ESQ HQNEW YORK LAW WATCH

Appellate Division, Fourth Department · July 24, 2026 · 2026 NY Slip Op 04592

The Graves Amendment does not protect a dealership that lent a courtesy car for free

O’Hare v Eddo

Read the official decision: 2026 NY Slip Op 04592

Holding The Graves Amendment does not preempt state vicarious liability claims against a car dealership that provides a courtesy vehicle free of charge to a customer. Because the dealership did not receive payment for the use of the vehicle, it did not ‘rent’ the vehicle within the ordinary meaning of the federal statute.

Why it matters

Clarifies the scope of the Graves Amendment in New York, specifically rejecting the broader ‘consideration’ interpretation used in other jurisdictions like the 11th Circuit and Massachusetts.

The court’s words

an owner must receive payment for the use of the vehicle to meet that statutory condition

2026 NY Slip Op 04592, at the official text

preemption clauses in a statute are to be narrowly construed and that matters beyond their scope are not preempted

2026 NY Slip Op 04592, at the official text

a reasonable reader competent in English would not contemplate that dropping a vehicle off for service and obtaining a complimentary loaner vehicle [free of charge, even if the car dealership receives incentive payments from the manufacturer for providing the courtesy vehicle] constitutes a . . . rental situation

2026 NY Slip Op 04592, at the official text
CourtAppellate Division, Fourth Department
DecidedJuly 24, 2026
Citation2026 NY Slip Op 04592
Area of lawPersonal Injury and Negligence
WeekWeek ending July 25, 2026
Official textOfficial decision: 2026 NY Slip Op 04592
Publication statusSlip opinions are uncorrected and subject to revision before publication in the Official Reports.
Source feedNew York slip opinion page
Law Watch record id352

Same court and area in the last 180 days

Recommended citation

ESQ HQ, New York Law Watch, O’Hare v Eddo, 2026 NY Slip Op 04592 (Appellate Division, Fourth Department, July 24, 2026), https://esqhq.com/decisions/2026-ny-slip-op-04592/

How this record was made

Holding drafted by Law Watch’s in-house model, graded by three reviewers; every quotation verified word for word against the official text.

Read how Law Watch works

Featured by Eric McAvey, November 14, 2026.

Published July 24, 2026. Updated November 14, 2026.