A potential client recently visited with me regarding an interesting issue he’s dealing with.
This man rented a vehicle from a national vehicle rental company because his personal vehicle needed some repair work. The repair shop, his insurance carrier, and the car rental company all share a building. The man signed the standard rental contract, and drove the vehicle until his car was repaired. The repair shop finished the fixes, and the man returned the vehicle the vehicle to the rental company.
When this gentleman arrived at the car rental company, no employees were present to accept the vehicle. A worker from the repair shop said they accept returns for the rental company all the time, and took the vehicle’s keys. The man paid his repair bill and left.
A few hours later, the rental company called to notify him that they found damage to the vehicle, and he would be required to pay the repairs. The man was rightfully upset when he got the repair bill, and sought our services.
I examined his contract and discovered an unknown (unheard of/unconscionable?) clause that placed all liability for damages onto the man if he returned the vehicle, without an employee inspection, after hours or to any other location except one 5 miles from the rental facility.
When I explained this provision, and the man’s breach of the contract, he was perplexed. "How come they wouldn’t tell me that I had to return it to another location," he asked. The simple fact is, they don’t have to because you’re supposed to have read that, realized the provision existed, and asked questions if you don’t understand.
He assumed, as I would have, that he’d be able to return the vehicle to the rental location, and relieve his liability. Thankfully for this man, the cost for this "lesson" aren’t terribly great. Unfortunately for the man, he has an added expense, which if disclosed originally, would never have happened.
So, the moral is:
- Read and understand everything you’re given.
- Verify that the location you’re renting at is also the location you’ll return to to relieve your liability.
Just by way of curiosity, were you aware of that provision? I wasn’t, and neither were 5 other attorneys I’ve talked to.
