TO: ALL PERSONS WHO RENTED A VEHICLE IN NEW JERSEY FROM
ENTERPRISE LEASING COMPANY OF PHILADELPHIA DOING
BUSINESS IN ATLANTIC, BURLINGTON, CAMDEN, CAPE MAY,
CUMBERLAND, GLOUCESTER, MERCER, OR SALEM COUNTY AS
ENTERPRISE RENT-A-CAR ("ELC") AND PURCHASED
SUPPLEMENTAL LIABILITY PROTECTION ("SLP") AND/OR PERSONAL
ACCIDENT INSURANCE ("PAI") FROM APRIL 1, 1988 THROUGH JULY
30, 1993 OR FROM NOVEMBER 1, 1999 THROUGH FEBRUARY 29, 2000
("SETTLING CLASS").
THIS IS A LEGAL NOTICE THAT MAY AFFECT YOUR RIGHTS
YOU ARE NOT BEING SUED
PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY. YOUR RIGHTS TO PARTICIPATE IN, EXCLUDE YOURSELF FROM OR OBJECT TO A PROPOSED SETTLEMENT OF THE LITIGATION LISTED ABOVE MAY BE AFFECTED.
1. Purpose of Notice. If you are a member of the Settling Class described above and at
Paragraph 4 of this Notice, you may be covered by a proposed settlement of a class action
lawsuit. This Notice describes the lawsuit and the proposed settlement and states the date, time,
and place of a hearing to be held by this Court to decide whether the Court will give final
approval to the settlement. If you are a member of the Settling Class and you do not exclude
yourself from the settlement on time, you will be entitled to the settlement benefits if the Court
approves the proposed settlement and you will be bound by the orders issued by the Court
regarding the settlement.
2. Background. The class action lawsuit referenced above is presently pending in the
Superior Court of New Jersey, Ocean County, Law Division. A class action is a lawsuit in
which one or more persons sue on behalf of all other persons in a similar situation. The lawsuit
alleges that from April 1, 1988 through July 30, 1993, and from November 1, 1999 through
February 29, 2000, ELC sold Supplemental Liability Protection ("SLP") and Personal Accident
Insurance ("PAI") in the State of New Jersey without proper licensure or registration and used
rental agreement forms and related sales practices that misled customers into buying SLP and
PAI.
Specifically, the lawsuit alleges:
(a) ELC sold SLP and PAI in New Jersey without having the proper New
Jersey insurance licenses (i.e., registration) to sell insurance; and
(b) To induce renters to buy SLP, ELC's rental agreements uniformly
misrepresented that "Enterprise Supplies No Insurance," when, in fact,
ELC supplied the third-party insurance required by New Jersey's
minimum financial responsibility law; and
(c) To induce renters to buy SLP and PAI, ELC's rental agreements
uniformly misrepresented or failed to disclose that ELC 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 ELC.
ELC has denied any wrongdoing and also denies that the case should proceed as a class action,
except for purposes of this settlement.
Specifically, ELC contends that:
(a) ELC is and was properly licensed as required by law and that ELC did
not violate New Jersey insurance licensure laws in selling SLP and PAI in
New Jersey; and
(b) ELC's rental forms and other materials accurately inform renters about
the optional products, and ELC does not sell SLP and PAI in a deceptive
manner; and
(c) The phrase "Enterprise Supplies No Insurance" is accurate and not mis-
leading because ELC does not, nor does New Jersey's minimum financial
responsibility law require ELC to, provide insurance to renters; and
(d) SLP and PAI provide valuable protection to all renters who choose to
purchase the products, even if renters have additional protection.
No trial has been held on the merits of any of the claims. This Notice does not imply that there
has been any finding of any violation of the law by ELC or that recovery could be had in any
amount. This Notice is directed to you because your rights may be affected by the proposed
settlement. If the proposed settlement does not become final, the lawsuit will proceed as if
there had been no proposed settlement.
3. History of the Litigation. This class action was initiated by Plaintiff Michael
Delaney in this Court on April 5, 2001, alleging the claims described above against Enterprise
Rent-A-Car Company ("ERACC") and one of its New Jersey subsidiaries, ELRAC, Inc.
("ELRAC"). Both ERACC and ELRAC moved to dismiss Plaintiff's Complaint, which the
Court denied.
Thereafter, the parties conducted a substantial amount of discovery into the facts
underlying this case. That discovery included the review of thousands of pages of documents
supplied by ERACC and ELRAC, more than 20 individual and/or corporate representative
depositions of the Defendants and of a third party insurer and consultant, and numerous
interrogatory and request for admission answers from the Defendants.
During the course of this discovery, Plaintiff filed his motion for class certification.
ERACC and ELRAC opposed that motion, and filed a motion to dismiss claims prior to April 5,
1995 on statute of limitation grounds. The Court resolved these motions by dismissing some
but not all of the Plaintiff's claims for periods prior to April 5, 1995, and certifying the class as to
the remaining claims.
Specifically, the Court certified a class of all persons and entities (a) who/which
purchased SLP and/or PAI in the State of New Jersey from or through ERACC or ELRAC at
any time from April 1, 1988 through March 11, 2003, except for the period July 31, 1993
through October 31, 1999, and/or (b) who/which purchased CDW in the State of New Jersey
from ERACC or ELRAC at any time from April 1, 1988 through March 11, 2003. The Court
ordered that published and certain mailed notice of the pendency of that certified class action
and the opportunity for exclusion from the class be given to class members. The notice was
disseminated by September 5, 2003 with an exclusion request deadline of October 25, 2003.
Following certification of the class, Plaintiff moved for summary judgment in favor of
the class only as to the illegal contract (Count I) and New Jersey consumer fraud (Count II)
claims relating to licensure or registration. ERACC and ELRAC opposed that motion and
cross-moved for summary judgment seeking to dismiss the same licensure or registration
claims. On December 1, 2003, the Court resolved both motions by dismissing the illegal
contract claim (Count I) and denying both motions as to the consumer fraud claim (Count II),
finding that there are questions of fact as to whether the Defendants' lack of registration
constitutes a cognizable consumer fraud violation. ERACC and ELRAC requested leave to
appeal that decision, which request has been dismissed without prejudice to renewal should the
proposed settlement not be finally approved.
On December 16, 2003, ERACC and ELRAC filed another motion for summary
judgment. That motion seeks dismissal of the misleading sale claims, asserting that Defendants
owed no duty to disclose to their customers the terms of the agreements between customers and
third parties. ERACC and ELRAC have advised that should this litigation continue they intend
to file other motions for summary judgment on the misleading sale claims.
The parties from time to time throughout this litigation have discussed the possibility of
settlement. Following the Court's summary judgment ruling on the licensure and registration
claims and the filing of Defendant's newest summary judgment motion as to the misleading sale
claims, the parties renewed their settlement discussions. After meeting in January, 2004, the
parties agreed to attempt to mediate a resolution of this class action through a court-appointed
mediator. The Court appointed as mediator retired Superior Court Judge L. Anthony Gibson
before whom the parties participated in two mediation sessions resulting in this proposed
settlement.
As part of the proposed settlement, Plaintiff filed an Amended Complaint on May 18,
2004 to add claims against ELC for a class of persons and entities who/which purchased SLP
and/or PAI from ELC from April 1, 1988 through July 30, 1993 and November 1, 1999 through
February 29, 2000. ELC is another ERACC subsidiary that rents vehicles in New Jersey and
whose alleged conduct and practices were materially similar to ELRAC with regard to those
products.
The parties believe that this proposed settlement is appropriate in order to avoid the
expense, inconvenience, and burden of further litigation particularly in light of the benefits that
the class members and potential class members will receive as a result of this proposed
settlement. Class Counsel believes that these benefits provide significant value to the members
of the Class and that the proposed settlement is a fair, reasonable and adequate resolution of this
class action.
4. Terms of the Proposed Settlement. a. The proposed settlement affects all Settling Class Members. You are a
Settling Class Member if:
You purchased one or more of these products
from ELC in the State of New Jersey | Between and including the dates |
| SLP | 04/1/88 and 7/30/93; or 11/1/99 and 02/29/00 |
| PAI | 04/1/88 and 7/30/93; or 11/1/99 and 02/29/00 |
AND you did not submit a claim for which benefits were paid under SLP or PAI;
AND you were not an employee, agent or representative of ELC or any of the insurance
companies for which ELC sold SLP or PAI in the State of New Jersey at the time of purchase;
AND you do not exclude yourself from the Settling Class as discussed below.
b. If the settlement is approved, each Settling Class member will be entitled
to receive one "Discount Certificate" for a future rental for every rental transaction in which he
or she purchased PAI and/or SLP during the applicable time period. Each Discount Certificate
shall be usable at any of ELC's branches for a future rental of up to 30 days in length. The
Discount Certificate will provide for the following:
- If the future rental is of a standard vehicle or less, a discount equal to
50% of the undiscounted daily retail rate for the class of vehicle rented,
plus a one-class upgrade if desired; or
- If the future rental is of a vehicle that is one class above standard, a
discount equal to 50% of the undiscounted daily retail rate for a
standard vehicle; or
- If the future rental is of a vehicle that is two or more classes above
standard, a discount equal to 50% of the undiscounted daily retail rate
for a vehicle that is one class above standard.
The Discount Certificate will be redeemable for a rental beginning within one year from the
date of issue and will be fully transferable to anyone, provided it is used by a qualified renter.
The discount offered by each Discount Certificate has been determined by Class Counsel's
expert to be worth on average at least $97.58.
c. In return, all of the Settling Class Members' claims arising from or
relating to the purchase of SLP and/or PAI from ELC in the State of New Jersey from April 1,
1988 through July 30, 1993 or from November 1, 1999 through February 29, 2000 are
dismissed with prejudice and all Settling Class Members are forever barred from any future
litigation asserting those or related claims.
d. The Discount Certificates will be automatically mailed to Settling Class
Members who purchased SLP and/or PAI from November 1, 1999 through February 29, 2000
without any need for those Settling Class Members to submit claims.
e. Settling Class Members who purchased SLP and/or PAI from
November 1, 1999 through February 29, 2000 who have changed their address may call
1-800-331-4352 to ensure that the Discount Certificate is mailed to their new address. When
you call the number, you will be asked to state your name, the address you listed on your most
recent rental agreement, and the address where the Discount Certificate should be mailed.
f. Settling Class Members who purchased SLP and/or PAI from April 1,
1988 through July 30, 1993 must properly fill out and submit the attached "Proof of Claim"
form to the address listed on that form, postmarked on or before October 8, 2004. To properly
fill out the "Proof of Claim" form, you must verify under oath: (i) that you rented during the
applicable time period; (ii) the number of times you rented from April 1, 1988 through July 30,
1993 and also purchased SLP and/or PAI; and (iii) that you are submitting copies of all
documents you currently have in your possession evidencing the claimed rentals. PLEASE DO
NOT SUBMIT THE "PROOF OF CLAIM" FORM DIRECTLY TO THE COURT.
g. Class Counsel believe that the proposed settlement is fair, reasonable, and
adequate, and entered into the settlement only after weighing the benefits of the settlement
against the probabilities of success or failure. Class Counsel will submit to the Court a request
for an award of reasonable attorneys' fees not to exceed $2,800,000, plus reimbursement of
litigation expenses. ERACC, ELRAC and ELC intend to contest the fee and expense request.
The actual amount of reasonable attorneys' fees and costs will be determined by the Court, will
be paid by ERACC, ELRAC and/or ELC, and will not diminish the class recovery.
5. Hearing for Court Approval of Settlement. On November 8, 2004, at 1:30 p.m.,
this Court will hold a hearing ("the Hearing") in the courtroom of Judge Edward M. Oles of the
Superior Court of New Jersey, Ocean County, Law Division at the Ocean County Courthouse,
118 Washington Street, Toms River, New Jersey, 08754, to determine whether the proposed
settlement is fair, reasonable, and adequate and should be approved and the lawsuit dismissed in
accordance with the terms of the settlement. This Hearing may be postponed to a later time
without further notice. You will be represented at the Hearing by Class Counsel, unless you
exclude yourself from the class (as described below) or enter an appearance in person or
through your own counsel. It is not necessary for you to appear at the Hearing or to retain your
own counsel to participate in the settlement. As a Settling Class Member you will not be
personally responsible for attorneys' fees or cost disbursements, except those of your own
counsel.
6. Options for all Settling Class Members. If you are a Settling Class Member you
have the following options:
a.
You May Take No Action and Participate in the Proposed Settlement.If you take no action, your interests as a Settling Class Member will be represented by the Class
Counsel at no cost. Class Counsel are:
Bruce D. Greenberg
Lite, DePalma Greenberg & Rivas, LLC Joseph N. Kravec, Jr.
Two Gateway Center, 12th Floor Specter Specter Evans & Manogue, PC,
Newark, NJ 07102 The 26th Floor, Koppers Building
Pittsburgh, PA 15219
Peter Russell Kohn
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
If the settlement is approved by the Court, your claims arising from or relating to the purchase
of SLP and/or PAI during the applicable time period will be dismissed with prejudice and you
will receive the benefits of the proposed settlement.
b.
You May Request Exclusion From the Settling Class. If you choose to
be excluded from the Settling Class, you will not be bound by any judgment or receive the
benefits of the proposed settlement. You will be free to pursue, at you own expense, whatever
legal rights you may have. To request exclusion, you must complete the enclosed "Request for
Exclusion" form and mail it to the address on that form. Your written request for exclusion
must be postmarked on or before October 8, 2004. PLEASE DO NOT SEND "REQUESTS
FOR EXCLUSION" TO THE COURT.
c.
You May Object to the Proposed Settlement. You can object to the
proposed settlement by filing and serving a written objection stating (i) why you object to the
proposed settlement and (ii) whether you intend to appear at the Hearing (either personally or
through an attorney), and attaching any documents supporting your position. Your objection
must be signed and
must include the following information: the name of the lawsuit (
Delaney
v. Enterprise Rent-A-Car Company); the case number (OCN-L-1160-01); your full name,
current address, and telephone number. You should also identify as best you can the Enterprise
Rent-A-Car office from which you rented a vehicle; and the date or dates of the rental. You
must submit any objection in writing by first class mail, postmarked on or before October 8,
2004 to each of the following: Class Counsel, Joseph N. Kravec, Jr., Esquire, Specter Specter
Evans & Manogue, P.C., The 26th Floor, Koppers Building, Pittsburgh, Pennsylvania 15219;
and Enterprise's Counsel, Gregory D. Call, Esquire, Folger Levin & Kahn, LLP, 275 Battery
Street, 23rd Floor, San Francisco, California 94111; and to Clerk, Ocean County Courthouse,
118 Washington Street, Toms River, New Jersey, 08754. Any Settling Class Member who does
not serve objections in the time and matter described above will not be permitted to raise these
objections later.
7. For More Information. This Notice is merely a summary of the proposed
settlement, and does not describe all of the details. For full details of the settlement, you can
review the proposed "Settlement Agreement" that is available at www.ssem.com or may be
inspected during business hours at the office of the Clerk, Ocean County Courthouse, 118
Washington Street, Toms River, New Jersey, 08754.
PLEASE NOTE: If you want to participate in the proposed settlement, you do not need to
complete the Request for Exclusion below or do anything at all. The Request for Exclusion
below needs to be completed and mailed only if you want to be excluded from the proposed
settlement.
REQUEST FOR EXCLUSION
The time to submit a Request for Exclusion passed on October 8, 2004.
PLEASE NOTE: You do
not need to complete the Proof of Claim below or do anything at all if
you wish to participate in the settlement and you purchased SLP and/or PAI from ELC in New
Jersey from November 1, 1999 through February 29, 2000. Submitting a Proof of Claim is
required
only if you wish to participate in the settlement for purchases of SLP and/or PAI from
ELC in New Jersey from April 1, 1988 through July 30, 1993
Proof of Claim
The deadline to submit Proof of Claim has passed on October 8, 2004.
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