Car rental broker Affordable Car Hire has reached an out of court settlement with Avis Budget group ending a long-running legal dispute in the US.
Avis initiated court proceedings in early 2017 claiming Affordable had failed to pay monthly invoices and seeking $2.2 million for bookings which it claimed it had not been paid for.
In response, Affordable launched a $15 million counterclaim against Avis Budget in April last year alleging breach of confidentiality and arguing that invoice errors were the fault of the car hire giant.
Documents lodged by Affordable with the District Court of New Jersey alleged Avis Budget “engaged in a three-year campaign to decimate” its business.
Affordable dealt direct with Avis Budget in the US and husband and wife directors Angela Day and James Moore had agreed personal guarantees with the supplier in 2005.
An update on the New Jersey district court’s website posted on October 3 said the legal action had been terminated pending “consummation of settlement”.
In a statement, Affordable Car Hire, said: “Affordable Car Hire today reports that it has resolved the lawsuit between it and Avis Budget Car Rental that had been pending in the United States District Court for the District of New Jersey.
“The resolution fully and finally disposes of both the litigation and all claims made in that litigation, on confidential terms. The lawsuit has now been dismissed, with prejudice.”
Affordable told Travel Weekly it could not comment any further on the case or the agreement reached with Avis Budget.
Avis has been approached for comment.
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