Auto Insurance Claims: Liability after sale, liability for previously owned vehicle in a crash

Question
We sold a truck in New York.  Forgot to remove plates and surrender them to the dmv.  We did sign the title over to the new owner and filled their name in on it and made a photo copy of it showing that.  If it is still registered in our name and he has not transferred new title yet, are we still liable for any damage it can cause by the new owner?

Answer
Jim,

  There is what they call "titled owner" and "equitable" owner.  Essentially, if you didn't fill out the proper DMV forms and follow their procedure you could still be the "titled owner" for technical purposes, but for all practical purposes, you aren't the "equitable" owner and it is simple to produce a notarized affidavit of fact that identifies the vehicle, information on the person that bought it, and the date and time the equitable ownership changed.  Affidavits are good evidence in court, and if you didn't own (equitably) the vehicle or have any power over how or who used it, then it is almost impossible to hold you liable for damages caused by the negligent operation of the sold vehicle.  Creating the affidavit (sworn statement) and producing it for anybody that is alleging you are liable for the negligent operation of the vehicle should get you out of the loop unless you have just made somebody mad and they are trying to cause you some hassle.  It is generally not worth the time to sue somebody if it is known that they will allege that the vehicle was sold.  The problem occurs when the "seller" is lying, or won't cooperate and either didn't really sell the vehicle, or refuses to provide information on the new owner.  Normally if that is the case, there will be a suit to flush out the new owner information or prove there is no new owner.  

  Although I've seen it argued many time that owners are liable for damages caused by a vehicle still titled in their name (by error or omission), I have never personally seen or handled a case where a plaintiff was able to convince a jury that a defendant (that didn't really own a vehicle) was liable for a collision simply because the vehicle was still registered to the defendant, even if it is was the defendant's fault for not attending to the proper paperwork.  I guess it could happen, but it would take a creative attorney, in my opinion.  Affidavit, that's your answer.

JP