Byrne v Collins
Annotate this CaseDecided on November 24, 2009
Supreme Court, Kings County
David Byrne, individually, and as Surviving Brother, and Administrator of the Estate of Elizabeth Byrne, Deceased, Plaintiff,
against
James Collins, J.G.B. Trucking a/k/a Johnny's Delivery Service, Perfect Car Rental d/b/a Budget Truck Rental, Budget Truck Trust I Wilmington Trust Co., Budget Truck Rental, LLC, and Budget Rent-A-Car System, Inc., Defendants.
38029/06
Counsel:
For Plaintiff:
Kreindler & Kreindler
100 Park Avenue
New York, NY 10017
212-687-8181
For Defendants (Perfect & Budget Rental)
Reardon & Sclafani, PC
220 White Plain, Suite 235
Tarrytown, NY 10591
914-366-0201
Francois A. Rivera, J.
Upon the foregoing papers, defendants Perfect Car Rental, Inc. (Perfect),
Budget Truck Trust I (Budget Trust), Budget Truck Rental, LLC (Budget LLC), and Budget
Rent-A-Car System, [*2]Inc. (Budget System)[FN1] move for an order, pursuant to
CPLR 3211 (a) (7) and 3212, Vehicle and Traffic Law §§ 128, 388, 2108, and 49 USC § 30106,
granting summary judgment dismissing the Second Verified Complaint on the ground that it fails
to state a cause of action as against defendants Perfect and Budget LLC, and because plaintiff's
action is preempted by federal law.
BACKGROUND FACTS AND PROCEDURAL
HISTORY
Plaintiff David Byrne (Byrne)
commenced this action on or about December 11, 2006 to recover damages for personal injuries
allegedly sustained by, and the wrongful death of, decedent Elizabeth Byrne (Elizabeth) as a
result of a motor vehicle accident. The accident occurred at about 9:30 p.m. on September 23,
2005 at the intersection of McGuinness Boulevard and Kent Street in Brooklyn, New York,
when a truck operated by defendant Jamie Collins s/h/a/ James Collins (Collins) struck plaintiff's
intestate while she was riding a bicycle down McGuinness Boulevard. At the time of the
accident, Collins, an employee of J.B.G. Trucking, Inc. a/k/a Johnny's Delivery Service (JBG
Trucking),[FN2] was driving
the truck in the course of his employment and turning left from McGuinness Boulevard onto
Kent Street.
According to the Oklahoma Tax Commission's records, the subject truck was owned
by Budget Trust and registered as a rental vehicle in Budget System's name. Budget LLC (or its
predecessor, Budget Rent a Car Corporation), the rental division and affiliated subsidiary of Avis
Budget Group, LLC (Avis),[FN3] rented the subject truck to Perfect pursuant to a
2002 Dealer Agreement which allowed Perfect to operate a Budget rental location. As an
authorized independent contractor/dealer, Perfect then rented the subject Budget truck to JBG
Trucking. The rental agreement between Perfect and JBG Trucking provided that any authorized
employee of the company-renter with a valid driver's license be permitted to operate the vehicle
upon presentation of a valid driver's license by the company employee who picks up the vehicle.
THE PARTIES'
CONTENTIONS
The first cause of action in
plaintiff's complaint alleges that Perfect, Budget Trust, Budget LLC, and Budget System
(collectively, the moving defendants) were all engaged in the business of "purchasing, owning,
servicing, repairing and maintaining motor vehicles and/or renting motor vehicles, including
those that they owned[,] to their customers for profit;" they rented the subject truck to JBG
Trucking; and, as owners of the truck, they are liable for Collins' negligent acts, among other
things. The second cause of action in the complaint alleges that the moving defendants are liable
for negligent entrustment of the truck because Collins' alleged failure to present a valid driver's
license should have alerted them to his inability to operate a motor vehicle properly and safely.
The moving defendants argue that the complaint fails to state a cause of action as
against Perfect and Budget LLC because neither entity was the titled owner or registered owner
of the truck [*3]and therefore did not owe any duty to plaintiff or
decedent. They assert that Perfect, acting as Budget Trust's agent or representative, merely
rented the subject vehicle to JBG Trucking under a rental agreement, and that Budget LLC
similarly rented the vehicle to Perfect. Purportedly, neither entity had any ownership role in the
transaction. According to the moving defendants, it is undisputed that Budget Trust " not
Perfect nor Budget LLC " owned the subject truck on the date of the accident, and
neither Perfect nor Budget LLC can be held vicariously liable under Vehicle and Traffic Law for
decedent's wrongful death or for any personal injuries that were allegedly caused by the
permissive user of the rental truck.
The moving defendants also argue that the action is barred because federal law
regarding rented or leased motor vehicle safety and responsibility, codified as part of the
Transportation Equity Act of 2005, 49 USC § 30106 (the Graves Amendment), preempts any
state statute imposing liability on them, considering that they are owners and owner-affiliates
engaged in the business of renting or leasing motor vehicles who were not negligent in entrusting
the subject vehicle to Collins. Additionally, they contend that plaintiff's allegations of negligent
entrustment in the second cause of action are meritless and, furthermore, do not place the action
within the exception to the federal preemption, because Collins did in fact have a valid New
York State driver's license, albeit restricted. They also aver that Collins did not suffer from any
impairment at the time of the accident, nor during working hours, generally; that none of the
moving defendants had any special knowledge of any propensity by Collins to use the truck
improperly or dangerously; and that they did not have any duty to investigate Collins' prior
driving or criminal record. Finally, they maintain that the subject truck was not a "commercial
motor vehicle" under Vehicle and Traffic Law § 530 (5) (Restricted use license) because the
subject truck had a gross vehicle weight rating of only 25,500 pounds.
In opposition, plaintiff argues that a question of fact remains as to whether the
moving defendants knowingly allowed Collins to operate the subject truck with a restricted
license, thereby removing this action from the protection afforded by the Graves Amendment.
Plaintiff contends that the Graves Amendment does not apply to preclude this action because his
allegations are specific enough to assert a valid negligent entrustment claim, given that Collins'
restricted license placed the moving defendants on constructive or inquiry notice of Collins'
propensity to operate the truck improperly or dangerously. Plaintiff also maintains that the
moving defendants mistakenly rely on Vehicle and Traffic Law § 530, which he asserts does not
address the responsibility between a motor vehicle rental company and the third party public,
and instead addresses only the restrictions and limitations of a restricted license as a privilege
granted by the State.
The moving defendants' reply challenges the admissibility of the evidence plaintiff
submitted in rebuttal. They aver that, with the exception of the certified copy of Collins' driving
record abstract, which purportedly only authenticates Collins' driving privileges status as of the
date of the accident, all of the exhibits annexed to plaintiff's attorney's affirmation are uncertified
and inadmissible. Furthermore, the moving defendants emphasize plaintiff's failure to show that
they possessed "special knowledge" of Collins' conduct or some characteristic which rendered
his use of particular chattel unreasonably dangerous, which is required to establish a cause of
action sounding in negligent entrustment. According to the moving defendants, Collins'
restricted license does not raise a red flag regarding any dangerous conduct or characteristics,
nor were defendants obligated to investigate his record after learning that Collins held a
restricted license.
[*4]DISCUSSION
Summ
ary judgment should only be granted where there are no triable issues of fact (see Sillman v
Twentieth Century-Fox Film Corp., 3 NY2d 395, 404 [1957]). The moving party on a
motion for summary judgment has the burden of demonstrating "a prima facie showing of
entitlement to judgment as a matter of law, tendering sufficient evidence to eliminate any
material issues of fact from the case" (Winegrad v New York Univ. Med. Ctr., 64 NY2d
851, 852 [1985]). Once the movant has made this showing, the burden of proof shifts to the party
opposing the motion to produce evidentiary proof in admissible form to establish that material
issues of fact exist which require a trial (see Alvarez v Prospect Hosp., 68 NY2d 320,
324 [1986]). "[M]ere conclusions, expressions of hope or unsubstantiated allegations or
assertions are insufficient" (Zuckerman v City of New York, 49 NY2d 557, 562 [1980]).
The evidence presented on summary judgment must be scrutinized in the light most favorable to
the party opposing the motion (Goldstein v Monroe County, 77 AD2d 232, 236
[1980]). Accordingly, "[i]f there is any doubt about the existence of a triable
issue of fact, or a material issue of fact is arguable, summary judgment should be denied"
(Celardo v Bell, 222 AD2d 547, 547 [1995]).
Vehicle and Traffic Law § 388 (1) imposes liability on the owner of a vehicle
for "death or injuries to person or property resulting from negligence in the use or operation of
such vehicle, in the business of such owner or otherwise, by any person using or operating the
same with the permission, express or implied, of such owner . . ."[FN4] "The purpose of this section is to ensure
recourse to the vehicle's owner, a financially responsible party,' and to discourage owners from
permitting people who are irresponsible or who might engage in unreasonably dangerous
activities to use their vehicles'" (Chambers v City of New York, 309 AD2d 81, 84
[2003], quoting Argentina v Emery World Wide Delivery, 93 NY2d 554, 562 [1999]).
The Graves Amendment, regarding rented or leased motor vehicle safety and
responsibility, "bars vicarious liability actions against professional lessors and renters of
vehicles," as would otherwise be permitted under Vehicle and Traffic Law § 388 (see Graham v Dunkley, 50 AD3d
55 [2008]). The statute provides in pertinent part:
"(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, or possession 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
[*5]
(2) there is no negligence or criminal
wrongdoing on the part of the owner (or an affiliate of the owner) . . ."
The Graves Amendment thus preempts state statutes to the extent that they hold
owners in the business of renting or leasing motor vehicles vicariously liable for the negligence
of drivers, except when there is negligence or criminal wrongdoing on the part of the owner
(id.; see also Graham v
Dunkley, 13 Misc 3d 790, 792 [2006]). Vicarious liability is not abrogated where the
injury or damage results from the negligence of the owner's employee in the operation or
maintenance of the vehicle, nor where it seems the owner was negligent in entrusting the vehicle
to the operator (see Luma v ELRAC, Inc., 19 Misc 3d 1138[A], *2 [2008]).
As a preliminary matter, the Court finds that the moving defendants have established
with evidentiary proof that neither Perfect nor Budget LLC was the registered nor titled owner of
the subject vehicle.[FN5]
Plaintiff does not oppose the moving defendants' assertion that, for that reason, neither entity can
be held vicariously liable under Vehicle and Traffic Law § 388 for decedent's wrongful death or
any personal injuries that were allegedly caused by the permissive user of the rental truck. Thus,
the Court grants that part of the moving defendants' motion dismissing the first cause of action as
against defendants Perfect and Budget LLC.
The Court now turns to the issue of negligent entrustment: the heart of the second
cause of action against all moving defendants, and the issue on which the first cause of action is
predicated as against the remaining moving defendants, Budget Trust and Budget System. In any
negligence action, the threshold question is whether the defendant owes a legally-recognized
duty of care to the plaintiff (see Hamilton v Beretta U.S.A. Corp., 96 NY2d 222, 232
[2001]). Generally, to establish liability under a theory of negligent entrustment, a plaintiff must
demonstrate that "the defendant . . . [has or should have] some special knowledge concerning a
characteristic or condition peculiar to the [person to whom a particular chattel is given] which
renders [that person's] use of the chattel unreasonably dangerous . . . or some special knowledge
as to a characteristic or defect peculiar to the chattel which renders it unreasonably dangerous"
(Cook v Shapiro, 58 AD3d 664, 666 [2009], quoting Zara v Perzan, 185 AD2d
236, 237 [1992] [internal citations omitted]; see also Hamilton, 96 NY2d at 237). Thus,
in the context of the Graves Amendment, the court must decide whether the corporation was
under an obligation to check Collins' driving record and determine whether the moving
defendants fall under the "own negligence" exception. Such definition of the existence and scope
of an alleged tortfeasor's duty is a question of law reserved for the courts (see Palka v
Servicemaster Mgt. Servs. Corp., 83 NY2d 579, 585 [1994]; Eiseman v State, 70
NY2d 175, 189-190 [1987]).
The moving defendants focus their motion on plaintiff's allegation that Perfect was
negligent because it knew or should have known that Collins had a history of drug and/or alcohol
related offense(s), given his restricted driver's license. In support of their motion, they attach
various exhibits, including the deposition testimony of various witnesses, to demonstrate that
Collins did in [*6]fact have a valid New York State driver's
license, albeit restricted.[FN6] In particular, Collins' Driving Record Abstract
from the Department of Motor Vehicles (annexed as Exhibit L to the moving defendants' motion
papers herein) specifies that the status of his license is valid.
The Court agrees that a restricted license is nevertheless a valid license, as is
necessary for Collins to conduct business in the course of his employment. Such restricted
licenses are issued with the intent that a person whose privilege of driving would otherwise be
invalid can still operate a motor vehicle for purposes of maintaining his or her livelihood and
avoid substantial financial hardship (see Vehicle and Traffic Law § 530 [1]).[FN7] The "valid" designation on the
face of Collins' restricted license is thus sufficient endorsement by the Department of Motor
Vehicles that he is authorized and qualified to operate a motor vehicle in the course of his
employment for JBG Trucking.[FN8] The restricted license does not, in and of itself,
compel a motor vehicle rental agent of average ken to scrutinize the renters (see Cook,
58 AD3d at 667).
However, at this juncture we cannot find that the moving defendants are entitled to
summary judgment as a matter of law. Upon searching the record, the Court finds that triable
issues of material fact remain regarding whether Perfect possessed special knowledge of any
propensity by Collins to operate the subject truck in an unreasonably dangerous way.
Specifically, the moving defendants have not tendered any evidence establishing that Perfect
followed the proper policies and [*7]procedures required of
Budget rental locations before renting vehicles to drivers.[FN9] Nor does the moving defendants' reply address
their failure to produce such documents. Although we decline to impose upon motor vehicle
rental agents any obligation to check a renter's driving record beyond verifying that he or she has
a valid driver's license, absent further evidence of the unsuitability of the renter and the agent's
knowledge thereof, we need also conclude that such precautions are not part of Budget's internal
policies and procedures before granting summary judgment to the moving defendants. The
moving defendants have not persuaded us of that fact with their showing. Having failed to
eliminate all material issues of fact from the case, they do not meet their prima facie
burden of establishing that they had no reason to doubt Collins' ability to operate a motor vehicle
properly and safely. The Court need not examine the sufficiency of the supporting evidence in
plaintiff's opposition papers.
Construing the facts in a light most favorable to plaintiff, a trier of fact could
conclude that the elements necessary to establish a claim for negligent entrustment are present in
this case. Movant has failed to demonstrate that plaintiff has no cause of action under a negligent
entrustment theory as a matter of law, and issues of material fact exist with respect to the
negligent entrustment cause of action that preclude granting summary judgment. Similarly,
issues of material fact preclude granting summary judgment on federal preemption of the action
against Budget Trust and Budget System under the Graves Amendment.
Accordingly, it is
ORDERED that the moving defendants' motion for summary judgment dismissing
the complaint is granted only as against Perfect and Budget LLC, and denied in all other
respects.
The foregoing constitutes the decision and order of the court.
E N T E R,
J. S. C.
Footnotes
Footnote 1: Perfect is sued herein as
"Perfect Car Rental d/b/a Budget Truck Rental," and Budget Truck Trust I is sued herein as
"Budget Truck Trust I Wilmington Trust Co."
Footnote 2: JBG Trucking is erroneously
sued herein as J.G.B. Trucking.
Footnote 3: Perfect, as well as the three
Budget defendants (Budget Trust, Budget LLC, Budget System), were divisions, subsidiaries
and/or affiliates of parent company Avis that operated as professional lessors and renters of
motor vehicles.
Footnote 4: Vehicle and Traffic Law §
128 defines "owner" as "[a] person, other than a lien holder, having the property in or title to a
vehicle or vessel . . . includ[ing] a person entitled to the use and possession of a vehicle or vessel
subject to a security interest in another person and . . . any lessee or bailee of a motor vehicle or
vessel having the exclusive use thereof, under a lease or otherwise, for a period greater than
thirty days."
Footnote 5: The subject truck's registered
owner was Budget System and its titled owner was Budget Trust (the nominee titleholder)
according to Oklahoma Tax Commission records; Perfect and Budget LLC merely rented out
such Budget motor vehicles for hire.
Footnote 6: Collins' driver's license was
suspended on March 23, 2005 by court order. He was subsequently issued a restricted license on
June 8, 2005, permitting him to continue pursuing or commuting to/from his business, trade
occupation or profession under Vehicle and Traffic Law § 530 (3).
Footnote 7: Under Vehicle and Traffic Law
§ 530, restricted licenses allow "[a] person whose driving license or privilege of operating a
motor vehicle . . . has been heretofore suspended or revoked pursuant to provisions of section
five hundred ten . . . and for whom the holding of a valid license is a necessary incident to his
employment, business, trade occupation or profession" to nevertheless operate a motor vehicle in
the state as a restricted privilege "during the time the holder is actually engaged in pursuing or
commuting to or from his business, trade, occupation or profession."
Footnote 8: Moreover, contrary to plaintiff's
protest, Section 530 is applicable to the instant facts, as it relates to the type of license in Collins'
possession; plaintiff cannot disregard the statute as irrelevant to the relationship between motor
vehicle rental companies and third parties. As the moving defendants point out, although
operation of a commercial motor vehicle is prohibited under Vehicle and Traffic Law § 530 (5),
the subject truck in this action is not a commercial motor vehicle because it has a gross vehicle
weight rating of only 25,500 pounds. Collins' operation of the truck is therefore permissible with
his restricted license. Although this observation reflects only on whether Collins had legal
authority to operate the truck, and not whether Perfect had special knowledge of any
incompetence on Collins' part, it still offers guidance regarding the expectations of the average
motor vehicle rental agent in assessing whether to rent a motor vehicle to Collins.
Footnote 9: The court notes plaintiff's
repeated requests for Budget's policies and procedures, which plaintiff avers the moving
defendants have yet to produce, in large part.
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