Vargas v. Enterprise Leasing Co.
60 So. 3d 1037
Fla.2011Background
- Vargas sued Enterprise Leasing, challenging vicarious liability under Florida §324.021(9)(b)2 for short-term vehicle leases.
- The Graves Amendment, 49 U.S.C. §30106, was enacted in 2005 to preempt certain state vicarious liability claims against rental car owners.
- The Fourth District Court of Appeal in Vargas v. Enterprise Leasing Co., 993 So.2d 614 (Fla. 4th DCA 2008), certified whether Graves preempts Florida §324.021(9)(b)2.
- The Florida statute deems short-term lessors as owners for liability limits up to specified caps, plus possible extra economic damages if lessee uninsured or underinsured.
- The district court held Graves preempts §324.021(9)(b)2], ruling it is not a financial responsibility/insurance requirement and thus conflicts with Graves.
- The Florida Supreme Court granted review to address whether Graves preempts the Florida statute and whether Graves is constitutional.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does Graves Amendment preempt §324.021(9)(b)2, Florida Statutes (2007)? | Vargas contends Florida statute is not preempted. | Enterprise argues Graves preempts the Florida provision. | Yes, Graves preempts §324.021(9)(b)2). |
| Is Graves Amendment constitutional under the Commerce Clause? | Graves Amendment does not violate the Commerce Clause. |
Key Cases Cited
- Garcia v. Vanguard Car Rental USA, Inc., 540 F.3d 1242 (11th Cir. 2008) (savings clause allows state financial responsibility requirements; preemption limits vicarious liability)
- N.Y. State Conference of Blue Cross & Blue Shield Plans v. Travelers Ins. Co., 514 U.S. 645 (U.S. Supreme Court 1995) (supremacy of federal law in preemption analysis)
- Pacific Gas & Elec. Co. v. State Energy Res. Conservation & Dev. Comm'n, 461 U.S. 190 (U.S. 1983) (conflict preemption framework)
- Vargas v. Enterprise Leasing Co., 993 So.2d 614 (Fla. 4th DCA 2008) (district court and en banc supplemental ruling on preemption)