ACRA Supports Efforts to Limit Vicarious Liability

16 June 1999

    WASHINGTON, D.C. -- The American Car Rental Association (ACRA) strongly 
supports the recent decision by Florida Governor Jeb Bush to sign into law a 
bill limiting car rental firms' liability inlawsuits relating to vicarious 
liability.

    "The signing of this bill protects Florida vehicle owners -- individuals
as well as car rental companies -- from being held liable for damages caused
by accidents where the owners were neither negligent nor responsible," states
ACRA President Gary Paxton.

    Until Florida's decision to pass the law limiting vicarious liability, the
previous law held the vehicle owner responsible for the negligence of the
driver with unlimited liability.  The new Florida law, which becomes effective
for accidents occurring on or after October 1, 1999, limits car rental firms'
liability to a maximum of $850,000 in damages for multiple claim incidents and
a maximum of $650,000 for single claims.

    Paxton, who also is President and CEO of Dollar Rent A Car went on to add,
"We are pleased to see federal bills targeting reform of unlimited vicarious
liability laws recently introduced in both houses of Congress.  Hopefully the
car rental industry will soon see an end to the frivolous, time-consuming and
costly lawsuits we've experienced over the years."

     The American Car Rental Association is a non-profit trade association
representing the daily automobile rental industry.