Vancouver (Rajeev Sharma): A British Columbia man has been ordered to pay $1,000 to a rental agency after driving a sports car at more than double the highest legal speed limit in Canada. The decision, recently posted by B.C.’s Civil Resolution Tribunal, underscores the growing use of GPS tracking by rental companies to monitor and penalize high-risk driving behaviors.
The dispute began in the summer of 2024 when Rod Julazadeh rented a 2022 Chevrolet Camaro from U-Save Car Rental in Vancouver. Upon returning the vehicle, the company utilized GPS data and a dashboard display image showing the car had reached a maximum speed of 211 km/h. Citing a “Performance Rentals” addendum in the contract, the company filed a claim for damages related to breach of contract.
During the tribunal proceedings, Julazadeh raised several defenses, including the argument that the photo evidence lacked sufficient detail to prove he was the one driving at that speed. However, Tribunal Vice-Chair Kate Campbell dismissed this claim, noting that the time stamp on the data fell squarely within Julazadeh’s rental period. The driver further argued that the contract was too vague, as it did not precisely define “excessive” speed. The tribunal rejected this as well, stating that 211 km/h is “objectively high-speed driving” as it significantly exceeds any legal limit in the country.
A key point of contention was whether a private business has the authority to “fine” a customer for speeding—a power typically reserved for the government. The tribunal clarified that while a private company cannot impose a punitive fine, it is legally entitled to include a “liquidated damages clause” in its contracts. These charges are intended to compensate the business for hard-to-calculate monetary losses, such as the hidden wear and tear on an engine, brakes, and tires caused by extreme acceleration and high-speed driving.
Ultimately, the tribunal ruled in favor of the rental agency, ordering Julazadeh to pay the $1,000 contract fee plus $125 in tribunal costs. The ruling serves as a significant precedent for the car rental industry, confirming that businesses can hold drivers financially accountable for high-risk behavior through well-documented contractual clauses and telemetric data.
