SAN FRANCISCO - Getaround Inc., an app that allows drivers to rent cars from private owners, sued its automobile insurance administrator for professional negligence and breach of implied contract, according to documents filed on March 5 in the San Francisco County Superior Court.
The lawsuit says that Getaround was defendant Broadspire Services' first car rental service client and that Getaround was assured by the defendant that it was prepared to provide competent insurance administration service.
Broadspire was paid more than $750,000 in roughly two years to process the rental company's insurance claims, but an independent audit of the defendant found that every single claim out of 643 claims picked for the audit fell short in industry standards, containing sloppy documentation, no proactivity or follow-through, inaccurate code and other issues, the lawsuit claims.
The defendant's misrepresentation of their qualifications to handle Getaround's claims administration needs and subsequent negligence cost the plaintiff hundreds of thousands of dollars in damage control, the lawsuit says.
Broadspire is charged with professional negligence, breach of implied contract and breach of the implied covenant of good faith and fair dealing. The plaintiff seeks monetary damages and litigation fees.
Getaround is represented by Orrick, Herrington and Sutcliffe LLP.