Foreign Drivers
In Hollings v. Alamo, a 2009 Hartford, Connecticut case, an allegation that the renter had shown no proof of a valid driver's license was enough to survive Alamo's motion to strike. The renter was from Germany. He presented only a German identification card - not a German driver's license. The court found that the complaint alleged fault (negligent entrustment) by Alamo thereby removing Alamo from the protection of the Graves Amendment and making Alamo subject to vicarious liability.
In New York, a renter presented a document purporting to be an Israeli driver's license to Aris Inc. The document was written in Hebrew and contained no photograph. The renter did not present any other documentation, but Aris rented the car. Later, the renter had an accident and injured a man named Mr. Palacios. The renter's Israeli document turned out not to be a driver's license.
When Palacios sued Aris, Aris moved to dismiss relying on the Graves Amendment. But the court in Palacios v. Aris (U.S. Federal District Court for the Eastern District of New York, March 2010), held that the Graves Amendment did not protect Aris against an allegation of active negligence, i.e., negligently entrusting the car to a person without a valid driver's license.
Each of these cases shows that rental companies have the responsibility to determine whether or not the renter's foreign documents are valid drivers' licenses.
So how do you protect yourself? If the license isn't in English, you should demand a translation into English. That's usually included in an international driver's permit (IDP), which is a translation rental agencies understand. An IDP can only be issued in the country that gave the renter his or her license. An IDP is not a license - just a translation - and the IDP should not be accepted on its own as evidence of a valid license. You still must see the foreign license.
Foreign visitors can also obtain temporary driver's licenses from state DMVs - in which case the state agency will take the responsibility for determining whether or not visitors' documents constitute valid driving licenses. A best practice tip is don't take chances on documents you don't understand.
NEGLIGENT ENTRUSTMENT: the act of permitting a person to drive your rental car when that person is clearly not qualified to drive. For example, if you rent to a person who is intoxicated at the counter, you have negligently entrusted that car. If the intoxicated renter later injures someone, your rental company may be held liable for the injuries because you were negligent and your negligence caused the injuries.
When you read the cases in this article you will see that some courts seem to be expanding the definition of negligent entrustment. The cases want to hold you to a higher standard of customer qualification.
VICARIOUS LIABILITY: liability without fault or liability for the actions of someone else. In our industry, vicarious liability means a finding that the titled owner of a rental car can be held liable for injuries caused by a renter - whether or not the rental company was negligent. The Graves Amendment, passed in 2005, eliminated vicarious liability for owners of rented and leased vehicles.
Michael LaPlaca is a senior member of LaPlaca Law PC, a law firm that specializes in vehicle rental law and in franchise law. He can be reached at Michael@laplacalaw.com.