Zipcar Escapes Class Action Over Vehicle Damage Policy

By Jeff Sistrunk (February 24, 2014, 6:28 PM EST) -- A New York federal judge on Monday tossed a putative class action alleging car-sharing company Zipcar Inc. violates state business law with its practice of charging customers for vehicle damages without following certain procedures, ruling that private plaintiffs can't sue under the relevant statute.

U.S. District Judge J. Paul Oetken granted Zipcar's motion to dismiss Michael and Jessica Sigall's class complaint while denying as moot the Sigalls' motion for class certification. The judge found that the plaintiffs can't base their lawsuit against Zipcar on alleged violations of New York General Business Law Section 396-z — which governs rental vehicle companies —...

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