What Is the Graves Amendment?

Accidents Happen All the Time

Unfortunately, accidents on our roadways occur frequently, and they often have life-altering impacts. Time and time again we have been told that if we were in an accident due to the negligence of another person or entity, we would have the opportunity to recover our expenses with the help of a personal injury lawyer. In Massachusetts and around the country this is generally true — but there are exceptions that are unfamiliar to many.

If you are dealing with complex or even simple car accident issues and need competent and effective representation, look no further than Cava Law Firm, where winning is NO accident. It is the result of having effective, hardworking advocates who deeply care for their clients and know how to win on their behalf.

For a free consultation with accident attorneys who care, contact Cava Law Firm today. Do not hesitate when your rights and compensation are on the line. Reach out to our team to get started on your case at (413) 737-3430 or (413) 781-CAVA (2282) today.

Understanding the Graves Amendment

Legislation Impacting Car Accident Victims

The Graves Amendment is a decades-old law at the national level that tweaks the rules of liability in certain personal injury cases involving rental vehicles.  If you collide with a car or truck owned by an individual or organization, even if the driver at fault is driving a borrowed car, you can pursue a personal injury settlement in the traditional way, without concern for this law.

However, since 2005 when The Graves Amendment was signed into law as part of a larger bill, obtaining damages when accidents occur with rental vehicles has become increasingly challenging.

This amendment was designed to reduce costs to consumers of the rental vehicle industry.  This act prohibits those injured in a collision with a driver of a rental vehicle from suing the rental company itself for damages unless there were negligent issues with the vehicle.

The Graves Amendment & Rental Car Liability

Who Does This Law Protect?

Prior to 2005, rental car companies like Hertz, Avis, Budget, and Enterprise could be held liable under a theory of vicarious liability when renters of their vehicles were at fault in an accident on the road. One example of this occurred in New York City, when Budget Rental Car was held liable for $21 million when a 25-year-old was hit by an individual driving one of the rental company’s vehicles. The company was found vicariously liable.

In other words, the settlements rental agencies were paying prior to 2005 were considerable and had a very real impact on their profitability. In order to counter these large settlements and verdicts, they passed the costs along to the customer. Passing costs onto customers occurs when a company raises the rates or costs of its business for consumers in order for the consumers to pay for new costs and expenses, such as those incurred from a lawsuit or insurance claim for damages.

This passing of costs onto the consumer is what apparently inspired the Graves Amendment, which is meant to protect consumers from cost-spreading by rental companies. The logic goes: If a rental company has fewer judgments and settlements to pay, they will pass fewer costs onto consumers.

How Your Massachusetts Personal Injury Lawyer Can Help

Keep in mind that negligence suits against rental vehicle companies are still possible and still occur under the Graves Amendment. One example of actionable liability is when a rental car company provides a consumer with an unsafe vehicle. The victim or victims of negligent actions such as these can legally claim all manner of damages in many situations, including:

• Medical bills and costs;
• Lost income, present and future;
• Loss of enjoyment of life;
• Pain and suffering; and
• Emotional distress and mental anguish.

It is crucial to know that not all businesses that rent vehicles are protected under the Graves Amendment. In order to benefit from such protection, a rental business must have rentals as its primary type of business. A company that happens to offer rentals on the side while operating a primary business does not qualify for protection under the Graves Amendment.

For example, companies like Hertz and Enterprise, which have rentals as their primary source of business, are protected from liability under the Graves Amendment. However, businesses that happen to rent cars on the side, such as an auto repair shop or the like, will likely not be protected from a lawsuit.

Finally, advances in technology have made it possible for rental companies to check drivers license records and avoid renting to those who have a greater chance of endangering others (those who have a suspended license or history of bad driving). If a rental company neglects to check their records or ignores the available information and does business with them anyway and an accident occurs, they may be held liable.

Get the Legal Help You Need

The Personal Injury Attorneys at Cava Law Firm Can Make a Difference

If you have been involved in a car accident, be it a rental, a loaner, or your own, you may have significant compensation available to address your pain and losses. Acting quickly can make a big difference in the amount of compensation you receive, so do not delay in contacting an experienced advocate to fight for you.

Cava Law Firm has decades of experience serving those in Springfield and the surrounding areas. Our team’s knowledge of personal injury law and the Graves Amendment is significant; we work hard on behalf of our clients, leveraging all the resources of our firm. Winning is NO accident!

To meet with a team that knows how to win and that cares, reach out to Cava Law Firm today. Learn how we can help with the personal injury auto issues you are facing. Call (413) 737-3430 or (413) 781-CAVA (2282) for a free consultation today.

Attorney Jennifer L. Cava-Foreman

Attorney Jennifer L. Cava-Foreman would like to take the guesswork out of choosing a lawyer by letting the facts and her winning verdicts speak for themselves. Attorney Cava-Foreman is known in the local courts and has firsthand experience with many types of cases ranging from personal injury to criminal defense. Attorney Cava-Foreman understands that every case and every client is different. Whether a client is injured or mixed up in a criminal matter, she will provide the legal advice needed and stand up for her client in court. [ Attorney Bio ]