Adhav v. Midway Rent A Car, Inc.Annotate this Case
Plaintiffs rented cars from Midway and opted to purchase insurance coverage; Midway purchased the policies from KnightBrook and National Specialty; Midway was the insured but was authorized to extend coverage to its customers under the policies; and these policies and the rates charged Midway were approved by the California Department of Insurance. Plaintiffs brought a class action against Midway, asserting that they were economically harmed by unlawful and fraudulent business practices. Plaintiffs also named as defendants KnightBrook, National Specialty and their managing general agent.
The Court of Appeal affirmed the trial court's judgment in favor of Midway and held that there was no fraudulent omission; the Rental Car Agents Act, not more general insurance provisions, applied to the disclosure at issue; and plaintiffs demonstrated no conflict between the Rental Car Agents Act and Proposition 10. The court also held that the insurer defendants did not charge an unapproved rate; Midway was not required to charge its customers the premium it paid to the insurer defendants; and the doctrine of judicial abstention was inappropriate here.