Banks v. INTERNATIONAL RENTAL AND LEASING CORP.
680 F.3d 296
3rd Cir.2012Background
- Plaintiffs injured as passengers in a Budget van after brakes failed; Dewindt drove without being an authorized driver.
- Franklin Barnabas rented the van; his sister-in-law Diane Dewindt used it; Barnabas himself was not in the vehicle.
- District Court granted Budget summary judgment, applying Second Restatement §402A to bar strict liability against a lessor.
- Cases were consolidated under 28 U.S.C. §1332; Virgin Islands law governs the choice of Restatement via VI Code title 1 §4.
- VI Supreme Court later held that Third Restatement sections 1 and 20 allow strict liability against lessors, prompting remand.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Strict liability against a lessor under Third Restatement? | Banks argues strict liability applies to lessors. | Budget contends Second Restatement controls; no strict liability for lessors. | Remanded; Third Restatement applies to allow strict liability. |
| May plaintiffs pursue warranty claims without privity? | Plaintiffs contend warranties extend to them as injury beneficiaries. | Budget argues no privity or intended beneficiary status. | Remand to consider warranty claims. |
| Derivative nature of loss of consortium claim? | Franklin seeks consortium based on his wife's injuries. | Consortium is derivative and bound to wife's claims. | Remand to address consortium on remand. |
Key Cases Cited
- Pynes v. American Motors Corp., 19 V.I. 278 (Virgin Islands 1982) (early rule limiting strict liability for lessees)
- Varlack v. SWC Caribbean, Inc., 550 F.2d 171 (3d Cir. 1977) (favoring updated Restatement approaches over older formulations)