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Vicarious Liability Repeal Included in Small Business Liability Reform Act

by Staff
July 17, 2001
1 min to read


Both houses of Congress has introduced legislation that would protect businesses from excessive damage awards and frivolous lawsuits, including vicarious liability for motor vehicles. The legislation, the Small Business Liability Reform Act of 2001(S 865/HB 1805), sponsored by U.S. Sens. Mitch McConnell (R-KY) and Joseph Lieberman (D-CT) and U.S. Reps. Asa Hutchinson (R-AR), Tim Holden (D-PA), Richard Burr (R-NC), Jim Moran (D-VA), Steve Chabot (R-OH), and Cal Dooley (D-CA), protects businesses against litigation excesses. The legislation protects any person engaged in the business of renting or leasing a product from any liability for the tortious act of another person solely because he is the owner of that product. Companies that rent or lease motor vehicles, such as car and truck rental firms, are subject in five states (Florida, Connecticut, Maine, New York, and Rhode Island) and the District of Columbia to unlimited liability for the tortious acts of their renters and lessees, even if the rental company is not negligent and there is no defect in the motor vehicle.

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