JOHNSON v. AVIS RENT a CAR SYSTEM, LLC (Two Cases)

858 S.E.2d 23, 311 Ga. 588
CourtSupreme Court of Georgia
DecidedMay 3, 2021
DocketS20G0695, S20G0696
StatusPublished
Cited by21 cases

This text of 858 S.E.2d 23 (JOHNSON v. AVIS RENT a CAR SYSTEM, LLC (Two Cases)) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
JOHNSON v. AVIS RENT a CAR SYSTEM, LLC (Two Cases), 858 S.E.2d 23, 311 Ga. 588 (Ga. 2021).

Opinion

311 Ga. 588 FINAL COPY

S20G0695. JOHNSON v. AVIS RENT A CAR SYSTEM, LLC et al. S20G0696. SMITH v. AVIS RENT A CAR SYSTEM, LLC et al.

MELTON, Chief Justice.

These cases arise from a car accident that occurred after Byron

Perry stole a sport utility vehicle (SUV) from a rental lot where he

worked and later crashed into Brianna Johnson and Adrienne Smith

while Perry was trying to evade police. Johnson and Smith

(“plaintiffs”) each filed a lawsuit alleging claims of negligence and

vicarious liability against the rental car company, Avis Rent A Car

System, LLC, and Avis Budget Group (collectively “Avis”), along

with Avis’s regional security manager, Peter Duca, Jr.; the rental

location’s operator, CSYG, Inc.; and CSYG’s owner, Yonas

Gebremichael. Johnson and Smith also sued Perry, the CSYG

employee who stole the SUV involved in the accident, although

Johnson dismissed Perry before trial. Separate juries found that Johnson and Smith were entitled to

recover damages,1 but both jury verdicts were reversed on appeal. In

Avis Rent A Car System, LLC v. Johnson, 352 Ga. App. 858 (836

SE2d 114) (2019), the Court of Appeals concluded that Avis — the

only entity found liable for compensatory damages in Johnson’s case

— was entitled to judgment notwithstanding the jury’s verdict

(JNOV) on Johnson’s direct negligence claims because Perry’s

intervening criminal conduct2 was the proximate cause of Johnson’s

injuries. See id. at 863 (2) (b).3 And in Avis Rent a Car System, LLC

1 In Johnson’s case, the jury found that Avis was 100% at fault for Johnson’s injuries and that Johnson was entitled to recover $7 million in damages from Avis. The jury found that CSYG, Gebremichael, and Duca were 0% at fault, and further found that Perry was 0% at fault as a non-party, but also found that Perry was liable for punitive damages. In Smith’s case, the jury returned a $47 million verdict in favor of Smith, apportioned 50% to Avis, 1% to Duca, 15% to CSYG, 1% to Gebremichael, 33% to Perry, and 0% to “N.O.” (a non-party who Perry claimed was actually driving the stolen SUV).

2 In connection with the incident, Perry pled guilty to two counts of serious injury by vehicle (OCGA § 40-6-394), two counts of hit and run resulting in serious injury (OCGA § 40-6-270), one count of reckless driving (OCGA § 40-6-390), one count of fleeing or attempting to elude police (OCGA § 40-6-395), one count of failure to maintain lane (OCGA § 40-6-48), and one count of felony theft by taking (OCGA § 16-8-2), and was sentenced to twenty years to serve in prison. 3 The Court of Appeals also concluded that Avis was entitled to JNOV on

Johnson’s claims that Avis was vicariously liable for CSYG and Gebremichael’s

2 v. Smith, 353 Ga. App. 24 (836 SE2d 100) (2019), in addition to

concluding that any breach of duty to secure the car rental lot and

the stolen SUV was not the proximate cause of Smith’s injuries (due

to Perry’s intervening criminal conduct), the Court of Appeals also

concluded that CSYG and Gebremichael were entitled to a directed

verdict on Smith’s claims that they negligently hired and retained

Perry, because Perry was not acting “under color of employment” at

the time that he collided with Smith. Id. at 25 (2) and 29-30 (5).

Johnson and Smith petitioned for certiorari review in this

Court, and we granted their petitions to address the following

questions: (1) Did the Court of Appeals err in Divisions 2 of the

opinions below in determining that the employee’s intervening

criminal conduct was the proximate cause of the plaintiffs’ injuries,

such that the defendants were entitled to judgment as a matter of

law on the plaintiffs’ direct negligence claims? and (2) Did the Court

negligence, including the negligent hiring and retention of Perry, because the verdicts in favor of CSYG and Gebremichael eliminated any basis for holding Avis liable through a theory of respondeat superior. See Johnson, supra, 352 Ga. App. at 864-865 (3). 3 of Appeals err in Division 5 of the Smith opinion in determining that

the defendants were entitled to a directed verdict on Smith’s

negligent hiring and retention claim, because their employee was

not acting “under color of employment” when he collided with

Smith? For the reasons that follow, we determine that the Court of

Appeals correctly concluded that the defendants could not be held

liable to Johnson and Smith as a matter of law under the facts of

these cases. Accordingly, we affirm in both cases. However, we reject

some of the Court of Appeals’ reasoning in the Smith case.

Viewed in the light most favorable to Johnson and Smith,4 the

evidence presented at both trials showed the following. Pursuant to

an “Independent Operator Agreement” with Avis, CSYG was

responsible for the day-to-day operations of an Avis car rental

facility located on Courtland Street in Atlanta. In March 2012,

4 See, e.g., Pendley v. Pendley, 251 Ga. 30, 30 (1) (302 SE2d 554) (1983)

(“The standard for granting a directed verdict or a judgment notwithstanding the verdict [is] the same. Where there is no conflict in the evidence as to any material issue, and the evidence introduced, with all reasonable deductions therefrom, shall demand a particular verdict, such verdict shall be directed.”).

4 Gebremichael hired Perry on behalf of CSYG to wash and refuel cars

at the facility. At the time that Perry was hired, he disclosed to

Gebremichael that he had been in prison, but he did not reveal the

extent of his criminal record, and Gebremichael did not conduct a

criminal background check to discover the extent of Perry’s record. 5

On the evening of August 23, 2013, Perry stole a Ford Edge

SUV from the Courtland Street rental location after the facility was

closed for the day.6 Perry wore an Avis shirt while he drove the

5 A criminal background check would have revealed that Perry’s criminal

record included arrests and convictions for, among other things, driving on a suspended license, DUI and drug-related offenses, and theft by receiving a stolen pickup truck in 1999 that involved reckless driving and an attempt by Perry to elude police.

6 It is not clear from the record exactly how or when Perry stole the SUV

after the lot closed around 7:00 p.m., but the plaintiffs theorize that he may have used bolt cutters to remove a spare key for the SUV from a key ring and he may have used a stolen gate key to exit the rental lot. However, even without knowing exactly how the SUV was stolen, we can assume for purposes of our analysis that Avis was negligent in allowing the vehicle to be stolen from its lot after hours, because the salient question in both cases is not about Avis’s alleged negligence, but about whether its alleged negligence was the proximate cause of the plaintiffs’ injuries. See Atlanta Obstetrics & Gynecology Group v. Coleman, 260 Ga.

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Bluebook (online)
858 S.E.2d 23, 311 Ga. 588, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-avis-rent-a-car-system-llc-two-cases-ga-2021.