324 F. Supp. 3d 1179
D. Nev.2018Background
- On Sept. 29, 2016, Proctor rented a car from Enterprise's Reno location after presenting a facially valid Nevada driver's license and asserting it was valid. Enterprise inspected the license and compared signatures per its procedure.
- Unknown to Enterprise, Proctor's license had been administratively cancelled (for failure to show child support payment) and his driving privileges suspended; the cancellation did not appear on the license face.
- After returning to Fallon, Proctor took excess prescribed Oxycodone and, early Sept. 30, 2016, drove the rental and struck plaintiff Goggin; Proctor later pled guilty to driving under the influence of a controlled substance.
- Goggin sued Enterprise in Nevada state court alleging negligent entrustment and negligence per se for renting to Proctor; Enterprise removed and later moved for summary judgment.
- Enterprise conceded entrustment occurred but argued it had no duty to check DMV records beyond inspecting a facially valid license and that Proctor’s cancelled status and subsequent drug use broke causation. The court granted Enterprise summary judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Negligent entrustment — duty to investigate DMV records | Goggin: Enterprise had a duty to access/examine DMV records and breached it by renting despite Proctor’s cancelled license. | Enterprise: No duty to verify status beyond inspecting a facially valid license; complied with statutory requirements. | Court: No duty to further investigate; Enterprise satisfied NRS 483.610; summary judgment for Enterprise. |
| Negligent entrustment — causation | Goggin: Renting Proctor caused plaintiff’s injuries. | Enterprise: Proctor’s cancellation was for unpaid child support (not unsafe driving); proximate cause was Proctor’s post-rental drug use. | Court: Proctor’s post-rental conduct, not the cancellation, was cause; no proximate causation from Enterprise’s conduct. |
| Negligence per se — violation of NRS 483.610 | Goggin: Enterprise violated NRS 483.610(1) by renting to someone not “duly licensed.” | Enterprise: It inspected and verified a facially valid license and signature per statute. | Court: Enterprise complied with NRS 483.610 requirements; negligence per se fails; summary judgment for Enterprise. |
| Scope of statutory duty for rental agencies | Goggin: Statute requires ensuring renter is actually licensed (including DMV check). | Enterprise: Statute requires only inspection of facially valid license and signature comparison. | Court: Statute, as written, imposes only the facial inspection/signature duty; Legislature, not court, must expand duty. |
Key Cases Cited
- Zugel v. Miller, 688 P.2d 310 (Nev. 1984) (elements and scope of negligent entrustment under Nevada law)
- Mills v. Continental Parking Corp., 475 P.2d 673 (Nev. 1970) (entrustment liability where owner permits use by one known or should be known as unfit)
- Sanchez v. Wal-Mart Stores, Inc., 221 P.3d 1276 (Nev. 2009) (elements of negligence and negligence per se analysis)
- Adickes v. S.H. Kress & Co., 398 U.S. 144 (1970) (summary judgment burden and viewing evidence for nonmoving party)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (1986) (standard for determining genuine issues of material fact on summary judgment)