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Smart Summary

Factual and Procedural Background

Budget Rent-a-Car of Atlanta, Inc. filed an action against Lance Webb seeking damages for harm caused to a rental vehicle. Webb, while driving alone and allegedly falling asleep at the wheel, wrecked the vehicle in violation of the rental agreement's "Use Restrictions." The trial court denied Budget's motion for directed verdict, and the jury returned a verdict in favor of Webb. Budget’s subsequent motion for judgment notwithstanding the verdict (n.o.v.) was also denied, prompting this appeal.

Webb traveled to Georgia on behalf of his employer, Lumber Systems, Inc., and used a credit card bearing both his and his employer's names for the rental transaction. Webb admitted entering into the rental agreement, which prohibited operation by anyone incapable of safely driving due to drowsiness. The vehicle was returned damaged following the accident, and Budget's expert testified as to the vehicle's loss in market value. Webb has not compensated Budget for the damages.

Legal Issues Presented

  1. Whether the trial court erred in denying Budget's motions for directed verdict and judgment n.o.v. on the basis that Webb breached the rental agreement and is personally liable for resulting damages.
  2. Whether the trial court erred in failing to grant Budget's motions based on undisputed evidence of Webb's negligence in causing the vehicle damage.

Arguments of the Parties

Appellant's Arguments (Budget Rent-a-Car)

  • The trial court erred by denying motions for directed verdict and judgment n.o.v. because the evidence undisputedly showed Webb breached the rental agreement and is personally liable.
  • Webb was negligent as a matter of law since he fell asleep while driving, causing the wreck, and failed to rebut the presumption of negligence.

Appellee's Arguments (Lance Webb)

  • Webb contended that his employer, Lumber Systems, Inc., is a co-obligor and that Budget's failure to name Lumber as a party is fatal to the claim.
  • He argued that he was acting as an agent within the scope of his employment and therefore not personally liable under the rental agreement.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Graham Bros. Constr. Co. v. C. W. Matthews Contracting Co., 159 Ga. App. 546, 248 S.E.2d 282 (1981) Elements required to recover for breach of contract: breach and resultant damages. Confirmed that breach of the rental agreement and damages were established by undisputed evidence.
Parks v. Howard, 197 Ga. App. 405, 398 S.E.2d 308 (1990) Standard for granting directed verdict or judgment n.o.v.: no conflict in evidence and evidence demands a certain verdict. Used to emphasize that the evidence must be viewed in favor of the verdict but here the evidence demanded a verdict for Budget.
State Hwy Dept v. Lumpkin, 222 Ga. 727, 152 S.E.2d 557 (1966) Judicial admission cannot be denied by the party making it. Webb's admission of entering into the rental agreement was binding and precluded denial.
Blunt v. Spears, 93 Ga. App. 623, 92 S.E.2d 573 (1956) Negligence presumed when a driver falls asleep at the wheel causing a wreck unless rebutted. Applied to hold Webb negligent as a matter of law for falling asleep and causing the wreck.
Southern Bell Tel. c. Co. v. Spears, 212 Ga. 537, 93 S.E.2d 659 (1956) Reversal on other grounds but related to negligence principles. Referenced in context of negligence standard applied to Webb’s conduct.
Ga. Power Co. v. Murray, 57 Ga. App. 141, 194 S.E. 403 (1937) Negligence principles regarding driver responsibility. Supported the conclusion that Webb was negligent as a matter of law.

Court's Reasoning and Analysis

The court analyzed the undisputed facts that Webb rented the vehicle under a valid contract containing specific use restrictions, including a prohibition against operating the vehicle while drowsy. Webb admitted to entering into the contract, constituting a judicial admission that cannot be denied. The vehicle was wrecked when Webb fell asleep while driving, and Budget sustained damages as a result.

The court applied contract law principles confirming that breach and resulting damages are essential elements for recovery. It further applied established negligence law holding that falling asleep at the wheel causing a wreck creates a presumption of negligence that the driver must rebut. Webb failed to do so.

In reviewing the motions for directed verdict and judgment n.o.v., the court noted that although evidence must be viewed in favor of the verdict, here the evidence was undisputed and demanded a verdict for Budget on liability. The only remaining factual question for the jury was the amount of damages.

Holding and Implications

The court REVERSED the trial court’s denial of Budget’s motions for directed verdict and judgment n.o.v. on the issue of liability and REMANDED the case for further proceedings to determine damages.

The direct effect is that Webb is held personally liable for breach of contract and negligence causing damage to the rental vehicle. No new legal precedent was established; rather, the court reaffirmed existing contract and negligence principles in applying them to the facts.

BUDGET RENT-A-CAR OF ATLANTA, INC. v. WEBB

BLACKBURN, Judge.

Budget Rent-a-Car of Atlanta, Inc., (Budget) brought the underlying action against Lance Webb to recover damages to its rental vehicle caused by Webb's negligent operation of the vehicle and violation of the "Use Restrictions" of their rental agreement. At the close of evidence, the trial court denied Budget's motion for directed verdict and the jury returned a defendant's verdict. The trial court denied Budget's motion for judgment n.o.v., and this appeal followed.

Webb traveled to Georgia on behalf of his employer Lumber Systems, Inc. The credit card which Webb used in the transaction was in the name of "Lance N. Webb" with the name "Lumber Systems Inc" immediately under Webb's name. In defendant's amended answer however, he admitted that he and plaintiff had entered into the subject rental agreement and that it provided that the "vehicle will not be used or operated by anyone . . . [w]ho is not capable of safely driving the vehicle due to . . . drowsiness." Defendant was listed as the "Renter" on the agreement and the agreement required that the renter return the vehicle in the same good operating condition.

On the night of the wreck, Webb got home from work around 6:00 or 7:00 p.m. and drove alone to Augusta to have dinner. During this trip Webb, while driving at 65 mph, fell asleep and wrecked the vehicle which was ultimately returned to Budget in a damaged condition. Budget's expert testified that the fair market value of the vehicle prior to the wreck was $12,163 and that the fair market value of the wrecked vehicle was $2,000. On the second attempt, they were able to sell the wrecked vehicle at public auction for $2,000. Defendant has never compensated plaintiff for damages to the involved vehicle.

Webb argues that his employer, Lumber, is a co-obligor of any obligation and plaintiff's failure to name Lumber as a party is fatal to its claim. He further argues that he was acting as the agent for Lumber, within the scope of his employment at all times relevant to this action and was not personally liable under the agreement.

1. Budget contends that the trial court erred by denying its motion for directed verdict and its motion for judgment n.o.v. in that the undisputed evidence showed that Webb had breached the rental agreement and was personally liable for such breach.

"A contract is an agreement between two or more parties for the doing or not doing of some specified thing." OCGA § 13-1-1. "[A]n action at law lies for breach of a contract and that damages are given as compensation for the injuries sustained. The elements of a right to recover for a breach of contract are the breach and the resultant damages to the party who has the right to complain about the contract being broken." (Citations omitted.) Graham Bros. Constr. Co. v. C. W. Matthews Contracting Co., 159 Ga. App. 546, 550 ( 248 S.E.2d 282) (1981). It is uncontroverted in the record that Webb rented a 1990 Chrysler LeBaron from Budget pursuant to a valid, written rental agreement, and thereafter wrecked it after falling asleep at the wheel while driving alone on Interstate 20. As a result of the wreck, the car was damaged and sold for salvage.

"`In determining whether the trial court erred by denying [plaintiff's] . . . motion for judgment n.o.v., this court must view and resolve the evidence and any doubt or ambiguity in favor of the verdict. "A directed verdict (and judgment n.o.v.) is not proper unless there is no conflict in the evidence as to any material issue and the evidence introduced, with all reasonable deductions therefrom demands a certain verdict."'" (Citations omitted.) Parks v. Howard, 197 Ga. App. 405, 407 ( 398 S.E.2d 308) (1990).

Webb's admission that he and Plaintiff had entered into the rental agreement, contained in his answer, constitutes a judicial admission, which he is not even permitted to deny. OCGA § 24-3-30, State Hwy Dept v. Lumpkin, 222 Ga. 727 ( 152 S.E.2d 557) (1966). In view of the contractual requirement that Webb was to return the vehicle in the same good condition and the undisputed fact that he did not, it was error for the trial court to deny Budget's motion for judgment n.o.v. as to Webb's liability for damages arising from a breach of the rental agreement.

2. Budget further contends that the trial court erred in failing to grant its motion for directed verdict and motion for judgment n.o.v. based on the undisputed evidence that Webb negligently and proximately damaged Budget's vehicle.

Questions of negligence are ordinarily matters for resolution by a jury. Where the evidence is undisputed however, that a driver has fallen asleep at the wheel and a wreck results therefrom, the driver bears the burden of showing that he was not negligent in damaging the vehicle. When he fails to meet this burden, the driver is negligent as a matter of law. Blunt v. Spears, 93 Ga. App. 623 ( 92 S.E.2d 573) (1956), rev'd on other grounds, Southern Bell Tel. c. Co. v. Spears, 212 Ga. 537 ( 93 S.E.2d 659) (1956); Ga. Power Co. v. Murray, 57 Ga. App. 141 ( 194 S.E. 403) (1937). In view of the unrefuted evidence that the wreck resulted from Webb falling asleep while driving, and his failure to make any showing that he was not negligent, the trial court erred in failing to grant Budget's motion for judgment n.o.v. as to Webb's liability to Budget for damages to the rental vehicle based upon his negligent conduct in causing the wreck.

The question of the amount of damages to which Budget is entitled must be resolved by a jury in view of the arguably conflicting evidence on this issue. The judgment of the court is hereby reversed and the matter is remanded to the trial court for further proceedings consistent with this opinion.

Judgment reversed and case remanded. McMurray, P.J., and Andrews, J., concur.

BLACKBURN, Judge.

DECIDED FEBRUARY 20, 1996.
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BUDGET RENT-A-CAR v. WEBB
(Feb 20, 1996)