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Benson v. Webster

4/28/1999

No. 63


Appeal from the Iowa District Court for Dubuque County, William G. Klotzbach, Judge.


Appeal and cross appeal in personal injury and property damage action. AFFIRMED IN PART AND REVERSED IN PART.


The issues we must consider in this case mainly involve the extent of liability of a car rental company and a lessee for the negligence of the driver of a rental car who did not have the consent of either the rental company or the lessee to operate the vehicle. We affirm in part and reverse in part the judgment of the district court.


I. Background facts and proceedings.


On January 2, 1993, defendant Rhonda Smothers rented an automobile from Mike Finnin Rental Cars in Dubuque, Iowa. The rental form agreement included a place to list the names of the persons authorized to drive the vehicle. In this space were written the words "Authorized persons only" and the numeral "21." At another place the agreement stated, "IMPORTANT! THIS VEHICLE MAY NOT BE USED OR DRIVEN BY ANYONE UNDER 21." The agreement also contained a provision stating that the renter of the vehicle "will not permit the car to be driven except by licensed drivers in my immediate family or an authorized driver" as named on the front of the form. Smothers intended to rent the vehicle for only one day, but later called Finnin Rental and had the rental agreement extended to January 5.


On the morning of January 5, Smothers asked her live-in boyfriend, Mario Wilcox, age eighteen, to return the vehicle to Finnin Rental and Wilcox agreed. Smothers gave Wilcox the keys to the vehicle, but did not actually see him drive the vehicle away. Smothers did not recall whether she gave Wilcox any special instructions or conditions regarding the use of the vehicle.


Unknown to Smothers, however, Wilcox asked another person, Christian Carl Webster, age seventeen, to return the vehicle to the rental agency and Webster agreed. Wilcox was to follow Webster to Finnin Rental in another vehicle. Smothers did not know Webster and had never met him. Both Wilcox and Webster were obviously under age twenty-one on that day.


At approximately 7:00 that morning, Webster was driving the vehicle to the rental agency when he rear-ended an auto being driven by plaintiff, Laura Benson, that was stopped at a stoplight in Dubuque. The force of the collision pushed Benson's vehicle into the intersection, striking another vehicle that was turning into the intersection. Plaintiff Benson's vehicle was a total loss.


Webster did not stop after the accident and was eventually issued citations by the police for failing to maintain control of his vehicle, failure to identify and failure to render aid at a personal injury accident.


Laura Benson was taken by ambulance to a local hospital where she was examined for her injuries and released to go home.


At the time of the accident, Laura was employed at a restaurant where she performed maintenance duties and was also employed as a cashier at a convenience store. Laura had no prior health problems other than allergies prior to the accident.


Laura was unable to work the day following the accident due to pain and soreness in her back and neck and tingling in her hands. She never returned to either of her jobs following the accident.


As a result of the injuries sustained in the accident, Laura and her husband, Robert, filed a petition in district court, naming as defendants, Mike Finnin Rental Cars, Inc., the owner of the vehicle, Smothers, the lessee of the vehicle, and Webster, the driver. Plaintiff Laura Benson sought recovery for personal injuries, medical expenses, loss of earning

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