Brandon Chrysler Plymouth Jeep Eagle, Inc. v. Chrysler Corp.

898 F. Supp. 858, 1995 U.S. Dist. LEXIS 13358, 1995 WL 544743
CourtDistrict Court, M.D. Florida
DecidedSeptember 8, 1995
DocketNo. 94-897-CIV-T-24(E)
StatusPublished
Cited by2 cases

This text of 898 F. Supp. 858 (Brandon Chrysler Plymouth Jeep Eagle, Inc. v. Chrysler Corp.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brandon Chrysler Plymouth Jeep Eagle, Inc. v. Chrysler Corp., 898 F. Supp. 858, 1995 U.S. Dist. LEXIS 13358, 1995 WL 544743 (M.D. Fla. 1995).

Opinion

ORDER

BUCKLEW, District Judge.

Before the Court are the parties’ cross motions for summary judgment (D-ll & D-16). Plaintiff, Brandon Chrysler Plymouth Jeep Eagle, Inc. (“Brandon”) moves for partial summary judgment (D-ll) asserting that Defendant Chrysler Corporation’s (“Chrysler”) warranty reimbursement practices for automobile parts are contrary to Florida law. In opposition, Chrysler moves for summary judgment (D-16) on all claims of Brandon’s complaint.

BACKGROUND

Plaintiff is a franchised motor vehicle dealer and holder of a franchise agreement with the Defendant, as defined in sections 320:60(1) and (11) of the Florida Statutes. Fla.Stat. §§ 320.60(1), (11) (1993). Defendant is an automobile manufacturer and a licensee under § 320.61 of the Florida Statutes. Fla.Stat. § 320.61 (1993). A franchise agreement between two such parties in the industry is commonly known as a Sales and Service Agreement (“SSA”) and defines the manufacturer-dealer relationship.

On or about August 24,1993, Chrysler and Brandon entered into a SSA in which Brandon became or continued as a dealer for Chrysler, Plymouth, Jeep and Eagle cars and trucks (D-17, Ex. 1-A). Under these agreements, Brandon contracted to perform all warranty service on Chrysler products, in return for Chrysler’s commitment to reimburse Brandon in accordance with its policies as stated in its ‘Warranty Policy and Procedure Manual”1 (“Manual”) (D-17, Ex. 1-A, ¶ 11(b)). Section 3D of the Manual provides [860]*860specific guidelines for warranty parts reimbursement.2

In addition to the contractual warranty obligations between the parties, the Florida Automobile Dealer Act, Fla.Stat. § 320.01 et seq. (1998) (“Dealer Act”), also governs certain-aspects of the parties’ relationship. In particular, § 320.696 of the Dealer Act addresses a manufacturer’s warranty reimbursement obligation. That section provides:

The licensee shall reasonably and timely compensate any authorized motor vehicle dealer who performs work to rectify the licensee’s product or warranty defects or fulfills delivery and preparation obligations. In the determination of what constitutes reasonable compensation under this section, the factors to be given consideration shall include, among others, the compensation being paid by other, licensees to their dealers, the prevailing wage rate being paid by the dealers, and the prevailing labor rate being charged by the dealers, in the city or community in which the dealer is doing business.3 For the purpose of this section, reasonable compensation for work, by a motor vehicle dealer for warranty repairs service on behalf of a licensee shall not be determined to be less than the amount charged by the dealer for like work to retail customers for nonwar-ranty repairs and service, unless the licensee can demonstrate and establish in a proceeding before the department that the dealer’s retail charges for labor are improper in light of all economic circumstances. Compensation not paid within 30 days of receipt or notice of billing shall be presumed untimely.

Plaintiff contends that this statute requires a manufacturer/licensee to compensate dealers for warranty parts at a “retail rate.” 4 Conversely, Defendant denies that it has any duty to reimburse Plaintiff at a retail rate for parts used in warranty repairs or service under the terms of Florida Statute § 320.696.

The parties agree that the statute clearly provides that Brandon, as dealer, is responsible for issuing a “notice of billing,” and in response Chrysler is to reimburse Brandon within 30 days (D-17, pgs. 2, 9; D-22, pg. 15). Additionally, the parties do not dispute that Chrysler reimbursed Brandon for warranty parts in the amounts provided for in the parties’ dealer agreements (D-17, pg. 2; D-22, pgs. 15-16 and Ex. 2, pg. 2). In a letter dated November 4,1993, Brandon first asserted that Chrysler’s reimbursement policy for parts was in violation of Florida law, and demanded payment at the retail price for warranty parts reimbursement (D-17, Ex. 3-A; D-22, Ex. 2). Chrysler disagreed with Brandon’s position, and thereafter this action ensued.

Pursuant to its complaint, Brandon seeks two claims for relief: 1) damages for the difference between the actual reimbursements Chrysler has paid for warranty parts and Brandon’s retail prices for an unspecified period in the past;5 and 2) an injunction requiring Chrysler to pay its retail prices for [861]*861warranty parts in the future6 (D-2, ¶¶ 6-7, 9 and 12). Defendant now seeks summary judgment as a matter of law on both of Brandon’s claims. Plaintiff, however, seeks partial summary judgment specifically as to whether § 320.696 of the Florida Statutes requires the manufacturer to compensate a dealer for parts used in warranty service at a rate not less than the amount charged by the dealer for like work to retail customers for nonwarranty work. The Defendant contends that § 320.696 does not require the manufacturer to reimburse the dealer for “parts” at a “retail rate.”

The parties agree that this case presents one determinative issue regarding the interpretation of Florida Statute § 320.696 for warranty parts reimbursement (D-ll, pg. 4-5; D-13, pg. 1; D-17, pg. 1). Specifically, that issue is whether Chrysler as a manufacturer/licensee is required to reimburse Brandon, a dealer, for parts used in warranty service at the retail rate charged by Brandon to nonwarranty customers. The parties further agree that the resolution of this issue is strictly a question of law involving statutory construction, and does not involve any genuine issues of material fact. Id. See DeSisto College, Inc. v. Town Of Howey-In-The-Hills, 706 F.Supp. 1479, 1495 (M.D.Fla.1989), aff'd, 888 F.2d 766 (11th Cir.1989), (citing Devin v. Hollywood, 351 So.2d 1022, 1026 (Fla. 4th DCA 1976) (statutory construction is a question of law to be decided by the court)).7

STATUTORY CONSTRUCTION

When interpreting a statute, a court must start with the language of the statute itself. Carpenters Dist. Council of New Orleans & Vicinity v. Dillard Dep’t Stores, Inc., 15 F.3d 1275, 1282 (11th Cir.1994), cert. denied, — U.S. —, 115 S.Ct. 933, 130 L.Ed.2d 879 (1995); St. Petersburg Bank & Trust, Co. v. Hamm, 414 So.2d 1071, 1073 (Fla.1982). If statutory language is clear and unambiguous, the court may end its inquiry. Carpenters, 15 F.3d at 1282-83; Forsythe v. Longboat Key Beach Erosion Control Dist., 604 So.2d 452, 454 (Fla.1992). Only when the statute has more than one reasonable interpretation should the court look beyond the language itself. Carpenters 15 F.3d at 1283. Thus, a court may depart from the statute to seek extrinsic aid when the language is unclear, or if the apparent clarity leads to an absurd result. Blue Cross & Blue Shield of Ala. v. Weitz, 913 F.2d 1544, 1548 (11th Cir.1990); Weber v. Dobbins, 616 So.2d 956, 958 (Fla.1993); Holly v. Auld, 450 So.2d 217, 219 (Fla.1984).

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898 F. Supp. 858, 1995 U.S. Dist. LEXIS 13358, 1995 WL 544743, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brandon-chrysler-plymouth-jeep-eagle-inc-v-chrysler-corp-flmd-1995.