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Budget Rent-A-Car Systems Inc. v. Coffin8/30/1996
OPINION OF THE COURT BY MOON, C.J.
In this declaratory judgment action, plaintiff-appellant Budget Rent-A-Car Systems, Inc. (Budget) appeals from the Third Circuit Court's order granting summary judgment in favor of defendant and third-party plaintiff-appellee Constance Coffin. On appeal, Budget argues that the circuit court erred in granting summary judgment in favor of Coffin based on its Conclusion that a use limitation provision in Budget's car rental contract with Coffin, prohibiting the use of its rental vehicle on, inter alia, Saddle Road on the island of Hawai'i [hereinafter use limitation provision], was void as being against public policy. For the following reasons, we vacate the circuit court's order granting summary judgment in favor of Coffin and remand for the entry of an order granting summary judgment in favor of Budget.
I. BACKGROUND
The facts on appeal are undisputed. The circuit court made the following findings of fact:
1. There are no questions of material fact.
2. On November 19, 1992, Defendant Constance Coffin rented from Budget Rent A Car Systems Inc. a 1992 Ford Mustang with Hawaii's License Plate No. ERU 777 [hereinafter the rental vehicle].
3. The Rental Contract signed by Coffin contains on the front page, the language "driving on Saddle Road and Waipio Valley Access Roads is prohibited."
4. The Contract signed by Ms. Coffin contains the following language[:]
"(5) use restrictions: vehicle will not be used or operated by anyone: ... Q. who drives on Route 200 (Saddle Road) Hawaii except for government renters with official duty orders. (6) Liability insurance: if there is no violation of any of the use restrictions in paragraph 5 above, renter and any authorized driver shall, while operating the vehicle, be provided with liability coverage in accordance with the standards provisions of a basic automobile liability policy or in accordance with requirements of a qualified self-insurer .... "
5. By signing the rental contract, Ms. Coffin was advised of Budget's prohibition against driving the rented vehicle on Saddle Road.
6. Saddle Road is a public roadway on the Island and County of Hawaii, State of Hawaii.
7. On November 23, 1992, the vehicle owned by Budget and rented and operated by Coffin, was involved in a collision on said Saddle Road, with a vehicle operated by Third Party Defendant and intervenor Ralph Roubique.
8. Ralph Roubique was injured in said collision and will be making a claim for personal injury against Constance Coffin.
9. Budget has denied liability coverage, claiming that since Coffin did not have its permission to drive on Saddle Road, she did not have Budget's express or implied permission to use the vehicle at the time of the accident.
On May 13, 1994, Budget filed an action for declaratory relief seeking an order declaring that Budget had no duty to defend and/or indemnify Coffin against any claims that may be made against Coffin by Roubique, and Roubique intervened. On June 23, 1994, Coffin filed a third-party complaint against Roubique.
Thereafter, on August 18, 1994, Budget filed a motion for summary judgment. On September 6, 1994, Coffin filed a cross-motion for summary judgment, which Roubique joined. After a September 14, 1994 hearing, the circuit court granted Coffin's cross-motion for summary judgment and denied Budget's motion for summary judgment by order filed June 8, 1995. The order contained the following Conclusions of law:
1. There being no genuine issue of material fact, this matter is ripe for summary judgment.
Page 1 2 3 4 5 6 7 8 Hawaii Personal Injury Attorneys
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