Judge: Katherine Chilton, Case: 21STLC05944, Date: 2023-03-08 Tentative Ruling
Case Number: 21STLC05944 Hearing Date: March 8, 2023 Dept: 25
PROCEEDINGS: MOTION FOR SUMMARY JUDGMENT
MOVING PARTY: Defendant Fox Rent-A-Car
RESP. PARTY: Plaintiffs Tomesha Fowler, et al.
MOTION FOR SUMMARY JUDGMENT
(CCP § 437c)
TENTATIVE RULING:
The Motion for Summary Judgment filed
by Defendant Fox Rent-A-Car is GRANTED.
SERVICE:
[X] Proof of Service Timely
Filed (CRC 3.1300) OK
[X] Correct Address (CCP 1013,
1013a) OK
[X] 75/80 Day Lapse (CCP 12c
and 1005 (b)) OK
OPPOSITION: Filed
on February 14, 2023. [ ]
Late [ ] None
REPLY: Filed
on February 22, 2023. [ ]
Late [ ] None
ANALYSIS:
I.
Background
On August 12, 2021, Plaintiffs
Tomesha Fowler (“Fowler”) and Aman Robertson (“Robertson”), (collectively “Plaintiffs”),
filed an action against Defendants Clayton Watson (“Watson”), Marlana Dutton
(“Dutton”), and Fox Rent-A-Car (“Fox”), (collectively “Defendants”) for motor
vehicle and general negligence arising out of an alleged automobile accident
that took place on August 13, 2019.
On April 5, 2022, Defendant Fox
filed an Answer to the Complaint.
On October 24, 2022, Defendant Fox
filed the instant Motion for Summary Judgment (“Motion”). On December 29, 2022, Defendant Fox filed a
Notice of Non-Opposition to the Motion.
On January 9, 2023, the Court
continued the hearing on the Motion and requested that Defendant Fox verify
that Plaintiffs had been properly served with the moving papers. (1-9-23 Minute Order.) On January 31, 2023, Defendant Fox filed a
Supplemental Declaration of Crystal N. Le in support of its Motion.
On February 2 and 10, 2023, the
Court denied Plaintiffs’ Ex Parte Applications to Continue Hearing on the
Motion. (2-2-23 Minute Order; 2-10-23
Minute Order.)
On February 14, 2023, Plaintiffs
filed an Opposition to the Motion (“Opposition”). Defendant Fox filed a Reply on February 22,
2023.
On February 27, 2023, the Court, on
its own motion, continued the hearing on the Motion to March 8, 2023. (2-27-23 Minute Order.)
II.
Judicial Notice
According to Evidence Code § 452,
the Court may take judicial notice of matters that include records or rules of
another court and “facts or propositions that are not reasonably subject to
dispute and are capable of immediate and accurate determination by resort to
sources of reasonably indisputable accuracy.”
Here, Defendant submitted a Request
for Judicial Notice (“RJN”) on October 24, 2022, of the following documents:
1)
Plaintiff’s Complaint filed in the instant case;
2)
California Secretary of State, Statement of Information
for Fox Rent-A-Car, Inc.
On January 9, 2023, the Court found
that it is not necessary to take judicial notice of the Plaintiff’s Complaint
in the instant case. (1-9-23 Minute
Order.) Furthermore, the Court noted
that privately
prepared documents filed with the Secretary of State and not previously part of
the Court record are not subject to judicial notice, and neither is the truth
of its contents. (Ibid.; People
v. Thacker (1985) 175 Cal.App.3d 594, 598-99; Herrera v. Deutsche
National Trust Co. (2011) 196 Cal.App.4th 1366, 1375.) Accordingly, the Court DENIED Defendant’s
Request for Judicial Notice. (1-9-23
Minute Order.)
III.
Legal
Standard
A party seeking summary judgment has the burden of
producing evidentiary facts sufficient to entitle him/her to judgment as a
matter of law. (Code Civ. Proc. §
437c(c).) The moving party must make an
affirmative showing that he/she is entitled to judgment irrespective of whether
or not the opposing party files an opposition.
(Villa v. McFerren (1995) 35
Cal.App.4th 733, 742-743.) Thus,
“the initial burden is always on the moving party to make a prima facie showing
that there are no triable issues of material fact.” (Scalf
v. D. B. Log Homes, Inc. (2005) 128 Cal.App.4th 1510, 1519 (citing Aguilar v. Atlantic Richfield Co. (2001)
25 Cal.4th 826, 850.)
When a plaintiff seeks summary judgment, he/she must
produce admissible evidence on each element of each cause of action on which
judgment is sought. (Code Civ. Proc., §
437c(p)(1).) When a defendant seeks
summary judgment, he/she has the “burden of showing that a cause of action
has no merit if the party has shown that one or more elements of the cause of
action, even if not separately pleaded, cannot be established, or that there is
a complete defense to the cause of action.”
(Code of Civ. Proc. § 437c(p)(2).)
The opposing party on a motion for summary judgment is
under no evidentiary burden to produce rebuttal evidence until the moving party
meets his or her initial movant’s burden.
(Binder v. Aetna Life Insurance
Company (1999) 75 Cal.App.4th 832, 840.)
Once the initial movant’s burden is met, then the burden shifts to the
opposing party to show, with admissible evidence, that there is a triable issue
requiring the weighing procedures of trial.
(Code Civ. Proc. § 437c(p).) The
opposing party may not simply rely on his/her allegations to show a triable
issue but must present evidentiary facts that are substantial in nature and
rise beyond mere speculation. (Sangster v. Paetkau (1998)
68 Cal.App.4th 151, 162.) Summary
judgment must be granted “if all the evidence submitted, and ‘all inferences
reasonably deducible from the evidence’ and uncontradicted by other inferences
or evidence, show that there is no triable issue as to any material fact and
that the moving party is entitled to judgment as a matter of law.” (Adler
v. Manor Healthcare Corp. (1992) 7 Cal.App.4th 1110, 1119.)
As to any alternative request for summary adjudication of
issues, such alternative relief must be clearly set forth in the Notice of
Motion and the general burden-shifting rules apply but the issues upon which
summary adjudication may be sought are limited by statute. (Code Civ. Proc., § 437c(f)(1).) “A motion for summary adjudication shall be
granted only if it completely disposes of a cause of action, an affirmative
defense, a claim for damages, or an issue of duty.” (Ibid.)
IV.
Discussion
A.
Defendant Fox’s Motion for Summary Judgment
Defendant seeks a court order
granting summary judgment in its favor and against Plaintiffs “on the grounds
that there is no triable issue as to any material fact and Fox is entitled to
judgment as a matter of law.” (Mot p.
2.) Defendant Fox did not operate the vehicle
involved in the accident, did not employ Defendants Watson and Dutton, and did
not cause or contribute to the automobile accident at issue. (Ibid.) Defendant Fox is “engaged in the business of
renting and leasing vehicles to members of the public” and “is statutorily
immune from vicarious liability pursuant to Federal and State law.” (Ibid.)
Plaintiffs
assert two causes of action, one for “general negligence” and another for
“motor vehicle negligence” and state the same set of facts for both causes of
action as follows:
DEFENDANTS AND EACH OF THEM
NEGLIGENTLY, CARELESSLY, AND RECKLESSLY OWNED, OPERATED, ENTRUSTED, MAINTAINED,
AND DROVE THEIR VEHICLE IN SUCH A MANNER AS TO CAUSE AUTOMOBILE COLLISION WITH
VEHICLE OPERATED AND OCCUPIED BY PLAINTIFFS. THE COLLISION RESULTED IN PERSONAL
INJURIES TO PLAINTIFFS AND DAMAGES TO PLAINTIFF'S VEHICLE. PLAINTIFFS WERE
COMPELLED TO SEEK THE SERVICES OF PHYSICIANS FOR THEIR INJURIES, AND INCURRED
COSTS THEREFORE IN AMOUNT TO BE PROVEN AT TRIAL.
(Compl. p. 5.) Specifically, Defendants Clayton Watson and
Marlana Dutton were operating a motor vehicle, owned by Fox Rent-a-Car, that
was involved in a collision with Plaintiffs’ vehicle on August 13, 2019. (Ibid. at pp. 4-5.) As a result of the accident, Plaintiffs
sustained injuries, property damage, and other damages. (Ibid. at pp. 3-5.)
On
January 9, 2023, the Court continued the hearing on the Motion and ordered
Defendant Fox to provide the Court with proof that it had served Plaintiffs at
their counsel’s correct email address.
(1-9-23 Minute Order.) On January
31, 2023, Defendant filed Supplemental Declaration of Crystal N. Le providing
evidence that Plaintiffs have previously been served at the same email address
as the one they used to serve the moving papers. Plaintiffs’ counsel disputes that any
communication took place via the email address where Plaintiffs served the
moving papers. (Chukwudobe Decl. ¶¶
8-11.) However, at this time, Plaintiffs
have filed an Opposition to the Motion, thus, the Court finds that Plaintiffs
have received a copy of the moving papers.
Defendant submits the declaration
of Carrie Damico, “Senior Director of Training and Organizational Development,
which manages Defendant FOX’s employee and agent training and hiring, including
training and hiring policies for the rental office located at 2501 N. Hollywood
Way, Bob Hope Airport Car Rental, Burbank, CA 91505.” (Damico Decl. ¶ 1.) Damico has been employed by Defendant Fox for
nine years. (Ibid.) Damico states that Defendant Fox is a rental
car company that rents and leases motor vehicles to the general public. (Ibid.) One of Damico’s responsibilities includes
training employees who assist Fox’s customers in renting vehicles. (Ibid. at ¶ 2.) Employees who assist with renting vehicles
are trained “not to rent a vehicle to an individual who does not present a
facially valid driver’s license or who is or appears to be impaired or
otherwise unfit to safely operate a vehicle.”
(Ibid. at ¶ 3.) Employees
are trained to ensure that a renter’s driver license is “facially valid” and “to
observe potential signs of impairment, including diminished motor skills,
difficulty holding a conversation, and stumbling or difficulty walking,
regardless of whether this is as a result of drugs or alcohol.” (Ibid. at ¶ 3.) If a potential renter appears unfit to drive,
employees are trained not to rent a car to this person. (Ibid. at ¶ 3.) The same procedure is followed for additional
authorized drivers of a rented vehicle.
(Ibid. at ¶ 4.) According
to Fox’s records, on August 13, 2019, Defendant Clayton Watson rented a 2019
Mitsubishi Outlander from Fox’s rental office located at 2501 N. Hollywood Way,
Bob Hope Airport Car Rental, Burbank, CA.
(Ibid. at ¶ 6, Ex. A.)
Watson was assisted by rental agent Maria Rios Rodriguez (“Rodriguez”),
who received the training specified above.
(Ibid. at ¶¶ 2-3, 6.) Rodriguez
is no longer employed by Fox and cannot be located. (Ibid. at ¶ 2.) Rodriguez’s employee file indicates that she
was never observed to have failed to follow any of the proper procedures,
including inspecting a potential renter’s driver’s license or observing signs
of impairment. (Ibid. at ¶ 5.) Rodriguez followed all procedures because the
rental agreement lists information about Watson’s driver’s license and does not
contain any notes indicating that he was unfit to drive a car. (Ibid. at ¶ 6.) Rodriguez also assisted Defendant Marlana
Dutton in adding her as an additional driver.
(Ibid. at ¶ 7.) Dutton’s
driver license information is also listed and there are no notes indicating
that she was incapable of driving a car.
(Ibid. at ¶ 7.) Defendants
Watson and Dutton are not employees of Defendant Fox. (Ibid. at ¶ 8.)
Defendant Fox also submits Plaintiffs
Fowler and Robertson’s responses to its discovery requests. Defendant Fox indicates that Plaintiffs’
responses to the discovery show that they do not have any “facts to support a
claim that Defendants Clayton Watson and/or Marlana Dutton were employees,
agents, joint ventures, or principals of defendant FOX.” (Sep. St. ¶ 12, referring to Ex: D –
Fowler’s Responses to Form Interrogatories No. 20.2, Ex: H – Robertson’s
Responses to Form Interrogatories No. 20.2.)
Plaintiffs do not have any evidence, facts, or documents to show that
Defendant Fox caused or contributed to the accident. (Sep. St. ¶ 14, referring to Ex: D –
Fowler’s Responses to Form Interrogatories No. 20.2-20.11, Ex: H – Robertson’s
Responses to Form Interrogatories No. 20.2-20.11.) Moreover, Plaintiffs do not have any
evidence, facts, or documents to show that Defendant Fox negligently entrusted
the 2019 Mitsubishi Outlander to Defendants Watson and Dutton on or before the
accident. (Ibid.) Finally, Plaintiffs do not have any evidence,
facts, or documents to show that the Mitsubishi had any mechanical defect that
was a substantial factor in causing the accident. (Sep. St. ¶ 16, referring to Ex. D -
Fowler’s Responses to Form Interrogatories, No. 20.9; Ex. H – Robertson’s
Responses to Form Interrogatories, No. 20.9.)
Defendant Fox argues that
Plaintiffs cannot demonstrate that Defendant Fox owed a duty to Plaintiffs
because Fox “did not operate a motor vehicle involved in the subject accident,
did not employ Defendants Watson and Dutton at the time of the accident, and
did not cause or contribute to the subject accident.” (Mot. pp. 2, 11.) Furthermore, Plaintiffs do not have any
evidence or facts to show that Defendant Dutton was “an employee or agent of
Fox, or involved in a joint venture with Fox,” that “Fox negligently entrusted
the vehicle to Defendants Watson and Dutton,” “that Fox negligently serviced,
repaired, maintained, and/or inspected the vehicle driven by Defendant Dutton
at the time of the accident” or that “Fox caused or contributed to the subject
accident.” (Ibid. at
pp. 6-7, 12.) Moreover, the vehicle
did not have a mechanical defect. (Ibid.
at pp. 7, 12.)
Furthermore, Defendant Fox states
that Vehicle Code §§ 14604 and 14608 require a car rental agency to check a
potential rental customer’s driver’s license to ensure that it is facially
valid before entrusting a vehicle to the renter. (Ibid. at p. 12.) The rental records indicates that Defendants
Watson and Dutton presented facially valid driver’s licenses at the time they
rented vehicle and did not show any sign of being impaired or incapable of
driving a car. (Ibid.) Defendant Fox cites to Dodge Ctr. v.
Superior Court and other case law for the holding that in order to have a
claim of negligent entrustment against a car rental agency, the claimant must
show that the agency had “‘actual knowledge of facts showing or suggesting’
incompetence on the part of the driver.”
(Ibid.; Dodge, 199 Cal.App.3d 332, 341.) Here, rental agent Rodriguez’s notes do not
indicate that either Defendants Watson or Dutton were incapable or unfit to
operate a vehicle and Plaintiffs do not have evidence to show otherwise. (Ibid. at pp. 12-13.)
Finally, Defendant Fox argues that
pursuant to the federal Graves Amendment, 49 U.S.C.A § 30106, Fox, as a
rental car owner, “cannot be held vicariously liable for the negligent actions
of rental customers.” (Ibid. at
pp. 14-15.)
B.
Plaintiffs’ Opposition
Plaintiffs
oppose Defendant Fox’s Motion on the grounds that there are triable issues of
material fact and thus, the Motion should be denied. (Oppos. pp. 1-2.)
First, Plaintiffs argue that there
are triable issues of material fact as to whether the Rental Agreement covered
third parties that were injured as a result of the renters’ use of the
vehicle. (Oppos. p. 8.) Plaintiffs refer to Clause 5 of the Agreement
which states:
LIABILITY FOR DAMAGE OR INJURY TO
OTHERS: FOX is in full compliance with the financial requirements of the state
in which the vehicle is rented by either self -insuring or posting a cash
deposit. FOX's exposure for personal injury and property damage claims by third
parties is the minimum policy limits required by state law. No other insurance
or coverage are provided to Renter or any authorized driver by this Agreement
unless separately purchased at the time of rental. If valid automobile liability
insurance or self insurance is available on any basis to Renter and such
insurance or self insurance satisfies the applicable state motor vehicle
financial responsibility law, then FOX extends none of its motor vehicle
financial responsibility. To the fullest
extent permitted by law, Renter (and any authorized additional driver
designated in this contract) agrees to hold FOX, its agents, employees and
affiliates, harmless from any and all claims, losses, expenses and damages,
including reasonable attorneys’ fees, for injury or damage to persons or
property of any kind or nature whatsoever (including death resulting from such
injury), caused by, resulting from, arising out of, or occurring in connection
with the rental of the vehicle pursuant to this contract. Renter agrees to
cooperate fully in the investigation and defense of any accident claim or
lawsuit. Renter will defend and indemnify the renting location, holding them
harmless from all loss, liability, and expense of the coverages available under
the terms of this Agreement.
(Chukwudobe Decl. ¶¶ 3-4, Exs. A-B, Oppos. pp. 5-6.)
Plaintiffs state that Defendant Fox
knew that renters Watson and Dutton did not have any form of third party
liability insurance and admitted this information in their responses to
Plaintiffs’ Request for Admission, Set One.
(Chukwudobe Decl. ¶ 6, Ex. D.) The
Court notes that Defendant Fox has provided responses with objections,
nevertheless, admitting that Defendant Watson did not provide a copy of third
party liability insurance at the time of renting the vehicle, while Defendant
Fox was “in full compliance with the state’s financial requirements for the
2019 Mitsubishi Outlander.” (Ibid.)
Plaintiffs also submit letters from
Defendant Fox that state that Defendant Fox has “valid coverage,” is “self
insured,” and “only provide[s] min. coverage if the driver is at fault and only
if the driver has no policy of coverage.”
(Chukwudobe Decl. ¶¶ 5, 7, Exs. C, E.)
The letters indicate that “Fox is also not bound to coverage for
liability to uninsured and underinsured clients or PIP coverage or for med pay
coverages.” (Ibid.)
Plaintiffs argue that Fox is bound
by the Rental Agreement and is thus, liable to Plaintiffs for their injuries. (Oppos. p. 5.)
Plaintiffs
also argue that Fox is not immune from liability based on the exclusion
provision of the Graves Amendment, set forth in 49 U.S.C. § 30106(b)(1)(2), Insurance
Code § 11580.1b, and Vehicle Code § 16056.
(Ibid. at pp. 5, 9.)
Federal law does not preempt state laws that impose financial
responsibility or insurance standards on car rental companies and thus,
Defendant Fox is not exempt from the requirements imposed by California law. (Ibid.) Furthermore, the “Graves Amendment does not
preempt or invalidate contractual agreement between parties,” in this case the
Agreement between Fox and the renters Watson and Dutton. (Ibid. at p. 6.)
C.
Defendant Fox’s Reply
In its Reply, Defendant Fox
requests that the Court disregard Plaintiffs’ Opposition for failing to file
and serve it within 14 days of the hearing date on the Motion. (Reply p. 3.)
Plaintiffs have failed to file proof that the Opposition was served on
Defendant Fox and have delayed the filing of the Opposition despite having been
notified of the Motion “as early as December 29, 2022.” (Ibid. at pp. 4-5.) This delay has left Defendant Fox at a
disadvantage in preparing the instant Reply.
(Ibid.) Given that
Defendant Fox has filed a Reply and the hearing has been continued, the Court,
in its discretion considers the arguments presented in the Opposition. (Cal. Rules of Court, rule 3.1300(d).)
Defendant
Fox argues that the Motion should be granted as to Plaintiffs’ claims of
negligent ownership, operation, entrustment, and maintenance because Plaintiffs
cannot establish the elements of negligence as to Defendant Fox. (Ibid. at p. 6.) Plaintiffs have wrongfully cited to Vehicle
Code § 16056 which is irrelevant and “has no bearing on the issues on
liability of FOX” because it applies to “the effectiveness of a policy issued
by an insurance company in the event of an accident and proof of financial
responsibility for a nonresident driver whose driving privilege has been
suspended or revoked.” (Ibid. at
p. 6.) Pursuant to the Graves Amendment,
liability is imposed on a rental car agency as the owner of a vehicle if the
agency “committed an act of negligence or criminal wrongdoing.” (Ibid. at p. 7, citing to 49
U.S.C. § 30106(a)(2).)
Furthermore,
Plaintiffs wrongfully cite to the Insurance Code § 11580.1(b) and “focus on the
insurance and financial responsibility of FOX.”
(Ibid.) Section 11580.1(b)
does not provide a basis for liability and “merely states the limits and
provision of the issuance of an insurance policy for a motor vehicle.” (Ibid.) Fox argues that it has complied with its
financial responsibilities. (Ibid.) Referring to Plaintiffs’ Complaint that
alleges that Defendants “negligently, carelessly, and recklessly owned,
operated, entrusted, maintained, and drove” the vehicle and caused the
collision, Fox reiterates that it has not committed any “negligent acts or
criminal wrongdoing that amounts to the conduct that FOX would be liable for
under a Negligence cause of action.” (Ibid.
at p. 7.)
Defendant
Fox argues that “[e]xposure is not the same as ‘availability for coverage” and
the Rental Agreement clearly indicates that “the renter/driver is responsible
for any damages arising out of the operation of the rented vehicle.” (Ibid. at p. 8.) Fox states that Plaintiffs misrepresent its
communications which clearly state that the drivers’/renters’ own insurance is
primarily used to cover damage and Fox is only financially responsible if the
renter is at fault and does not have a policy of coverage. (Ibid. at p. 8.) Fox adds that Defendants Watson and Dutton
have yet to be served with the summons and complaint in the instant case. (Ibid.)
Finally,
Defendant Fox reiterates that under the Graves Amendment, Fox can be liable
only if it is established that it acted negligently or committed a criminal
wrongdoing. (Ibid. at p. 9.) There is no triable issue of fact regarding
Fox’s negligence or criminal wrongdoing.
(Ibid.)
D.
Analysis
Plaintiffs’
Complaint sets forth causes of action for motor vehicle and general negligence.
“The essential elements of a cause of action for negligence are: (1) the
defendant's legal duty of care toward the plaintiff; (2) the defendant's breach
of duty—the negligent act or omission; (3) injury to the plaintiff as a
result of the breach—proximate or legal cause; and (4) damage to the
plaintiff.” (Leyva v. Garcia
(2018) 20 Cal.App.5th 1095, 1103.) Owing
a duty of care to the plaintiff is an indispensable prerequisite to the
imposition of liability for negligence.
(Richards v. Stanley (1954) 43 Cal.2d 60, 63.) A duty is an “obligation, recognized by the
law, requiring the actor to conform to certain standard of conduct, for the
protection of others against unreasonable risks.” (Hilyar v. Union Ice Co. (1955) 45
Cal. 2d 30, 36-37.) Generally, an omission to perform a
contract obligation is not a tort, unless that omission is also an omission of
a legal duty. (Jones v. Kelly
(1929) 208 Cal. 251, 255.)
It is
undisputed that Defendant Fox did not drive or operate the vehicle. Furthermore, it is undisputed that it did not
“negligently, carelessly, and recklessly” own or maintain the vehicle, as no
defects are alleged. At issue is whether
Defendant Fox negligently entrusted the vehicle to Defendants Watson and
Dutton.
“‘California is one of the
several states [that] recognizes the liability of an automobile owner who has
entrusted a car to an incompetent, reckless, or inexperienced driver’…through
the tort of negligent
entrustment.’
[Citation.]” (McKenna v. Beesley
(2021) 67 Cal.App.5th 552, 565-66.) “Negligent entrustment is a common law liability doctrine, which arises
in numerous factual contexts. [Citation.] In cases involving negligent entrustment of a vehicle, liability
‘is imposed on [a] vehicle owner or permitter because of his own independent
negligence and not the negligence of the driver.’ [Citations.]” (Ghezavat v. Harris (2019) 40
Cal.App.5th 555, 559.) “’Liability for the negligence of the
incompetent driver to whom an automobile is entrusted does not arise out of the
relationship of the parties, but from the act of entrustment of the motor
vehicle, with permission to operate the same, to one whose incompetency,
inexperience, or recklessness is known or should have been known by the owner.’
[Citations.]” (Ibid.) The elements of negligent entrustment of a vehicle are as
follows: (1) the driver was negligent in operating the vehicle; (2) the
defendant owner owned the vehicle operated by the driver or had possession of
that vehicle with the defendant owner’s permission; (3) the defendant
owner knew, or should have known, the driver was incompetent or unfit to drive
the vehicle; (4) defendant owner permitted the driver to operate the vehicle
regardless; and (5) the driver’s incompetence or unfitness to drive was a
substantial factor in causing harm to the plaintiff. (McKenna, 67
Cal.App.5th at 566.)
Furthermore, pursuant to Vehicle
Code §§ 14604 and 14608, the duty imposed on the owner/renter of a vehicle is
“only to make a reasonable effort or inquiry to determine whether the
prospective driver possesses a valid driver's license before allowing him or
her to operate the owner's vehicle.” (Veh.
Code § 14604.)
Here, Defendant Fox presents
evidence that its rental agent followed all proper procedures and policies in
checking whether Defendants had facially valid driver’s licenses and observing
whether there were any signs that they were incapable of driving. Plaintiff has not presented any evidence to
the contrary to show that there is a triable issue of material fact regarding its
claim that Defendant Fox negligently entrusted the vehicle to the renters.
Plaintiffs base their arguments on the Rental Agreement’s provision
regarding Defendant Fox’s financial responsibility to third parties. They also rely on the Graves Amendment (49
U.S.C. § 30106(b)(1)(2)), Insurance Code § 11580.1(b), and Vehicle Code §
16056 in claiming that Defendant Fox is liable for their injuries and damages.
First,
Plaintiffs’ cause of action for negligence cannot be based on Defendant Fox’s
contractual obligations.
Second, Plaintiff does not
demonstrate how 49 U.S.C. § 30106 imposes liability on Defendant Fox. Section 30106 states as follows:
(a)
In
general - An owner of a motor vehicle that rents or leases the vehicle to a
person (or an affiliate of the owner) shall not be liable under the law of any
State or political subdivision thereof, by reason of being the owner of the
vehicle (or an affiliate of the owner), for harm to persons or property that
results or arises out of the use, operation, or possession of the vehicle
during the period of the rental or lease, if—
(1)
the
owner (or an affiliate of the owner) is engaged in the trade or business of
renting or leasing motor vehicles; ¿and
(2)
there
is no negligence or criminal wrongdoing on the part of the owner (or an
affiliate of the owner).
(b)
Financial
responsibility laws - Nothing in this section supersedes the law of any State
or political subdivision thereof—
(1)
imposing
financial responsibility or insurance standards on the owner of a motor vehicle
for the privilege of registering and operating a motor vehicle; ¿or
(2)
imposing
liability on business entities engaged in the trade or business of renting or
leasing motor vehicles for failure to meet the financial responsibility or liability
insurance requirements under State law.
Here, there is no dispute that Defendant
Fox is not liable under 49 U.S.C. § 30106(a) because it is in the business of
renting motor vehicles to the public and there is no proof of its negligent
conduct or criminal wrongdoing.
Moreover, there is no dispute that Defendant Fox met its financial
responsibility or liability insurance requirements under state law as it
contends that it maintains the required minimum policy limits. The Court also finds Plaintiffs’ arguments
regarding Insurance Code 11580.1(b) and Vehicle Code § 16056 do not demonstrate
that there is a triable issue of material fact regarding its causes of action
for general and motor vehicle negligence.
The sections cited by Plaintiffs pertain to California’s requirements
for maintaining insurance coverage.
Neither Plaintiffs, nor Defendant Fox dispute that Defendant Fox has
maintained insurance coverage in compliance with these state laws. The issue is whether Defendant Fox is liable
for the damages to Plaintiffs. However, once
again, Plaintiff does not show how these laws create a triable issue of
material fact as to any elements of negligence or negligent entrustment of the
vehicle to Defendants Watson and Dutton.
Accordingly,
the Court finds that Defendant Fox has met its burden of producing sufficient
evidence to show that there is no triable issue of material fact as to
Plaintiffs’ causes of action for general and motor vehicle negligence alleged
against Defendant Fox. Defendant Fox had
a duty to ensure that renters had facially valid driver’s licenses and did not
show any obvious signs of impairment; Defendant Fox contends that it complied
with this duty. In opposing the Motion,
Plaintiff has not presented any evidence to show that there is a triable issue
of material fact as to Defendant’s breach of this duty. Thus, the Court GRANTS Defendant Fox’s Motion
for Summary Judgment.
V.
Conclusion & Order
For the foregoing reasons,
The Motion for Summary Judgment filed
by Defendant Fox Rent-A-Car is GRANTED.
Moving party is
ordered to give notice.