Avitia v. Lucky Motors, Inc.

2025 IL App (3d) 240350-U
Appellate Court of Illinois·Decided January 28, 2025·No. 3-24-0350·Unpublished

Opinion

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

2025 IL App (3d) 240350-U

Order filed January 28, 2025

IN THE

APPELLATE COURT OF ILLINOIS THIRD DISTRICT

2025

EMMANUEL AVITIA and JAIME AVITIA, ) Appeal from the Circuit Court ) of the 18th Judicial Circuit, Plaintiffs-Appellants, ) Du Page County, Illinois, )

v. ) Appeal No. 3-24-0350 ) Circuit No. 18-CH-1371 LUCKY MOTORS, INC., )

) Honorable

Defendant-Appellee. ) Neal W. Cerne, ) Judge, Presiding.

PRESIDING JUSTICE BRENNAN delivered the judgment of the court.

Justices Hettel and Peterson concurred in the judgment.

ORDER

¶1 Held: The trial court did not err in granting defendant’s motion for summary judgment.

Affirmed.

¶2 Plaintiffs, Emmanuel and Jaime Avitia, purchased a used vehicle from defendant, Lucky Motors, Inc. The sales contract included an “as is” disclaimer excluding all implied warranties. The vehicle’s engine seized shortly after the sale, and, despite the “as is” disclaimer, defendant provided gratuitous post-sale repairs to plaintiffs. The vehicle continued to have issues, and

plaintiffs sued defendant for breach of the implied warranty of merchantability. The trial court granted defendant’s motion for summary judgment, and plaintiffs appealed. For the reasons set forth below, we affirm.

¶3 I. BACKGROUND

¶4 Initially, we note that plaintiffs initiated this action on November 18, 2018. On September 20, 2021, plaintiffs filed a motion for leave to file the operative four-count second amended complaint (amended complaint); leave was granted on October 13, 2021. Plaintiffs appended the proposed amended complaint as an exhibit to their motion for leave but failed to actually file the amended complaint after obtaining leave. Notwithstanding, defendant filed an answer to the amended complaint on November 12, 2021, without raising the issue of filing, and the court proceeded on the merits.

¶5 While not raised by either party on appeal, we nevertheless address this deficiency in the record to ensure the amended complaint was properly considered. “While it is undoubtedly the general rule that when leave is given to amend a pleading, that does not constitute an amendment [citation], *** it has been generally held that where the parties treat a proposed amendment as having been made, it may be considered by the court as having been made.” Pinkerton v. Oak Park National Bank, 16 Ill. App. 2d 91, 106 (1958). Because defendant filed an answer to the amended complaint and did not otherwise object to its absence from the record, the parties treated the amendment as having been made, and the claims therein were properly considered by the court. Before turning to plaintiffs’ claims, we observe that the allegations relevant to this appeal are set forth sporadically within the amended complaint, as they were only set forth in the “Background” section. We detail plaintiffs’ claims as they appear to have been accepted by the parties and the court.

¶6 In September 2015, plaintiffs purchased a 2007 Audi S6 from defendant. The purchase was subject to an “as is” clause in the buyer’s guide, which stated, “NO WARRANTY” and “YOU WILL PAY ALL COSTS FOR ANY REPAIRS. The dealer assumes no responsibility for any repairs regardless of any oral statements about the vehicle.” Moreover, the standard buyer’s order indicated, “this vehicle is sold ‘AS IS’ and [blank] hereby expressly disclaims all warranties, either express or implied, including any IMPLIED WARRANTY OF MERCHANTABILITY ***.”

¶7 Plaintiffs alleged that the vehicle’s engine was defective at the time of the sale and seized shortly thereafter. Emmanuel testified via affidavit that, after the engine seized, he “made arrangements with [defendant] to have the car repaired, and [the] agreement was that [Emmanuel] would pay part of the cost, and [defendant] would pay another part of the cost.” A text message submitted with defendant’s motion for summary judgment read, “Authorization to begin work on the 2007 audi s6 I Emmanuel Avitia will pay 900 for the work to begin and work out the difference with [defendant].” It is unclear from the record whether defendant received any payment.

¶8 Thereafter, defendant replaced the vehicle’s engine. Plaintiffs’ affidavit further explained that the initial repair was unsuccessful, and the vehicle was taken to defendant “several times afterwards.” Defendant made additional attempts to fix the engine, never charging plaintiffs for the repairs. It is undisputed that defendant provided post-sale repairs worth approximately $8000. In February 2017, plaintiffs asserted their revocation of acceptance via a letter to the Better Business Bureau (BBB), where they requested the initiation of arbitration proceedings pursuant to the purchase documents. Due to a significant delay on BBB’s part, arbitration never occurred, and the parties proceeded to litigation.

¶9 Count I of the amended complaint alleged, inter alia, that defendant breached the implied warranty of merchantability notwithstanding the “as is” disclaimer on the purchase documents.

Plaintiffs proceeded on the theory 1 that defendant’s conduct in providing gratuitous repairs (1) modified and waived the “as is” disclaimer pursuant to section 2-209 of the Uniform Commercial Code (Code) (810 ILCS 5/2-209 (West 2018)) and (2) constituted circumstances indicating that the “as is” disclaimer did not effectively disclaim the implied warranty of merchantability pursuant to section 2-316(3)(a) of the Code (id. § 316(3)(a)). Plaintiffs sought, inter alia, equitable relief in the form of revocation of acceptance and cancellation of the contract or, alternatively, recovery of the purchase price. The remaining counts, which are not relevant to this appeal, sought relief based upon various theories of fraud.

¶ 10 Appended to the amended complaint was a report prepared by Phillip Grismer, who was identified therein as an “A.S.E. Master Automobile Technician.” The report concluded that the vehicle was unmerchantable at the time of sale, observing, inter alia, that the engine coolant recovery tank was empty; the engine leaked coolant; and the coolant warning and check engine lights were illuminated on the dash panel.

¶ 11 At some point during the litigation, the vehicle was turned over to defendant for inspection so it could further investigate the claims set forth in Grismer’s report. After learning that defendant’s inspection involved making further repairs to the vehicle, plaintiffs filed a partial motion for summary judgment. In support, plaintiffs argued that defendant accepted their revocation of acceptance when defendant exercised dominion and control over the vehicle by repairing it. In opposition, defendant explained,

1

Initially, plaintiffs sought relief pursuant to section 2-316(3)(a) under the theory that defendant committed fraud in that it falsely represented the history of the vehicle and concealed that it was in a prior accident. At the hearing, plaintiffs, for the first time, argued that the relevant circumstances to invalidate the “as is” disclaimer were actually defendant’s gratuitous repairs of the vehicle. Because defendant did not object to plaintiffs’ assertion of new arguments at the hearing, the allegations set forth in ¶¶ 9-10, and our analysis below, reflect the arguments plaintiffs made at the hearing rather than those set forth in the amended complaint.

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