Wheat v. Kinslow

316 F. Supp. 2d 944, 2003 U.S. Dist. LEXIS 25304, 2003 WL 23498477
District Court, D. Kansas·Decided October 24, 2003·No. CIV.A.02-2025-CM·Published·Cited by 7 cases

Opinion

MEMORANDUM AND ORDER

MURGUIA, District Judge.

This action arises from a motor vehicle accident that occurred on January 18, 2000, between plaintiff David Wheat and defendant Elmo Kinslow (hereinafter “Kinslow”). Plaintiffs have sued defendants Enterprise Rent-A-Car, Enterprise Leasing Company — Southwest, and the Western Motor Company, Inc., alleging liability for negligent entrustment of a vehicle to Kinslow. Plaintiffs also claim the defendants engaged in a joint enterprise and are therefore vicariously liable for the acts of Kinslow. This matter comes before the court on defendant Enterprise Leasing Company — Southwest’s (hereinafter “Enterprise Southwest”) Motion for Summary Judgment (Doc. 73). Enterprise Southwest claims plaintiffs failed to serve process on it and that the statute of limitations has expired on plaintiffs’ claims. Enterprise Southwest further claims that no facts exist to support plaintiffs’ negligent entrustment, agency and joint venture claims. As set forth below, Enterprise Southwest’s motion is granted.

I. Facts 1

As a preliminary matter, the court notes that plaintiffs’ response brief fails to adequately respond to, much less controvert, Enterprise Southwest’s statement of facts. Plaintiffs summarily deny several paragraphs of Enterprise Southwest’s statement of facts without citing to any eviden-tiary support, and then proceed to state their own facts, incorporating their supplemental statement of facts previously submitted in response to defendant Western Motor Company’s (hereinafter “Western”) motion for summary judgment. Local Rule 56.1 requires that “[e]ach fact in dispute shall be numbered by paragraph, shall refer with particularity to those portions of the record upon which the opposing party relies and, if applicable, shall state the number of the movant’s fact that is disputed.” D. Kan. Rule 56.1(b)(1). Plaintiffs have failed to comply with these requirements. Thus, where allegedly disputed facts are not directly controverted by evidence contained in the record, the court considers those facts uncontroverted pursuant to Fed.R.Civ.P. 56. However, the court will deem Enterprise Southwest’s facts controverted to the extent that plaintiffs’ own facts fairly meet the substance of Enterprise Southwest’s statement of facts and are supported by competent evidence.

In January 2000, Western and Enterprise Southwest were separate and distinct legal corporate entities with no shared officers, directors or ownership in each other’s stock. Western was engaged in the sale and service of automobiles; Enterprise rented vehicles to customers of Western and other dealerships in Garden City, Kansas. At that time, Enterprise Southwest maintained an office within Western’s building, free of charge. Calls to Western and/or Enterprise Southwest at the Western building came through one central line and were transferred to the appropriate extension. Before Enterprise Southwest moved its office into Western’s building, Western maintained a fleet of vehicles that it leased to customers while customer vehicles were in for warranty repair. Warranty coverage on newer vehicles normally included reimbursement for the cost of renting or leasing another vehicle while *948 the customer’s vehicle was undergoing warranty work.

Once Enterprise Southwest moved into the Western building, Western ceased maintenance of its fleet of vehicles and referred customers needing replacement vehicles to Enterprise Southwest. Western had no legal or contractual right to determine who was eligible to rent a vehicle from Enterprise Southwest. Rather, Enterprise Southwest made the decision whether or not to rent to Western customers who were referred. Western customers who had warranty coverage that included the cost of renting or leasing another vehicle were not required to rent vehicles from Enterprise Southwest, but instead could choose what, if any, rental company to use. When Western referred to Enterprise Southwest a customer with warranty coverage for the cost of renting or leasing a vehicle, Western issued Enterprise Southwest a check for the rental costs. Western then sought reimbursement from the manufacturer. Western received no monetary compensation or commission from Enterprise Southwest’s renting or leasing of vehicles.

Kinslow, a resident of Ulysses, Kansas, and a Western customer, had a warranty under which he was entitled to reimbursement from his automobile’s manufacturer for the cost of a rental vehicle while his vehicle was in service during the warranty period. Kinslow was not an employee of either Enterprise Southwest or Western.

On January 14, 2000, Western towed Kinslow’s vehicle from his home in Ulysses, Kansas, to the Western facility in Garden City, Kansas, for warranty service. On January 17, 2000, Kinslow went to the Western facility to obtain alternate transportation while his vehicle underwent the warranty service. Dennis German, a Western employee, escorted Kinslow to the Enterprise Southwest office in the Western facility to rent a replacement vehicle.

Rodney Clews was the Enterprise Southwest rental agent who assisted Kin-slow that day. Clews rented a 2000 Pontiac sedan to Kinslow and allowed Kinslow to take the vehicle from the Enterprise Southwest lot. Enterprise Southwest owned the 2000 Pontiac it rented to Kin-slow. However, Clews failed to properly perform Enterprise Southwest’s eligibility verification requirements for a renter between the ages of 18 and 21 (the age category in which Kinslow was included) and failed to determine whether Kinslow was an eligible renter. The rental agreement listed Kinslow as the renter and only authorized operator of the 2000 Pontiac. Kinslow signed the Enterprise Southwest rental form that represented he was personally insured, and Kinslow provided details regarding his insurance policy. Clews failed to verify Kinslow’s insurance coverage and did not obtain approval for the rental from a branch manager or assistant manager.

On the morning of January 18, 2000, Clews contacted Kinslow’s insurance company to verify Kinslow’s policy and learned that Kinslow did not have current insurance coverage. Clews then telephoned Kinslow and told him to get his insurance reinstated or return the rental vehicle. That evening, on Kinslow’s way to the Enterprise Southwest office to return the 2000 Pontiac, Kinslow crossed the center line on U.S. Highway 83 and collided head-on with plaintiff David Wheat’s vehicle. At the time of the accident, Kinslow was driving the 2000 Pontiac.

II. Summary Judgment Standards

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Wheat v. Kinslow, 316 F. Supp. 2d 944, 2003 U.S. Dist. LEXIS 25304, 2003 WL 23498477 (D. Kan. 2003).

316 F. Supp. 2d 944 (Wheat v. Kinslow) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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