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Class action attempt vs Hertz over concession fees rerouted by contract into arbitration, judge says
Car rental chain Hertz will be allowed to pull to the curb a class action accusing it of improperly charging fees at non-airport car rental locations in Chicago and elsewhere, as a federal judge said the customer contract allows the dispute to go to an arbitrator.
A man is suing The Hertz Corporation, State Farm Mutual Automobile Insurance Company and The McKenzie Insurance Agency Inc., alleging breach of contract, breach of duty and intentional infliction of emotional distress, after he was allegedly falsely accused of stealing a car.
The city of Chicago can pull its controversial three-mile-radius car rental tax from the curb, after a state appellate panel determined the tax is a “use tax” assessed only on city residents using their rented vehicles in the city, and not an attempt to slap a transaction tax on vehicle rentals outside of city limits, which otherwise would have been an illegal extension of the city’s authority.