Supreme Court of New Jersey
Li Fu and Xiao Kang Su, Wife & Husband, Plaintiffs-Appellants, and Daniel Su, an Infant, by His Parents and Natural…
July 26, 1999160 N.J. 108
Summary
The Supreme Court of New Jersey held that New York’s Section 388 of the Vehicle and Traffic Law governs the vicarious liability of the rental‑car owner for the permissive driver, reversing the Appellate Division and remanding for further proceedings. The Court applied New Jersey’s governmental‑interest choice‑of‑law test and concluded that New York’s compensation and deterrence policies outweigh New Jersey’s interest in shielding owners. Justice Pollock dissented, arguing that New Jersey’s common‑law rule should control.