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• Federal judge tosses city of Baltimore’s case blaming its neighborhood blight on subprime lenders, but Memphis files a similar suit;
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Up in Albany, Sheldon Silver is speaker of the Democrat-controlled assembly — just the sort of guy a hard-line feminist could love, ever eager to promote laws punishing cads who take advantage of women. …Furthering the irony, Silver in his spare time is counsel to Weitz and Luxenberg, one of New York’s most influential law firms, known to prosecute torts like the one confronting the speaker.

Tags: harassment law, politics, Sheldon Silver

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Gun dealers could be held liable if they sell weapons that are later used to commit a crime under an Assembly proposal that’s under fire by gun-rights proponents.

The measure’s chances for passage are considered remote, though. (Heather Yakin and John Milgrim, “Gun dealers balk at proposal to hold them liable”, Middletown, N.Y. Times Herald-Record, Dec. 20).

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The provision is found as sec. 1409 at p. 219 of the 1075-page bill, and is reprinted below in the post’s extended entry (definitions omitted). Among the bill’s notable features: it will take effect immediately to block newly filed vicarious suits, including those over accidents before the law’s effective date; it apparently applies to short-term car rentals of the Hertz and Avis kind, which have also been much discouraged in New York by the vicarious liability law; and (from a casual reading, at least) it also appears to pre-empt the laws of other states which impose some degree of vicarious liability after a crash on lessors (up to a capped figure of damages, that is; only New York imposes unlimited liability).

“All it will do is enrich leasing companies and automobile companies,” charged Shoshana Bookson of the New York State Trial Lawyers Association — a prediction whose accuracy should be testable soon enough. (Alan Wechsler, “Congress paves way for cheaper vehicle leases”, Albany Times-Union, Aug. 3). And according to the Staten Island Advance, Charles Carrier, a spokesman for Democratic Assembly Speaker Sheldon Silver, “said the law change would be unfortunate because it ‘means that companies can rent to anyone — even someone drunk — and not incur a liability.’” (Robert Gavin, “Bill would scrap N.Y. law allowing crash victims to sue leasing firms”, Aug. 3). In point of fact, sec. (a)(2) of the bill specifically preserves liability in cases of “negligence or criminal wrongdoing” by the owner or its affiliate.

P.S. Well, it didn’t take long to falsify Ms. Bookson’s prediction. An Aug. 4 editorial in the New York Daily News (”Congress repeals the Shelly Tax”) says: “Expecting the President’s signature, a number of car companies that fled the New York market years ago are now planning their return. And several others announced immediate $600 price reductions, proof positive that [assembly speaker and trial lawyer Sheldon] Silver was the sole reason New Yorkers have unfairly paid extra for leasing a car. Call it the Shelly Tax, and thank heaven, or Washington, that it is finally gone.”

SEC. 1409. RENTED OR LEASED MOTOR VEHICLES.

a) IN GENERAL.—Subchapter I of chapter 301 of title 49, United States Code, is amended by adding at the end the following:

Ҥ 30106. Rented or leased motor vehicle safety and responsibility

“(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, or possession 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).

“(b) FINANCIAL RESPONSIBILITY LAWS.—Nothing in this section supersedes the law of any State or political subdivision thereof—

“(1) imposing financial responsibility or insurance standards on the owner of a motor vehicle for the privilege of registering and operating a motor vehicle; or

“(2) imposing liability on business entities engaged in the trade or business of renting or leasing motor vehicles for failure to meet the financial responsibility or liability insurance requirements under State law.

“(c) APPLICABILITY AND EFFECTIVE DATE.—Notwithstanding any other provision of law, this section shall apply with respect to any action commenced on or after the date of enactment of this section without regard to whether the harm that is the subject of the action, or the conduct that caused the harm, occurred before such date of enactment.

[definitions omitted]

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The Senate wants to abolish vicarious liability, bringing New York into line with 49 other states, but Silver’s Assembly wants to have car companies pay hundreds of millions of dollars into an insurance pool that would cover accidents in leased cars. The trial lawyers are all for it because the pool would give them lots of money to grab, cash that would come from drivers in the form of higher leasing fees. And who are the trial lawyers? Arthur Luxenberg is the group’s second vice president, while Perry Weitz serves on the board of directors. And who are they? They’re the name partners of Weitz & Luxenberg, the law firm that lists Silver as of counsel.

The law “costs consumers more than $130 million a year and has led to a 36 percent decline in the number of vehicles leased in New York each year, according to the Alliance of Automobile Manufacturers (Alliance) and the Greater New York Automobile Dealers Association (GNYADA).” (”Vicarious liability costs New York consumers and businesses millions”, Business Council of New York State, Jun.). “More than 19 automakers and every major retail bank in New York have stopped or curtailed car leasing. …In addition, [according to trade groups], vicarious liability has contributed to the closing of 70 leasing companies since September 2000.” (”N.Y.’s Vicarious Liability Costly for Consumers and Auto Dealers”, Insurance Journal, Jul. 19). For more, see the New York State Auto Dealers Association website.

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Update Feb. 5, 2006: suit against Silver’s office settles for $500K, most of it taxpayer funds.

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More links:
Asbestos FAQ (Okla. DOL); Coalition for Asbestos Resolution (articles, edits); AsbestosLitigation.com; Asbestos Institute (Canada); British Asbestos Newsletter; “Asbestos Litigation 101” (attorney David Shaw).

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