Americar Rental System, Inc.-Damage to Rental Cars

B-261274 Jan 16, 1996 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights The issue is whether the driver committed willful or wanton negligence when he left the keys in the ignition and the engine running in an unattended vehicle that was stolen. The issue is whether the employee was under the influence of alcohol when he drove off the side of the road. The standard is controlled by the law of the state in which the conduct occurred. Both settlements are affirmed on the basis that there is insufficient evidence in the record to support the claims under either exception. Appeals two settlements by our Claims Group denying claims for damage to vehicles Americar rented to federal government employees who were authorized by their agencies to rent the vehicles incident to their temporary duty assignment. [1] The settlements are affirmed. View Decision Matter of: Americar Rental System, Inc.-Damage to Rental Cars File: B-261274 Date: January 16, 1996 A rental car company appeals settlements denying claims for reimbursement for damage to two vehicles rented by government employees on official business. Under terms of an agreement with the Military Traffic Management Command (applicable to most federal agencies), in renting cars to government employees, the rental company assumes all liability for the vehicles unless one of several specified exceptions apply, two of which the rental company seeks to apply in this case. In one claim, the issue is whether the driver committed willful or wanton negligence when he left the keys in the ignition and the engine running in an unattended vehicle that was stolen. In the other, the issue is whether the employee was under the influence of alcohol when he drove off the side of the road. In each case, the standard is controlled by the law of the state in which the conduct occurred. Both settlements are affirmed on the basis that there is insufficient evidence in the record to support the claims under either exception. DECISION Americar Rental System, Inc., of Madison, Alabama, appeals two settlements by our Claims Group denying claims for damage to vehicles Americar rented to federal government employees who were authorized by their agencies to rent the vehicles incident to their temporary duty assignment. [1] The settlements are affirmed. BACKGROUND In the first case, the vehicle was stolen after the employee, Junior D. Kerns, a civilian employee of the Department of Defense, left the keys in the ignition and the engine running when he went inside a convenience store in Huntsville, Alabama, to pay for gasoline. The vehicle eventually was recovered in damaged condition. Americar's $2,662.42 claim consists of $1,840.17 for repairs and $822.25 for lost rental revenue at $14.95 a day for the 55 days the car was missing or being repaired. In the second case, James G. Powers, then an employee of the National Aeronautics and Space Administration, ran off the side of a road returning to his motel after dinner at a friend's home near Huntsville, Alabama. The vehicle was a total loss. Mr. Powers asserts that the accident, which occurred at about 10:30 p.m., resulted from darkness and his temporary blindness caused by an approaching car's failure to dim its lights, and his unfamiliarity with the road, which he states went from four lanes to two lanes abruptly and without sufficient warning. Mr. Powers acknowledged having two beers between 5 p.m. and 6 p.m., prior to dinner, but asserts he was not under the influence of alcohol when the accident occurred. Mr. Powers's statement is supported by a statement from the friend at whose home he had spent the evening. Mr. Powers also states that he passed several field sobriety tests administered by the police at the accident scene, although the fact that these tests were administered is not noted on the police report. The police report includes a notation of alcohol, but gives no further explanation. Mr. Powers states that the notation was made because he told the policeman that he had consumed two beers earlier in the evening. According to the report, the investigating officer did not cite Mr. Powers for driving under the influence of alcohol. Americar's claim for this loss is $10,538.84, which includes the value of the vehicle (less salvage value), towing, and loss of use for 28 days. Both rentals are covered by the basic U.S. Government Car Rental Agreement, promulgated by the Military Traffic Management Command. Americar on August 28, 1992, accepted the terms of this agreement as covering its rental of cars to federal employees authorized to rent vehicles at government expense. [2] Paragraph 9a of the agreement provides in pertinent part as follows: "b. Loss of or Damage to Vehicle.