Congratulations to attorneys Jason Newman and Peter Kawinski on securing summary disposition on behalf of a Michigan automobile dealership in a negligence action arising from a leased vehicle.
The plaintiff alleged that the dealership was liable under Michigan’s Owner’s Liability Statute for injuries caused by the negligent driving of a former employee who had leased a dealership vehicle while his personal vehicle was being serviced.
On behalf of the dealership, the defense argued that the claims were barred by the federal Graves Amendment, which preempts state owner liability laws and shields businesses engaged in the business of renting or leasing motor vehicles from vicarious liability, provided there is no independent negligence or criminal wrongdoing by the owner.
Because Michigan courts have not squarely addressed whether a dealership service loaner qualifies as a rental transaction under the Graves Amendment, the defense relied on persuasive federal authority holding that a service loaner provided in exchange for consideration, including the execution of a rental agreement, proof of insurance, and responsibility for incidental charges, qualifies as a rental transaction protected by the statute. The Court agreed with the defense’s position and granted summary disposition, dismissing the claims against the dealership.
This result secured a complete dismissal for the client and successfully applied persuasive authority to an issue not yet addressed by Michigan courts. Congratulations to Peter on arguing and winning his first motion for summary disposition, and to Jason Newman for leading the defense strategy that resulted in this successful outcome.
