Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

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.

by Staff
August 25, 2014
Judge Rules Vicarious Liability Applies in Lawsuit Against Carrier

 

2 min to read


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.

Ad Loading...

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.

Ad Loading...

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

Illustration with trojan horse and lock with inside of cargo container in background
Fleet Managementby News/Media ReleaseApril 23, 2026

New Trojan Driver Cargo Theft Scam Bypasses Carrier Vetting Systems

Cargo theft rings plant operatives as drivers inside legitimate, fully vetted carriers, then execute coordinated thefts that look like a traditional straight theft from the outside.

Read More →
Female truck driver.
Driversby News/Media ReleaseApril 21, 2026

WIM, Trucker Path Name Top 3 Women-Friendly Truck Stops

ATA’s Women In Motion Council and Trucker Path highlight three truck stops that meet all seven safety-focused criteria and rank highest among female drivers.

Read More →
Illustration of driver medical exam paperwork over duotone background of a blood pressure check

FMCSA Extends Paper Medical Card Exemption … Again

Five states still aren't ready to accept commercial driver medical exam information directly from the medical examiner's registry.

Read More →
Ad Loading...
Mack Pioneer tractor.
Driversby Jack RobertsApril 10, 2026

Mack Launches Digital Driver Guide for Chassis-Specific Truck Info

Mack’s new, virtual owner’s manual delivers VIN-based, on-demand guidance for vehicle systems via web, app, and soon in-cab displays.

Read More →
Close-up of Western Star truck logo with red star emblem on chrome grille, representing the brand’s identity in the trucking industry.
Driversby News/Media ReleaseApril 6, 2026

Western Star Showcases Truckers' Pride and Skill

Western Star is expanding its Star Nation Experience in 2026, adding new competitions and dealer participation to highlight operator skills and promote careers in trucking.

Read More →
Photo of truck driver at podium holding award
Driversby News/Media ReleaseMarch 27, 2026

Best Fleets to Drive For: Two Carriers Earn Overall Award for First Time

CarriersEdge announced the 2026 Best Fleets to Drive For overall winners, with Crawford Trucking, Fortigo Freight Services, and FTC Transportation receiving top awards.

Read More →
Ad Loading...
Illustration of Department of Labor building, diesel technician at a computer, and driver training semi trailer
Driversby Deborah LockridgeMarch 10, 2026

Federal Proposal Would Allow Pell Grants for Shorter-Term Job Training

The Department of Labor plans to expand Pell Grant eligibility to some shorter workforce training programs, a move the American Trucking Associations said will help strengthen commercial driver training schools and diesel technician training programs.

Read More →
Illustration of truck owner operator and magnifying glass with the word "regulations"
Driversby Deborah LockridgeFebruary 26, 2026

Owner-Operator Model Gets Boost as DOL Proposes 2024 Independent Contractor Definition Reversal

For an industry that has watched this issue go back and forth for years, the independent contractor proposal marks the latest swing in the regulatory pendulum.

Read More →
 Truck with door open and enforcement officer talking to driver about ELD
Safety & ComplianceFebruary 26, 2026

FMCSA Reinstates Field Warrior ELD to Registered Device List

One electronic logging device has been reinstated to the FMCSA's list of registered ELDs.

Read More →
Ad Loading...
Photo of truck driver in yellow safety vest walking alongside tractor-trailer
Driversby Deborah LockridgeFebruary 25, 2026

How One Company is Using Smart Suspension Technology to Reduce Driver Injuries and Improve Retention

America’s Service Line adopted Link’s SmartValve and ROI Cabmate systems to address whole-body vibration, repetitive strain, and driver turnover. The trucking fleet is already seeing measurable results.

Read More →