Aluminum Line Products Co. v. Rolls-Royce Motors, Inc.

649 N.E.2d 887, 98 Ohio App. 3d 759, 27 U.C.C. Rep. Serv. 2d (West) 456, 1994 Ohio App. LEXIS 5073
CourtOhio Court of Appeals
DecidedNovember 21, 1994
DocketNo. 59790.
StatusPublished
Cited by13 cases

This text of 649 N.E.2d 887 (Aluminum Line Products Co. v. Rolls-Royce Motors, Inc.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Aluminum Line Products Co. v. Rolls-Royce Motors, Inc., 649 N.E.2d 887, 98 Ohio App. 3d 759, 27 U.C.C. Rep. Serv. 2d (West) 456, 1994 Ohio App. LEXIS 5073 (Ohio Ct. App. 1994).

Opinion

Harper, Judge.

Aluminum Line Products Company (“Aluminum Line”) purchased a 1982 Rolls-Royce Silver Spur automobile (“the vehicle”) from Qua Buick, Inc. (“Qua Buick”) on November 16, 1982 for a purchase price of $95,318. The purchase price was remitted to Qua Buick at the time of delivery. Aluminum Line received a “Rolls-Royce Motors Limited Warranty” when it purchased the vehicle.

The vehicle suffered from a multitude of problems, both cosmetic and mechanical, leading to repeat service by Qua Buick. Kenneth Wessel, the president and principal shareholder of Aluminum Line, penned a letter to Rolls-Royce Motors, Inc. (“Rolls-Royce”) on October 29, 1985, in which he set forth: “I have no recourse but to ask for the TOTAL recall and disposition of this motor car.” A copy of this letter was sent to Qua Buick.

Aluminum Line subsequently filed an action in the Court of Common Pleas of Cuyahoga County for breach of warranties, express and implied, and for attorney fees under the Magnuson-Moss Warranty Act, Section 2301 et seq., Title 15, U.S. Code (“Magnuson-Moss Act”). The trial court entered judgment in favor of Rolls-Royce and Qua Buick. As part of its decision, the court found that Aluminum Line did not state a claim for revocation of acceptance; even if it had, the court concluded that the facts of the case did not support such a claim.

This court in Aluminum, Line Products Co. v. Rolls-Royce Motors, Inc. (Apr. 2, 1992), Cuyahoga App. No. 59790, unreported, 1992 WL 67646, held that appellant Aluminum Line was deprived of the benefits of the limited warranty on the vehicle and that the warranty failed in its essential purpose. We also held that Aluminum Line should receive attorney fees under the Magnuson-Moss Act, *762 but that it failed to present evidence with reasonable certainty on the issue of damages. Finally, we agreed with the trial court that Aluminum Line’s claim for rescission was not equivalent to a claim for revocation of acceptance; therefore, we did not review the trial court’s determination that Aluminum Line was not justified in its revocation of acceptance.

The Supreme Court of Ohio in Aluminum Line Products Co. v. Rolls-Royce Motors, Inc. (1993), 66 Ohio St.3d 539, 613 N.E.2d 990, addressed the sole issue of whether Aluminum Line’s plea for rescission “is essentially equivalent to a request to revoke acceptance.” Id. at 540, 613 N.E.2d at 991. Having answered the question in the affirmative, the court reversed our ruling that Aluminum Line did not properly plead a claim for revocation of acceptance. On remand, we are now called upon to conduct “a thorough review of the record and an evaluation of the propriety of the trial court’s determination that such revocation was unjustifiable.” Id. at 544, 613 N.E.2d at 993.

R.C. 1302.66 enunciates the standards by which a party may revoke acceptance of non-conforming goods as follows:

“(A) The buyer may revoke his acceptance of a lot or commercial unit whose non-conformity substantially impairs its value to him if he has accepted it:
“(1) on the reasonable assumption that its nonconformity would be cured and it has not been seasonably cured; or
“(2) without discovery of such non-conformity if his acceptance was reasonably induced either by the difficulty of discovery before acceptance or by the seller’s assurances.
“(B) Revocation of acceptance must occur within a reasonable time after the buyer discovers or should have discovered the ground for it and before any substantial change in condition of the goods which is not caused by their own defects. It is not effective until the buyer notifies the seller of it.
“(C) A buyer who so revokes has the same rights and duties with regard to the goods involved as if he had rejected them.”

In order to recover under R.C. 1302.66, it is essential that a buyer establish each element of division (B). The party must, therefore, demonstrate that the revocation occurred (1) within a reasonable time, (2) before any substantial change in condition, and (3) after giving notice to the seller. See Konicki v. Salvaco, Inc. (1984), 16 Ohio App.3d 40, 16 OBR 43, 474 N.E.2d 347.

The Supreme Court in Aluminum Line Products Co. found that Aluminum Line satisfied the initial requirement of R.C. 1302.66(B) when it provided written notice to Rolls-Royce and Qua Buick of its desire to revoke acceptance of the vehicle. Aluminum Line Products Co., 66 Ohio St.3d at 542, 613 N.E.2d at 992. *763 The court noted that a letter sent to Qua Buick included Aluminum Line’s intention to have the vehicle recalled and disposed of; although Aluminum Line continually used the word “rescission,” the documents submitted and the arguments presented to the trial court clearly supported Aluminum Line’s proposal that it sought to revoke acceptance of the vehicle. Id., 66 Ohio St.3d at 542-543, 613 N.E.2d at 992-993. The question that thus remains is whether Aluminum Line had a right to revoke its acceptance just prior to the expiration of Rolls-Royce’s three-year limited warranty, ie., whether the attempted revocation occurred within a reasonable time and without a substantial change in the condition of the vehicle.

In McCullough v. Bill Swad Chrysler-Plymouth, Inc. (1983), 5 Ohio St.3d 181, 5 OBR 398, 449 N.E.2d 1289, a 1978 vehicle, purchased in May 1978 from Bill Swad Chrysler-Plymouth (“Bill Swad”), manifested continuing mechanical and cosmetic problems after delivery. Repairs took place, but the vehicle would inevitably be returned to Bill Swad for more repairs, with some of the problems surfacing only after servicing of the vehicle. In January 1979, even though Bill Swad was no longer under an obligation to service the vehicle, having been succeeded by another dealer, the buyer addressed a letter to Bill Swad. This letter informed Bill Swad that the buyer wished to rescind the purchase agreement and to recover a refund of the purchase price. Moreover, although the buyer offered to return the vehicle to Bill Swad upon receipt of shipping instructions, Bill Swad did not respond to the letter. The buyer, therefore, continued to operate the vehicle.

The buyer thereafter filed a complaint on January 12, 1979. By the time of trial on June 25, 1980, the vehicle’s odometer indicated it had been driven 35,000 miles, 23,000 of which were accumulated after Bill Swad’s receipt of the buyer’s letter of notification of revocation. Id., 5 Ohio St.3d at 182, 5 OBR at 400, 449 N.E.2d at 1291.

At trial, Bill Swad asserted that the buyer’s continued operation of the vehicle after advising it of revocation was inconsistent with having relinquished ownership of the car. Therefore, the value of the car to the buyer was not substantially impaired by the alleged nonconformities. Finally, the warranties furnished to the buyer supplied the only legal remedy for alleviating the vehicle’s alleged defects. Id., 5 Ohio St.3d at 183, 5 OBR at 401, 449 N.E.2d at 1292.

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649 N.E.2d 887, 98 Ohio App. 3d 759, 27 U.C.C. Rep. Serv. 2d (West) 456, 1994 Ohio App. LEXIS 5073, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aluminum-line-products-co-v-rolls-royce-motors-inc-ohioctapp-1994.