Forest River, Inc. v. Posten

847 So. 2d 957, 51 U.C.C. Rep. Serv. 2d (West) 711, 2002 Ala. Civ. App. LEXIS 471, 2002 WL 1264011
CourtCourt of Civil Appeals of Alabama
DecidedJune 7, 2002
Docket2000954
StatusPublished
Cited by4 cases

This text of 847 So. 2d 957 (Forest River, Inc. v. Posten) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Forest River, Inc. v. Posten, 847 So. 2d 957, 51 U.C.C. Rep. Serv. 2d (West) 711, 2002 Ala. Civ. App. LEXIS 471, 2002 WL 1264011 (Ala. Ct. App. 2002).

Opinion

CRAWLEY, Judge.

On July 21, 2000, Bruce Posten and Donna Posten sued Forest River, Inc., the manufacturer of a new “Georgetown” model recreational vehicle (“RV”) the Postens had purchased in December 1999 for $78,715.84. The Postens sought damages for breach of express and implied warranties under the Alabama Uniform Commercial Code, Ala.Code 1975, § 7-2-101 et seq., and damages under the Magnuson-Moss Warranty-Federal Trade Commission Improvement Act (the “Magnuson-Moss Act”), 15 U.S.C. § 2301 et seq., alleg[959]*959edly arising from the sale of the RV; the Postens also sought an award of attorney fees and costs pursuant to 15 U.S.C. § 2310(d). Forest River filed a motion for a summary judgment, which the trial court granted as to the Postens’ implied-warranty, bad-faith, and Magnuson-Moss Act claims. A trial was then scheduled on the Postens’ claim for breach of an express warranty and their request for damages for mental anguish. In its order granting the partial summary judgment, the trial court found that no evidence had been presented indicating that Forest River had refused to conduct warranty repairs, but the trial court permitted the case to proceed to trial on the issue whether those repairs were conducted within a reasonable time. Following an ore tenus proceeding, the trial court entered a judgment in favor of the Postens on their breach-of-express-warranty claim and awarded them $36,550 for property damage and $2,000 for mental anguish.

Forest River appeals, contending that the trial court erred in calculating the Postens’ damages and in awarding damages for mental anguish. The Postens cross-appeal, contending that the trial court erred in refusing to award an attorney fee under the Magnuson-Moss Act.

The record reflects that shortly after the Postens purchased the RV, they began experiencing problems with it: water leaked into the cab from both the driver’s-side and passenger’s-side windows; the “slide-out room” also leaked. According to testimony in the record, those water leaks caused damage to the floor and produced a “sour” smell. In addition, air blew into the RVs cab from under the dashboard on the driver’s side, and the RVs “leveling jacks” engaged while the RV was in motion, sounding alarms and requiring the Postens to make stops to reset the leveling jacks.

On December 13, 1999, Mr. Posten took the RV back to the dealer, Summer Breeze RV Center, from whom the Postens had purchased the RV to repair the problems. After approximately one week, the dealer advised Mr. Posten that the repairs were complete. However, despite the dealer’s attempt to repair the RV, the RV still had leaked. Mr. Posten returned to the dealer and left the RV for additional repairs, which required six weeks to complete. Mr. Posten picked up the RV in late February 2000, after the dealer had installed new windows in the RV. After the second repair attempt, the Postens continued to experience water leaks and leveling-jack problems; every time it rained, water would leak into the RV. Mr. Posten took the RV back to the dealer for a third time and spoke with the service manager, Anthony Leonard, who told Mr. Posten the RV could not be repaired. It was Leonard’s opinion that the windows were poorly designed and that the Postens’ slide-out room was defective.

On March 23, 2000, after the three unsuccessful attempts to remedy the RVs problems, the Postens’ attorney sent a certified letter to Forest River detailing the problems the Postens had experienced with the RV The letter specifically advised Forest River that, if the matter could be resolved, it would not be necessary for the Postens to pursue any legal claims. Forest River admitted that it did receive the letter, but that the letter was lost and was never placed in Forest River’s “unit file.”

During the hearing on Forest River’s motion to alter, amend, or vacate the judgment, the trial court explained how it had arrived at the damages award:

“[Fjirst I determined that [the RV] was not reparable completely because of [expert] testimony that [the expert] could not guarantee that the windows or the leaks could ever be fixed. Therefore, I [960]*960concluded that [Forest River] was not able to put it back in its original condition, and, therefore, the damages would be determined on a before and after value basis.
“I determined based upon ... testimony that the fair-market value before the accident was $75,000.... [T]he value after [repairs] was $40,000. In its repaired condition [there] was left a difference of $85,000. I added to that the cost of repair $1,550 and came out with a figure of $36,550 and I concluded that $2,000 would be appropriate for the mental anguish and that’s how I came up with $38,550.”

On appeal, Forest River contends that the trial court’s calculation of the property damage was erroneous and that the award was excessive. Specifically, Forest River asserts that the proper measure of damages is the cost of repair, which it asserts is between $914 and $1,550.

The evidence adduced at trial indicated that the Postens’ RV could not be made free of defects. Glenn Langston, a service manager in RV repair and sales who was retained by Forest River to inspect the Postens’ RV, testified that the windows on the Georgetown Model were “notorious for leaking” and that he would not guarantee that any new windows that were installed would not leak. Langston testified that during his examination of the RV, he had taken the windows out and reinstalled them, but when questioned whether he repaired the leaks, he stated: “No, sir, we could not because that’s a defect in the window itself not in the installation process.” Langston further testified that the leaking problem stems from the window assembly, not the installation.

There was also testimony that the Pos-tens’ RV had been seriously devalued. John Vardaman, an RV salesperson, testified that he would accept the Postens’ RV at “well below wholesale market value.” He explained: “I would not want to end up in a situation like this with one of our retail customers with something that we don’t feel like we can repair. I would take it to an auction.” Ron Dudley, an independent adjuster and investigator, testified that he had inspected the RV and had taken it to three dealers to obtain their opinions as to the market value of the RV. Not one of the dealers that Dudley met with would accept the Postens’ RV as a “trade-in” toward the purchase of another RV, and none of those dealers indicated a willingness to purchase the Postens’ RV. Dudley testified that, in his opinion, the Postens’ RV, in an undamaged condition, was worth $75,000; with the defects, he valued the Postens’ RV at between $25,000 and $30,000.

Forest River argues that under the terms of the warranty the Postens were entitled only to the cost of repair as a measure of damages. Forest River’s limited warranty states, in part:

“[Forest River’s] OBLIGATIONS: [Forest River] will remedy substantial defects in materials and workmanship caused by [Forest River]. [Forest River] shall elect to remedy the defect from among the following: repair, replacement or refund.”

Here, evidence was presented that the cost of repairs with parts of like kind and quality would not restore the RV to its fair market value free from defects.

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Bluebook (online)
847 So. 2d 957, 51 U.C.C. Rep. Serv. 2d (West) 711, 2002 Ala. Civ. App. LEXIS 471, 2002 WL 1264011, Counsel Stack Legal Research, https://law.counselstack.com/opinion/forest-river-inc-v-posten-alacivapp-2002.