Mr Aldous Lagden owns a 10-year-old Honda Civic. The vehicle was badly damaged in a collision with

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Mr Aldous Lagden owns a 10-year-old Honda Civic. The vehicle was badly damaged in a collision with a car owned by Ms Georgia O'Connor. Lagden took his car to an auto body shop for repairs, which charged $5000 to restore the Honda to its prior condition. O'Connor admits that the accident was entirely her fault and there is no doubt that she is liable in negligence for at least the cost of repair ($5000). A difficult issue arises, however, because Lagden required a vehicle while his Honda was in the repair shop. Unfortunately, because he is unemployed, in bad health, and a poor credit risk, he was unable to pay for a temporary replacement vehicle by paying with existing funds, borrowing money, or obtaining credit. He felt compelled instead to use the services of Diamond Rentals Inc (DRI). Unlike other car rental agencies, DRI operates a special service under which it provides replacement vehicles, to people like Lagden, without immediate charge. It instead receives payment only after its customer (in this case Lagden) has successfully sued the person responsible for the accident (in this case O'Connor). Not surprisingly, although it postpones payment, DRI charges an additional fee for that valuable service. Is O'Connor liable for that fee, in addition to the usual cost of a car rental? What is her best argument against liability? Will that argument be successful?

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Managing the Law The Legal Aspects of Doing Business

ISBN: 978-0133847154

5th edition

Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer

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