King v. Car Rentals, Inc.

29 A.D.3d 205, 813 N.Y.S.2d 448
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 28, 2006
StatusPublished
Cited by25 cases

This text of 29 A.D.3d 205 (King v. Car Rentals, Inc.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
King v. Car Rentals, Inc., 29 A.D.3d 205, 813 N.Y.S.2d 448 (N.Y. Ct. App. 2006).

Opinion

OPINION OF THE COURT

Spolzino, J.

On December 28, 1998, the defendant Syed Ali rented an automobile in Piscataway, New Jersey, from the defendant Car Rentals, Inc. (hereinafter Car Rentals), a New Jersey corporation that does business solely in New Jersey as a licensee of the defendant Avis Rent A Car (hereinafter Avis). Avis is a Delaware corporation that has substantial business activity in New York. Ali had just moved out of his sister’s apartment in Manhattan, where he had been living for six months after graduating from New York University (hereinafter NYU) while waiting for his employment to commence, in Manhattan, in January 1999. He moved into his parents’ home in Metuchen, New Jersey, where he had- grown up. Ali’s intent, as unequivocally expressed in his deposition testimony, was to move back to New York City after training, in Chicago, for his new employment in Manhattan. In fact, he returned to live in Manhattan in April 1999, four months after the subject accident and two months after he returned from his training.

Ali drove to Connecticut, where he picked up the plaintiff, whom he had met while both were students at NYU. The plaintiff, who was employed at the time as a teacher at a Connecticut private school, resided in both Kings Park, New York, and Hamden, Connecticut. The two drove to Canada for the New Year’s weekend. On the return trip, on January 3, 1999, while traveling south on Route 133 in the City of St. Pierre de Veronne, outside of Montreal, in the Province of Quebec, Canada, the vehicle left the roadway and turned over in a ditch, allegedly injuring the plaintiff.

[207]*207The issue presented on this appeal is what law applies to the plaintiffs New York action to recover damages for his personal injuries. New York law provides that a plaintiff who is seriously injured in an automobile accident may recover damages for noneconomic loss (see Insurance Law § 5104 [a]) and that the owner of a vehicle used or operated in New York that was the cause of the plaintiffs injuries is vicariously liable for such damages (see Vehicle and Traffic Law § 388).1 Under New Jersey law, noneconomic loss may be recovered in circumstances similar, although not identical, to those in which such damages may be recovered in New York (see NJ Stat Ann § 39:6A-8; DiProspero v Penn, 183 NJ 477, 481, 488-489, 874 A2d 1039, 1041-1042, 1046 [2005]),2 but the vehicle owner is vicariously liable only if the driver was the employee or agent of the owner (see Haggerty v Cedeno, 279 NJ Super 607, 609, 653 A2d 1166, 1167 [1995]). The Quebec Automobile Insurance Act provides for vicarious liability of the vehicle owner (see RSQ, ch A-25, § 108), but does not permit recovery of noneconomic damages (see RSQ, ch A-25, § 83.57; Bodea v TransNat Express, 286 AD2d 5, 8 [2001]; LaForge v Normandin, 158 AD2d 990 [1990]; Thomas v Hanmer, 109 AD2d 80, 81 [1985]; Jean v Francois, 168 Misc 2d 48, 49-50 [1996]). In order to resolve this issue, we must first address the domiciles of the parties and the scope of New York’s vicarious liability law and then balance the parties’ contacts with Quebec, New York, and New Jersey and the respective interests of those jurisdictions in the application of their law to this controversy.

[208]*208After the plaintiff moved for summary judgment on the issue of liability, Car Rentals and Avis cross-moved for summary judgment dismissing the complaint insofar as asserted against them on the ground that New Jersey law applies and does not permit the plaintiffs vicarious liability claim against them. Ali then cross-moved for summary judgment dismissing the complaint insofar as asserted against him on the ground that the law of Quebec applies and bars the plaintiffs claim for noneconomic damages. The Supreme Court held that Quebec law applies and granted Ali’s cross motion, denying the plaintiffs motion as academic. The order also, effectively, denied as academic the cross motion of Car Rentals and Avis, at least to the extent that the motion sought the application of New Jersey law.

Since Babcock v Jackson (12 NY2d 473 [1963]), New York has been committed to addressing choice of law issues through a “center of gravity” or “grouping of contacts” approach, under which “[j]ustice, fairness and ‘the best practical result’ may best be achieved by giving controlling effect to the law of the jurisdiction which, because of its relationship or contact with the occurrence or the parties, has the greatest concern with the specific issue raised in the litigation” (id. at 481 [citation omitted]). Babcock, like this case, involved a weekend trip to Canada, in that case the Province of Ontario, that ended with a one-car accident in that locale, injuring a New York resident. Rejecting the strict rule of lex loci delicti, which had theretofore prevailed, the court declined to apply Ontario’s guest statute, which precluded recovery by a passenger against the vehicle’s driver and, instead, applied New York law, reasoning that “it is New York, the place where the parties resided, where their guest-host relationship arose and where the trip began and was to end, rather than Ontario, the place of the fortuitous occurrence of the accident, which has the dominant contacts and the superior claim for application of its law” (Babcock v Jackson, supra at 483).

The Supreme Court applied Quebec law to the controversy here, based upon what it perceived to be a requirement that the choice of law rules enunciated by the Court of Appeals subsequent to Babcock, in Neumeier v Kuehner (31 NY2d 121 [1972]), be strictly applied. The Neumeier rules, originally articulated by Chief Judge Fuld, the author of Babcock, in his concurrence in Tooker v Lopez (24 NY2d 569, 583 [1969]), were intended to provide a “set of basic principles” developed “in order to assure a greater degree of predictability and uniformity” (Neumeier v [209]*209Kuehner, supra at 127) than had been available since New York’s choice of law firmament had been shattered by Babcock.

Although Tooker and Neumeier were both guest statute cases, their principles have since been extended beyond that context and now govern the choice among conflicting “[l]oss allocating rules” (Padula v Lilarn Props. Corp., 84 NY2d 519, 522 [1994]; see Cooney v Osgood Mach., 81 NY2d 66, 73 [1993]; see Schultz v Boy Scouts of Am., 65 NY2d 189, 199 [1985]). “Loss allocating rules” are laws that “prohibit, assign, or limit liability after the tort occurs” (Padula v Lilarn Props. Corp., supra at 522). A restriction on the nature of damages that may be recovered is a “loss allocating” rule (Bodea v TransNat Express, supra at 9; see Mensah v Moxley, 235 AD2d 910, 911 [1997]), as is a law that governs vicarious liability (see Schultz v Boy Scouts of Am., supra at 198; Janssen v Ryder Truck Rental, 246 AD2d 364 [1998]; Aboud v Budget Rent A Car Corp., 29 F Supp 2d 178 [SD NY 1998]; Heisler v Toyota Motor Credit Corp., 884 F Supp 128, 131 [SD NY 1995]).

The Supreme Court viewed this matter as being controlled by the third Neumeier rule. The first Neumeier rule was rejected on the basis of the Supreme Court’s finding that the plaintiff was a domiciliary of New York and Ali was a domiciliary of New Jersey at the time of the accident and because the vehicle was registered in New Jersey.

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Bluebook (online)
29 A.D.3d 205, 813 N.Y.S.2d 448, Counsel Stack Legal Research, https://law.counselstack.com/opinion/king-v-car-rentals-inc-nyappdiv-2006.