Chrysler Corp. v. Pitsirelos

721 So. 2d 710, 23 Fla. L. Weekly Supp. 464, 1998 Fla. LEXIS 1684, 1998 WL 633693
CourtSupreme Court of Florida
DecidedSeptember 17, 1998
Docket90533
StatusPublished
Cited by14 cases

This text of 721 So. 2d 710 (Chrysler Corp. v. Pitsirelos) 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
Chrysler Corp. v. Pitsirelos, 721 So. 2d 710, 23 Fla. L. Weekly Supp. 464, 1998 Fla. LEXIS 1684, 1998 WL 633693 (Fla. 1998).

Opinion

721 So.2d 710 (1998)

CHRYSLER CORPORATION, Petitioner,
v.
Spiro PITSIRELOS, Respondent.

No. 90533.

Supreme Court of Florida.

September 17, 1998.
Rehearing Denied December 10, 1998.

Gregory A. Anderson and John J. Glenn of the Anderson Law Offices, Jacksonville, for Petitioner.

Jack Gale of Phillips, Gale, Ziskinder, P.A., Fort Pierce, and Russell S. Bohn of Caruso, Burlington, Bohn & Compiani, P.A., West Palm Beach, for Respondent.

George N. Meros, Jr. and Mary W. Chaisson of Rumberger, Kirk & Caldwell, P.A., Tallahassee, for The American Automobile Manufacturers Association and The Association *711 of International Automobile Manufacturers, Amici Curiae.

Janet L. Smith, Assistant Attorney General, Tallahassee, for Robert A. Butterworth, Attorney General of the State of Florida, Amicus Curiae.

WELLS, Justice.

We have for review Chrysler Corporation v. Pitsirelos, 689 So.2d 1132 (Fla. 4th DCA 1997), in which the Fourth District Court of Appeal: (1) expressly declared valid chapter 681, Florida Statutes (1989), the Motor Vehicle Warranty Enforcement Act (Lemon Law); and (2) affirmed a trial de novo appeal process in which the burden of persuasion was placed on the automobile manufacturer and a presumption of correctness was given to the decision of the Florida New Motor Vehicle Arbitration Board (Arbitration Board). We have jurisdiction. Art. V, § 3(b)(3), Fla. Const.

For the reasons expressed in this opinion, we hold that Florida's Lemon Law as we now construe it and require it to be applied is constitutional. In so holding, we conclude that the Arbitration Board's decision is to be admitted into evidence in the trial de novo appeal proceeding but that the decision is not to be afforded a presumption of correctness. Rather, it is to be considered as other evidence and given the weight the fact-finder deems appropriate. We therefore quash the decision below and remand this case with directions that the trial court conduct a new proceeding in accordance with this opinion.

FACTS

In August of 1989, Spiro Pitsirelos purchased a Dodge Daytona with a T-top from Charlie's Dodge in Fort Pierce, Florida. Pitsirelos experienced a problem closing the driver-side window and returned the vehicle to the dealership for repairs. After several failed attempts by the dealership to correct the problem, Pitsirelos provided written notification of the defect to Chrysler Corporation, the manufacturer of the vehicle, in accordance with section 681.104(1), Florida Statutes (1989), affording Chrysler a final opportunity to repair the vehicle. The defect was not repaired, and Pitsirelos, pursuant to section 681.1095, Florida Statutes (1989), applied for arbitration proceedings before the Arbitration Board. Following a hearing, the Arbitration Board concluded that Pitsirelos's vehicle was a "lemon" within the meaning of the Lemon Law and ordered Chrysler to pay Pitsirelos the value of the vehicle plus incidental charges.

Chrysler filed a petition for a trial de novo appeal with the Circuit Court for St. Lucie County under section 681.1095(13).[1] The case was tried before a jury, and the Arbitration Board's decision was introduced as evidence. Following closing arguments, the trial judge instructed the jury that the trial de novo is an appeal by Chrysler of the Arbitration Board's decision. The judge further instructed the jury that the Arbitration Board's decision was presumed correct and that Chrysler bore the burden of proving the decision to be incorrect. The jury determined that Chrysler violated the Lemon Law and awarded Pitsirelos the value of the vehicle, continuing damages of $25 per day, attorney fees, and costs.

On appeal, the Fourth District affirmed. Pitsirelos, 689 So.2d at 1135. First, the district court concluded that the trial court correctly placed the burden of proof on Chrysler and that the Arbitration Board's decision was admissible and presumed correct. Id. at 1133. The court then addressed the constitutionality of the $25-per-day continuing damage provision of section 681.1095(14), Florida Statutes (1989). On this issue, the court concluded that the award satisfied due process requirements and that it did not deny Chrysler access to our courts. Id. at 1134. The court reasoned that chapter 681, Florida Statutes (1989), did not modify an existing right; rather, it created a new right and remedy. Last, the district court rejected the argument that the Lemon Law violates separation-of-powers principles by permitting an executive branch arbitration board to exercise judicial power. Id. at 1135.

*712 THE FLORIDA LEMON LAW

Florida enacted its version of the Model Lemon Law in 1983 to provide consumers with an alternative dispute resolution procedure to traditional court breach-of-warranty actions or federal actions under the Magnuson-Moss Warranty Act.[2] Section 681.103(1), Florida Statutes (1989),[3] requires a motor vehicle manufacturer or its authorized service agent to make repairs necessary to conform a vehicle to its warranty. If the manufacturer or service agent is unable to correct a nonconformity within a reasonable number of attempts, the consumer is entitled to a replacement vehicle or a refund of the full purchase price of the vehicle.[4] If the manufacturer decides not to provide the consumer with a refund or replacement vehicle and the manufacturer has not established informal dispute settlement procedures, the consumer may apply for arbitration before the Arbitration Board.[5] An application for arbitration by the Arbitration Board is a precondition to the consumer filing a court action predicated on the Lemon Law.[6] The statute expressly states that the Administrative Procedure Act, chapter 120, Florida Statutes, does not apply to Arbitration Board proceedings or decisions or to any appeals therefrom.[7]

The legislative intent of the Lemon Law is set forth in section 681.101, Florida Statutes (1989):

The Legislature recognizes that a motor vehicle is a major consumer purchase and that a defective motor vehicle undoubtedly creates a hardship for the consumer. The Legislature further recognizes that a duly franchised motor vehicle dealer is an authorized service agent of the manufacturer. It is the intent of the Legislature that a good faith motor vehicle warranty complaint by a consumer be resolved by the manufacturer within a specified period of time. It is further the intent of the Legislature to provide the statutory procedures whereby a consumer may receive a replacement motor vehicle, or a full refund, for a motor vehicle which cannot be brought into conformity with the warranty provided for in this chapter. However, nothing in this chapter shall in any way limit or expand the rights or remedies which are otherwise available to a consumer under any other law.

The Lemon Law is clearly intended as an alternative dispute resolution procedure to resolve motor vehicle warranty disputes in expedited proceedings at less cost to consumers than traditional court proceedings. This clear intent is evidenced by the express time limits set forth in the statutory process, specifically: (1) the manufacturer must submit proceedings to the Arbitration Board within thirty days after a certified informal dispute settlement process has failed;[8] (2) the Arbitration Board must hear the dispute within forty calendar days;[9] (3) the arbitration board shall reach a decision within sixty days after the date the consumer's request for arbitration is approved;[10]

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Joyce v. Forest River, Inc.
S.D. Florida, 2024
State Farm Florida Insurance Co. v. Buitrago
100 So. 3d 85 (District Court of Appeal of Florida, 2012)
Blue Cross Blue Shield of Florida, Inc. v. Outpatient Surgery Center of St. Augustine
66 So. 3d 952 (District Court of Appeal of Florida, 2011)
TA Enterprises, Inc. v. Olarte, Inc.
931 So. 2d 1016 (District Court of Appeal of Florida, 2006)
BMW of North America v. ROTTA
921 So. 2d 702 (District Court of Appeal of Florida, 2006)
Coberley v. Thor Industries, Inc.
908 So. 2d 486 (District Court of Appeal of Florida, 2005)
RH Resorts, Ltd. v. Donegan
881 So. 2d 1152 (District Court of Appeal of Florida, 2004)
BACON FAMILY PARTNERS v. Apollo Condominium Ass'n, Inc.
852 So. 2d 882 (District Court of Appeal of Florida, 2003)
King v. King Motor Co. of Fort Lauderdale
780 So. 2d 937 (District Court of Appeal of Florida, 2001)
Holzhauer-Mosher v. Ford Motor Co.
772 So. 2d 7 (District Court of Appeal of Florida, 2000)
Nationwide Mut. Fire Ins. Co. v. Pinnacle Med., Inc.
753 So. 2d 55 (Supreme Court of Florida, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
721 So. 2d 710, 23 Fla. L. Weekly Supp. 464, 1998 Fla. LEXIS 1684, 1998 WL 633693, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chrysler-corp-v-pitsirelos-fla-1998.