Charles Farley v. Country Coach Incorporated

403 F. App'x 973
CourtCourt of Appeals for the Sixth Circuit
DecidedDecember 15, 2010
Docket08-1591
StatusUnpublished
Cited by7 cases

This text of 403 F. App'x 973 (Charles Farley v. Country Coach Incorporated) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Charles Farley v. Country Coach Incorporated, 403 F. App'x 973 (6th Cir. 2010).

Opinion

CORNELIA G. KENNEDY, Circuit Judge.

In this diversity action, Defendant-Appellant Country Coach, Inc. appeals a $191,784 jury verdict for Plaintiff-Appellee Charles Farley on a claim for breach of the implied warranty of merchantability on Farley’s 2004 Country Coach Magna motor home. In particular, Country Coach alleges that the district court erred by reversing its grant of summary judgment on Farley’s implied-warranty claim, denying Country Coach’s motions for judgment as a matter of law and for remittitur based on insufficient proof of damages, and denying Country Coach’s motion for a new trial due to Farley’s attorney’s allegedly improper conduct during trial. Because we find each of Country Coach’s claims to lack merit, we AFFIRM.

FACTUAL AND PROCEDURAL BACKGROUND

In August 2003, Plaintiff Charles Farley and his wife Donna, both Michigan residents, purchased a new 2004 Country Coach Magna motor home (the “RV”). Defendant Country Coach, an Oregon corporation, manufactured and assembled the RV. Defendant Technology Research Corporation (“TRC”) manufactured the RVs transfer switch, a major component of the RVs electrical system. Farley purchased the RV from Buddy Gregg Motor Homes, Inc. (“Buddy Gregg”), an authorized Country Coach dealership and repair facility in Knoxville, Tennessee. The purchase price of the RV was $416,860, though Farley also paid $17,534.60 more in taxes and fees associated with the purchase. The RV was covered by a one-year, limited warranty issued by Country Coach upon purchase; TRC provided a similar warranty over the transfer switch.

Farley owned the RV for two-and-one-half years, during which time the RV and its various component parts frequently broke and malfunctioned. Some of the problems Farley and his family experienced while trying to use the RV were: leaks of diesel and glycol fumes into the cabin; engine leaks; electrical surges that caused leaks in the wheel seals and destroyed the water pump; improperly functioning dash gauges; a defective dash air conditioning system; a defective transfer switch that frequently caused the electrical systems to malfunction; improperly tightened steering wheel bolts; a defective latch on the refrigerator door; and issues with the slide-out rooms. Farley sought to have these defects repaired numerous times and at multiple facilities, including Buddy Gregg and Country Coach’s factory in Oregon. He also unsuccessfully attempted to make Country Coach take back the RV. In April of 2006, Farley traded the RV to Buddy Gregg for a $245,000 credit towards the purchase of a new Country Coach motor home.

Farley filed the instant suit against Country Coach in the U.S. District Court for the Eastern District of Michigan on April 25, 2005, alleging breach of express and implied warranties under the Uniform Commercial Code (“UCC”) and violation of the Magnuson-Moss Warranty Act (“MMWA”), 15 U.S.C. § 2301. On August 15, 2005, Country Coach filed a third-party *975 complaint against TRC, seeking indemnity and contribution for any damages caused by the defective transfer switch; Farley filed an amended complaint naming TRC as an additional defendant on March 29, 2006. Though in his original complaint Farley stated his warranty claims under Tennessee law, the parties later stipulated that Michigan law — specifically, Michigan’s codification of the UCC (“MUCC”) — controlled.

On September 16, 2005, Country Coach filed a motion for partial summary judgment on Farley’s implied-warranty claim, alleging that, under the MUCC, the lack of contractual privity between Farley and Country Coach precluded the claim as a matter of law. The district court agreed and dismissed the claim on November 29, 2005. On July 18, 2006, Farley filed a motion to reinstate the implied-warranty claim based on this court’s intervening decision in Pack v. Damon Corp., 434 F.3d 810 (6th Cir.2006). The district court granted this motion in a November 14, 2006 order, relying on the Pack court’s “express[ ] holding ... that ‘Michigan has abandoned the privity requirement for implied warranty claims.’ ” Farley v. Country Coach, Inc., No. 05-71623, 2006 WL 3299464, at *8 (E.D.Mich. Nov. 14, 2006) (order denying summary judgment and reinstating implied-warranty claims) (quoting Pack, 434 F.3d at 820). In the same order, the district court denied motions for summary judgment from Country Coach and TRC.

The case proceeded to a jury trial before Magistrate Judge Stephen Whalen from March 12, 2007 to March 21, 2007. At the close of Farley’s case, Country Coach moved for judgment as a matter of law, alleging that Farley had failed to present sufficient evidence of damages to create a jury question. The court had previously ruled that the correct measure of damages was “the difference at the time and place of acceptance between the value of the goods accepted and the value they would have had if they had been as warranted.” Mich. Comp. Laws § 440.2714(2). Country Coach argued that — although the court “could potentially determine” that Farley’s evidence of the purchase price “can be used as the price [of the RV] ... if it would have been a[s] warranted” — there was a “complete lack of ... evidence submitted as to the actual value of the vehicle at the time that Mr. Farley purchased it.” The district court denied the motion, noting that Farley had introduced evidence of the purchase price and trade-in value of the RV and “the jury could reasonably conclude that the amount of normal depreciation would not be as much as the difference between the purchase price and the trade-in price, and that ... difference would, therefore, be attributable to diminution in value.” Country Coach renewed the motion for judgment as a matter of law at the close of all evidence. The district court again denied the motion, reiterating that “there are sufficient facts in this record to present a jury question ... as to whether a percentage of the devaluation [between the purchase price and trade-in price] ... is attributable to ordinary depreciation and whether a percentage of that is attributable to defects.” The district court presented the case to the jury, which returned a verdict of no cause of action on Farley’s express-warranty claim against Country Coach and all of Farley’s claims against TRC, but found Country Coach liable on Farley’s implied-warranty claim. 1 The jury awarded Farley $189,000 *976 in compensatory damages and $2,784 in consequential damages, for a total award of $191,784. The district court entered judgment in accordance with the jury verdict on March 26, 2007.

After entry of judgment, Country Coach filed a motion for judgment as a matter of law or, in the alternative, for a new trial on several grounds, including the previously-asserted claim that Farley had presented insufficient proof of his damages as well as the contention that several improper statements made by Farley’s counsel in closing argument caused jury confusion. Country Coach also filed a motion for remittitur, again based on Farley’s allegedly-deficient damages evidence. The district court denied all of Country Coach’s post-judgment motions. Farley v. Country Coach, Inc., 550

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