General Motors Corp. v. Blackburn

529 N.E.2d 396, 403 Mass. 320, 1988 Mass. LEXIS 259
Massachusetts Supreme Judicial Court·Decided October 20, 1988·Published·Cited by 7 cases

Opinions

O’Connor, J.

The Blackburns prevailed in an arbitration pursuant to G. L. c. 90, § 7NV6 (1986 ed.) (Lemon Law). General Motors Corporation (GM) appealed the arbitration award to the Superior Court in Norfolk County. G. L. c. 90, § 7N1/2 (6). The Blackburns filed a counterclaim in two counts, one count under G. L. c. 90, § 7N1/2, and one count under G. L. c. 93A (1986 ed.). Both parties moved for summary judgment. Mass. R. Civ. P. 56, 365 Mass. 824 (1974).2 Summary judgment was entered in favor of the Blackburns on GM’s complaint and on the Blackburns’ c. 93A counterclaim. GM appealed and we transferred the case on our own initiative. We reverse both judgments.

The facts shown in the record are these. On April 17, 1986, the Blackburns purchased a new 1985 Chevrolet Corvette automobile from Clay Chevrolet (Clay), a Chevrolet dealer. On five occasions from April 22 to June 2, 1986, the Blackburns brought the vehicle to Clay for repairs. The fifth time, on June 2, the Blackburns left with Clay a letter addressed to GM’s Chevrolet Motor Division, demanding that GM repair the defects within seven business days, or replace the vehicle, or refund an amount of money calculated in accordance with the Lemon Law. A representative of Clay agreed to forward the letter to GM. GM received the letter on June 6, 1986.

When the Blackburns reclaimed their vehicle from Clay on June 5, 1986, the defects complained of still existed. On June 6, 1986, GM sent a letter to the Blackburns requesting the Blackburns to communicate with GM “so that we may set a mutually agreeable date, time and place to review your complaint.” The Blackburns did not respond to this letter. On July 28, 1986, the vehicle was towed by Clay to the dealership.

On August 1, 1986, the Blackburns filed a request for arbitration with the Executive Office of Consumer Affairs and Business Regulation. G. L. c. 90, § 7N*/2 (6). The arbitration was held on September 26, 1986, and the arbitrator ruled in favor of the Blackburns. Specifically, the arbitrator found that [322] the Blackburns’ vehicle had a substantial defect that caused “the car to veer to the right, skid on wet roads and the tires to become defective.” The arbitrator also concluded that the letter delivered to Clay on June 2 was notice to GM of the defect, and that therefore GM’s final repair opportunity, provided for in G. L. c. 90, § 7NV2 (4), commenced on June 2. The arbitrator directed GM either to accept return of the vehicle and to replace it or to refund the sum of $27,628.69 to the Blackburns. GM neither replaced the automobile nor refunded the specified sum, but filed a complaint in Superior Court in Norfolk County appealing the arbitrator’s decision.

General Laws c. 90, § IW/i, provides consumers with a procedure for dealing with a seriously defective new motor vehicle. The statute requires the manufacturer of the vehicle, its agent, or its authorized dealer to repair the nonconforming vehicle. G. L. c. 90, § 7NVi> (2). A vehicle is nonconforming if it has “any specific or generic defect or malfunction, or any concurrent combination of such defects or malfunctions that substantially impairs the use, market value or safety of a motor vehicle.” G. L. c. 90, § 1WA (1). If the manufacturer, its agent, or authorized dealer fails to conform the vehicle after a reasonable number of repair attempts, the manufacturer is required to accept return of the vehicle and to replace the vehicle or to refund the full contract price subject to adjustments. G. L. c. 90, § IW/2 (3). Under the statute, a reasonable number of repair attempts have been undertaken “if (a) the same nonconformity has been subject to repair three or more times . . . but such nonconformity continues to exist or . . . has recurred . . . or (b) the vehicle is out of service by reason of repair of any nonconformity for a cumulative total of fifteen or more business days.” G. L. c. 90, § IW/2 (4). The manufacturer is provided with one additional opportunity “not to exceed seven business days” to cure any nonconformity. G. L. c. 90, § IW/2 (4). The final opportunity to repair commences on the day the manufacturer first knows, or should have known, that the same nonconformity has been subject to repair three or more times but continues to exist, or the vehicle has been out of service for repair for a total of fifteen days ([a] or [b] above). G. L. c. 90, § IW/2 (4).

[323] Consumers are not required to give notice directly to the manufacturer of the existence of any nonconformity before seeking arbitration. G. L. c. 90, § 1WA (5). If a consumer files for arbitration within the applicable time limit, the manufacturer is required to submit thereto. G. L. c. 90, § 1WA (6). Arbitration is performed by a professional arbitrator or arbitration firm appointed by the Secretary of Consumer Affairs. G. L. c. 90, § 1WA (6). In any subsequent action, the findings of fact issued by the arbitrator are taken as prima facie evidence. G. L. c. 90, § 1WA (6). The statute also provides a procedure for an appeal to the Superior Court of the arbitrator’s decision, G. L. c. 90, § 1WA (6), and a sanction if a manufacturer fails to comply with the arbitrator’s decision. G. L. c. 90, § 1WA (8).

The Blackburns’ motions for summary judgment required them to establish that there are no genuine issues of material fact and that they are entitled to judgment in their favor. We conclude that they failed in this regard because nothing in the arbitrator’s decision or in any material put before the judge establishes that GM was given the final repair opportunity which, under § 1WA (4), is a prerequisite to a manufacturer’s liability. In view of our conclusion, it is unnecessary for us to address other arguments presented by GM.

The arbitrator concluded that the Blackburns’ letter delivered to Clay on June 2,1986, was notice to GM, and that, therefore, GM’s final repair opportunity began on that date. If, indeed, notice to Clay was notice to GM, GM’s repair opportunity would have commenced not on June 2, but at an earlier time when Clay first became aware that three repair attempts had been unsuccessful. It appears clear that, if notice to Clay was necessarily notice to GM as well, GM failed to make use of the seven business day opportunity for repairs provided by § 1WA (4). The critical question, then, is not whether GM’s final repair opportunity commenced on June 2, when the Blackburns’ letter addressed to GM was delivered to Clay, or instead, commenced on June 6 when GM received the letter. The critical question is whether GM’s final repair opportunity [324] commenced as soon as Clay was on notice of three unsuccessful repair attempts, or on June 6.

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General Motors Corp. v. Blackburn, 529 N.E.2d 396, 403 Mass. 320, 1988 Mass. LEXIS 259 (Mass. 1988).

529 N.E.2d 396 (General Motors Corp. v. Blackburn) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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