AMERICAN HONDA MOTOR CO., INC. v. Cerasani

955 So. 2d 543, 32 Fla. L. Weekly Supp. 131, 2007 Fla. LEXIS 665, 2007 WL 1074922
CourtSupreme Court of Florida
DecidedApril 12, 2007
DocketSC05-1907
StatusPublished
Cited by6 cases

This text of 955 So. 2d 543 (AMERICAN HONDA MOTOR CO., INC. v. Cerasani) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AMERICAN HONDA MOTOR CO., INC. v. Cerasani, 955 So. 2d 543, 32 Fla. L. Weekly Supp. 131, 2007 Fla. LEXIS 665, 2007 WL 1074922 (Fla. 2007).

Opinion

955 So.2d 543 (2007)

AMERICAN HONDA MOTOR COMPANY, INC., Petitioner,
v.
Jennifer CERASANI, Respondent.

No. SC05-1907.

Supreme Court of Florida.

April 12, 2007.

*544 Wendy F. Lumish, John R. Blue and Matthew J. Conigliaro of Carlton Fields, P.A., Miami, FL, for Petitioner.

Theodore F. Greene, III of Krohn and Moss, Ltd., Sunrise, FL, and Scott M. Cohen, Chicago, IL, for Respondent.

PARIENTE, J.

In this case we decide whether a long-term lessee of an automobile may sue for breach of warranty under the federal Magnuson-Moss Warranty Act. The Second District Court of Appeal answered this question in the affirmative in Cerasani v. American Honda Motor Co., 916 So.2d 843 (Fla. 2d DCA 2005), and certified conflict to the extent that the First District Court of Appeal held to the contrary in Sellers v. Frank Griffin AMC Jeep, Inc., 526 So.2d 147 (Fla. 1st DCA 1988). We have jurisdiction. See art. V, § 3(b)(4), Fla. Const.

The issue presented by the certified conflict requires interpretation of both the federal Magnuson-Moss Warranty Act and Florida's Motor Vehicle Warranty Enforcement Act, more commonly known as the "Lemon Law." We hold that a long-term lessee who is entitled to enforce a warranty under Florida's Lemon Law also has a cause of action under the Magnuson-Moss Warranty Act. We approve the Second District's decision in this case to the extent that court reached the same conclusion and disapprove Sellers to the extent that the First District held there that an automobile warranty is not enforceable under *545 the Magnuson-Moss Warranty Act unless the automobile has been sold.

FACTS AND PROCEDURAL HISTORY

Jennifer Cerasani acquired a new Honda Civic through a long-term lease and began to have problems with the car. She took the car to a Honda dealership for repairs several times but remained dissatisfied with the results. Cerasani eventually filed suit against the manufacturer, American Honda, under the Magnuson-Moss Warranty Act ("MMWA" or "the Act"). She alleged one count of breach of written warranty and one count of breach of implied warranty. The trial court dismissed the complaint with prejudice on grounds that the provisions of the MMWA covering a "written warranty" as defined in the Act do not apply to persons who lease rather than purchase vehicles, and that Cerasani was not in privity of contract with Honda as required under Florida law for an implied warranty claim.

The Second District affirmed the dismissal of the implied warranty claim but reversed the dismissal of the claim based on Honda's express new-car warranty. The Second District concluded that the first count of Cerasani's complaint was legally sufficient to withstand the motion to dismiss. The Second District determined that Cerasani's assertions that the warranty was part of the basis of the bargain in the sale of the car to the lessor, "Honda Leasing," and that the sale was for purposes other than resale were sufficient to allege a "written warranty" as defined by the MMWA. Further, the Second District ruled that Cerasani satisfied the second and third of the three alternative definitions of "consumer" under the MMWA because she was a person to whom the car was "transferred during the duration" of a written warranty and because she was entitled under the terms of the warranty to enforce the warranty, as reflected by Honda's willingness to provide repair service. See Cerasani, 916 So.2d at 846-47.

The Second District certified conflict with Sellers on the issue of whether the MMWA applies to lease transactions. Id. at 847. In Sellers, which involved a lease of a motor vehicle from a dealership which then assigned its interest in the lease to a finance company, the First District held that "there must be an identifiable purchase and sale before the provisions of the Magnuson-Moss Act apply." 526 So.2d at 156.

ANALYSIS

The issue before us — whether a long-term lessee such as Cerasani is entitled to bring a cause of action for breach of a written warranty under the MMWA — is a matter of pure statutory interpretation. Our review of a lower court's ruling on an issue of statutory interpretation is de novo. Daniels v. Fla. Dep't of Health, 898 So.2d 61, 64 (Fla.2005). In construing a statute, this Court endeavors to effectuate legislative intent, which is primarily derived from the language used in the enactment. See Borden v. East-European Ins. Co., 921 So.2d 587, 595 (Fla.2006).

Congress enacted the MMWA to enhance the enforceability of warranties on consumer products and protect the "ultimate user of the product." Cerasani, 916 So.2d at 845 (quoting O'Connor v. BMW of N. Am., LLC, 905 So.2d 235 (Fla. 2d DCA 2005)). The MMWA authorizes a lawsuit for damages and other equitable relief by "a consumer who is damaged by the failure of a supplier, warrantor, or service contractor to comply with any obligation under this chapter, or under a written warranty, implied warranty, or service contract." 15 U.S.C. § 2310(d)(1) (2000). *546 The MMWA's definition of "consumer" is critical in that only a person or entity defined as a consumer may bring a cause of action under the Act. To qualify as a consumer who may file suit under the Act, a person must come within one of the three alternative categories of consumer:

The term "consumer" means [Category One] a buyer (other than for purposes of resale) of any consumer product, [Category Two] any person to whom such product is transferred during the duration of an implied or written warranty (or service contract) applicable to the product, and [Category Three] any other person who is entitled by the terms of such warranty (or service contract) or under applicable State law to enforce against the warrantor (or service contractor) the obligations of the warranty (or service contract).

15 U.S.C. § 2301(3) (2000) (bold text supplied). An individual qualifies as a consumer under the MMWA if he or she meets any of these three definitions. Ryan v. Am. Honda Motor Co., 186 N.J. 431, 896 A.2d 454, 456 (2006).

For the reasons that follow, we conclude that because the facts as alleged in Cerasani's complaint would create a cause of action under chapter 681, Florida Statutes (2006) (the Lemon Law), she is entitled to enforce the obligations of the warranty "under applicable State law," and therefore qualifies as a consumer under the second part of Category Three. Because this conclusion renders unnecessary an additional determination of consumer status under Categories One or Two or the first part of Category Three, we decline to address whether and under what circumstances a lessee can qualify as a consumer under these alternative criteria.

As noted, Category Three of section 2301(3) provides that a person may be a consumer if entitled to enforce the warranty either by the terms of the warranty or under applicable state law. The Second District focused on the terms of the warranty in concluding that the allegations in her complaint qualified Cerasani as a Category Three consumer. The court stated:

In the present case, we hold that Cerasani has alleged sufficient facts in her amended complaint to qualify as a category three consumer under the Act.

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955 So. 2d 543, 32 Fla. L. Weekly Supp. 131, 2007 Fla. LEXIS 665, 2007 WL 1074922, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-honda-motor-co-inc-v-cerasani-fla-2007.