Sage Rent-A-Car, Inc.: Case Study

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DISTRICT COURT STATE OF OHIO NO. CIV. 01-388 JANE WHITE Plaintiff, v. JEFFREY CAULKIN Defendant, v. SAGE RENT-A-CAR, INC. BRIEF IN SUPPORT OF MOTION TO DISMISS QUESTION PRESENTED Under Civil Rule 12(b)(6), Whether a self-insured lessor can still be liable for a lessee’s negligence in an automobile accident? STATEMENT OF CASE Our client, Sage Rent-A-Car, Inc. filed a surety bond with the Registrar of Motor Vehicles and is self-insured under R.C. 4509.72. Sage Rent-A-Car leased a vehicle to Mr. Jeffery Calkin. Mr. Calkin failed to abide by a stop sign, and collided with Ms. Jane White. Ms. White filed a complaint. ARGUMENT Ms. White cannot establish…show more content…
Metro. Prop. & Cas. Ins. James Ralston arrived at the airport in Pittsburgh with his coworker, who rented a car from National. The rental agreement categorized a fellow employee who drives the vehicle for business purposes as an authorized driver. The agreement explained that collision insurance could be purchased as an option. It then disclosed that liability insurance would be provided automatically to the authorized driver up to the minimum limits of liability required in the state of the accident. Under this same disclosure, the agreement stated that uninsured, underinsured, and no-fault coverages are not provided unless they are required to be provided by applicable law and cannot be…show more content…
It provided liability coverage to authorized drivers of its vehicles. This coverage was automatic. There was not a separate charge as there was for other coverages such as collision. Self-insured entities informing drivers that they will be covered up to the minimum limits required by the state of the accident do not convert themselves into liability insurers that sell or issue insurance policies and that must comply with the mandatory offering laws. Accordingly, National was not required to offer underinsured motorist coverage to drivers under the self-insured statute, which requires only self-insurers to provide uninsured motorist coverage. Further, under its rental agreement, National was required to provide underinsured motorist coverage only if the vehicle was involved in an accident in a state that had mandatory underinsured motorist coverage that could not be rejected by any means. In Ohio, the coverage is rejectable. In accordance, the trial court properly granted summary judgment in favor of National and against Metropolitan. Estate of Ralston v. Metro.Prop.&Cas.Ins146 Ohio App.3d 630 (2001) 2001-Ohio-3478 In our case, just as in Estate of Ralston, Sage Rent-A Car was self-insured under the provisions of R.C.4509.62, and R.C.4509.72 (a)(b), excluding them from liability. Our client attained the self-insured status as did the rental car company did in the Estate of Ralston case, which permits exemption from liability under
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