Car Renter Says Avis Must Face Illegal Fees Class Action

A car renter is attempting to keep his Avis and Ace American Insurance illegal fees class action lawsuit alive, after the companies motioned to dismiss the case.

Plaintiff Stephen Morgan argued that Avis Budget Car Rental LLC, Avis Rent a Car System LCC, and Ace American Insurance Co. hadn’t brought up anything new in their motion to dismiss his class action.

Instead, the companies allegedly reassert “nearly identical arguments” from an early motion to dismiss by Ace.

The earlier motion to dismiss was rejected by U.S. District Judge Brian J. Davis after he accepted a magistrate judge’s recommendation that the bid could not be granted until after discovery was completed. Morgan argues that the new motion to dismiss should be similarly rejected.

The plaintiff also notes that Ace “has provided exceptionally little discovery since that time” so the situation has not changed. Instead of cooperating with the court’s attempt to determine facts about fee collection, Ace has allegedly taken to redirecting the blame to Avis.

“The time for delay has come to [an] end; respectfully, this court should (again) deny ACE’s motion to dismiss, and the parties should engage in a process of discovery this court has long contemplated but has still yet to occur,” Morgan said in his response to their motion to dismiss.

Morgan filed the Avis class action lawsuit in June 2016, taking issue with the companies charging fees which allegedly were not allowed under the optional insurance policies available with car rentals.

The policies reportedly do not allow for additional fees on top of advertised rates, but Ace and Avis charged extra fees and based sales tax off of these fees.

Additionally, the companies allegedly make these fees look like taxes despite being nothing but superfluous fees that increase company profits.

According to his Avis class action lawsuit, Morgan experienced the issue in January 2016 after renting a car from Avis at Jacksonville International Airport in Florida.

While renting the car for three days, Morgan was allegedly charged with a 11.1 percent concession fee and resulting sales tax which his receipt failed to disclose.

The Avis car rental class action lawsuit argues that the hidden fees are a violation of Florida law. Morgan’s suit also includes eight counts of breach of contract and deceptive and unfair trade practices.

Morgan initially sought to represent a Class of consumers who purchased option insurance from Ace American Insurance and who were subsequently charged additional fees and sales tax over what was advertised by the company.

The car rental class action lawsuit sought actual damages, statutory damages, nominal damages, punitive damages, injunctive relief, equitable relief, court costs, and attorneys’ fees.

Morgan is represented by Paul W. Evans, Archie I. Grubb, Leslie L. Pescia and W. Daniel Miles of Beasley Allen Crow Methvin Portis & Miles PC; Edmund A. Normand and Jacob L. Phillips of Normand PLLC; and Daniel R. Ferri and Adam J. Levitt of DiCello Levitt Gutzler LLC.

The Avis Rental Fees Class Action Lawsuit is Morgan v. Ace American Insurance Co., et al., Case No. 3:16-cv-00705, in the U.S. District Court for the Middle District of Florida.

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