ContractsProf Blog

Editor: D. A. Jeremy Telman
Valparaiso Univ. Law School

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Monday, April 28, 2008

Alamo and National Sue Orbitz

According to the St. Louis Business Journal, Alamo Rent-A-Car and National Car Rental are suing Orbitz Worldwide, Inc. for breach of contract, alleging that Orbitz has violated its online listing agreement with the two companies and has and improperly removed both Alamo and National from its main rental car matrix.

Both Alamo and National were acquired in 2007 by the Taylor family of St. Louis, which also owns Enterprise Rent-A-Car, when Enterprise acquired the parent company of Alamo and National, the Vanguard Car Rental Group.  The companies allege that Orbitz demanded an additional payment of $1.5 million in excess of what was required under the companies' agreement which runs through December 31, 2008.  Alamo and National allege that Orbitz removed them from its matrix when the Taylor family refused to pay.

Alamo and National are seeking a temporary restraining order, preliminary and permanent injunctive relief, and specific performance, punitive damages, and attorneys' fees.  Alamo contends that it stands to lose more than $27 million due to the alleged breach.  That being the case, I would pay the $1.5 million and sue later, but nobody asked my advice.

Orbitz maintains that the suit is without merit and that the two rental companies are making demands of it that are not required under the agreement.

[Jeremy Telman]

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