65B.49, subd. 5a (i), for example, provided in part: "(2) . . .  an owner of a rented motor vehicle is not vicariously liable for legal damages resulting from the operation of the rented motor vehicle in an amount kenny chesney tour schedule greater kenny chesney tour schedule than $100,000 kenny chesney tour schedule because of bodily injury to one person in any one accident and, subject to the limit for one person, $300,000 because of injury to two or more persons kenny chesney tour schedule . . . if the owner of the rented motor vehicle has in effect, at the time of the accident, a policy of insurance or self-insurance . . . covering losses up to at least the amounts set forth in this paragraph."
However, in 2005, Congress passed the Transportation Equity Act of 2005 (49 USC § 30106) (a/k/a "Graves Amendment").  The Graves Amendment is a federal statute that abolishes vicarious liability of companies that rent or lease motor vehicles based on the negligent driving kenny chesney tour schedule of their customers. The Graves Amendment was an attempt to bring all states in line with the majority of states that did not impose vicarious kenny chesney tour schedule liability on vehicle owners. In light of the inherently interstate nature of the vehicle renting and leasing business, Congress was of the view that a uniform, national kenny chesney tour schedule standard was needed. kenny chesney tour schedule See, Statement of Rep. Graves, 151 Cong. Rec. H1200 (daily ed. March 9, 2005) ("Since companies cannot prevent their vehicles from being driven to a vicarious liability state, they cannot prevent their exposure to these laws and must raise their rates accordingly. kenny chesney tour schedule These higher costs have driven many small companies out of business, reducing the consumer choice and competition that keeps costs down."); H. Rpt. 106-774, pt. 1, at 4 ("because kenny chesney tour schedule rented or leased motor vehicles are frequently driven across kenny chesney tour schedule state lines, these small number of vicarious liability laws impose a disproportionate and undue burden on interstate commerce by increasing rental rates for all customers across the Nation."). The Graves Amendment is applicable to all actions "commenced on or after August 10, 2005 without regard to whether the harm that is the subject of the action, or the conduct that caused the harm, occurred before such date of enactment." 49 U.S.C. § 30106(c) kenny chesney tour schedule (2006). The Amendment contains a preemption kenny chesney tour schedule clause and two savings provisions.  The preemption clause in subsection (a) provides in part: "[a]n owner of a motor vehicle that rents or leases the vehicle to a person . . . shall not be liable under the law of any State . . . by reason of being the owner of the vehicle kenny chesney tour schedule . . . for harm to persons or property that results or arises out of the use, operation, or possession of the vehicle during the period of the rental or lease, if (1) the owner . . . is engaged in the trade or business of renting or leasing motor vehicles; and (2) there is no negligence or criminal wrongdoing on the part of the owner . . .." 49 U.S.C. § 30106(a) kenny chesney tour schedule (2006).
Given the clear language and purpose of the Amendment, numerous courts, beginning in 2006, have found the Graves Amendment preempts state law in the area of vicarious liability for owners engaged in the business of renting or leasing motor vehicles (absent a showing kenny chesney tour schedule of negligence or criminal wrongdoing on the part of the owner) and is a proper exercise kenny chesney tour schedule of the commerce power granted to Congress and, therefore, constitutional.  See, e.g., Garcia v. Vanguard Car Rental USA, Inc. , 540 F.3d 1242, 1253(11th Cir.2008) (Section 30106(a) applies to negligent acts of a lessee, not the lessor's own negligence), cert. denied, ___U.S. ___, 129 S. Ct. 1369, 173 L.Ed.2d kenny chesney tour schedule 591 (2009); Cates v. Hertz Corp ., 2009 WL 2447792 at * 4 (5th Cir. Aug.11, 2009) ("Graves Amendment preempted state law in the area of vicarious liability for owners engaged in the business kenny chesney tour schedule of renting or leasing motor vehicles, absent a showing of negligence or criminal wrongdoing on the part of the owner."); Rodriguez v. Testa , 296 Conn. 1, 22, 993 A.2d 955, 967 (Conn. 2010) ("we join the overwhelming kenny chesney tour schedule majority of federal courts that have considered kenny chesney tour schedule the question and concluded that the Amendment is constitutional"); Johnson v. XTRA Lease LLC ,  2010 WL 706037 *3 (N.D. Ill. 2010); Kersey v. Hirano , 2009 WL 2151845 *2 (D. Md. July 15, 2009); Green v. Toyota Motor Credit Corp , 605 F. Supp.2d 430, 435 (E.D.N.Y.2009); kenny chesney tour schedule Stampolis v. Provident Auto Leasing kenny chesney tour schedule Co ., 586 F. Supp.2d 88, 94 (E.D.N.Y.2008); Flagler v. Budget Rent A Car System, Inc. , 538 F. Supp.2d 557, 559 (E.D.N.Y.2008); Berkan v. Penske Truck Leasing Canada, Inc ., 535 F. Supp.2d 341, 345 (W.D.N.Y.2008); Jasman v. DTG Operations, Inc. , 533 F. Supp.2d 753, 757 (W.D.Mich.2008); Dolter v. Keene s Transfer, Inc ., 2008 WL 3010062 at *2 (S.D. Ill. Aug.2, 2008); West v. Enterprise Leasing Co ., 997 So.2d 1196, 1197 (Fla. Ct. App. 2 Dist. 2008); Vargas v. Enter. Leasing Co ., 993 So.2d 614 (Fla. 4th DCA 2008); kenny chesney tour schedule Lucas v. Williams , 984 So.2d 580 (Fla. 1st DCA 2008); Kumarsingh v. PV Holding Corp. , 983 So.2d 599 (Fla. 3d DCA), review denied, 984 So.2d 519 (Fla.2008) (table); Bechina v. Enterprise Leasing Co ., 972 So.2d 925 (Fla. 3d DCA 2007); Dupuis v. Vanguard Car Rental USA, Inc ., 510 F. Supp.2d 980, 985 (M.D.Fla.2007); Seymour kenny chesney tour schedule v. Penske Truck Leasing Co., L.P ., 2007 WL 2212609 *2  (S.D. Ga. July 30, 2007); Jones v. Bill ,  34 A.D.3d 741, 741-742, 825 N.Y.S.2d 508, 509 510 (N.Y.A.D. 2 Dept. 2006).  As noted by one court, the Amendment "was enacted to protect the vehicle rental and leasing industry against claims for vicarious liability where the leasing or rental company s only relation to the claim was that it was the technical owner of the car." Rein v. CAB East LLC , 2009 WL 1748905 at *2 (S.D.N.Y. June 22, 2009) (citing 151 Cong. Rec. H 1034, 1200 (2005) (statement of Rep. Graves)). Contra Vanguard Car Rental USA, Inc. v. Huchon, 532 F. Sup.2d 1371, 1382 (S.D.Fla.2007) (holding Graves Amendment unconstitutional); Vanguard Car Rental USA, Inc. v. Drouin , 521 F. Sup.2d 1343, 1351 (S.D.Fla.2007) (same).
In 2010, in Meyer v. Nwokedi , 777 N.W.2d 218 (Minn. 2010), the Minnesota Supreme Court followed the lead of the vast majority of other jurisdictions which had concluded that the Graves Amendment preempted state vicarious liability kenny chesney tour schedule laws such which imposed liability on the owner of rented and leased motor vehicles, such as Minn. Stat. § 169.09.  As noted above, the Graves Amendment contains two savings clauses.  One of the savings provisions provides that "(b) Financial responsibility laws. Nothing in this section supersedes the law of any State or political subdivision thereof: . . . (2) imposing liability on business entities engaged in the trade or business of renting or leasing motor vehicles for failure to meet the financial responsibility or liability insurance requirements under State law."  49 U.S.C. § 30106(b) (2) (2006). The plaintiffs in Meyer v. Nwokedi argued that Minn. Stat. § 65B.49, subd. 5a (i) (2008), which created a statutory cap on the vicarious liability of a rental kenny chesney tour schedule car company, fell within the savings clause.  The Minnesota Supreme Court made short