March 26, 2012

Vehicle owner's liability.

Practice point:  Vehicle and Traffic Law § 388(1) provides that, with the exception of bona fide commercial lessors of motor vehicles, which are exempt from vicarious liability by virtue of federal law, pursuant to 49 USC § 30106, the owner of a motor vehicle is liable for the negligence of one who operates the vehicle with the owner's express or implied consent.

Student note: This statute creates a presumption that the driver was using the vehicle with the owner's express or implied permission, which only may be rebutted by substantial evidence sufficient to show that the vehicle was not operated with the owner's consent. Evidence that a vehicle was stolen at the time of the accident will rebut the presumption of permissive use.

Case: Vyrtle Trucking Corp. v. Browne, NY Slip Op 01811 (2d Dept. 2012).

Here is the decision.

Tomorrow’s issue: Bankruptcy petitions.