FRANK H. PLOOR AND MARJORIE A. PLOOR, HIS WIFE AND FRANK J. EISELE AND RITA C. EISELE, HIS WIFE, APPELLANTS,
v.
GREYHOUND LINES, INC., APPELLEE
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Florida appellate court reversed trial court's vicarious liability determination, holding that a bus lease with a purchase option is not a conditional sale under California law, making the owner liable under California's statutory owner liability limits of $15,000 per injury and $30,000 per accident.
A lease agreement containing an option to purchase a vehicle at market value is not a conditional sale under California Vehicle Code section 17156, making the lessor-owner liable under California's statutory owner liability limits.
[1] A lease of a vehicle with an option to purchase at market value does not constitute a conditional sale under California Vehicle Code section 17156, and the lessor-owner r…
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Join FLexlaw to unlock all legal intelligenceFlorida residents were injured while on a tour of Napa Valley in a bus owned by Greyhound Lines, Inc. and leased to The Gray Line, Inc. The lease agre…
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SCHWARTZ, Chief Judge.
We agree with the trial court that California law governs the extent of the vicarious liability of the defendant-appellee Greyhound Lines, Inc., the owner of a bus leased to The Gray Line, Inc. in which the plaintiffs, Florida residents, were injured while on a tour of the Napa Valley in that state. Bishop v. Florida Specialty Paint Co., 389 So. 2d 999 (Fla.1980); State Farm Mutual Automobile Ins. Co. v. Olsen, 406 So. 2d 1109 (Fla.1981); Steele v. Southern Truck Body Corp., 397 So. 2d 1209 (Fla. 2d DCA 1981); Restatement (Second) of Conflict of Laws §§ 6, 145, 174 (1971).
Contrary to the determination below, however, we conclude, applying that law, that the lease agreement in question, even though it contains an option to purchase the vehicle for its market value at any time, is not in legal contemplation a conditional sale agreement under California Vehicle Code section 17156 (West 1971) (seller of vehicle under conditional sales agreement not owner); cf. Cal.Civil Code § 2981(a)(2) (West Supp.1985) (option to purchase at termination of lease where total rental payments are substantially equivalent to value of property renders lease conditional sale).
Greyhound, as the owner of the bus, is therefore liable as a matter of law for its negligent operation under and within the monetary limits of California Vehicle Code sections 17150-17151 (West 1971) (owner absolutely liable to limits of $15,000 per injury, $30,000 per accident).
For this reason, the judgment under review is reversed for further proceedings consistent herewith.
Affirmed in part, reversed in part.
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Liberty Mut. Ins. v. Elec. Sys., Inc., 813 F. Supp. 802 (S.D. Fla. 1993)…elected by application of the rule of § 145 determines whether one person is liable for the tort of another person.” Stallworth v. Hospitality Rentals, Inc., 515 So.2d 413, 416 (Fla. 1st Dist.Ct.App.1987); Ploor v. Greyhound Lines, Inc., 474 So.2d 1280, 1280 (Fla. 3d Dist.Ct.App.1985). Under Section 145, it appears that Florida law should apply. Alamo is a Florida corporation. It rented the car to Hill in Florida. Hill had been directed to work at an ESI construction site in Indian River Count…
Authorities Cited
- Althea G. Bishop and William J. Bishop, Sr. v. Fla. Specialty Paint Co., 389 So. 2d 999 (Fla. 1980)
- State Farm Mut. Auto. Ins. Co. v. Olsen, 406 So. 2d 1109 (Fla. 1981)
- Steele v. S. Truck Body Corp., 397 So. 2d 1209 (Fla. 2d DCA 1981)