August 2004 - Rental

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" colspan=2 height=90 BGCOLOR="#006699" TEXT="#080000" background="04a085a3.jpg"> <div> <FONT SIZE="5" COLOR="#FFFFFF" FACE="Arial" ><B>Kreiner & Peters Co., L.P.A.</B></FONT><B>    </B><B> |     </B><A HREF="index.htm" TARGET="_top" TITLE="Kreiner Peters Co., L.P.A."><U><B>home</B></U></A></div> <div> <A HREF="id46.htm" TARGET="_top" TITLE="December 2004 Subrogation under Legisla"><U>December 2004 - Subrogation under Legislative Scrutiny</U></A>   |   <A HREF="id41.htm" TARGET="_top" TITLE="November 2004 Lawson"><U>November 2004 - Lawson</U></A>   |   <A HREF="id40.htm" TARGET="_top" TITLE="November 2004 Restitution"><U>November 2004 - Restitution</U></A>   |   <B>August 2004 -  Rental</B>   |   <A HREF="id37.htm" TARGET="_top" TITLE="February 2002 ERISA"><U>February 2002 - ERISA</U></A>   |   <A HREF="id36.htm" TARGET="_top" TITLE="November 2001 ERISA"><U>November 2001 - ERISA</U></A>   |   <A HREF="id35.htm" TARGET="_top" TITLE="November 2001 Evidence"><U>November 2001 - Evidence</U></A>   |   <A HREF="id34.htm" TARGET="_top" TITLE="June 2001 Intentional Acts"><U>June 2001 - Intentional Acts</U></A>   |   <A HREF="id33.htm" TARGET="_top" TITLE="May 2001 Fiduciary"><U>May 2001 - Fiduciary</U></A>   |   <A HREF="id32.htm" TARGET="_top" TITLE="April 2001 ERISA provisions"><U>April 2001 - ERISA  provisions</U></A>   |   <A HREF="id31.htm" TARGET="_top" TITLE="January 2001 ERISA"><U>January 2001- ERISA</U></A>   |   <A HREF="id30.htm" TARGET="_top" TITLE="2000 ERISA Fiduciary"><U>2000 - ERISA Fiduciary</U></A>   |   <A HREF="id29.htm" TARGET="_top" TITLE="2000 Medical Payments"><U>2000 - Medical Payments</U></A>   |   <A HREF="id28.htm" TARGET="_top" TITLE="2000 ERISA"><U>2000 - ERISA</U></A></div> <div> </div> </td> </tr><tr> <td valign="top" width=210 BGCOLOR="#FFFFFF" TEXT="#080000" background="04bd2e83.jpg"> <bR> </td> <td valign="top" height=390 BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <I>August 2004 -  Rental</I></div> <bR> <div> <B>AUGUST 2004</B></div> <bR> <div> <B>AN ACTION TO RECOVER DAMAGES FOR INJURY TO A RENTED MOTOR VEHICLE MUST BE BROUGHT WITHIN TWO YEARS OF THE DATE OF LOSS.</B></div> <bR> <div> <B>     </B><FONT SIZE="3" COLOR="#000000" FACE="Arial Narrow" ><B>Rental contracts for damage to auto may only get two year statute of limitations.  Likewise, signed promissory notes may also be limited to two years.</B></FONT></div> <bR> <div> Normally, an action arising out of contract has a fifteen year statute of limitations in Ohio.  <I>O.R.C. Ann. § 2305.06</I>.  An action for injury to personal property or bodily injury carries a two year statute of limitations. <I>O.R.C. Ann. § 2305.10.</I>  According to Ohio courts, actions for recovery of property damage to a motor vehicle must be brought within two years of the date of loss.  <I>See National Car Rentals v. Allen, 204 N.E.2d 554, (Ct. App. Ohio 1964).</I>  In <I>Allen</I>, the rental car company brought a case against the person that rented its car and totaled it, in violation of the rental agreement and the law, as the renters caused the accident.  The rental company brought the action three years after the date of loss.  The court denied the rental company's argument that the statute of limitations for a contract would apply, and dismissed the case for not being filed within two years, reasoning that the court “must accept and apply the (two-year) statute….regardless of hardship to a particular litigant.”  <I>Id. at 556.</I>   Courts in Ohio uphold the two-year statute of limitations despite the fact that the car is rented on the basis of a written contract.   </div> <bR> <div>      However, there is an argument that the fifteen year statute applies if the person renting is <U>not</U> at fault.  Under this set of facts, rental and/or insurance companies could sue under contract for the renter's failure to complete the contract by not returning the vehicle in its original condition.  <I>See Mills v. Liberty Moving & Storage, Inc., 503 N.E.2d 199, (Ct. App. Ohio 1985). </I> The difference is the non-tortious conduct of the renter.  If the renter is at fault, or possibly at fault, then the renter has <I>caused</I> personal property damage or bodily injury, and the two year statute applies.  If there is no negligence, then the renter has not caused the damage-the renter has failed to live up to the contract agreement.  <I>See also Porterfield v. Bank One Ohio Trust Company, 1997 Ohio App. LEXIS 4105.</I> </div> <bR> <div>      Using this same logic, courts may not uphold a promissory note that the responsible party signs, promising to repay the loss, if suit is not filed within two years.  Even though a promissory note is a contract, the courts may look to its “inherent nature,” which may be construed as the damage done to the auto.  This situation would affect Property & Casualty carriers, collection agencies, and others who set responsible parties up on payment plans.  As such, if a responsible party damages a car, signs a promissory note and begins payments, only to stop two years after the accident, there may be no recourse.  Therefore, to protect against such losses, suit must be filed before the two year statute, regardless of whether the responsible party has signed a promissory note.  </div> <bR> </td> </tr></table></body>