GAYLORD J. PERRY, AS PERSONAL REPRESENTATIVE OF THE ESTATE OF BLANCHE MANNING PERRY, DECEASED, APPELLANT,
v.
G.M.A.C. LEASING CORPORATION, APPELLEE

Fla. 2d DCA | 1989-07-21
No. 88-02208
RYDER, A.C.J., and THREADGILL, J., concur.
549 So. 2d 680 Florida District Court of Appeal, Second District (1989) Negative Treatment
Cited by 30 cases

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Holding

A statute exempting long-term lessors from owner liability under the dangerous instrumentality doctrine, provided certain insurance requirements are met, does not violate the right to access the courts.


Headnotes

[1] A statute requiring a long-term lessee of a motor vehicle to obtain specific insurance coverage and mandating that the lessor not be deemed the owner for financial respon…

[2] A statute exempting a long-term lessor from financial responsibility for a motor vehicle's operation, provided the lessee obtains specified insurance, does not cap damage…

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Facts & Procedural History

Plaintiff sued for wrongful death after a car accident, appealing a summary judgment for the defendant, who was the lessor of the vehicle. The lease w…

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Opinion of the Court
LEHAN, Judge.

LEHAN, Judge.

In this wrongful death suit plaintiff appeals a summary judgment in favor of defendant who was the lessor of the automobile, the negligent operation of which was the alleged cause of the damages claimed. The basis for the summary judgment was section 324.021(9)(b), Florida Statutes (1987), which provides:

Notwithstanding any other provision of the Florida Statutes or existing case law, the lessor, under an agreement to lease a motor vehicle for 1 year or longer which requires the lessee to obtain insurance acceptable to the lessor which contains limits not less than $100,000/$300,-000 bodily injury liability and $50,000 property damage liability; further, this subsection shall be applicable so long as the insurance required under such lease agreement remains in effect, shall not be deemed the owner of said motor vehicle for the purpose of determining financial responsibility for the operation of said motor vehicle or for the acts of the operator in connection therewith.

The lease was for five years, gave the lessee the option to purchase the vehicle at the end of the lease term, and required the lessee to obtain the insurance specified in the statute which, in fact, the lessee had obtained.

Plaintiff, citing Smith v. Dept. of Insurance, 507 So. 2d 1080 (Fla.1987), and Kluger v. White, 281 So. 2d 1 (Fla.1973), contends on appeal that section 324.021(9)(b) infringes upon his right to access to the courts in violation of article I, section 21 of the Florida Constitution by effectively placing a cap upon his damages and depriving him of his right to sue the lessor.

We affirm. Unlike the statutes involved in Smith and Kluger, section 324.021(9)(b) does not place a cap upon damages. It does not limit plaintiff’s right to recover damages from the lessee who controls the operation of the vehicle. Nor does it place a cap upon those damages. It essentially only mandates that a long-term lessor shall not under certain circumstances be deemed the owner of the motor vehicle for purposes of the dangerous instrumentality doctrine. Cf. Palmer v. Evans, 81 So. 2d 635 (Fla.1955).

Palmer applied a statute providing that a conditional vendor of a motor vehicle under certain circumstances is not the owner of the motor vehicle for purposes of the dangerous instrumentality doctrine. The similarity between conditional vendors and lessors is indicated by the following language in Palmer:

[T]he rationale of our cases which impose tort liability upon the owner of an automobile operated by another ... would not be served by extending the doctrine to one who holds mere naked legal title as security for payment of the purchase price. In such a titleholder, the authority over the use of the vehicle which reposes in the beneficial owner is ab-sent_ Moreover, in jurisdictions having statutes making the owner liable for the negligence of another driving his car with his consent, the term “owner” has been universally construed to eliminate those who hold nothing more than naked legal title.

Id. at 637.

While, as plaintiff argues, the lease also specifically provides that the “lessor remains the owner of the vehicle,” nonetheless the fact remains that the lessor retains no control over the operation of the motor vehicle.

Accordingly, the lessor has under the lease essentially no more than naked legal title which is all that the above-quoted portion of the lease, which is otherwise stated to be included for federal income tax purposes, recognizes. See also Lee v. Ford Motor Co., 595 F.Supp. 1114, 1116 (D.D.C.1984) (“[Tjhere is overwhelming precedent for the proposition that the person that holds legal title to a vehicle will not always be deemed to be the ‘owner’ under the Motor Vehicle Safety Responsibility Act. Instead, looking to the purpose of the Act, the courts ‘place the liability upon the person in a position ... to allow or prevent the use of the vehicle-’ ”).

Indeed, section 324.021(9)(b) may be viewed as enhancing the recoverability of damages from lessees by calling for minimum insurance requirements to be imposed upon lessees.

Furthermore, plaintiff has not shown, other than pointing to dicta in Racecon, Inc. v. Mead, 388 So. 2d 266 (Fla. 5th DCA 1980), that there ever was a common law right of action under the dangerous instrumentality doctrine in Florida against a long-term lessor of a motor vehicle. Mead involved “the sole question” of whether, notwithstanding the fact that section 627.-7263, Florida Statutes (Supp.1976), obligates a lessee to carry primary liability insurance, a lessor and lessee could contract for the lessor to provide such coverage. Id. at 266-68. Mead does not appear to have litigated the issue of whether a long-term lessor has, in contrast to a conditional vendor, a sufficient ownership interest for the purpose of the dangerous instrumentality doctrine.

Accordingly and contrary to plaintiffs argument, it may be concluded that he was not deprived of a right established under Florida law to sue a lessor in these circumstances because it does not appear that such a right had been established. That is, it appears that the parameters of the common law right of action against the owner of a motor vehicle under the dangerous instrumentality doctrine had not been fully established in Florida in this regard prior to the enactment of section 324.021(9)(b), and that that section established those parameters for the first time.

Affirmed.

RYDER, A.C.J., and THREADGILL, J., concur.


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Citator

Cited By (14 total)

  • Jacinto Abdala v. World Omni Leasing, Inc., 583 So. 2d 330 (Fla. 1991)
    …d its effect on long-term financing. By implication we recognized its viability. Limiting the liability of one vicariously liable does not equate to denial of access to court. On this issue we approve the holdings of Perry v. G.M.A.C. Leasing Cory., 549 So. 2d 680, 681 (Fla. 2d DCA 1989) (subsection 324.021(9)(b) “does not limit plaintiffs right to recover damages from the lessee who controls the operation of the vehicle. Nor does it place a cap upon those damages.”), review denied, 558 So. 2d 18 (Fla.1990),…
  • Kraemer v. Gen. Motors Acceptance Corp., 556 So. 2d 431 (Fla. 2d DCA 1989)
    …lieve the new definition of “owner” for purposes of legislative financial responsibility would subject GMAC to unlimited liability under the judicial doctrine of dangerous instrumentality. To the extent that dicta in Perry v. G.M.A.C. Leasing Corp., 549 So. 2d 680 (Fla. 2d DCA 1989), suggests a contrary result, I disagree. It is unnecessary at this time to determine what liability a lessor may have under financial responsibility if it fails to assure that the lesseé provides the required insurance coverage, b…
  • Folmar v. Young, 560 So. 2d 798 (Fla. 4th DCA 1990)
    …f article I, section 21 of the Florida Constitution, which provides for the right of access to the courts. Although several circuit courts have held that section 324.021(9) is unconstitutional, the Second District in Perry v. G.M.A.C. Leasing Corp., 549 So. 2d 680 (Fla. 2d DCA 1989), recently held that the statute was not unconstitutional. The reasoning of the court was that section 324.-021(9) does not place a cap on damages. It only mandates that a long-term lessor shall not under certain circumstances be d…

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