Automobile Leasing & Rental, Inc. v. Thomas
| Decision Date | 25 April 1984 |
| Docket Number | No. 14474,14474 |
| Citation | 679 P.2d 1269,100 Nev. 261 |
| Parties | AUTOMOBILE LEASING & RENTAL, INC., d/b/a Americar Rental Systems, Appellant, v. Virginia THOMAS, Respondent. |
| Court | Nevada Supreme Court |
This is an appeal from a summary judgment in favor of a car rental customer against the rental agency. The controversy turns on a reading of the rental contract as it relates to liability for damage to the rented car resulting from a collision.
Appellant, Americar Rental Systems, claims that Thomas is responsible under the contract for damage caused to the rental vehicle by her negligence. Thomas claims that as a matter of law the contract relieves her of any liability for damage to the vehicle.
In August of 1981, Virginia Thomas traveled to Las Vegas, Nevada on vacation from Hattesburg, Mississippi. While in Las Vegas Thomas rented a Ford LTD automobile from Americar. The lease agreement that Thomas signed provided the renter with the option of purchasing a collision damage waiver provision by which the lessor would waive all liability claims against the renter provided that the car was "used in conformity with [the] rental agreement." Thomas purchased this option and was subsequently involved in an accident when her car was struck from behind while making a left turn. Thomas was cited for making a turn from an improper position.
Americar's main argument is that the waiver of claims for collision is not operative because Thomas did not use it "in conformity with rental agreement." On the reverse side of the lease the agreement provides that the vehicle must be returned "in the same condition as when received" and that it should not be used in an "unlawful manner." Since the damaged vehicle was obviously not returned in its original condition and since Thomas was cited for violating a turn ordinance, Americar contends that Thomas' rental use was not in conformity with the agreement, thereby nullifying the collision damage waiver. We find these contentions to be strained and rule that the district court was correct in deciding as a matter of law that Thomas was entitled to the benefits of the waiver.
Americar's position is that the "unlawful manner" language should be read to mean that a renter is responsible for negligently caused damage to the vehicle and that the waiver provision...
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