Department of Transportation v. Transportation Commission

330 N.W.2d 159, 111 Wis. 2d 80, 1983 Wisc. LEXIS 2631
CourtWisconsin Supreme Court
DecidedMarch 1, 1983
DocketNo. 81-596
StatusPublished
Cited by10 cases

This text of 330 N.W.2d 159 (Department of Transportation v. Transportation Commission) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Department of Transportation v. Transportation Commission, 330 N.W.2d 159, 111 Wis. 2d 80, 1983 Wisc. LEXIS 2631 (Wis. 1983).

Opinion

HEFFERNAN, J.

This is a review of a decision1 of the court of appeals which affirmed an order of the circuit court for Dane county, W.L. Jackman, Reserve Circuit Judge, presiding. The order of the circuit court for Dane county, on a review of an enforcement proceeding before the Transportation Commission, affirmed the Commission’s finding that there was a violation of sec. 218.01 (3) (a) 18, Stats., vacated the Commission’s finding that there was no violation of sec. 218.01(3) (a) 6, and remanded to the Commission with the direction that, as [83]*83a matter of law, it make a finding that there was a violation of sec. 218.01 (3) (a) 6.

The violations charged in these proceedings are based upon provisions of ch. 218, Stats., entitled “Finance Companies, Auto Dealers, Adjustment Companies and Collection Agencies.”

Doucas Oldsmobile, an automobile dealership located in New Berlin, Wisconsin, its president, Paul W. Doucas, and John W. Bosworth, its sales manager, upon the complaint of Francis C. Wilson, were charged with the violation of sec. 218.01(3) (a)6,2 which maker unlawful the wilful failure to perform a written agreement with a buyer, and with the violation of sec. 218.01 (3) (a) 18,3 which prohibits “bushing,” the practice of increasing the selling price of a motor vehicle above the price quoted a purchaser incorporated in a contract signed by both the purchaser and the dealer.

The basic facts are not disputed. The issue in respect to each of the charges is whether there need be proof of malice or evil intent to find there has been a violation of the statute.

Subsec. (3) (a) 6, Stats., requires there be a wilful failure to perform. It is contended that wilfulness requires a specific criminal or fraudulent intent or motive. The Department of Transportation, which brought these proceedings, asserts that wilfulness, as used in this statute, [84]*84merely means intentional or voluntary and does not require proof of a malicious, criminal, or fraudulent intent. It was the position of the Transportation Commission that the use of the term, “bushing,” in subsec. (3) (a) 18 imparts the requirement of deceit or fraud, i.e., that there must be proof that a dealer quoted a lower price with the intention of later increasing the price. The Department of Transportation takes the position that “bushing” is defined by the statute, requires no proof of fraudulent intent, and may be proved by a single act of increasing the price above that quoted in a prior contract.4

The court of appeals accepted the arguments of the Department and affirmed the circuit court. We also find those arguments convincing and affirm the decision of the court of appeals.

The basic chronology of the events leading to this litigation is undisputed. Neither party challenged the Commission’s findings of fact, so this statement is basically taken from those findings.

Doucas Oldsmobile is a Wisconsin motor vehicle dealership, holding a license issued by the Department to engage in that business activity.

Francis Wilson went to Doucas Oldsmobile on the evening of October 24, 1977, and asked for a price quotation on a diesel engine car. The salesman, Art Cornejo, gave him a quotation. After visiting another dealership, Wilson telephoned Cornejo and said he would buy two cars. He made an appointment for 8:15 the next morning to leave a deposit. It was Wilson’s understanding [85]*85that Cornejo would have the purchase agreements ready for his signature when he arrived.

On October 25, 1977, Cornejo arrived at the dealership a little late, and the switchboard operator told him that Wilson had left a $300 deposit for two cars. Cornejo went outside and flagged down Wilson, who was driving away. Wilson said he was very pressed for time. Cor-nejo said he should come inside, that it would not take long to list out the equipment. Cornejo wrote up the purchase documents. Wilson signed them, and Cornejo had them approved by the manager, Bosworth. According to Cornejo, Wilson was only at Doucas’ “not more than 15 minutes.” Wilson said he was there for about twenty-five minutes. It appeared that Cornejo and Bos-worth hurried to accommodate Wilson. On the other hand, it appeared that Wilson was willing to return later so the transaction could be completed in a more leisurely fashion.

Cornejo made a mistake in completing the purchase contracts. The contracts specified diesel engines, but Cornejo did not add in the additional price of the diesel engines. The manager, Bosworth, reviewed and approved the agreements without seeing the mistake.

The mistake was discovered about two days after the agreements were signed. Cornejo immediately phoned Wilson and explained the mistake. Cornejo got the impression that Wilson would be willing to pay the extra amount. Wilson was actually unwilling to do so and told Cornejo to order the cars. Doucas Oldsmobile did not perform the contract as written. The Commission found that Doucas told Wilson he could have the vehicles only if he agreed to pay a higher price than was stated in the contract. Eventually the vehicles were delivered at a negotiated price.

All parties agree that the omission of the add-on price for the diesel-engine option was the result of a good-faith mistake.

[86]*86Upon complaint to the Department of Transportation, that agency commenced proceedings before the Transportation Commission to issue a special order enjoining Doucas Oldsmobile-Renault from future violations of secs. 218.01 (3) (a) 6 and 218.01 (3) (a) 18.5

The first question to be addressed on this review is whether a motor vehicle dealer violates sec. 218.01(3) (a) 6, Stats., i.e., commits a “wilful failure to perform [a] written agreement with [a] retail buyer” when it intentionally declines to perform the written agreement because its own unilateral mistake or negligence resulted in an agreement price that was below the dealer’s cost.

We note initially that, although the Transportation Commission in this proceeding seeks only an injunction to prohibit further violations of the statute by Doucas Oldsmobile pursuant to sec. 218.01 (3) (h), Stats., the same subsection of the statutes permits, after hearing, the revocation or suspension of licenses issued under this chapter. However, no fine or imprisonment is possible.

We also note that the Department did not file a complaint because Doucas made a mistake in its price; but, rather, it filed the complaint because Doucas, having discovered its mistake, intentionally declined to perform the written agreement previously entered into with the buyer. There is no doubt that it refused to perform the agreement. The question, however, is whether that refusal was wilful. The circuit court determined, and the court of appeals agreed, that “wilful,” as used in the statute, meant no more than “intentional” and that, because the refusal was clearly intended, the statute was [87]*87violated. WATDA does not dispute the finding that Doucas’ act was intentional, but it asserts that the conduct must be with an evil intent or with malice, or without justifiable excuse. It asserts that these elements are not present, that there was no evil intent, and that there was merely an innocent unilateral mistake, which justified the dealer in refusing to carry out the erroneous agreement.

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Dept. of Transp. v. Transp. Comm.
330 N.W.2d 159 (Wisconsin Supreme Court, 1983)

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Bluebook (online)
330 N.W.2d 159, 111 Wis. 2d 80, 1983 Wisc. LEXIS 2631, Counsel Stack Legal Research, https://law.counselstack.com/opinion/department-of-transportation-v-transportation-commission-wis-1983.