Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

(Auto) Leasing company held liable in crash
WPRI, FOX Channel 12, Providence, Rhode Island ^ | Aug 11, 2002 | Eyewitness News (CH12 Providence, RI)

Posted on 08/11/2002 9:02:31 PM PDT by texas booster

PROVIDENCE,RI(AP)-A car-leasing company has been ordered by a jury to pay a Pawtucket woman nearly $28 million for injuries suffered in a crash four years ago.

The Superior Court jury last week found Chase Manhattan Automotive Finance Corp., of Florida, liable because the operator of the car that left Judith Oliveira a paraplegic was driving a leased vehicle.

The award may be the largest personal-injury judgment in state history.

Court records indicate Oliveira, formerly of Patterson Avenue, Pawtucket, was awarded $18,904,190 with interest of $9,074,011 for the injuries she suffered.

``We're fairly certain that this is the largest single award in a personal-injury case'' returned by a jury in Rhode Island, said Oliveira's lawyer, Mark Decof, of Providence.

The judgment may be the first time in Rhode Island that a leasing company has been held responsible for the driver's actions in a crash involving a leased car.

``That is scary,'' said Frank Doyle, senior vice president of AAA of Providence. ``That puts a whole new risk in the automotive financing world.''

Doyle told The Providence Sunday Journal that the leasing company's liability would not be any different than a plaintiff filing suit against a bank that provided a car loan.

Lawyer James Murphy, who represented Chase Manhattan, said he is looking into filing post-trial motions and possible appeals.

The judgment follows an April Rhode Island Supreme Court ruling that short-term rental agencies, long-term leasing companies and car financing corporations are subject to liability because they own the cars.

The high court reversed an earlier ruling from Superior Court Judge Patricia A. Hurst, who said that state law protected car-financing companies from the Rhode Island's ``vicarious-liability statutes.''

The judge said the companies are exempt because the leasing firms don't take possession and control of the cars. The Supreme Court disagreed and vacated the lower court's judgment against Chase Manhattan and a second leasing company. That led to Oliveira's recent civil trial, over which Hurst presided.

Oliveira was 48 on the night of the accident on July 23, 1998. She was sitting in her Subaru, parked near the corner of Ernest Street and Eddy Street in Providence. About 11:25 p.m., a red Acura, driven by Steven Lombardi, 20, of Cranston, crashed into the back of Oliveira's car.

Court records note Lombardi was traveling at a high rate of speed. The collision caused the car to explode and become engulfed in flames.

Witness Brian Hodson pulled Oliveira from the burning car.

Oliveira later sued Lombardi and Chase Manhattan, the car-leasing company. Court records show that the car had been leased to Lombardi's father, Salvatore Lombardi.

On June 10 of this year Salvatore Lombardi and Steven Lombardi filed for bankruptcy in federal bankruptcy courts in Rhode Island and Florida. The Lombardis were dropped from the lawsuit. Lombardi was insured by two companies, Decof said: Amica Insurance Co. and Merrimac Fire and Marine Insurance Co.

Before the trial, the two insurance companies agreed to pay the full amount of their coverage of Lombardi, which totaled $1.3 million between them.

That left Chase Manhattan the sole defendant in the lawsuit.

Oliveira, who uses a wheelchair, testified. Decof, her lawyer, said Oliveira has been forced to live at Eleanor Slater Hospital, in Burrillville, for the past two years because she could not care for herself.

She plans to have a house built that will accommodate her disabilities.


TOPICS: Business/Economy; News/Current Events
KEYWORDS: autocrash; autoleasing; judicialactivism; jurytrials; rhodeisland
Navigation: use the links below to view more comments.
first 1-2021-4041-48 next last
Haven't leasing companies have always been considered immune from lawsuit for non-commercial vehicles?

Wonder what this will do to rates and insurability if it stands? Any insurance agents out there?

1 posted on 08/11/2002 9:02:31 PM PDT by texas booster
[ Post Reply | Private Reply | View Replies]

To: texas booster
© Copyright 2002 STC Broadcasting Inc

Left off the copyright notice. My apologies.

There is no end to the surprises from a jury trial, is there?

Also, what interest rate did the judge use to compute $9,000,000 worth of interest? that works out to over 10% per year. Maybe he charged Chase with the same rate that the leasor was paying them.

2 posted on 08/11/2002 9:08:33 PM PDT by texas booster
[ Post Reply | Private Reply | To 1 | View Replies]

To: texas booster
Oliveira, who uses a wheelchair, testified.

Lawyers love public school educated juries and plaintiffs in wheelchairs. The plaintiff's misdeed: owning assets.

To survive the lawyer mafia try not to own stuff.

3 posted on 08/11/2002 9:10:29 PM PDT by Reeses
[ Post Reply | Private Reply | To 1 | View Replies]

To: texas booster
I don't agree with what this jury did... the driver of the car was responsible, not the leasing company... - (unless there was mechanical failure, caused by action or lack of action on the part of the leasing company)

This crap is going too far - Bring back personal responsibilty...

4 posted on 08/11/2002 9:18:03 PM PDT by Chad Fairbanks
[ Post Reply | Private Reply | To 1 | View Replies]

To: texas booster
"Also, what interest rate did the judge use to compute $9,000,000 worth of interest? that works out to over 10% per year. Maybe he charged Chase with the same rate that the leasor was paying them."

The interest was exactly 48% of the damages. It looks like 12% simple interest (not compound interest) for 4 years. I don't think lawyers and judges understand compound interest.

5 posted on 08/11/2002 9:23:08 PM PDT by Neanderthal
[ Post Reply | Private Reply | To 2 | View Replies]

To: Chad Fairbanks
I'm glad for this court decision. The only way we're going to get tort reform enacted is by scaring every Fortune 500 company that it's not just gunmakers and cigarette companies the greedy mass-tort lawyer wants to sue!
6 posted on 08/11/2002 9:24:09 PM PDT by glc1173@aol.com
[ Post Reply | Private Reply | To 4 | View Replies]

To: glc1173@aol.com
You are a darned optimist aren't ya? ;0)
7 posted on 08/11/2002 9:26:52 PM PDT by Chad Fairbanks
[ Post Reply | Private Reply | To 6 | View Replies]

To: glc1173@aol.com
We'll NEVER get tort reform as long as George W. Bush is president. He doesn't have the guts to push for it.

What I'd like to know is who paid for the 12 lobotomies given to the jury?

8 posted on 08/11/2002 9:27:30 PM PDT by kwyjibo
[ Post Reply | Private Reply | To 6 | View Replies]

To: texas booster
>Weak judges (or crooked judges) and gullible juries.
>The honest defense lawyer could have done a superb job, and even had the law behind him, and still lose when this kind of case goes to trial.
>It's enough to make ethical lawyers quit the practice, and all that's left will be the cheats.
9 posted on 08/11/2002 9:32:51 PM PDT by BenLurkin
[ Post Reply | Private Reply | To 2 | View Replies]

To: kwyjibo
I wonder if Bill Simon running for govenor of California was motivated by tort reform. Run for govenor against the lawyers, get zinged for $78 million in court. Do not challenge the lawyer mafia unless you can out spend them.
10 posted on 08/11/2002 9:37:31 PM PDT by Reeses
[ Post Reply | Private Reply | To 8 | View Replies]

To: kwyjibo
I am unfamiliar with the intricate details of the case, but for discussion's sake... perhaps the jury found that Chase was negligent if not reckless in renting the car to somebody who was a clear safety risk? Or maybe the jury simply wanted to send a message to car-rental companies that their activity is too potentially dangerous because drivers aren't that familiar with the rental cars in which they must make split-second decisions? Or perhaps they simply upheld Rhode Island's vicarious liability statute and felt that the plaintiff's ability to walk and care for herself was irreplaceable, but worth at least what they awarded?
One thing's for sure...if Budget Rental Car was ALREADY filing for bankruptcy protection several days ago...it's not like they'll be able to come backing swinging with lower rate offers. Corporations will likely have to get additional insurance coverage in order to weather the new risk (at least in Rhode Island). Somehow I bet the plaintiff would love to give back all the money and lost time merely in exchange for full use of her limbs though, don't you think? I mean if money can't even buy happiness for most folks who can walk... I know I'd rather let the defendants KEEP the money if I could keep full use of my limbs. How about everyone else here?
11 posted on 08/11/2002 9:43:54 PM PDT by End The Hypocrisy
[ Post Reply | Private Reply | To 8 | View Replies]

To: texas booster
This is disguting. Nobody gives a damn what a judgement like this does to the business community or the public. While I'm sorry as hell this happened, the woman should get medical bills, healthcare maintenance, funding for a place that is modified for her, and pain and suffering. Hitting the leasing company for $28 million is overkill by about $25 million at the least.

Life sucks, but you shouldn't be able take down a leasing company just because the breaks didn't go your way. The leasing company did not operate in bad faith.

12 posted on 08/11/2002 10:00:02 PM PDT by DoughtyOne
[ Post Reply | Private Reply | To 1 | View Replies]

To: texas booster
Chase Finance only has itself to blame.
What this company should do is...
break up into numerous small companies,
and move assets offshore.
To become lawsuit resistant, and have less
assets in any single organization.
g.
13 posted on 08/11/2002 10:00:58 PM PDT by greasepaint
[ Post Reply | Private Reply | To 1 | View Replies]

To: texas booster
BTW, it should not be possible for a person to commit extreme negligence like this kid did, then be able to declare bankruptcy to avoid his obligation. Somebody should find that kid and beat him to a pulp. I am not urging it happen, but he is the culprit here. Let's not kid ourselves. He and the attornies that contributed to make this even worse, are.
14 posted on 08/11/2002 10:03:29 PM PDT by DoughtyOne
[ Post Reply | Private Reply | To 1 | View Replies]

To: texas booster
How long before there is a lawsuit mentioning God as a plaintiff? After all, following this line of logic, God is ultimately at the end of the causal chain of events that lead to any incident and subsequent cause of action?!?
15 posted on 08/11/2002 10:06:32 PM PDT by spanky_mcfarland
[ Post Reply | Private Reply | To 1 | View Replies]

To: End The Hypocrisy
Who wouldn't trade all of the money in his pocket for the ability to walk/see/hear/speak? I know I would.

This case is an example of the classic "go after the deepest pockets, regardless of guilt or innocence" strategy. Simply trot out the wheelchair-bound plaintiff to the stand, make sure she breaks down a couple of times, and start counting the money.

Your post seems to suggest that anyone who is injured is automatically entitled to some sort of monetary compensation. In this case, the $1.3 million of the Lombardi's insurance money wasn't nearly enough, so another source of money had to be found. This crap happens all the time. Lawyers are trained to go after the deepest pockets regardless of what the law actually says. All it takes is 12 stupid people.

As far as the driver being a "clear safety risk", drivers all across the country have their first traffic accidents daily. I don't know that Lombardi's driving record was mentioned in the article, but this accident could just as easily been caused by someone with a perfect driving record. Is the leasing company somehow less liable if that was the case?

If you actually think this award was proper, I doubt that you have much company. Just remember this case the next time you rent a car and wonder about what caused the price increase. If this decision is allowed to stand, it will spread to the bank that provided the auto loan to the next driver who causes an injury accident. Heck, why not the dealer who sold the car? Or the gas station where the guy filled up?

16 posted on 08/11/2002 10:11:01 PM PDT by kwyjibo
[ Post Reply | Private Reply | To 11 | View Replies]

To: texas booster
The court's ruling here is completely insane; The car leasing business is already going away because everyone who does it is losing money. This ruling is just the last death knell for that industry.

Perhaps we won't get tort reform until the media decides to do its job in a responsible manner and honestly show the americans how these rulings affect our nation in a negative manner.

17 posted on 08/11/2002 10:11:37 PM PDT by Red Jones
[ Post Reply | Private Reply | To 1 | View Replies]

To: spanky_mcfarland
I seem to recall there was such a lawsuit. Representatives of God were certain church officials/ministers. It was thrown out of court back in saner times.
18 posted on 08/11/2002 10:16:32 PM PDT by DeFault User
[ Post Reply | Private Reply | To 15 | View Replies]

To: End The Hypocrisy
"perhaps the jury found that Chase was negligent if not reckless in renting the car to somebody who was a clear safety risk?"

The car was leased to the father of the guy who did the deed. How's Chase responsible for who he loans the car to? Chase in not responsible in ANY way in this case.
19 posted on 08/11/2002 10:18:13 PM PDT by DB
[ Post Reply | Private Reply | To 11 | View Replies]

To: kwyjibo
It's better than that... The car was leased to the guy's father... The father loaned the car to him... So the leasing company didn't have any form of contract with the guy who did the deed...
20 posted on 08/11/2002 10:21:41 PM PDT by DB
[ Post Reply | Private Reply | To 16 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-48 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson