SAN DIEGO -- Hertz
proposed a settlement to a class action suit brought against it --
and other car rental companies -- by a group of travel agents who
alleged the car rental company underpaid them by calculating
commissions on base rates that excluded fees later added to the
price.
The Superior Court
of the State of California, San Diego County has not ruled on the
proposed settlement.
Hertz, which denies
any wrongdoing, has proposed the settlement for agents who, as
defined as the class, reserved a Hertz rental car for their clients
who completed a rental between June 12, 1999 and Oct. 4, 2004.
Agents that did not have an individually negotiated contact
directly with Hertz and were not part of a group that had
negotiated agreements also are considered part of the
class.
Under terms of the
settlement, Hertz has agreed to provide members of the settlement
class various kinds of car rental certificates, as well as bonus
commissions.
Hertz said
eligibility for relief depends on several factors including whether
the current or former travel agent making the claim can provide
documentation.
In a statement,
Hertz said it believes that resolving the lawsuit is a positive
development for the company and its travel agency partners, and it
avoids the unnecessary expense and burden of litigation. We believe
that our travel agency commission policies and practices were and
are proper in all respects.
Alexander Anolik,
one of the attorneys representing the class said the proposed
settlement provides relief and benefit for those travel agencies
most likely to have been affected by the commission
issue.
Hertz has
established a Web site, www.commissionsettlement.com, where agents can
download claims forms. Agents can also contact Anolik at (415)
673-3333.
A year ago, San
Diego-based Wide World Tours of Mission, filed suit against Avis,
Budget, Dollar, Enterprise, Hertz and Thrifty alleging travel
agents lost revenue on car rentals because of the long-standing
practice of calculating commissions on base rates that exclude
other fees and taxes.
To contact
reporter Michael Milligan, send e-mail to [email protected].