On the recordFebruary 11, 2004
I rise to discuss a second-degree amendment that I intend to offer. It deals with a very important problem in the national interest--assuring that rental and leasing car operations can be performed in all 50 States. Right now there are several States which have something called unlimited bicarious liability. Under this, if a leasing company leases a car or a vehicle to a person who appears to be a reasonable and responsible driver who meets all of the requirements, and that person goes out and has a horrendous accident, in a few States the victims and the personal injury lawyers are enabled to sue the leasing company which had no control over the car or truck or van and had no evidence of negligence or shortcomings in their procedures in leasing that vehicle. There have been hundreds of millions of dollars of judgments. We have seen in a small number of States liability being imposed on rental and leasing companies without fault. It has cost car and truck renting and leasing companies more than $100 million annually. The problem is these costs don't just come out of the pockets of those in that State; they are paid nationally.
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