Cohen v. Express Financial Services, Inc.

145 S.W.3d 857, 2004 Mo. App. LEXIS 1462, 2004 WL 2282307
CourtMissouri Court of Appeals
DecidedOctober 12, 2004
DocketWD 63156
StatusPublished
Cited by23 cases

This text of 145 S.W.3d 857 (Cohen v. Express Financial Services, Inc.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cohen v. Express Financial Services, Inc., 145 S.W.3d 857, 2004 Mo. App. LEXIS 1462, 2004 WL 2282307 (Mo. Ct. App. 2004).

Opinion

EDWIN H. SMITH, Chief Judge.

Express Financial Services, Inc., D/B/A/ Quality Cars and Credit, Inc., appeals from the judgment, following a jury trial, of the Circuit Court of Jackson County for the respondent, Stuart Cohen, on his claim against the appellant for damages, actual and punitive, for a violation of § 407.020.1 1 of the Missouri Merchandising Practices Act (MMPA), §§ 407.010-.1132, as provided in § 407.025.1 of the Act. In the trial court’s judgment against the appellant, the respondent was awarded actual damages of $8,775 and punitive damages of $25,000. He was also awarded actual damages of $8,775 and punitive damages of $1,000 against William Hodson, an employee of the appellant’s who does not appeal. With respect to his MMPA claim against the appellant, the respondent alleged that it was vicariously liable to him for Hodson’s intentional omission of a material fact in connection with the sale of a 1997 Suzuki Sidekick, which was done in the course and scope of Hodson’s employment with the appellant and violated § 407.020.1.

The appellant raises three points on appeal. In Point I, it claims that the trial court erred in overruling its motion for judgment notwithstanding the verdict (JNOV), requesting that the jury’s verdict assessing punitive damages against it be set aside, because § 407.025.1 of the MMPA precluded a jury trial on that issue. In Point II, it claims that even if it was proper procedurally for the jury to deliberate on and assess punitive damages, the trial court nonetheless erred in denying its motion for JNOV, requesting that the jury’s verdict assessing punitive damages against it be set aside, because the submission of punitive damages to the jury was not supported by the evidence. In Point III, it claims that the trial court erred in failing to remit the punitive damage award assessed against it from $25,000 to $1,000, the same as the punitive damage award assessed against Hodson, because even if the MMPA permitted the submission of punitive damages to the jury and the record supported such a submission, the record did not support an award of punitive damages against it greater than that awarded against its employee and agent, Hodson.

We dismiss as to Point I, and affirm as to Points II and III.

Facts

On February 18, 2003, the respondent filed a second amended petition, alleging that the appellant’s sales manager, Hod-son, violated § 407.020.1 of the MMPA by intentionally omitting a material fact in connection with the sale of a 1997 Suzuki Sidekick, and that the appellant was vicariously liable to him for Hodson’s intentional omission. Specifically, he alleged that Hodson knew, but failed to disclose, that the Sidekick had been extensively damaged in an accident and had been improperly rebuilt.

On June 3, 2003, the respondent’s case proceeded to a jury trial. Before any evidence had been presented, the trial court heard arguments on several pending motions in limine. It then inquired of the attorneys whether there was “[ajnything else” to take up with the court, at which time the following exchange took place:

[PLAINTIFF’S COUNSEL]: The only other thing was the — maybe we should have a little record on the fact that the Court is, if we make a sub-missible case under 407, and a submis- *861 sible case for punitives, that the Court has ruled that it will submit the issue of punitives to the jury.
THE COURT: We’re not bifurcating. If the Court makes that determination, it will be done in case in chief and we won’t have a bifurcated trial, correct?
[DEFENSE COUNSEL]: Correct.
[PLAINTIFF’S COUNSEL]: Correct.
THE COURT: Anything else, gentlemen?
[PLAINTIFF’S COUNSEL]: If the Court makes that determination of pu-nitives under the Merchandising Practices Act, it will be submitted to the jury?
THE COURT: Yes, sir.
[PLAINTIFF’S COUNSEL]: Thank you. Nothing else.
[DEFENSE COUNSEL]: Nothing else.

At trial, the respondent called four witnesses, while neither the appellant nor Hodson presented any evidence. The respondent’s first witness was himself, who testified that, in April, 2001, he purchased a 1997 Suzuki Sidekick from the appellant, dealing directly with Hodson. He later discovered that the Sidekick had been extensively damaged and improperly rebuilt. He further testified that Hodson failed to disclose the Sidekick’s history to him, except to say that he had obtained it from a friend, who was only selling it in order to purchase a vehicle with an automatic transmission. In addition, he testified that, upon his discovery of the Sidekick’s history, he immediately returned to the appellant’s lot, at which time his complaints were completely disregarded and he was eventually thrown off the lot by the appellant’s new sales manager, who had replaced Hodson.

Hodson testified, when called by the respondent, that he did not actually obtain the Sidekick from a friend, but had obtained it from another used car dealership. However, he testified that at the time he sold the Sidekick to the respondent, he was not aware of its questionable history, although he admitted that he inspected it before selling it to the respondent. He also testified that, due to his extensive experience in the auto sales business, he normally is able to detect the warning signs indicating that a vehicle has been damaged and improperly rebuilt.

Ronald Schritenthal, the assistant manager of Odessa Kansas City Auto Auction, and Richard Diklich, a retired teacher and automobile expert, also testified on behalf of the respondent. Schritenthal testified that the Sidekick was sold at auction on October 24, 2000, and Diklich testified that the damage to the Sidekick would have been obvious to anyone with the proper training or experience.

At the close of the respondent’s evidence, and again at the close of all the evidence, the appellant moved for a directed verdict, which the trial court denied. The case was submitted to the jury, including the issue of punitive damages. No objection was made to the issue of punitive damages being submitted to the jury.

The jury returned verdicts against both the appellant and Hodson, based on Hod-son’s violation of the MMPA, awarding the respondent actual damages against the appellant of $8,775 and punitive damages of $25,000, and actual damages of $8,775 and punitive damages of $1,000 against Hod-son. The trial court accepted the jury’s verdicts, entering judgment thereon.

On July 16, 2008, the appellant filed what it denominated a motion for JNOV, alleging that it was “entitled to judgment, notwithstanding the verdict, eliminating the entire amount of the punitive damages assessed against it,” because: (1) “con *862

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Bluebook (online)
145 S.W.3d 857, 2004 Mo. App. LEXIS 1462, 2004 WL 2282307, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cohen-v-express-financial-services-inc-moctapp-2004.