Opinion ID: 150487
Heading Depth: 3
Heading Rank: 2

Heading: The Graves Amendment

Text: Even if Iowa Code § 321.493 did not prohibit Appellants' vicarious liability claims against GMAC, the Graves Amendment would preempt Iowa law and prohibit Appellants' claims. The Graves Amendment provides, 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). 49 U.S.C. § 30106(a) (emphasis added). Appellants contend the Graves Amendment does not bar their vicarious liability claims against GMAC because Gannon's failure to make lease payments and GMAC's replevin judgment terminated Gannon's rights to possess and use the leased vehicle. Appellants argument fails for the reason we stated aboveat the time of the accident, Gannon's lease agreement with GMAC was still in effect. Absent any direct negligence or criminal wrongdoing by GMAC, the Graves Amendment protects GMAC from owner liability during the period of the lease. The district court did not err in dismissing Appellants' vicarious liability claims.