Cato v. American Suzuki Motor Corp.

622 N.W.2d 486, 2001 Iowa Sup. LEXIS 27, 2001 WL 125151
CourtSupreme Court of Iowa
DecidedFebruary 14, 2001
Docket99-0254
StatusPublished
Cited by1 cases

This text of 622 N.W.2d 486 (Cato v. American Suzuki Motor Corp.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cato v. American Suzuki Motor Corp., 622 N.W.2d 486, 2001 Iowa Sup. LEXIS 27, 2001 WL 125151 (iowa 2001).

Opinion

TERNUS, Justice.

The appellee, Dianna M. Cato, sued the appellant, American Suzuki Motor Corporation, seeking to recover damages under Iowa’s Defective Motor Vehicle Act. See Iowa Code ch. 322G (1997). After a jury trial, the district court entered judgment for Cato. Suzuki appeals, claiming the trial court erred in denying its motion for summary judgment and its motion for judgment after trial based on the jury’s answers to special interrogatories. Alternatively, Suzuki requests a new trial based on error in the court’s instructions to the jury. We conclude that the trial court did not err in refusing to enter judgment for Suzuki on its summary judgment motion and after the jury returned its verdict. We also hold, however, that the trial court erred in failing to instruct the jury that Cato was required to give Suzuki written notification of the nonconformity in her car and a final opportunity to repair the nonconformity prior to filing *488 suit. Accordingly, we reverse and remand for a new trial.

I. Iowa Code Chapter 322G-Iowa’s Lemon Law.

In order to appreciate the significance of the factual history of this case, it is helpful to review the statutory framework that will guide our consideration of the legal issues. Chapter 322G is entitled “Defective Motor Vehicles”; it is commonly known as a lemon law. The purpose of this statute is to provide a remedy to consumers who purchase a motor vehicle that cannot be brought in compliance with the manufacturer’s warranty. See Iowa Code § 322G.1. The statute imposes a duty upon manufacturers and their authorized service agents to “make repairs as necessary to conform the vehicle to the warranty,” provided the consumer reports the nonconformity to the manufacturer or its authorized service agent “during the lemon law rights period.” Id. § 322G.3(3); see also id. § 322G.2(8) (defining “lemon law rights period”). If the manufacturer or its agent has not repaired or corrected a nonconformity “that substantially impair[s] the motor vehicle after a reasonable number of attempts,” the manufacturer must replace or repurchase the vehicle. Id. § 322G.4(2).

To assist the consumer in proving that the manufacturer or its agent has had “a reasonable number of attempts” to repair the vehicle, the statute creates a presumption “that a reasonable number of attempts have been undertaken” if one of three sets of circumstances exists during the lemon law rights period. See id. § 322G.4(3). One scenario involves a nonconformity “likely to cause death or serious bodily injury.” Id. § 322G.4(3)(&). Cato did not claim that this alternative applied in the present case. Cato did, however, rely on the other two alternatives to obtain the statutory presumption. These alternatives are stated in the statute as follows:

3. It is presumed that a reasonable number of attempts have been undertaken to conform a motor vehicle to the warranty if, during the lemon law rights period, any of the following occur:
a. The same nonconformity that substantially impairs the motor vehicle has been subject to examination or repair at least three times by the manufacturer or its authorized service agent, plus a final attempt by the manufacturer to repair the motor vehicle if undeHaken as provided for in subsection 1, and such nonconformity continues to exist.
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c. The motor vehicle has been out of service by reason of repair by the manufacturer, or its authorized service agent, of one or more nonconformities that substantially impair the motor vehicle for a cumulative total of thirty or more days, exclusive of down time for routine maintenance prescribed by the owner’s manual.

Id. § 322G.4(3)(a), (c) (emphasis added). The final attempt to repair “as provided for in subsection 1” refers to section 322G.4(1), which states:

1. After three attempts have been made to repair the same nonconformity that substantially impairs the motor vehicle, or after one attempt to repair a nonconformity that is likely to cause death or serious bodily injury, the consumer may give written notification, which shall be by certified or registered mail or by overnight service, to the manufacturer of the need to repair the nonconformity in order to allow the manufacturer a final attempt to cure the nonconformity. The manufacturer shall, within ten days after receipt of such notification, notify and provide the consumer with the opportunity to have the vehicle repaired at a reasonably accessible repair facility and after delivery of the vehicle to the designated repair facility by the consumer, the manufacturer shall, within ten days, conform the motor vehicle to the warranty. If the manufacturer fails to notify and provide the consumer with the opportunity to *489 have the vehicle repaired at a reasonably accessible repair facility or perform the repairs within the time periods prescribed in this subsection, the requirement that the manufacturer be given a final attempt to cure the nonconformity does not apply.
After twenty or more cumulative days when the motor vehicle has been out of service by reason of repair of one or more nonconformities, the consumer may give written notification to the manufacturer which shall be by certified or registered mail or by overnight service. Commencing upon the date such notification is received, the manufacturer has ten cumulative days when the vehicle has been out of service by reason of repair of one or more nonconformities to conform the motor vehicle to the warranty.

Id. § 322G.4(1).

In the event the nonconformity is not repaired and the manufacturer refuses to replace or repurchase the vehicle pursuant to section 322G.4(3), the consumer has two potential remedies. First, if the manufacturer has established a certified dispute resolution program, the consumer may file a claim with the program. See id. §§ 322G.6-.7. If the consumer is not satisfied with the decision rendered in the certified program or is dissatisfied with the manufacturer’s performance as directed in the decision, the consumer may appeal the decision to the district court or ask the court to direct the manufacturer to fulfill the terms of the decision. See id. § 322G.8(2), (4). If a decision is not rendered in the certified program within the time frames provided in the statute or if the manufacturer has no certified program, the consumer may file an action in the district court, provided “the consumer has notified the manufacturer pursuant to section 322G.4, subsection 1.” Id. § 322G.8(1).

With this statutory framework in mind, we now turn to the facts of this case.

II. Background Facts and Proceedings.

On May 30, 1996, Cato leased a new 1996 Suzuki “Sidekick” sport utility vehicle from Rhoden Auto Center, Inc. in Council Bluffs, Iowa.

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Cite This Page — Counsel Stack

Bluebook (online)
622 N.W.2d 486, 2001 Iowa Sup. LEXIS 27, 2001 WL 125151, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cato-v-american-suzuki-motor-corp-iowa-2001.