In Martin v. Powers, et al., Mr. Powers was visiting a bar in Tennessee while driving a rental car. He became visibly intoxicated, and Mr. Martin, the bar owner, refused to serve him any further. He asked Mr. Powers to leave the bar and followed him out to the parking lot. When Mr. Powers got into his car, he turned it on and drove directly into Mr. Martin, causing an injury to his knee. At the time this all happened, Mr. Powers was driving a rental car owned by Enterprise. He also had private automobile insurance from Mountain Laurel Assurance Company.  Mr. Martin had his own insurance, which covered expenses in cases of uninsured or underinsured motorists. Mr. Martin initially sued Mr. Powers, Mountain Laurel, and Enterprise, and he also let his own insurance, IDS, know that he was making a claim under his uninsured motorist coverage, just to be safe.

Mr. Power’s insurer, Mountain Laurel, immediately moved for a declaratory judgment, stating that it was not liable for damages resulting from the accident because Mr. Powers had intentionally driven into Mr. Martin, which was not covered under his policy. The court granted this declaratory judgment.  Enterprise then also moved to dismiss under Tennessee statutes providing that it was not vicariously liable for injuries resulting from driver use of their rental cars. This was also granted. Finally, IDS moved for summary judgment, arguing that since Mr. Powers was driving a car owned by Enterprise, he was not an uninsured motorist under their coverage. Again, the court granted the motion, leaving Mr. Martin without recourse against anyone but Mr. Powers. Mr. Martin appealed.

IDS argued that Mr. Powers was not an “uninsured” driver because he was driving a car owned by Enterprise, which had declared itself as self-insured under Tennessee law. In response, Mr. Martin argued that this was not the intent of Tennessee’s self-insured provisions.

Under Tennessee law, individuals or entities may seek a certificate that they are self-insured rather than carry automobile insurance. In order to do so, they must show that they have sufficient assets to pay any judgment against them as a result of an accident.  These individuals are not considered to be “uninsured” within the meaning of most uninsured motorist policies. Enterprise had just such a self-insurer certificate. However, Tennessee law also provides that rental companies are exempt from vicarious liability for any injuries or accidents involving drivers of their rental cars. Accordingly, the Tennessee Supreme Court determined that Enterprise is self-insured as to its own risks and liabilities as an owner, but not as to any vicarious liability for drivers, since it is protected from ever having such claims brought against it.

Accordingly, although Mr. Martin’s policy with IDS defined “uninsured motor vehicle” as “not mean[ing] a vehicle . . . owned or operated by a self-insurer,” the Tennessee Supreme Court determined that such language did not apply to Enterprise in this instance because Enterprise did not have to insure against risks or accidents caused by rental drivers.  Accordingly, for the purposes of Mr. Powers’ accident, Enterprise was not insuring him, and he was a proper “uninsured motorist” for Mr. Martin’s insurance. The Supreme Court therefore reversed the grant of summary judgment and remanded the case for further proceedings.

If you have recently been injured in an automobile accident, one of the last things on your mind may be who will be held responsible for your medical expenses and recovery. Although it may not feel important at the time, identifying and understanding the various insurers at play can help you pinpoint the right defendants for your lawsuit. When rental cars and companies are at play, this may even mean that your own uninsured motorist policy will have to cover you. If you have recently been a victim of an accident involving a rental car, knowledgeable Tennessee car accident attorney Eric Beasley can help you identify insurance companies that may be important defendants in your claim. For more information or to discuss the circumstances of your case, contact the Law Office of Eric Beasley today at 615-859-2223.

Related Blog Posts:

The Necessity of Proving Causation in Tennessee Automobile Accident Claims – Denton v. Taylor, Tennessee Personal Injury Blog, August 18, 2016

Tennessee Accident Tips, Tennessee Personal Injury Blog, March 16, 2016

Tennessee Courts Find Presumption of Comparative Fault for Drivers Running a Light, Tennessee Personal Injury Blog, January 6, 2016

How to determine who is responsible for your injuries

In Tennessee, the drunk driver can be held liable for any injuries caused by his or her irresponsible behavior. In addition, the person who sold alcohol to the driver may also be held responsible in one of the following two situations:

How a Nashville Accident Attorney Can Help

You might not know what to expect the first time you visit a lawyer’s office. To start with, you’ll be asked to describe the situation you’re concerned about. This interview will take place before any papers are signed so you won’t be held to any obligation if the Nashville Accident Lawyer is unable to assist. You’ll also be informed of steps involved in filing a car accident claim. This will give you an idea of how quickly your case can be resolved. If everything is agreeable to you, a contract will be available for you to sign. You’ll receive a copy of the document for your own records; it is part of your attorney’s legal responsibility to provide you with a copy of the contract so you can refer back to it in the future.

Alcohol-related accidents can cause serious injuries to the victims. An auto accident lawyer can help injury victims seek compensation to pay their medical bills, repair their damaged vehicles, and make up for time missed from work. Some common auto accident injuries include:

• Neck / back injuries

The lawyer, who practices DUI defense estimated the damage to her historic law office to be about $30,000, but said it could have been worse. Thankfully, the crash did not occur during the middle of the day when she had an office full of staff and clients when one or more people could have been injured or even killed, inside or outside the building. More often than not, that is the case and that’s when an attorney who specializes in personal injury and car accidents is much needed.

Free Consultation with a Murfreesboro Auto Accident Attorney