New York State Court of Appeals Denies Motion by Budget Rent A Car Corporation, Upholding Highest Future Pain and Suffering Award
NEW YORK, May 3, 2006 -- A 25-year-old pedestrian was crossing New York's Delancey Street in November 2000 when the driver of a Budget Rent A Car caused a collision that left the pedestrian paralyzed. The final chapter of what may be the last case under the law that holds rental car companies liable for the negligence of their drivers was written yesterday by New York's highest court, the Court of Appeals. The Court's decision upholds a record- setting $10 million dollar award for future pain and suffering for the victim, along with other damages.
The plaintiff was represented by attorneys Marc S. Moller and David C. Cook of Kreindler & Kreindler LLP in New York. In January 2005, Supreme Court trial judge Milton A. Tingling Jr., JSC, upheld $20.3 million of a $24.5 million December 2003 jury verdict in the case, one of the highest such verdicts ever returned in New York State. An appeal was originally argued before the Appellate Court on October 27, 2005, which upheld most of the award.
"This is truly a 'David vs. Goliath' victory for our client," said Mr. Cook after the decision was rendered. "The court today reaffirmed what we have argued all along -- innocent victims of such negligence on our roadways deserve protection under the law, especially in cases resulting in such tragedy." Mr. Cook noted that a recent act of Congress eliminated the liability of rental car companies responsible for the negligence of their operators. In August 2005, passage of the Graves Amendment to the Federal Transportation Funding bill left victims without protections they had for decades.
"This, unfortunately, is likely the last case of its kind," said Mr. Moller. "Such protections have been eliminated by our Federal government and the current Administration, with no plan in place to protect innocent victims of rental car accidents. Seriously injured victims will be denied recoveries and may become public charges, with the taxpayer bearing the burden while large rental and leasing companies are relieved of responsibility for the harm their drivers cause. This is unfortunately the case, even though rental and leasing companies will allow just about anyone with a license and credit card to get behind the wheel of their cars. The effect of the recent Congressional legislation is to allow rental car companies to profit while victims suffer."
On November 29, 2000, the operator of the Budget rental car ran a red light and struck a van which then careened into the crosswalk of Delancey and Orchard Streets in Manhattan, striking the pedestrian head on as he legally crossed Delancey Street within the crosswalk. The court's original judgment includes compensation for the victim for past and future loss of earnings, medical care, and pain and suffering. As a direct result of this incident, the plaintiff's spinal cord at level T6 was dislocated, causing complete paraplegia from the chest down and other catastrophic injuries.
About Kreindler & Kreindler LLP
Kreindler & Kreindler LLP (http://www.kreindler.com/) is a leader in representing plaintiffs in complex litigation. The firm has a large general tort practice and has handled thousands of cases involving automobile accidents; train and bus accidents; workplace accidents involving defective machinery; construction site accidents; products liability, including dangerously defective drugs; premises liability; and municipal and other governmental liability for serious injury or death. Kreindler & Kreindler is the largest aviation law firm representing plaintiffs in the United States, with a worldwide reputation for successful prosecution of aviation cases. The firm was founded in 1950. For more information, contact: Marc S. Moller or David C. Cook at 212-687-8181.