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Ashe v. Enterprise Rent-A-Car12/17/2003
Reporter of Decisions
Argued: October 16, 2003
Richard Ashe appeals from a summary judgment entered in the Superior Court (Androscoggin County, Delahanty, J.) in favor of defendants Enterprise Rent-A-Car and The Travelers Indemnity Company. Ashe was injured in 1994 while riding as a passenger in a rental car owned by Enterprise. After settling with the driver and obtaining an uncontested damages judgment, Ashe seeks to recover the remainder of his damages from Enterprise or its surety, Travelers. Although by statute and the common law, a passenger does not have a right of action against a rental company, Ashe contends that two statutes, 29 M.R.S.A. § 2708-A (requiring insurance coverage or a bond on rental vehicles), and 24-A M.R.S.A. § 2904 (2000) (the "reach and apply" statute), authorize his recovery. We affirm the judgment.
I. CASE HISTORY
In 1994, Ashe was injured in a single car accident while riding as a passenger in a car rented and driven by Matthew Moore, and owned by Enterprise. The rental agreement between Moore and Enterprise stated that Enterprise did not provide bodily injury and property damage insurance coverage for the rental car, and that the renter's insurance applied. Moore had his own auto policy with a single injury limit of $20,000.
Ashe brought suit against Moore in Superior Court. Moore stipulated to his liability and consented to entry of judgment against him in an amount to be determined by the court. Moore's insurer agreed to pay Ashe the liability limits under Moore's policy, and Ashe agreed not to pursue additional recovery from Moore's personal assets. Moore also assigned to Ashe his rights, if any, against Enterprise and Travelers.
Moore did not appear at the damages hearing or otherwise contest Ashe's damages claims. The court (Sagadahoc County, Bradford, A.R.J.) entered judgment in favor of Ashe for $319,618.29, plus costs and interest. Ashe then initiated this action against Enterprise and Travelers to seek recovery of the remainder of the judgment obtained against Moore.
Enterprise had provided a bond to the Secretary of State as proof of financial responsibility for its rental cars, as required by 29 M.S.R.A. § 2708-A. Travelers had issued the bond. Ashe's complaint, in two counts, seeks recovery from the bond proceeds under the reach and apply statute and directly against the bond.
The parties filed cross-motions for summary judgment. The court entered summary judgment in favor of Enterprise, determining that a passenger in a rental vehicle has no cause of action against the rental company, and in favor of Travelers, determining that there is no recovery on the bond without liability against the principal. Ashe then brought this appeal.
II. STANDARD OF REVIEW
The facts in this case are not in dispute. The case presents questions of statutory interpretation, which are legal issues subject to de novo review. State v. Bjorkaryd-Bradbury, 2002 ME 44, 9, 792 A.2d 1082, 1084. When interpreting a statute, our objective is to give effect to the Legislature's intent. Id. To determine that intent, we first look to the statute's plain meaning. Id. If there is no ambiguity, we do not examine legislative history. See id. If ambiguity exists, we look beyond the statutory language to its legislative history. Id. We also consider the whole statutory scheme of which the section at issue forms a part, so that a harmonious result, presumably the intent of the Legislature, may be achieved. Guaranty Fund Mgmt. Servs. v. Workers' Comp. Bd., 678 A.2d 578, 581 (Me. 1996).
III. LEGAL ANALYSIS
A. Mandatory Coverage and th
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