Veronie v. Allen
6:17-cv-01217
| W.D. La. | Apr 23, 2019Background
- On August 17, 2016, Laura E. Allen, driving a 2016 Hyundai Elantra, allegedly failed to stop and turned into Chelsea Veronie’s vehicle, causing a collision in Lafayette, Louisiana.
- Allen was driving a rental car obtained through Avis; Veronie alleges Allen was a permissive user and that the rental/ownership/insurance relationships among PV Holding Corp., Avis Rent A Car System, LLC, and Avis Budget Car Rental, LLC (collectively "Movers") are relevant.
- Veronie also alleges Allen was employed by the American Red Cross and acting in the scope of employment, invoking respondeat superior against the Red Cross (separate from Movers).
- Movers moved for summary judgment arguing: (1) they cannot be liable merely as owner/lessor; (2) vehicle maintenance did not cause the crash; and (3) they are not insurers and have no insurance liability to Veronie.
- The Court found no evidence supporting exceptions to owner/lessor nonliability or any maintenance defect, but denied summary judgment as to insurance/self-insurance because material facts remain about ownership, self-insurance certification, and the existence/operation of a promised Avis-funded liability fund.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Owner/Lessor liability | Movers owned/leased the car and thus are liable | Owners/lessors not liable for lessee’s negligence absent exceptions | Granted for Movers — no evidence of exceptions (agency, mission, negligent entrustment) |
| Maintenance causation | (Implicit) maintenance could have contributed | No evidence of mechanical/maintenance defects causing crash | Granted for Movers — Plaintiff identified only driver negligence; no maintenance evidence |
| Insurance / self-insurance | Movers are liable as insurers or self-insurers covering the vehicle | Movers assert they do not provide insurance; PV Holding is merely self-insured or not liable | Denied — genuine issues of material fact about entity relationships, existence of certificate of self-insurance, and existence/operation of Avis-funded liability coverage |
| Contractual/global coverage (Avis-Red Cross) | Avis contractually provided Global Insurance Coverage for Red Cross employees | Movers say coverage not procured as insurance policy and funded directly by Avis; no proof of fund | Denied as to insurance issue — factual disputes over compliance with contract and funding remain |
Key Cases Cited
- Topalian v. Ehrmann, 954 F.2d 1125 (5th Cir.) (summary judgment burden and evidence standards)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (U.S.) (definition of material and genuine issues at summary judgment)
- Hearty v. Harris, 574 So.2d 1234 (La.) (explaining Louisiana self-insurance under LMVSRL and distinction between self-insurance and insurance)
- Brown v. Unknown Driver, 925 So.2d 583 (La. App.) (owner nonliability except for limited exceptions such as mission, agency, or negligent entrustment)