U-Save Auto Rental

B-270916 Sep 13, 1996 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Which was stolen through no fault of the employee. The company was not a party to the U.S. Is determined under the law of bailments. As modified by the rental contract which in this case places liability on the customer for all "missing equipment" and "loss" to the vehicle "regardless of whether customer is at fault. DECISION This action is in response to a request for an advance decision whether the U.S. Was authorized to travel on temporary duty from his official duty station. A reservation for a rental car was made for him with the Thrifty Car Rental Company in Tucson. Which did have one for him. The day he was scheduled to return to Mechanicsburg. Eslinger reports that he drove the car to the hotel where he was lodging and at which a conference he was to attend was being held. View Decision Matter of: U-Save Auto Rental File: B-270916 Date: September 13, 1996 A car rental company filed a claim against an agency for the value of a car and loss of use of the car at the daily rental rate, for a car rented by a government employee on official travel, which was stolen through no fault of the employee. The company was not a party to the U.S. Government Car Rental Agreement which places risk of loss by theft on the company. Therefore, the employee's liability, for which the agency may pay, is determined under the law of bailments, as modified by the rental contract which in this case places liability on the customer for all "missing equipment" and "loss" to the vehicle "regardless of whether customer is at fault," but makes no provision for continuing to charge the daily rental fee after the customer no longer has possession of the car. Accordingly, the agency may pay the claim for the value of the vehicle, but it may not pay the claim for the continuing daily rental fee for loss of use of the vehicle. DECISION This action is in response to a request for an advance decision whether the U.S. Navy may pay a claim by U-Save Auto Rental, Tucson, Arizona, for an automobile stolen while rented to a Navy employee on temporary duty. [1] As explained below, the Navy may make payment on the claim for the value of the automobile but not for amounts claimed for loss of use of the vehicle. Background By travel orders issued September 6, 1995, Mr. Jeffrey E. Eslinger, a Navy civilian employee, was authorized to travel on temporary duty from his official duty station, the Naval Ordnance Center, Mechanicsburg, Pennsylvania, to attend a meeting in Tucson, Arizona, and return. The orders authorized him to use a rental car while in Tucson. Apparently, prior to Mr. Eslinger's departure, a reservation for a rental car was made for him with the Thrifty Car Rental Company in Tucson. He states, however, that when he arrived in Tucson on September 11, 1995, the Thrifty representative told him that because of a golf tournament and a convention then taking place, they had no cars available, but they had contacted another rental agency, U-Save Auto Rental, which did have one for him. Accordingly, Mr. Eslinger rented a car from U-Save. In doing so, he necessarily signed U-Save's rental contract, declining collision damage waiver coverage, and indicating that he would return the car on September 14, the day he was scheduled to return to Mechanicsburg. Mr. Eslinger reports that he drove the car to the hotel where he was lodging and at which a conference he was to attend was being held. He states that he parked the car in the hotel's parking lot, locked it, and retained the keys. When he returned to the parking lot the next evening to use the car, he discovered that it was missing. He then asked a hotel security officer to assist him in looking around the parking lot for the car. Mr. Eslinger states that they were unable to locate the car, but they did find broken glass in the space where he had parked the car, which he believes indicates that a thief had broken into it. He promptly notified the police, and a copy of the police report is in the file. Mr. Eslinger states that he notified U-Save the following morning since their office had already closed the prior evening when he discovered the car missing. He also telephoned his supervisor in Mechanicsburg and advised him of the situation and that it would be necessary to rent another car until completion of his temporary duty. Mr. Eslinger returned to Mechanicsburg on September 14, and he filed a written report of the matter along with his travel voucher on September 18. No negligence on Mr. Eslinger's part has been alleged regarding the theft of the car, and the record indicates none. Apparently, the car has not been recovered. Subsequently, U-Save filed a claim with the agency for the value of the stolen car, which U-Save stated to be $13,430.00, plus loss of use of the vehicle at $22.00 per day (the daily rate charged for rental of the car under the contract) until settlement of the claim.