O&B Successfully Moves to Apply New Jersey Law on Vicarious Liability
June 2005

Justice Barry Salman of the Supreme Court, Bronx County, recently granted O&B's motion for summary judgment and dismissed all claims against O&B's client on the ground that New Jersey law relating to vicarious liability of vehicle owners rather than New York law should govern in a case involving an accident that occurred on the New Jersey side of the George Washington Bridge. Plaintiff's efforts to "forum shop" were thwarted.

O&B represented CitiCapital Commercial Corporation, a national vehicle leasing company. CitiCapital was the title holder and lessor of a truck involved in a two vehicle collision, but had no involvement in its operation. An employee of the company that leased the vehicle from CitiCapital was operating the truck. Plaintiff was a passenger in the other vehicle. According to the complaint, the accident occurred "on the upper level crossing of the George Washington Bridge, New Jersey, past the toll booth located at Post 14, New Jersey." At the time of the accident, plaintiff and one co-defendant resided in New York State. O&B's client is an Indiana corporation. Another defendant resided in Georgia.

O&B moved for dismissal arguing that, under New Jersey law, it could not be held liable for any damages. New Jersey does not impose vicarious liability upon the owner of a vehicle unless the operator of the vehicle is acting as the owner's agent. By contrast, New York's Vehicle and Traffic law holds an owner of a vehicle "vicariously liable" for accidents even if the owner is not the operator.

We successfully argued that under New York's Choice of Law Rules, when the passenger and the driver are domiciled in different States and the defendants have no significant ties in New York in relation to the accident, New York's Choice of Law Rules require the application of the law of the location of the accident.

Partner Bennett R. Katz, and Associate Eleftherios Stefas represented defendant CitiCapital.

(Prior results do not guarantee a similar outcome.)