Hokes v. Ford Motor, Unpublished Decision (11-9-2005)
Hokes v. Ford Motor, Unpublished Decision (11-9-2005)
Opinion of the Court
{¶ 2} On December 21, 2001, conversion van owners Appellees/Cross-Appellants James and Lori Hokes ("Owners") filed a complaint against Ford Motor Company ("Ford") and Ford Motor Credit Company ("Ford Credit") alleging Lemon Law, breach of warranty, and Magnuson-Moss violations as well as Consumer Sales Practices Act ("CSPA") violations. Owners requested a refund of the full purchase price of the vehicle, including their past, present, and future financing expenses attendant to the financing of the vehicle; a refund of all repair costs and replacement costs; an award of all incidental and out-of-pocket expenses; a money judgment in the amount of $25,000 together with all financing expenses incurred; treble damages; an award of costs and expenses of the action including reasonable attorney fees; and punitive damages.
{¶ 3} On January 24, 2002, Ford Credit filed an answer and counter-claim against the Owners. Ford Credit alleged breach of contract and a claim of replevin. The Owners filed a timely answer to Ford Credit's counterclaim.
{¶ 4} On February 4, 2002, Ford Motor Company answered the Owners' complaint.
{¶ 5} On May 2, 2002, the Owners filed an amended complaint alleging the same violations, but adding Klaben Ford, Inc. ("Klaben") as a Defendant. Ford Credit filed an answer to the Owners' amended complaint and reiterated its previous claims in its counterclaim against the Owners. On June 27, 2002, Klaben filed an answer to the Owners' complaint and on July 11, 2002 Ford filed its answer to the Owners' amended complaint.
{¶ 6} On July 23, 2002, Ford Credit filed a voluntary dismissal of its counterclaim against the Owners.
{¶ 7} On July 24, 2002, Klaben filed an amended answer to the Owners' amended complaint and a cross-claim against Ford. Klaben argued that Ford had a statutory, common law, and contractual duty to defend and indemnify it. Ford answered Klaben's cross-claim denying Klaben's allegations and asserting that Klaben failed to state a claim upon which relief could be granted.
{¶ 8} Prior to trial, the parties entered a stipulation on the record that the claims against Ford Credit were derivative in nature and that Ford Credit need not be present during the trial. Ford Credit did not waive any defenses in so stipulating. The record also reflects that Klaben settled with Owners prior to trial and said case would be dismissed with prejudice. The only remaining claim involving Klaben was its cross-claim against Ford, which the parties agreed did not need to be presented to the jury, but rather reserved for trial to the court after the conclusion of the jury trial.
{¶ 9} A jury trial commenced on February 19, 2003 and at the close of evidence the trial court granted Ford's motion for a directed verdict on the Owners' CSPA claim. The jury subsequently found in favor of the Owners and against Ford. Specifically, the jury found by a preponderance of the evidence that:
1) the vehicle did not conform to any applicable express warranty provided by Ford; 2) the vehicle had a defect or condition that substantially impaired its use, value, or safety; 3) Ford was given a reasonable number of opportunities to repair the Owners' vehicle; 4) for purposes of Ohio's Lemon Law, that Ford was the manufacturer of the Owners' vehicle; 5) the total amount of damages recoverable under Ohio's Lemon Law was $35,000; 6) Ford violated the Magnuson-Moss Warranty Act; 7) the total amount of damages recoverable under the Magnuson-Moss Warranty Act was $18,000; 8) the Owners were entitled to damages for Breach of Express Limited Warranty and Implied Warranty in the amount of $53,000 in actual damages and $60,000 in consequential damages. Accordingly, the Owners were awarded a total of $166,000 in damages. The trial court also awarded $27,691.67 in pre-judgment interest to the Owners and ordered that it be merged with the $166,000 for a total of $193,691.67.
{¶ 10} On March 10, 2003, the Owners and Klaben filed a notice of partial dismissal, which dismissed with prejudice "all claims by and between" the Owners and Klaben.
{¶ 11} On March 24, 2003, the Owners filed a motion for attorney's fees.
{¶ 12} On March 25, 2003, Ford filed a motion for judgment notwithstanding the verdict ("JNOV") or, in the alternative, a new trial. Ford argued that it was entitled to JNOV on the Owners' breach of warranty claims under Magnuson-Moss and the U.C.C. and on Owners' Lemon Law claim. The Owners replied in opposition to Ford's motion for JNOV, or in the alternative, for a new trial. Ford responded with a reply in support of its motion.
{¶ 13} The Owners also filed a motion for pre-judgment interest, merger, and post-judgment interest. Ford responded with a motion in opposition. The trial court awarded the Owners 10% interest per annum on their total judgment of $166,000. On April 8, 2003, counsel for the Owners filed a judgment lien against Ford reciting the date of judgment as March 11, 2003, the amount as $166,000, the interest as 10%, and the date interest began to run as February 21, 2003.
{¶ 14} On May 28, 2003, Ford filed notice of its partial satisfaction of the judgment stating it partially satisfied the judgment on the Owners' Lemon Law claim in the amount of $36,926.32, which was proportionally paid to the Owners and Ford Credit.
{¶ 15} On August 14, 2003, the trial court denied Ford's motions for JNOV, a new trial and remittitur and granted the Owners' motion for pre-judgment interest on its judgment.
{¶ 16} After a hearing and several filings on the matter, the trial court determined that the Owners were entitled to $103,483.28 in attorney's fees. The trial court found that of the expended hours submitted for payment, 447.74 hours were reasonable and necessary; the trial court also allowed litigation expenses in the amount of $2,741.78.
{¶ 17} On January 28, 2005, Ford filed its notice of appeal and on February 3, 2005 the Owners filed a notice of cross-appeal.
{¶ 18} On March 3, 2005, the trial court ordered that the Owners' award of attorney's fees would accrue interest from the date of the initial judgment entry, March 11, 2003. The trial court also found that Ford should not get credit for partial satisfaction of the Owners' judgment for the $21,007 that it paid to Ford Credit.
{¶ 19} As a result of Ford's filings, it had two appeals pending:1 one from the trial court's rulings from March 11, 2003, August 14, 2003, December 30, 2004, and January 6, 20052 and one from the trial court's March 3, 2005 decision which held that Ford was not entitled to a credit against the judgment for the amount it paid to Ford Credit and that Owners were entitled to post-judgment interest on the attorney's fees award. On March 24, 2005, this Court granted Ford's motion to consolidate C.A. 22502 and C.A. 22577. In support of its consolidated appeal, Ford has asserted six assignments of error. In support of their cross-appeal Owners have asserted one cross-assignment of error. For ease of analysis, we have rearranged Ford's assignments of error and consolidated some of its assignments of error.
Assignment of Error Number Three "THE TRIAL COURT ERRED IN DENYING FORD'S MOTION FOR JNOV ON THE JURY'S VERDICT AWARDING $60,000 IN CONSEQUENTIAL DAMAGES ON [OWNERS'] BREACH OF WARRANTY CLAIM."
{¶ 20} In its second assignment of error, Ford has argued that the trial court erred in denying its motion for JNOV on Owners' claims under Magnuson-Moss and breach of warranty. Specifically, Ford has argued that Owners failed to meet their burden of establishing the value of the van as delivered/accepted. In its third assignment of error, Ford has argued that the trial court erred in denying its motion for JNOV on the issue of consequential damages on Owners' breach of warranty claim. Specifically, Ford has argued that the jury's award of $60,000 in consequential damages on the breach of warranty claim was "wholly unsupported by the evidence [.]"
{¶ 23} Pursuant to R.C.
"The measure of damages for breach of warranty is the difference at the time and place of acceptance between the value of the goods accepted and the value they would have had if they had been as warranted, unless special circumstances show proximate damages of a different amount."
R.C.
{¶ 24} The record shows that Owners provided evidence of the sticker price of the van, the total gross capitalized cost of the van on the lease, and the problems they experienced with the van. In response to questions regarding whether the van had value to him, Mr. Hokes answered "If it doesn't run, no." The evidence also showed that Owners had put 34,000 miles on the van in the two and half years they had possession of the van.
{¶ 25} We find that even in construing the evidence in a light most favorable to Owners, that there was not substantial evidence to support Owners' claims for damages under R.C.
{¶ 26} Owners have asserted that based on this Court's opinion inT.R.C. Industries, Inc. v. Industrial Capital Machinery, Inc. (Nov. 24, 1982), 9th Dist. No. 10478, they were not required to show the difference in values as required in R.C.
{¶ 27} Based on the foregoing, we find that the departure from R.C.
{¶ 29} Pursuant to R.C.
"(B) Consequential damages resulting from the seller's breach include: (1) any loss resulting from general or particular requirements and needs of which the seller at the time of contracting had reason to know and which could not reasonably be prevented by cover or otherwise; and (2) injury to person or property proximately resulting from any breach of warranty." R.C.
{¶ 30} The record shows that Owners provided the following evidence as to the injuries they suffered as a result of the alleged breach of warranty. Mrs. Hokes testified that she incurred a $710 hotel bill during her extended stay in Nebraska when the van was "possessed" and would not start. Owners admitted three exhibits for unreimbursed expenses as a result of the no start problem: 1) a towing bill for $90 (exhibit 22); 2) a bill from Kenmore Kar Kare for $70 (exhibit 23); and 3) a bill from Tony's Towing without an amount (exhibit 24). Accordingly, the only monetary evidence produced by Owners totaled $870. Owners' testimony also included incidents of aggravation and inconvenience from the van not starting, but Ohio law does not allow recovery for emotional distress from a breach of contract/warranty case, or recovery for emotional distress from the destruction of property. See Strawser v. Wright
(1992),
{¶ 31} Construing the evidence in a light most favorable to Owners, we find that there was not substantial evidence, upon which reasonable minds might reach different conclusions, to support the jury's award of $60,000 in consequential damages on the breach of warranty claim. While Owners testified to the aggravation and other emotions they experienced from their problems with the van, the only evidence of injury recoverable under R.C.
{¶ 32} Civ.R. 50(B) provides:
"[A] party may move to have the verdict and any judgment entered thereon set aside and to have judgment entered in accordance with his motion[.] A motion for a new trial may be joined with this motion, or a new trial may be prayed in the alternative. If a verdict was returned, the court may allow the judgment to stand or may reopen the judgment. If the judgment is reopened, the court shall either order a new trial or direct the entry of judgment[.]" Civ.R. 50(B).
The record shows that Ford moved for JNOV or in the alternative a new trial. Pursuant to Civ.R. 50(B) and App.R. 12(B), this Court reopens this issue and enters judgment in favor of Owners in the amount of $870 as consequential damages on their breach of warranty claim. Accordingly, Ford's third assignment of error has merit because the $60,000 consequential damages award was unsupported by the evidence; however, Owners are still entitled to the stated consequential damages.
{¶ 33} In its first assignment of error, Ford has argued that the trial court erred in entering judgment on Owners' Magnuson-Moss, breach of warranty, and Lemon Law claims because such a judgment results in a triple recovery. Specifically, Ford has argued that the trial court's action resulted in the Owners recovering more than once for the same injury.
{¶ 34} Given this Court's resolution of Ford's second and third assignments of error and Owners' cross-assignment of error, Ford's first assignment of error is moot, and we decline to address it.3 See App.R. 12(A)(1)(c).
Assignment of Error Number Four "THE TRIAL COURT ERRED IN DENYING CREDIT TO FORD WITH $21,007 PAID TO [FORD CREDIT] COMPANY IN PARTIAL SATISFACTION OF THE JUDGMENT."
{¶ 35} In its fourth assignment of error, Ford has argued that the trial court erred in denying credit for its payment of $21,007 to Ford Credit in partial satisfaction of the judgment. Specifically, Ford has argued that it should be given credit for the monies it paid Ford Credit when Owners returned the car to Ford. We disagree.
{¶ 36} Pursuant to R.C.
"If the consumer elects to take a refund, the manufacturer shall forward the total sum required under division (B) of this section by an instrument jointly payable to the consumer and any lienholder that appears on the face of the certificate of title or the lessor. Prior to disbursing the funds to the consumer, the lienholder or lessor may deduct the balance owing to it, including any fees charged for canceling the loan or the lease and refunded pursuant to division (B) of this section, and shall immediately remit the balance if any, to the consumer and cancel the lien or the lease."
{¶ 37} The record below shows that Ford sent one check to Owners and another to Ford Credit as a refund for the returned van. The trial court found that Owners did not comply with R.C.
{¶ 38} The van's vehicle lease agreement states that "`Ford Credit' is Ford Motor Credit Company. The `Holder' is Ford Credit Titling Trust Co." As the trial court found, Klaben Ford is listed as the lessor. The certificate of title shows Klaben Ford as a previous owner and Ford Credit Titling Trust as the current owner. Neither the lease agreement nor the certificate of title lists Ford Credit as lessor or lienholder.
{¶ 39} Based on the foregoing, we find that the trial court did not err in denying Ford credit for partial satisfaction of judgment for its payment to Ford Credit because the payment did not comply with R.C.
{¶ 40} In its fifth assignment of error, Ford has argued that the trial court erred in its award of attorney's fees. In its sixth assignment of error, Ford has argued that the trial court erred in awarding post-judgment interest on the attorney's fees from the date of the original judgment.
{¶ 41} Given this Court's resolution of Ford's second and third assignments of error, we reverse the award of attorney's fees, including the post-judgment interest start date, and remand the matter for recalculation.
{¶ 42} In their sole cross-assignment of error, Owners have argued that the trial court erred in granting Ford's motion for directed verdict on Owners' CSPA claims. Specifically, Owners have argued that Ford clearly violated the act and therefore, a directed verdict was improper. We dismiss Owners' cross-assignment of error as moot.
{¶ 43} Pursuant to R.C.
"Where the violation was an act prohibited by [R.C.
It is undisputed that after the trial, the contract was rescinded and that Owners returned the van, ceased making payments on it, and were compensated for the previous monthly payments they had made on the van. Having already rescinded the contract, R.C.
{¶ 44} "Actions or opinions are described as `moot' when they are or have become fictitious, colorable, hypothetical, academic or dead. The distinguishing characteristic of such issues is that they involve no actual genuine, live controversy, the decision of which can definitely affect existing legal relations." (Citations omitted). Culver v. City ofWarren (1948),
{¶ 45} We find Owners' cross-assignment of error is moot because pursuant to R.C.
{¶ 46} Owners' sole cross-assignment of error is dismissed as moot.
Judgment affirmed in part, reversed in part, and cause remanded.
The Court finds that there were reasonable grounds for this appeal.
We order that a special mandate issue out of this Court, directing the Court of Common Pleas, County of Summit, State of Ohio, to carry this judgment into execution. A certified copy of this journal entry shall constitute the mandate, pursuant to App.R. 27.
Immediately upon the filing hereof, this document shall constitute the journal entry of judgment, and it shall be file stamped by the Clerk of the Court of Appeals at which time the period for review shall begin to run. App.R. 22(E). The Clerk of the Court of Appeals is instructed to mail a notice of entry of this judgment to the parties and to make a notation of the mailing in the docket, pursuant to App.R. 30.
Costs taxed to both parties equally.
Exceptions.
Slaby, P.J., Moore, J. Concur.
Reference
- Full Case Name
- James Hokes appellees/cross-appellants v. Ford Motor Company appellants/cross-appellees.
- Cited By
- 4 cases
- Status
- Unpublished