Clopton v. Budget Rent a Car Corp.

197 F.R.D. 502, 2000 U.S. Dist. LEXIS 17233, 2000 WL 1752864
CourtDistrict Court, N.D. Alabama
DecidedNovember 21, 2000
DocketNo. CV-00-BU-0196-S
StatusPublished
Cited by4 cases

This text of 197 F.R.D. 502 (Clopton v. Budget Rent a Car Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clopton v. Budget Rent a Car Corp., 197 F.R.D. 502, 2000 U.S. Dist. LEXIS 17233, 2000 WL 1752864 (N.D. Ala. 2000).

Opinion

Memorandum Opinion

BUTTRAM, District Judge.

Now before the Court is a motion filed by Plaintiff John Clopton for class certification. (Doc. No. 32). Clopton seeks for the Court, pursuant to Federal Rules of Civil Procedure 23(a) and either (b)(2) or (b)(3), to certify the following class:

Those persons in the United States who have rented vehicles in the past four years from Budget Rent A Car Corporation or one of its licensees1 and who have: (1) used less than one full tank of fuel; and (2) returned the vehicle with less fuel than when received, having not previously purchased the entire tank of fuel.2

In support of his motion, Plaintiff filed evidence and original and “corrected” briefs, while Defendant Budget Rent A Car Corporation responded likewise with briefs and evidence in opposition. Plaintiff then submitted a reply brief, and the motion is now ripe for decision. Upon due consideration, the Court concludes that the motion for class certification is due to be DENIED.

I. BACKGROUND

Budget Rent A Car Corporation (“Budget”) is one of the largest automobile and truck rental companies in the United States and the world. It owns and operates approximately 700 motor vehicle rental locations throughout North America, and, in addition to these company-operated locations, about 800 other rental locations are owned and operated by licensees using the “Budget” name. One of these licensees is Adamson Car & Truck Rental, Inc. (“Adamson”), which does business at three locations in the greater-Birmingham, Alabama area as Budget Rent-A-Car of Birmingham.

On October 29, 1999, Clopton walked into one of Adamson’s locations and rented a [504]*504Mercury Tracer automobile. At that time, Clopton signed a rental agreement indicating that the rental rates quoted to him did not include gasoline. The agreement suggested that Clopton might prepay for the full tank of gasoline that was in the vehicle, albeit with no credit being available for unused fuel, but Clopton did not choose this option. The agreement also stated that a service charge of $2.99 per gallon would be applicable for refueling the vehicle if it was returned with less than a full tank of gasoline, explaining on the reverse side as follows:

FUEL: Renter will pay for or replace all fuel provided by Budget. The refueling charge is determined by multiplying the number of gallons needed to refill the tank (to the same level as when received) times the dollar-per-gallon rate specified on the front of this Agreement. Renter agrees that the number of gallons needed to refill the tank may be estimated based on the fuel-gauge reading or the miles driven.

In his amended complaint, Clopton has asserted that this or substantially similar language appears in the agreements for all rentals from every Budget location in the United States, with the possible exception of Hawaii, regardless of whether the location is owned and operated by Budget or by one of its licensees. In addition, Clopton contends that, upon renting the vehicle, he was provided with another document, which stated, among other things: “Gasoline is not included in our rates. Upon return an estimate of the refueling charges will be made and any significant differences will be adjusted later.” The evidence shows, however, that this document given to Clopton was prepared by Adamson, not Budget.

Clopton returned the automobile to the same location on November 1, 1999, after driving it 211 miles without refueling. When Clopton brought the vehicle back in, an Adamson representative asked him whether he would like to take the car back out and refill the tank himself to avoid the refueling charge, but Clopton declined. He then signed a final invoice indicating that he was being charged $36.62 for gasoline, which at the $2.99-per-gallon refueling rate specified by his agreement translated to 12.25 gallons of gasoline. Later, after coming to believe that he had been overcharged for refueling, Clopton filed this putative class action in this Court.

Clopton’s original complaint named only Budget as a defendant, but he filed an amended complaint that added Adamson as a defendant. Adamson has since been voluntarily dismissed, leaving only Clopton’s individual and potential class claims against Budget. In his amended complaint, Clopton suggests that the licensees who own and operate locations under the “Budget” name, such as Adamson, are acting as agents of Budget when they rent vehicles to customers.3 With respect to the substantive factual allegations underlying his claims, Clopton contends that Budget and its licensees unlawfully charge consumers like himself for fuel not actually used.4 More specifically, Clopton charges that Budget, both at its company-operated locations and through its alleged agent-licensees, frequently overstates the number of gallons needed to refill the tank of a vehicle upon its return by assigning an artificially low rate of approximately 17.22 miles per gallon (“MPG”) to its entire fleet of vehicles. See Amended Complaint at H 30-31. Using his own case as an example, Clopton points out that he drove his Mercury Tracer 211 miles, which would deplete, he claims, about 7 gallons of gasoline.5 Id. at 31. Using the $2.99 per-gallon refueling rate in his agreement, a refueling charge of about $20.93 would thus be indicated. Id. But [505]*505instead of arriving at the seven-gallon figure, either by refilling the tank and checking the amount of fuel actually pumped or by assigning an “appropriate” rate for the Mercury Tracer,6 Budget allegedly used the artifieially-low, fleet-wide rate of 17.22 MPG. Id. This translated to a calculation of 12.25 gallons needed to refill the tank and an actual refueling charge of $86.62. Id. Clopton was thus overcharged, he claims, for about 5.25 gallons of gasoline he did not actually use, at an additional cost of about $15.70. Id. Further, Clopton alleges Budget routinely fails to make any adjustments or refunds for overcharges for fuel not actually used, even though Budget has sufficient information, Clopton avers, to determine whether such an overcharge has occurred after Budget actually refills the vehicle after its return. Id. at 123.

Based on the foregoing allegations, Clop-ton asserts a federal law cause of action and several state-law claims. In his federal claim, Clopton seeks to recover against Budget under the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. § 1961 et seq. (“RICO”), with the predicate acts of “racketeering activity” being alleged violations of federal wire and mail fraud statutes, see 18 U.S.C.A. §§ 1341,1343,1964(c). With respect to his state-law claims, Clopton avers that Budget is liable under theories of breach of contract, “unjust enrichment/disgorgement,” “money paid by mistake,” fraudulent misrepresentation, and fraudulent suppression.7 Clopton now moves the Court to certify a nationwide class, with him acting as class representative, for the litigation of all of his claims. Budget has responded by arguing that class certification is improper.

II. CONTENTIONS & ANALYSIS

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Cite This Page — Counsel Stack

Bluebook (online)
197 F.R.D. 502, 2000 U.S. Dist. LEXIS 17233, 2000 WL 1752864, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clopton-v-budget-rent-a-car-corp-alnd-2000.