Assemblyman 130th Assembly District
JOSEPH A. ERRIGO
| For
immediate release: February 7th, 2005 |
Contact: Adam Peterson (585) 334-5210 |
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District Office: 3045 East Henrietta Rd., Henrietta, NY 14467 Albany Office: Rm 427 LOB, Albany, NY 12248 |
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COLUMN FOR THE WEEK OF 2/7/05
BY: ASSEMBLYMAN ERRIGO
Reform State's 'Vicarious Liability' Law
Along with my Republican colleagues, I have called for reform of an
antiquated state law that costs New York consumers millions of dollars each
year and is making it increasingly difficult to lease an automobile in the
state. We were joined by a local auto dealer, urging the state Legislature
to immediately overturn the state's "vicarious liability" law that has
largely driven auto leasing out of New York.
New York state is the only state in the nation to hold lessors of
automobiles liable for the negligent act of their lessees. Under the state's
vicarious liability law, car accident victims can sue the financial
companies that provide auto leases even though the companies are in no way
responsible for the accidents.
Vicarious liability claims between January 2000 and June 2003 totaled
in excess of $6.5 billion. Since then, nearly 20 automakers and every major
retail bank have stopped or limited leasing in the state, including Chase
Auto Finance, General Motors, Ford Motor Company, DaimlerChrysler, Buick,
Cadillac, Chevrolet, Dodge, Hummer, Hyundai, Jeep, Oldsmobile, Pontiac,
Porsche and Subaru.
My constituents and other New York consumers have paid out more than
$132 million since the automakers and banks began pulling out of leasing in
the state. The additional costs are derived from the extra sales taxes paid
by consumers forced out of leasing and by the high lease acquisition fees
that New York consumers are charged. Leasing of new cars in New York has
decreased by 36 percent.
When New York's vicarious liability law was instituted in 1924, most
automobile owners were wealthy individuals or livery companies. The law was
designed to protect the people injured by uninsured, hired drivers. Leasing
was generally not available at the time.
A recent survey from the Alliance of Automobile Manufacturers revealed
that New Yorkers strongly support auto leasing reform by a two-to-one
margin.
I have strongly advocated vicarious liability reform for several years.
The Senate majority has also called for reform, and just last week state
Sen. Owen Johnson (R,C-Babylon) introduced a bill to repeal the archaic law.
This year I am hopeful that the Assembly majority will seriously consider
the public policy arguments for repeal, recognize the magnitude of the
current problem and act to reform this antiquated measure.
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