PEOPLE, & C., BY DENNIS C. VACCO, & C., RESPONDENT, v. ALAMO RENT A CAR,
APPELLANT.
PEOPLE, & C., BY DENNIS C. VACCO, & C., RESPONDENT, v. BUDGET RENT A CAR
CORP., APPELLANT.
89 N.Y.2d 560, 678 N.E.2d 882, 656 N.Y.S.2d 196 (1997).
March 27, 1997
and six additional proceedings
People v. Hertz Corporation
People v. National Car Rental
People v. Avis Rent A Car
People v. Enterprise Rent
People v. Dollar Systems
People v. Thrifty Car
(Case Commentary by the Editorial Board)
1 No. 35 (1997 NY Int. 44)
Decided March 27, 1997
_________________________________________________________________
This opinion is uncorrected and subject to revision before publication
in the New York Reports.
Paul C. Saunders, for Appellants.
Thomas G. Conway, for Respondent.
KAYE, CHIEF JUDGE:
Directed at ending discrimination by car rental companies against
young drivers, General Business Law § 391-g specifies that it is
unlawful to refuse to rent motor vehicles to persons 18 or over solely
on the basis of age "provided that insurance coverage for persons of
such age is available." Is the New York Automobile Insurance Plan
"available" insurance coverage within the meaning of the statute? We
agree with the trial court and Appellate Division that claimed
shortcomings in NYAIP's coverage are of no consequence under General
Business Law § 391-g, or can be accommodated in the rental rates, and
that the Plan is indeed "available" insurance within the statute.
Appellants are car rental companies doing business in New York State
who refuse to rent cars to drivers under the age of 25. Some only
refuse to rent cars to drivers younger than 21. To the extent
appellants refuse to rent to these young drivers, they potentially run
afoul of General Business Law § 391-g ("Rental of motor vehicles;
discrimination on the basis of age prohibited") which states that:
SNIPPETS:
PEOPLE, & C., BY DENNIS C. VACCO, & C., RESPONDENT, v. ALAMO RENT A CAR,
Directed at ending discrimination by car rental companies against young drivers, General
Is the New York Automobile Insurance Plan "available" insurance coverage within the meaning
We agree with the trial court and Appellate Division that claimed shortcomings in NYAIP's
Appellants are car rental companies doing business in New York State who refuse to rent cars
"It shall be unlawful for any person, firm, partnership, association or corporation engaged
Before 1994, the Attorney General did not seek to enforce this statute against appellants,
NYAIP is the assigned risk plan approved by the Superintendent of Insurance for the equitable
Under NYAIP, the available coverage includes bodily injury liability coverage, up to $250,000
NYAIP does not provide coverage for physical damage to the vehicles.
On the theory that NYAIP was available insurance under General Business Law § 391-g, in 1994
They also argue that NYAIP does not provide coverage for physical damage to vehicles, which
Urging that Section 391-g is ambiguous, appellants point us to the legislative history, which
This can result in severe hardship to competent drivers who are as safe and as reliable as
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