Ed Fine Oldsmobile, Inc. v. Knisley

319 A.2d 33, 14 U.C.C. Rep. Serv. (West) 700, 1974 Del. Super. LEXIS 139
CourtSuperior Court of Delaware
DecidedApril 15, 1974
StatusPublished
Cited by6 cases

This text of 319 A.2d 33 (Ed Fine Oldsmobile, Inc. v. Knisley) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ed Fine Oldsmobile, Inc. v. Knisley, 319 A.2d 33, 14 U.C.C. Rep. Serv. (West) 700, 1974 Del. Super. LEXIS 139 (Del. Ct. App. 1974).

Opinion

OPINION

O’HARA, Judge.

Defendant, Ed Fine Oldsmobile, Inc., (hereinafter “dealer”), has appealed from a decision of the Court of Common Pleas, whereby the plaintiff, Thomas S. Knisley, III, (hereinafter “buyer”), was allowed to rescind 1 his purchase of a used automobile.

*35 In February, 1970, the buyer, visiting dealer’s place of business, expressed an interest in a 1968 Oldsmobile, 4-4-2, convertible, which was on display. He was seeking reliable transportation and, knowing that such models had high performance reputations, sought to ascertain the history of the used vehicle in question. He feared that a vehicle of this sort might have been used for racing or contain racing equipment, and if so, did not intend to buy the automobile. Buyer clearly stated this to the defendant’s sales agents. They assured him that it had been well-cared for by its previous owner, one of the dealer’s mechanics, and that he had neither raced it nor installed any racing equipment in it.

Relying on those assurances, buyer purchased the automobile, taking delivery on February 26, 1970. He immediately began to have difficulties. It burned an excessive amount of oil, hesitated, and ran poorly. On April 3, 1970, dealer took the automobile into its shop for repairs. It was at this time that buyer discovered that several parts of his automobile had, in fact, been altered for racing. Among other things, it had a special racing transmission, a non-stock cam shaft, and racing weights in the carburetor. The dealer replaced these parts without charge and assured the buyer that all defects caused by racing or the use of racing equipment had been remedied.

Thereafter, buyer continued to have difficulties with the automobile. On May 5, 1970, it was placed in dealer’s shop for additional repairs, including replacement of the starter. On June 9, 1970, shortly after those earlier repairs had been completed, it was towed to dealer’s for the last time. The engine, which had locked after throwing a rod, was completely inoperative.

On condition that he need pay only for the labor costs, buyer agreed to allow the dealer to install a new engine. However, when that work was completed, in late July or early August, dealer told the buyer that he would also be required to pay an additional $365.00 to replace the transmission which had been stolen while the automobile was in dealer’s possession. Confronted with what he considered a final act of bad faith, buyer refused to cooperate any further and left the automobile with the dealer. He then filed suit in the Court of Common Pleas for return of the $2,456.75 he had paid for the automobile.

In his September 7, 1973, decision ordering repayment of that purchase price, with interest, to buyer, the trial judge made several pertinent findings, which can be summarized as follows:

1. That buyer would not have bought an automobile which had been raced or contained racing equipment, and clearly so stated to the dealer’s agents;
2. That dealer’s agents clearly and knowingly misrepresented to buyer that the automobile he was purchasing contained no racing equipment and had not been used for racing;
3. That when buyer learned that he was the victim of fraudulent misrepresentations, he attempted to rescind the transaction;
4. That each time he so attempted, dealer’s agents persuaded him not to by telling him that it would cost an additional $1,000 to replace the automobile with a different model and promising to correct the nonconform-ities ;
5. That since the automobile was in dealer’s shop for repairs for two to three months between February 26 and June 9, 1970, buyer had little opportunity to inspect or use it;
6. That the final failure of the engine resulted from the use of racing parts or an oil defect;
*36 7. That buyer was persuaded not to rescind the transaction by dealer’s promise to replace the engine for the cost of labor alone; and
8. That dealer reneged on that promise by demanding that buyer also pay for replacement of the transmission stolen while the car was in the dealer’s possession.

This Court has reviewed the entire record of the trial below and concludes that the above-listed findings are clearly and adequately established therein. 2 Nevertheless, dealer here seeks to have the trial Court’s judgment overruled. Essentially, dealer bases this appeal on two grounds: 1) that there was no breach of warranty, express or implied; and 2) that buyer failed to make an effective revocation of his acceptance of the automobile.

In making its warranty argument, dealer contends that its obligation to buyer was limited to 100 percent of the repair costs for the first 30 days or 1,000 miles. Dealer quotes language from its standard form purchase agreement to the effect that there existed no guarantee or warranty as to the condition of the vehicle beyond that specifically stated on the purchase agreement or the accompanying “Used Car Warranty” agreement. However, those forms warrantied 50 percent of the repair bills up to a 30 days or 1,000 miles limit. Furthermore, faced with a displeased customer and, perhaps, pangs of conscience, dealer never imposed any time limitation as it repeatedly attempted to correct the vehicle’s defects. Dealer will not, therefore, be heard to impose such limitations now.

Although dealer apparently waived any right it may have had to hold buyer to a specific written warranty, 5A Del.C. § 2-209(4), there is no need to employ a waiver theory to dispose of dealer’s warranty defense. The record clearly indicates, and dealer grudgingly concedes, that his agents knowingly misrepresented the condition of the vehicle. Buyer, to the knowledge of those agents, based his decision to purchase on their misrepresentations. Neither the parole evidence rule nor applicable case law require that buyer be held to the written terms of the purchase contract for his warranties or relief.

In Bill Dreiling Motor Company v. Shultz, 168 Colo. 59, 450 P.2d 70 (1969), the Colorado Supreme Court affirmed a judgment granting rescission to a customer who had purchased a used Studebaker, in reliance on a dealer’s misrepresentations as to the vehicle’s mileage. The written contract entered into between the parties included a provision that it contained all the terms and representations of the sales agreement. Nevertheless, the trial judge’s decision to admit evidence concerning the false representations which the dealer had made as an inducement to the customer to enter into the contract was tersely upheld by the appellate court. “It is sufficient . to direct attention to the general rule stated in 24 Am.Jur. Fraud and Deceit § 267, as follows:

‘ * * * when fraud enters into a transaction to the extent of inducing a written contract, the instrument never becomes a valid contract, and hence, as stated above, the parol evidence rule is not applicable.’ ”

Similarly, in Beshears v.

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Bluebook (online)
319 A.2d 33, 14 U.C.C. Rep. Serv. (West) 700, 1974 Del. Super. LEXIS 139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ed-fine-oldsmobile-inc-v-knisley-delsuperct-1974.