The Graves Amendment is a federal statute that essentially abolished vicarious liability of rental car companies for the negligent driving of renters. The Graves Amendment stated, in pertinent part, as follows:
"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, orpossession 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(2) there is no negligence or criminal wrongdoing on the part of the owner (or an affiliate of the owner)." 49 USCS § 30106.
Like it or not, this federal statute overturned well-settled law in D.C.
