Working with an international coalition, the Association of International Automobile Manufacturers of Canada is cautiously optimistic that Bill 35  will become law to address the issue of  vicarious liability for vehicle lessors and renters.    Other provinces and jurisdictions have already taken action to eliminate this kind of antiquated law that threatens to drive up the cost of leasing or renting a vehicle for consumers.  Eliminating vicarious liability for vehicle leases and rentals is an issue of fairness, common sense and of putting responsibility where it belongs, with the operator of a vehicle who causes an accident.

B.C.'s  vicarious liability law for vehicles dates back to the days when many people with cars were driven by chauffeurs. . It was introduced so that the owner of the vehicle, the person being driven by the chauffeur, could be held liable in an accident, not just the hired driver.  This is certainly not the reality of modern vehicle leasing today.

In today's world, where consumers rely on leasing as an affordable means of acquiring new vehicles, the current law means that when an individual leases or rents a vehicle and that driver gets into an accident, the leasing or rental company can be found liable, held accountable, and sued for damages despite the fact that the company has no control over the vehicle's care, control or operation.  For example, if a street racer causes an accident, the driver is liable if he owns the vehicle. If the same street racer causes an accident in a leased or rented vehicle, then the finance company that leased the vehicle or rental company is liable along with the driver.

Many jurisdictions across North America have already recognized the inherent unfairness of this outdated legislation and have taken actions to eliminate it.  In March  2006, the Province of Ontario, effectively eliminated vicarious liability, while in August 2005, the United States passed federal legislation to eliminate vicarious liability.

Vehicle leasing and vehicle rentals represent an increasingly important means of providing transportation for a large number of consumers, including tourists. We are hopeful that the BC government will pass Bil 35 – to change a law that no longer makes sense, to follow the rest of North America.