Opinion ID: 1834936
Heading Depth: 1
Heading Rank: 8

Heading: Statutory Exception for Owners Engaged in the Business of Renting Motor Vehicles

Text: In addition to the above reasons, we note an additional justification for our conclusion that Budget should not be held liable in the instant case. In enacting the LMVSRL the legislature, apparently recognizing the unique nature of rental car agencies, specifically stated in La.R.S. 32:1041 that vehicle owners engaged in the business of renting or leasing motor vehicles are not required to furnish proof of financial responsibility to satisfy any judgment entered against their lessees. [25] This statute makes it clear that the legislature did not intend rental agencies to bear the financial responsibility for the negligent actions of a lessee operating the leased vehicle in accordance with the terms of the lease. A fortiori, a rental agency, such as Budget in the instant case, should not be financially responsible for the negligent operation of its vehicle in violation of the express terms of the lease agreement.