MICHAEL DELANEY, individually and on behalf of all others similarly situated,

Plaintiff,

v.

ENTERPRISE RENT-A-CAR COMPANY, INC. and ELRAC, INC.,

Defendants.

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SUPERIOR COURT OF NEW JERSEY
OCEAN COUNTY : LAW DIVISION

Docket No.: OCN-L-1160-01

 

NOTICE OF PENDENCY OF
CLASS ACTION

TO: ANYONE WHO RENTED A VEHICLE IN NEW JERSEY FROM ENTERPRISE RENT-A-CAR COMPANY, INC. OR ELRAC, INC. (TOGETHER "ENTERPRISE") BETWEEN APRIL 1, 1988 AND MARCH 11, 2003 AND PURCHASED SUPPLEMENTAL LIABILITY PROTECTION ("SLP"), PERSONAL ACCIDENT INSURANCE ("PAI") AND/OR COLLISION DAMAGE WAIVER ("CDW") AS PART OF THAT RENTAL.

THIS IS A LEGAL NOTICE THAT MAY AFFECT YOUR RIGHTS

YOU ARE NOT BEING SUED

1. A class action lawsuit ("the Lawsuit") against Enterprise is pending in the Superior Court of New Jersey, Law Division, Ocean County. The Lawsuit is brought by Michael Delaney, on behalf of himself and all other persons and entities that, in connection with the rental of a car from Enterprise in New Jersey, purchased SLP (between 4/1/88 and 7/30/93 or between 11/1/99 and 3/11/03), PAI (between 4/1/88 and 7/30/93 or between 11/1/99 and 3/11/03) and/or CDW (between 4/1/88 and 3/11/03), excluding certain persons and entities as described in paragraph 6 of this Notice.

2. This Notice is given under Rule 4:32 of the New Jersey Court Rules, by Order of the Superior Court of New Jersey, Law Division, Ocean County. The purpose of this Notice is to inform you of this Lawsuit, how it may affect your rights, and what steps you may take in relation to the Lawsuit. This Notice is being made available to all Class members. You have been identified as a potential member of the Class. A final determination of Class membership will not be made until the end of the Lawsuit.

3. What is the case about? This paragraph summarizes the allegations made by plaintiff in the Lawsuit. These allegations have not been proven or established. In connection with a car rental, Enterprise offers three optional products in New Jersey: SLP (third-party liability insurance), PAI (first-party accident insurance for the renter and passengers) and CDW (a waiver transferring to Enterprise the risk of loss or damage to the rental vehicle). SLP and PAI are insurance products of third-party insurance companies sold by Enterprise. Plaintiff alleges that Enterprise sold SLP and PAI to Class members in violation of the New Jersey insurance licensure law and that Enterprise used uniformly deceptive rental agreement forms at the point of sale. Specifically, plaintiff alleges that:

(a) Enterprise sold SLP and PAI in New Jersey until sometime in 2000 without having the proper New Jersey insurance licenses;

(b) To induce renters to buy SLP, Enterprise's rental agreements uniformly misrepresented that "Enterprise Supplies No Insurance," when, in fact, Enterprise supplied to all Class members the third-party insurance required by New Jersey's minimum financial responsibility law; and

(c) To induce renters to buy SLP, PAI and CDW, Enterprise's rental agreements uniformly misrepresented or failed to disclose that Enterprise knew that these products were actually or likely duplicative of insurance that renters already had through other sources, such as their personal auto insurance policies or the credit cards that they used to rent from Enterprise.

4. Enterprise has denied any wrongdoing and denies that Plaintiff or any member of the Class is entitled to any relief. Enterprise asserts several defenses to this Lawsuit which have not been proven or established. Among other defenses, Enterprise specifically contends that:

(a) Enterprise is and was properly licensed as required by law and that Enterprise did not violate New Jersey insurance licensure laws in selling SLP and PAI in New Jersey;

(b) Enterprise's rental forms and other materials accurately inform renters about the optional products and Enterprise does not sell SLP, CDW and PAI in a deceptive manner;

(c) The phrase "Enterprise Supplies No Insurance" is accurate and not misleading because Enterprise does not, nor does New Jersey's minimum financial responsibility law require Enterprise to, provide insurance to renters;

(d) The optional products offered by Enterprise provide valuable protection to all renters who choose to purchase the products, even if renters have additional protection; and

(e) The parent company of ELRAC, Inc. (sued herein as Enterprise Rent-A-Car Company, Inc.) does not rent cars in New Jersey and is not liable for any alleged wrongdoing.

5. At this time, the Court has not decided whether Enterprise has done anything wrong. This Notice is not an expression by the Court of any opinion of wrongdoing. That issue will be decided at trial.

6. Who is in the class? You are a member of the Class if:

You purchased one or more of these products from Enterprise in the State of New Jersey:

Between the Dates of:

SLP

4/1/88 and 7/30/93; or

11/1/99 and 3/11/03

PAI

4/1/88 and 7/30/93; or

11/1/99 and 3/11/03

CDW

4/1/88 and 3/11/03

AND you did not submit a claim for which benefits were paid under SLP, PAI and/or CDW;

AND you were not an employee of Enterprise or any of the insurance companies for which Enterprise sold SLP or PAI at the time of purchase.

You should also note that Enterprise Leasing Company of Philadelphia is not part of this Lawsuit and if you rented from that company in New Jersey, you are not part of the Class in this Lawsuit. Thus, you are a member of the Class in this Lawsuit only if you purchased SLP, PAI and/or CDW, as specified above, from Enterprise Rent-A-Car Company, Inc. or its subsidiary ELRAC, Inc. (collectively referred to herein as "Enterprise"). If you would like to view copies of the Court's complete orders affecting class certification, they are available at www.ssem.com.

7. What you need to do now. You may participate in this Lawsuit as a member of the Class or exclude yourself from the Class. This is a decision you must make now.

(a) Staying In The Class - If you wish to remain a member of the Class, you need do nothing and your rights in the class action lawsuit will be pursued by the law firms representing the class ("Class Counsel").Class Counsel are:

Lite, DePalma, Greenberg & Rivas, LLC
Two Gateway Center, 12th Floor
Newark, NJ 07012

Specter Specter Evans & Manogue, P.C.
The 26th Floor, Koppers Building
Pittsburgh, PA 15219

Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103

If you remain a member of the Class and are finally determined to be a Class member and if plaintiff prevails and obtains a recovery, you will be entitled to share in any settlement or other recovery for the Class in the Lawsuit. You will also be bound by any judgment, verdict, award, release, settlement or other ruling of the Court in the Lawsuit . You will be barred from bringing your own lawsuit against Enterprise related to your purchase of SLP, PAI or CDW.

As a Class member, you will not be personally responsible for the payment of any expenses, or the attorneys' fees for Class Counsel incurred as a result of the Lawsuit. If the Lawsuit is successful and a recovery is obtained for the Class, either through settlement or judgment, Class Counsel will apply to the Court to approve the payment of reasonable attorneys' fees and expenses, either out of any such recovery or separately from Enterprise, as ordered by the Court. If the Lawsuit is unsuccessful, you will not be personally responsible for, and will not have to pay any attorneys' fees or expenses. At any time during the Lawsuit, you may also participate through your own counsel, at your own expense, though that is not necessary for your rights to be protected.

(b) Excluding Yourself From The Class - If you exclude yourself from the Class, you will not be part of the Lawsuit.  You will also not be bound by any judgment in the Lawsuit, will not be entitled to share in any settlement or recovery obtained by plaintiff and the Class in the Lawsuit, and you will be free to pursue, at your own expense, whatever legal rights you may have. If you wish to exclude yourself from the Class, you must complete the Request for Exclusion attached below and mail it to Class Counsel: Specter Specter Evans & Manogue, P.C., The 26th Floor, Koppers Building, Pittsburgh, Pennsylvania 15219. Please do not send requests for exclusion to the Court. Your written request for exclusion must be postmarked on or before October 25, 2003.

IF YOU DO NOT EXCLUDE YOURSELF FROM THE CLASS, OR IF YOUR EXCLUSION REQUEST IS POSTMARKED AFTER OCTOBER 25, 2003, YOU WILL REMAIN A MEMBER OF THE CLASS, AND YOU WILL BE BOUND BY ALL ORDERS AND JUDGMENTS IN THIS LAWSUIT. YOU WILL NOT BE ABLE TO FILE, PARTICIPATE IN OR CONTINUE ANY OTHER LAWSUIT OR PROCEEDING BASED ON OR RELATING TO THE CLAIMS, CAUSES OF ACTION, FACTS OR CIRCUMSTANCES OF THIS CASE.

Dated: July 17, 2003.

Clerk
Ocean County Courthouse
118 Washington Street
Toms River, New Jersey 08754

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