Judge Rules Vicarious Liability Applies in Lawsuit Against Carrier
What one media outlet calls a “landmark decision” by a federal court pushes aside a nearly decade-long federal protection for vehicle leasing companies. It's expected to affect trucking companies whose owner-operators are involved in accidents when certain leasing arrangements are used.

What one media outlet calls a “landmark decision” by a federal court pushes aside a nearly decade-long federal protection for vehicle leasing companies. It's expected to affect trucking companies whose owner-operators are involved in accidents when certain leasing arrangements are used.
The case involves the Graves Amendment, a federal provision that was ruled not to apply in a civil case filed against a truck’s owner in the Western District of New York, according to the Buffalo Business Journal/Buffalo Law Journal.
Michael Stratton is suing over the death of his wife in a 2009 crash that was caused by a truck driver who was watching pornography at the time of the crash along the New York Turnpike.
The driver has since been convicted of second-degree manslaughter and is currently in jail.
Named in the suit are a number of defendants, including the trucker’s employer, Millis Transfer; the tractor-trailer’s owner, Great River Leasing; and the parent of both Millis Transfer and Great River, Midwest Holding Group.
The judge ruled the parent company, Midwest Holding Group, can be held liable for the actions of its affiliates, even if the owner was not operating the vehicle at the time of the crash, essentially rejecting an argument that the Graves Amendment pre-empts states’ vicarious liability laws.
The Graves Amendment granted immunity to vehicle rental and leasing companies by overriding the laws of states that held vehicle owners "vicariously liable" for the acts of their drivers.
But the judge said that with both companies being owned by the same parent corporation, the lessor and lessee were related by more than just a lease agreement.
The ruling is expected to be significant for thei ndustry, according to the attorney for the plaintiff, with the ruling setting “a precedent for trucking company operators.”
Read more about it from Buffalo Business Journal/Buffalo Law Journal.
More Drivers

Trump Administration Looks to Put More Veterans Behind the Wheel
The Freedom Haulers program pulls together existing and expanded programs at several federal agencies to recruit veterans to drive commercial heavy-duty trucks and cut the red tape for them to get a CDL, training, and employment.
Read More →
Putting Mack’s Command Steer to the Test
A test drive of Mack’s Command Steer active steering system evaluates how it can make truck driving easier and less tiring.
Read More →
Competition Heating Up for Truck Drivers
New report reveals rising driver hiring costs, the return of sign-on bonuses, growing AI advantages, and the operational factors shaping driver retention.
Read More →
How Fraley & Schilling Improved Logbook Compliance by Over 50%
Fraley & Schilling needed a way to close a compliance workflow gap in its ELD system without adding more work from driver training, reminders, and back-office follow-ups. It found the answer in a custom driver app.
Read More →
Volvo Goes Gaming
Volvo has roared into American Truck Simulator with two new flagship trucks.
Read More →
What the Best Fleets to Drive For Teach About Driver Retention
Survey fatigue, AI-powered routing, owner-operator expectations, and the decline of social media all emerged as themes from this year's Best Fleets to Drive For program.
Read More →
Driver Retention Lessons From the Best Fleets to Drive For
What separates trucking's best workplaces from the rest? Jane Jazrawy shares the biggest lessons from this year's Best Fleets to Drive For program on driver retention, communication, AI, and workforce trends on the HDT Talks Trucking podcast.
Read More →
Farewell, CDL: Why I'm Giving Up My Commercial Driver's License
After more than 20 years as a CDL holder, HDT Executive Editor Jack Roberts is letting his commercial license expire. Not because he wants to — but because trucking's nuclear verdict crisis has made the risks of public-road test drives too great for editors, manufacturers, and everyone involved.
Read More →How Top Trucking Fleets Improve Driver Retention [Video]
What do healthy snacks, optimized routing, and just picking up the phone have in common? They're all strategies the Best Fleets to Drive For are using to retain truck drivers.
Read More →
Trucker Path Adds Verisk CargoNet Theft Data to Navigation Platform
Trucker Path’s new cargo theft risk overlays give drivers and fleets visibility into high-risk areas, stolen commodity trends, and theft hotspots.
Read More →
