Court clears car renter of liability for damages in Reykjanes, Iceland

A recent ruling by the Reykjanes District Court has cleared a car renter from liability for damages worth 2.6 million Icelandic krónur (approximately $18,000) due to spilled pallet oil in the vehicle.

The case revolved around a Land Rover Discovery that had been purchased from the car rental agency. When the vehicle broke down, the agency provided a similar model as a loaner while repairs were undertaken. During this period, the man’s wife was driving near Akrafjall when cans of pallet oil, which had been improperly stacked in the trunk, spilled after a sudden stop to avoid a collision.

The man reported the incident to the agency and was told not to worry because the vehicle was covered by comprehensive insurance. Almost two years later, he received a bill for nearly four million krónur, as the insurance company had denied the claim. The man argued that he did not have a chance to influence the repair process or costs, leading him to bring the case to court.

The court concluded that the agency lost its right to claim damages due to the nearly two-year delay in pursuing the matter after being aware of the insurance company’s refusal to cover the repairs. The judge ruled that the agency’s inaction constituted negligence, absolving the man of financial responsibility for the incident.