Budget Loses Vicarious Liability Case in N.Y.
NEW YORK -- The New York State Supreme Court has ruled against Budget Rent A Car and upheld a $20.3 million award in a vicarious liability case arising from a Nov. 29, 2000, accident in lower Ma...
NEW YORK -- The New York State Supreme Court has ruled against Budget Rent A Car and upheld a $20.3 million award in a vicarious liability case arising from a Nov. 29, 2000, accident in lower Manhattan that left a man paralyzed.
The judgment follows a year of post-trial challenges by Budget to overturn or reduce the $24.5 million that a jury awarded the plaintiff, Ethan Ruby, in Dec. 2003. The Supreme Court reduced the judgment from $24.5 million to $20.3 million, ruling that Ruby's attorneys failed to establish a need for some of the tests and medical treatments that they factored into Ruby's future healthcare expenses.
According to court testimony, the accident occurred after the driver of a Budget rental car ran a red light and collided with a van that careened into the crosswalk at Delancy and Orchard streets, where Ruby was legally crossing the street on foot.
New York state law stipulates that car rental companies, as owners of their vehicles, are liable for their customers' negligence in accidents involving injury or death to a third party. The $20.3 million award takes into account Ruby's loss of earnings, medical costs, and pain and suffering. At the time of the accident, Ruby was 25.
More Rental Operations

Rental Car Fleet Sales Show Mid-Year Strength
June gains ensured rental fleets closed out the first half of 2026 in positive territory.
Read More →
Surprice Mobility Opens Corporate Rental Station at Milan Malpensa Airport
The Milan opening is part of Surprice Mobility's broader strategy to expand its corporate operations while increasing the use of technology across its network.
Read More →
Brazilian Executive MBA Targets Growing Domestic Rental Car Industry
Rental car companies face a unique combination of challenges that are rarely addressed in traditional programs.
Read More →
Green Motion Expands Into Japan With Master Franchise Agreement
Japan's tourism industry, business travel market, and demand for vehicle rental services are reasons the country represents an important market for the company.
Read More →
ACRA Carrying Fuller Industry Load As AI and EVs Lurk In Future
The leading car rental professional business group details an active legislative, regulatory, and macro-trends agenda affecting car rental operators.
Read More →
World Cup Travel Data Shows Longer Car Rentals and More One-Ways
A recent analysis of FIFA bookings found varied demand patterns that influenced rental car pricing.
Read More →
A Leveling Force: AI Morphs Into A Rental Car Profit-Seeker
Revenue managers can’t match the emerging AI tools gobbling lots of data that could counter the competitive race to the rate bottom.
Read More →Stop Losing Money On Rental Tolls
Regardless of your rental fleet size and structure, fleet managers, executives, and owners can gain valuable insights into an often-overlooked area of fleet operations.
Read More →
Rethink The Future To Avert A Race To The Bottom
Rental car operators heard a sobering industry message and a stern challenge at the close of the International Car Rental Show.
Read More →
DriveItAway, Free2move Plan Shared Fleet Program for Independent Rental Fleet Operators
Vehicles would be placed with participating rental operations to support car renter demand and provide additional fleet capacity.
Read More →
