The Graves Amendment is a federal statute that essentially abolished vicarious liability of rental car companies for the negligent driving of renters. The Graves Amendment stated, in pertinent part, as follows:
"a) In general. An owner of a motor vehicle that rents or leases the vehicle to a person (or an affiliate of the owner) shall not be liable under the law of any State or political subdivision thereof, by reason of being the owner of the vehicle (or an affiliate of the owner), for harm to persons or property that results or arises out of the use, operation, orpossession of the vehicle during the period of the rental or lease, if-- (1) the owner (or an affiliate of 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 (or an affiliate of the owner)." 49 USCS § 30106.
Like it or not, this federal statute overturned well-settled law in D.C.
For example in a relatively recent case, two rental car companies successfully moved to dismiss wrongful death and survival actions based on the Graves Amendment, which precluded a finding of liability against them under theory of vicarious liability, notwithstanding the provisions of D.C. Code Ann. § 50- 1301.08. Johnson v Agnant (In re Estate of Johnson), 480 F Supp 2d 1 (DDC 2006). The Graves Amendment has been criticized, and the plaintiffs' bar would like to repeal it.
