Calhoun v. Allen

38 Misc. 3d 171
CourtNew York Supreme Court
DecidedOctober 28, 2011
StatusPublished
Cited by3 cases

This text of 38 Misc. 3d 171 (Calhoun v. Allen) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Calhoun v. Allen, 38 Misc. 3d 171 (N.Y. Super. Ct. 2011).

Opinion

OPINION OF THE COURT

Thomas P. Brown, J.

The parties do not dispute that, on July 2, 2006, Margaret Calhoun was driving a car with her son, David P Calhoun, as a front seat passenger when it collided with another car driven by defendant Darryl G. Allen. Both of the Calhouns were injured. Each of them filed a lawsuit alleging that defendant Allen caused the accident by negligently driving his vehicle across the centerline of the roadway, New York State Route 19 in Allegany County.

Allen had rented his car from Alamo Rental (US) Inc. (Alamo Rental), which in turn had leased it from Alamo Financing L.E, the titled owner. Each company has been made a defendant in the lawsuits, together with Alamo Rental’s parent company, Vanguard Car Rental USA Inc. (collectively, the Alamo defendants).

In plaintiff Margaret Calhoun’s case, the Alamo defendants have moved for summary judgment. They argue that they cannot be held vicariously liable for Allen’s negligence, and that they themselves were not negligent.

By an earlier decision and order entered December 18, 2008, this court denied Alamo Financing L.P’s first motion for summary judgment, with leave to renew after discovery was complete. On October 13, 2010, plaintiffs filed a note of issue with certificate that discovery was complete. Alamo Financing [174]*174L.E then renewed its motion. The motion was submitted to the court for decision after a conference in chambers on March 21, 2011.

Motions for summary judgment require the court to read all of the submitted pleadings and papers and determine whether they present triable issues of material fact. Finding such issues, as opposed to resolving them, is the key to this procedure. (Sillman v Twentieth Century-Fox Film Corp., 3 NY2d 395 [1957].) The evidence must be construed in a light most favorable to the non-moving party. (David D. Siegel, NY Prac § 281 [4th ed 2005], citing Weiss v Garfield, 21 AD2d 156 [3d Dept 1964].) Once the party moving for summary judgment has met its prima facie burden of showing an absence of issues of material fact (Alvarez v Prospect Hosp., 68 NY2d 320 [1986]) the non-moving party must then point to triable issues of material fact in order to stave off summary judgment.

Alamo Financing L.E, Alamo Rental and Vanguard Car Rental are All Entitled to the Protection of the Graves Amendment

Alamo Financing L.E, Alamo Rental and Vanguard Car Rental have moved for summary judgment on the grounds that the Graves Amendment, codified at 49 USC § 30106, immunizes them from vicarious liability for plaintiffs’ injuries. The Graves Amendment, which took effect August 10, 2005, 10 months before the accident in this case, prevents states from holding car rental companies vicariously liable for injuries resulting from the vehicle’s operation. New York appellate courts have held that the Graves Amendment is a constitutional exercise of Congress’s Commerce Clause power, and that, as a consequence, it preempts Vehicle and Traffic Law § 388. (Graham v Dunkley, 50 AD3d 55 [2d Dept 2008].)

The Graves Amendment shields car rental companies from vicarious liability as a vehicle’s “owner,” but not from all liability. While they are not automatically liable for the negligence of the operator, they remain liable for their own negligence or criminal wrongdoing.

The term “owner” is defined by the statute as being not only the record owner or holder of title, but also a person who is a lessor or lessee of a motor vehicle, who is in the trade or business of renting or leasing motor vehicles. The statute also protects an “affiliate” of the owner, defined by the statute as a person other than the owner who controls, or is controlled by, the owner, or who is under the common control with the owner [175]*175of a third person. “Control” is specifically defined as including the ownership of corporate securities. Thus, the statute specifically defines an “affiliate” as being the corporate parent or subsidiary of the owner, or a corporation that is controlled by the parent corporation of an owner.1

Plaintiffs dispute that the Alamo defendants have shown themselves to be entitled to the protection of the Graves Amendment. Specifically, plaintiffs allege that Alamo Financing L.E has not been shown to be an owner or affiliate because it did not rent a vehicle to codefendant Allen.

The Alamo defendants rely upon the affidavit of Clark Dubin to establish that each Alamo defendant is entitled to the protection of the Graves Amendment. Mr. Dubin is the director of claims for the corporate claims administrator for all three Alamo defendants. His affidavit states that Alamo Financing L.E was “a lawful owner” of the vehicle operated by defendant Allen on the date of the accident, and that Alamo Financing L.E. had leased the vehicle operated by defendant Allen to Alamo Rental, which in turn rented the vehicle to Allen. It also states that Alamo Rental was a corporate subsidiary of Vanguard.

On the issue whether the Alamo defendants are entitled to the protection of the Graves Amendment, the court deems Mr. Dubin’s affidavit to be sufficient to require plaintiffs to offer proofs to the contrary. Plaintiffs have not submitted any proofs in admissible form that contradict Mr. Dubin’s affidavit.

The court concludes that there are no issues of fact whether any of the three Alamo defendants are entitled to the protection of the Graves Amendment. On the proofs submitted, all three of them are. Alamo Financing L.E is the “owner” of the vehicle operated by defendant Allen because it held title to that vehicle and leased the vehicle to Alamo Rental, which qualifies as a “person” under the broad definition set forth in the statute.2 Alamo Rental is also an “owner” of that vehicle because it was the lessee of that vehicle and was in the business of renting motor vehicles. Vanguard is an affiliate of an owner, and therefore also entitled to protection, because Alamo Rental is an owner of that vehicle and was a subsidiary of Vanguard, and Vanguard was in the business of leasing automobiles.

[176]*176Alamo Financing L.B, Alamo Rental and Vanguard are Entitled to Summary Judgment on Plaintiffs’ First Cause of Action Because the Graves Amendment Immunizes Them from Vicarious Liability

Plaintiffs’ first cause of action alleges that plaintiff Margaret Calhoun’s injuries were caused by defendant Allen’s negligent operation of the Alamo defendants’ motor vehicle and that the Alamo defendants are liable under a “respondeat superior” theory. For the benefit of the non-moving party, the court will assume, arguendo, that Allen was negligent. But whether plaintiffs’ first cause of action against the Alamo defendants is premised upon “respondeat superior,” Vehicle and Traffic Law § 388, or any other theory of vicarious liability, the Alamo defendants are immunized from liability because the court has found that they are owners or affiliates protected by the Graves Amendment. Accordingly, they are entitled to summary judgment on plaintiffs’ first cause of action.

Alamo Financing L.P and Vanguard Car Rental are Entitled to Summary Judgment on Plaintiffs’ Second and Third Causes of Action Because They Have Shown Themselves to be, as a Matter of Law, Free from Negligence or Criminal Wrongdoing in Connection with Allen’s Operation of the Vehicle

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Cite This Page — Counsel Stack

Bluebook (online)
38 Misc. 3d 171, Counsel Stack Legal Research, https://law.counselstack.com/opinion/calhoun-v-allen-nysupct-2011.