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Ruby vs. Budget Rent A Car
The New York State Court of Appeals declined to interfere with one of the highest
personal injury awards in New York State history, which was obtained by Kreindler & Kreindler
LLP on behalf of a seriously injured client. Two New York state appellate courts approved an award of nearly $20 million, after a jury had awarded more than $24 million. The affirmance of
such a high award is significant, because New York courts are activists in reducing high jury
awards, based upon a rule which requires they reduce awards which are not "reasonable." Most
other states only reduce jury awards which "shock the conscience", which makes it much more
difficult to overrule what a jury believes a plaintiff should be awarded. The final result includes
an award of $8 million for future pain and suffering, one of the highest amount ever approved by
a court on behalf of an injured plaintiff.
This victory was a result of meticulous preparation of the case before trial. Though juries
are often swayed by passion or sympathy, verdicts which are the result emotion rather than
evidence are easily targeted by higher courts. They key to success in this case was developing
facts and evidence so that the jury had a legitimate basis to adequately compensate a terribly
injured plaintiff.
On November 29, 2000, 25-year-old Ethan Ruby was walking in the cross-walk across
Delancey Street at Orchard Street on the lower east side of Manhattan, when the driver of a
Budget Rent A Car ran a red light and caused a collision which left him paralyzed. Ethan had
been a Division I baseball player at the University of Pennsylvania and had moved to New York
City upon graduation in 1997 to form a successful Wall Street trading firm.
Ethan turned to Kreindler & Kreindler LLP and partners Marc Moller and David Cook to
assist him in contending with what had suddenly become a very uncertain future. His future
medical and care expenses alone will likely exceed $5 million.
All too often, automobiles are under-insured in New York State, causing significant
problems for people injured in automobile accidents through no fault of their own. In Ethan
Ruby's case, he was an innocent pedestrian lawfully crossing the street with the traffic light in
his favor.
Relying on New York Vehicle and Traffic Law § 388, which created vicarious liability in
vehicle owners for the negligence of drivers, Kreindler & Kreindler LLP filed suit against
Budget Rent A Car, arguing that Budget was liable for the negligence of the driver to whom it
had rented the accident vehicle. New York's V.T.L. § 388 has a dual purpose; it is intended to
ensure that injured parties have recourse against a financially responsible owner, and also
encourages owners to exercise care when entrusting their vehicle to others. In Ethan Ruby's
case, the injuries were substantial, and it was critical to his future care and financial security to
have a financially viable defendant.
After extensive discovery on both liability and damages, and prior to trial, Budget Rent A
Car conceded liability. Efforts to settle the case were fruitless, with Budget offering less in
settlement than the jury ultimately awarded in future pain and suffering alone. After a 3 1⁄2 week
damages trial, the jury returned an award of $24.5 million, which included past and future
medical expenses of $5.5 million, lost of income of $4 million, and past and future pain and
suffering of $15 million. Upon post-trial motions, the trial court let stand the $3 million verdict
for past pain and suffering, but reduced the future pain and suffering award to $9 million, and
reduced future medical expenses by $1 million, and entered judgment for $20.3 million. The
First Department reinstated some of the trial court's reductions of the jury's verdict, but further
reduced the award for future pain and suffering to $8 million.
Subsequent to the litigation, the so-called "Graves Amendment," which ended vicarious
liability for car rental and leasing companies, was signed into law by President Bush. The
Graves Amendment was tucked into an otherwise non-controversial highway funding bill. The
constitutionality of the amendment is being challenged, and the final chapter of that book is not
yet written. In the meantime, the Graves Amendment has seriously undercut the ability of
seriously injured victims to meet their needs when the driver of a vehicle provided by a rental
company or leasing company is uninsured or underinsured.
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