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When travel companies sue their customers

February 7, 2010

When a young woman named Carissa knocked at my door on a recent Saturday evening and introduced herself as a process server, I knew things were about to get interesting.

And when I read the civil action summons she handed me, I was intrigued.

A Florida-based travel agency had sued me for reporting about its legal troubles on my blog. (I won’t name the agency, because I think part of the reason it filed a complaint was because it craves publicity. Denied.) Next to my name on the suit, I recognized the name of one of the agency’s clients.

Yes, the company was taking one of its own customers to court.


Apparently he had made some comments online that the agency didn’t like.

The episode left me wondering whether travel companies are becoming more litigious and whether travelers can do anything to avoid a visit from someone like Carissa. The answers are yes and yes.

Greg Grant, a lawyer with the Potomac-based law firm Shulman Rogers, says that travel company lawsuits against customers appear to be on the rise. The reason: money.

“Tough economic times may give businesses more reason to bring these actions against customers,” he said.

When companies are in the black, they’re less likely to pursue a customer who has damaged a rental car or trashed a hotel room. The most extreme measure they’d consider is sending an unpaid bill to a collection agency. But at a time like this, when every penny counts, they’re taking the legal option.

By the way, can you guess which part of the travel industry is the most lawsuit-happy? Is it airlines, with their draconian fare rules? Hotels, which are fond of charging you for items in your room that you might or might not have broken? No.

Try rental-car companies.

“They sue customers on a dime, and for small amounts of money, which is really not good policy,” said Edward Neiger, a personal and corporate bankruptcy lawyer in New York. “The other industries sue less often.”

You can help yourself avoid legal trouble by taking precautions when you travel.

Matt Eventoff, an expert on crisis management and communications, recommends documenting everything, including any conversations with a travel company. If you think a lawsuit might be imminent, he suggests taking your grievance to the top. “Staff at corporate headquarters tends to be very aware of the public-relations implications of the messages sent in certain situations,” he said.

Executives might have second thoughts about suing a customer who keeps meticulous records and isn’t afraid to talk publicly about a grievance. “Everything that a company does sends a message, and any lawsuit filed against a customer would certainly send a message — and not a good one,” he added.

And speaking of talking in public, another legal pitfall is embellishing the truth online, according to Marc Edelman, a law professor at Florida’s Barry University. “In today’s age of Facebook, Twitter and blogs, we will likely begin to see more companies sue their customers for Internet libel,” he told me. “Frequent travelers who write about their experiences online should be careful to state only accurate facts or opinion.”

Many companies can be talked out of a lawsuit, according to Grant. “Businesses are less likely to sue customers who are apt to show some responsibility for their obligations,” he said. “For example, a customer who offers to pay something over time or agrees to pay a portion of debt owed, versus nothing or a flat-out non-response.”

What if you can’t reason with a travel company? Experts say that if you’re wrongfully accused, you should fight back by answering the complaint or filing a motion to dismiss the case. That can discourage a litigious company from filing other lawsuits.

You’re probably wondering what happened after Carissa’s surprise Saturday night visit. The Florida travel agency’s case against the customer and me is pending as I write this, although the publicity from the court action has been almost entirely negative for the company.

(Photo: bloomsberries/Flickr Creative Commons)

Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.

7 comments

  • Bisonkeeper

    A counter-suit should be initiated charging violation of First Amendment rights and abuse of process.

  • Justin

    @ Chris,

    You are one popular fella. Government likes you. You were sued over that travel insurance stuff. Now this one. It’s a good thing you got lawyers on staff to come to your defense. I’d hate to be paying your legal bills over this past year. Sure you’ve racked up quite the check.

  • Brad Stanton

    I hope Chris and the customer aggressively pursue action against Palm Coast Travel of Lake Worth, FL for this action which is nothing more than a bullying tactic.

  • Frankie Leo

    I can’t add much to this discussion; I think that the lawsuit action speaks for itself. In my forty years in the business world, I never saw a successful company sue a client over such a trivial sum, so I have to assume that the action was taken only to silence the client and Chris Elliott.
    I won’t mention the name of the Travel Agent, because by now, everyone on this Board, both pro and con, knows who he is. I would, however, like to suggest something to send a message to the suing company.
    This company is feverishing issuing releases to tell you how good they are. They’re an A+ company, a member of a cruiseline’s Prolific Sellers Club, etc. However, they don’t mention their pricing. That’s because many Travel Agencies offer better pricing. I had a chance this morning to check on a Fall Transatlantic cruise offered by Celebrity cruiselines, and on the surface, the company filing the lawsuit had prices matching other companies when you booked online, except for one glaring omission: the suing company left off some cabin categories for Oceanview and Balcony cabins, with the result that many other companies had prices that were $250 to $300 lower per person than the suing company. To put that in perspective, the suing company was demanding $2800 per cabin that could be had for $2300, if one had only shopped around!
    If you’re shopping for a cruise, don’t book with this litigator before you shop around. You might be pleasantly surprised. Assuming that you save $500, wouldn’t it be worth your while to donate 10% or more of your savings to one of the bloggers out there who keeps you informed, or even to your local legal aid society?

  • Becs

    this is why i hate renting cars. too much can go wrong on either side where it’s hard to prove who was more at fault. with airlines and hotels, there is a more clear cut on who was wrong (not that it’s any less hard to fight, just more obvious) but with rental cars…ever problem i have ever heard, seems crazier then the next!

  • http://www.travelingwithmj.com Mary Jo

    Your lawyers must love you!

  • http://ancientegyptholidays.com Ancient Egypt Holidays Travel Agency

    Thanks for your useful information

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