Judgement-proof operators? Nowhere was it suggested that operators ought be judgement-proof. In fact, I suggested the exact opposite.
The issue is exactly one of lobbying. As the article notes, the auto insurance industry has successfully lobbied to pass the Graves Amendment, which nullifies vicarious liability for auto rental. The article mentions this, and you can read more here: http://codes.lp.findlaw.com/uscode/49/VI/A/301/I/30106
Car rental owners are shielded by this lobbied-for legislation. The only question is whether Ms. Fong will qualify as a rental agency for the purposes of this law.
This is precisely a case where an industry has lobbied for an exemption which may exclude others from competing in said industry. It is a textbook example of regulation preventing disruption of an established industry.
Judgment-proof in the sense that the operator has no assets with which to pay the judgment.
The operator here is liable. But if the operator has insufficient assets to satisfy the damages, the owner is a more sensible person to bear the costs of the accident than the injured party.
When a joint enterprise accidentally injures a third party, generally all possible outcomes are fundamentally unjust. That's what makes tort law interesting.
It appears you're suggesting a structure of a business, where the owner isn't leasing to an unrelated party. An employer is liable for the actions of his employees (even non-employee employees) through entirely separate and much more appropriate channels.
By "judgement-proof" I believe he meant that the operators probably don't have much money and therefore you could win a case against them, but you could not collect. This is contrasted with the owners of the hypothetical car rental firm that would have assets that could be taken.
The issue is exactly one of lobbying. As the article notes, the auto insurance industry has successfully lobbied to pass the Graves Amendment, which nullifies vicarious liability for auto rental. The article mentions this, and you can read more here: http://codes.lp.findlaw.com/uscode/49/VI/A/301/I/30106
Car rental owners are shielded by this lobbied-for legislation. The only question is whether Ms. Fong will qualify as a rental agency for the purposes of this law.
This is precisely a case where an industry has lobbied for an exemption which may exclude others from competing in said industry. It is a textbook example of regulation preventing disruption of an established industry.