Kassis v. Lease & Rental Management Corp.
Kassis v. Lease & Rental Management Corp.
Opinion of the Court
At issue in this appeal is whether a long-term lessor of a vehicle owes a duty of care to a person who is injured as a result of a mechanical defect arising after the beginning of the lease. We conclude that, under the law of bailment, no such duty exists. Accordingly, we affirm the trial judge’s allowance of the defendant’s motion for a new trial, as well as the judgment entered in the second trial.
The lease agreement expressly placed on Tropeano a number of duties and responsibilities regarding the maintenance and upkeep of the vehicle. The lease required Tropeano to maintain the vehicle in good working condition and to have mechanical problems repaired at her own expense. Paragraph “M” of the agreement (“Vehicle Upkeep and Alterations”) provided:
“I [Tropeano] will at my expense, have the vehicle serviced in accordance with the manufacturer’s recommendations, maintain the vehicle in good working order and condition, and have all necessary repairs made.”
In addition, paragraph “C” of the agreement (“Vehicle Warranties”) provided:
“I [Tropeano] understand that I have the entire risk during the lease term as to the vehicle’s quality and performance and that if I have a mechanical problem with the vehicle I am required to have the problem fixed and pay all repair and service costs to the extent they are not covered by any manufacturer’s new car warranty assigned to me.”
On September 30, 2003, the annual inspection sticker on the vehicle expired, and Tropeano did not take the car to be inspected.
The accident was caused by a brake failure the following month (fifteen months into the lease). Tropeano was driving her children to daycare, unaware of any continuing problem with the brakes. She was unable to stop the car before it struck and fatally injured Kassis.
The plaintiff sued Tropeano and L & R. This appeal concerns only the negligence claim asserted against L & R, the liability portion of which was twice tried to a jury. In the first trial, the judge, relying on Instruction 2.2.5 of the Massachusetts Superior Court Civil Practice Jury Instructions (Mass. Cont. Legal Educ. 2d ed. 2008),
“a duty of care to take the reasonable steps necessary to*787 assure that the Neon leased to Angela Tropeano and operated by her at the time of the accident was in good repair and capable of being operated safely and without posing an unreasonable danger to others.”
The jury found that L & R owed this duty and that the duty had been breached. The jury awarded damages in the amount of $1,124,084.
L & R timely filed a motion for new trial, arguing that, as lessor of the vehicle, it had no duty to keep the vehicle in safe mechanical condition at the time of the accident and that the finding was, therefore, in error. The judge agreed, concluding that the long-term vehicle lease was a form of bailment. As bailor, L & R was not liable for harm to third parties caused by a defect in the bailed property unless L & R had actual knowledge of the defect at the time of the accident or had agreed to maintain the vehicle after its delivery to Tropeano. Because neither of those two conditions existed here, the judge concluded that the instruction was both erroneous and prejudicial. The judge also concluded that a new trial (rather than judgment notwithstanding the verdict) was in order because L & R’s obligation to have the car annually inspected, G. L. c. 90, § 7A; 540 Code Mass. Regs. § 4.03 (1999), imposed a duty on L & R toward Kassis, although this duty was materially different from the one on which the jury were instructed in the first trial. In the second trial, the jury found that L & R owed no duty to Kassis. A judgment entered in favor of L & R. The plaintiff now appeals from that judgment and argues that the allowance of L & R’s motion for new trial was error.
Discussion. “The decision to grant or deny a motion for a new trial rests in the discretion of the trial judge, and an appellate court will not vacate such an order unless the judge has abused that discretion.” W. Oliver Tripp Co. v. American Hoechst Corp.,
As a general principle, the owner of a vehicle owes a duty to exercise reasonable care to keep the vehicle in safe mechanical condition. Facteau v. Gould, 310 Mass. 105, 106-107 (1941). Pellegatti v. Pellegatti, 345 Mass. 591, 593-594 (1963). Carney v. Bereault, 348 Mass. 502, 505 (1965). However, where (as here) the owner has leased the vehicle to another under a long-term lease, we think the owner’s obligations are controlled by the common law of bailment to the extent they are not otherwise governed by the terms of the lease or by statute.
At common law, a bailor’s only duties are to deliver non-defective chattels, see Mitchell v. Lonergan, 285 Mass. 266, 269 (1934), and to deliver them to bailees capable of using them safely.
Applying these principles to the case at hand, we conclude — as did the judge below — that L&R had no general common-law duty to assure the safety of the vehicle leased to Tropeano and that, accordingly, the jury were incorrectly instructed regarding such a duty during the first trial. The motor vehicle annual inspection laws, G. L. c. 90, § 7A, and 540 Code Mass. Regs. § 4.03, imposed only limited duties on L & R as the owner of the vehicle,
We also conclude that the erroneous instruction prejudiced L & R such that the judge did not abuse his discretion in deciding that a new trial was warranted. See Dartt v. Browning-Ferns Indus., Inc. (Mass.), 427 Mass. 1, 14 (1998). Under the broad duty of care given in the original instructions, the jury could have found L & R negligent for failing to discover the brake fluid leak or for failing to itself repair the brakes, even though the car was in good working order when it left L & R’s possession and was delivered to Tropeano. Such a result would be inconsistent with L & R’s limited duties as bailor.
For the reasons set out above, the order allowing L & R’s motion for a new trial is affirmed. The judgment entered in the second trial is affirmed.
So ordered.
L & R is in the business of leasing, selling, and financing motor vehicles, and it operates in at least forty States. In 2002, it owned approximately 1,000 leased vehicles and financed approximately 18,000 retail loans. Tropeano, like eighty to ninety percent of L & R’s retail borrowers and lessees, was a “subprime” borrower posing a high credit risk. At the initiation of the lease, Tropeano had no savings or checking account and no credit cards, and she was in default on her student loans. Almost immediately after taking possession of the vehicle, Tropeano began to fall behind in making her lease payments.
See G. L. c. 90, § 7A; 540 Code Mass. Regs. §§ 4.01 et seq. (1999).
Shortly before Tropeano took possession, L & R had taken the vehicle to a mechanic to conduct repairs and a safety check.
Paragraph “M” of the agreement also provided:
“If you [L & R] request, you may inspect the vehicle at any reasonable time. Unless I [Tropeano] obtain your written consent beforehand, I will not make any changes to the vehicle . . . which would decrease its economic value or functional utility. All changes made to the vehicle which cannot be removed or remodified without decreasing its economic value or functional utility shall become fixtures of the vehicle and your property when such changes are originally made.”
There was evidence that Tropeano did not want to pay for an inspection.
After researching the repair options, Tropeano took the car to be repaired at the least expensive one.
Instruction 2.2.5 of the Massachusetts Superior Court Civil Practice Jury Instructions (Mass. Cont. Legal Educ. 2d ed. 2008) provides, “The owner of a motor vehicle owes other travelers the duty to exercise reasonable care to keep his or her vehicle in safe mechanical condition.”
The jury found that (1) Tropeano was negligent in connection with the accident; and (2) L & R lacked the authority and the means to control Tropeano’s operation or maintenance of the automobile at the time of the accident. The latter finding precluded vicarious liability for L & R. See Thompson v. Auto Credit Rehabilitation Corp., 56 Mass. App. Ct. 1, 5 (2002).
The plaintiff’s earlier request for interlocutory relief was denied by a single justice of this court.
For example, the provisions of the Uniform Commercial Code, G. L. c. 106, §§ 2A-101 et seq., and other statutory provisions.
To establish a claim for negligent entrustment, a plaintiff must establish
General Laws c. 90, § 7A, provides, in part, that the registrar of motor vehicles shall establish a system of annual inspections which “shall include, but not be limited to, an annual maintenance inspection to determine the proper and safe condition of the following: brakes, stop lamps, lights, directional signals, horn, vehicle identification number, steering and suspension systems, glazing, windshield wipers and cleaner, number plates, tires, fenders, bumpers,
We decline the plaintiff’s invitation to create a duty specific to those who lease cars to people with limited financial means. The plaintiff argues that L & R should have reasonably foreseen that a “subprime,” cash-strapped borrower like Tropeano would not maintain her vehicle properly. Under the terms of the lease contract, however, L & R lacked meaningful control over the vehicle. Without that control, L & R could not have had a duty to maintain directly the vehicle. Cf. Silvia v. Woodhouse, 356 Mass. 119, 123 (1969); O’Gorman v. Antonio Rubinaccio & Sons, 408 Mass. 758, 762-763 (1990). Nor could L & R have had a duty to monitor the maintenance performed by Tropeano. “As a general principle of tort law, ‘there is no duty so to control the conduct of a third person as to prevent him from causing physical harm to another.’ ” Lev v. Beverly Enterprises-Mass., Inc., 457 Mass. 234, 242 (2010), quoting from Restatement (Second) of Torts § 315 (1965). Such duties only exist in “narrowly prescribed circumstances, where a special relationship exists between the person posing the risk and the one who can prevent the harm.” Ibid.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.