George Grubbs Enterprises, Inc. v. Bien

881 S.W.2d 843, 1994 Tex. App. LEXIS 1870, 1994 WL 387457
CourtCourt of Appeals of Texas
DecidedJuly 27, 1994
Docket2-93-107-CV
StatusPublished
Cited by41 cases

This text of 881 S.W.2d 843 (George Grubbs Enterprises, Inc. v. Bien) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
George Grubbs Enterprises, Inc. v. Bien, 881 S.W.2d 843, 1994 Tex. App. LEXIS 1870, 1994 WL 387457 (Tex. Ct. App. 1994).

Opinion

OPINION

WEAVER, Justice.

Appellee, Mitehel Bien, sued appellants, George Grubbs Enterprises, Inc., a/k/a George Grubbs Nissan, Inc. (Grubbs), David Kielson, and Luke Maturelli, for various causes of action he alleges arose from mistreatment during sales negotiations at the Grubbs Nissan car dealership. Based on the *848 findings of the jury, 1 the trial court awarded judgment to Bien against all of the appellants, jointly and severally, in the amount of $573,815.00 for actual damages, exclusive of costs and postjudgment interest, and $222,-294.49 for prejudgment interest. The judgment also awarded Bien $5,000,000.00 in exemplary damages against Grubbs. 2

Appellants bring twenty-five points of error. They challenge the legal and factual sufficiency of the evidence and allege that the trial court committed various errors with respect to the jury charge and evidentiary rulings. Grubbs also challenges the award of exemplary damages. By a single cross-point, Bien alleges the trial court erred in failing to award him reasonable attorneys’ fees as a prevailing party under the DTPA. We affirm.

FACTUAL BACKGROUND

In the late 1970’s, the Grubbs dealerships implemented a sales system technique known as the Automotive Profit Builder Controlled Track Selling System (“APB System”). Grubbs trained its sales force in the use of the APB System and expected its salespeople to follow this system. This system was still being used by Grubbs throughout the trial of this case.

Appellants’ expert, Remar Sutton, 3 testified that the goal of a system sales technique, including the APB System, is “to excite the customer, confuse the customer, pressure the customer, and then take every last dime you can get regardless of the consequences to the customer.” After Sutton was retained by appellants, he hired an undercover shopper, Daniel Buettner. Buettner’s assignment was to shop various car dealerships in the Dallas-Fort Worth area, including Grubbs Nissan, and compare the techniques used at the dealerships to what is known as the Bugelli incidents. Sutton testified that until recently Mr. Bugelli ran one of the largest dealerships in América. In Sutton’s opinion, Bu-gelli runs the toughest track system operation in the country. In 1986 Sutton sent Buettner to work at a Bugelli dealership for three weeks. This was the first time in years that a track system had been documented. According to Sutton, the sales track system operated by Bugelli is the worst in the country.

Buettner did not know that Grubbs Nissan was the target of his comparison shopping survey. Of the dealerships Buettner surveyed in the Dallas-Fort Worth area, Grubbs Nissan was the most hard ball and deceptive in the use of the APB system. In fact, when Sutton asked Buettner to compare the Grubbs dealership to the Bugelli incidents, Buettner said “Grubbs made Bugelli look like a church.”

On December 14, 1987, Mitchel Bien, a deaf mute, walked into the teeth of Grubbs Nissan’s APB System. Bien was returning from his grandmother’s where he had been doing some repairs around her house. It was cold and drizzly outside, with a little bit of rain. Bien lived with his mother and needed to be home for dinner between 6:00 and 6:30 p.m. As a rule, if Bien is going to be late he calls to let his mother know so she will not worry.

Bien was in the market for a new automobile. He was driving his deceased father’s pickup and had been considering trading in the pickup for another vehicle. Grubbs Nissan was on the way home, so Bien decided to stop at the dealership. Since it was only 3:45 p.m., he felt he had plenty of time to stop at *849 Grubbs Nissan and still make it home by 6:30 p.m.

While Bien was looking at some Nissan Pathfinders, Maturelli walked up to introduce himself. Upon discovering Bien was deaf, Maturelli went back inside and informed Kielson, his sales manager, that a deaf man was outside looking at cars. Matu-relli told Kielson he had never dealt with a deaf person before. Kielson told him to put Bien through the APB System the same as any other person. After further discussions, Maturelli and Kielson came up with the idea of communicating by pen and paper.

After talking with Kielson, Maturelli went back outside and reintroduced himself via pen and paper. Maturelli then began using the APB System on Bien. He showed Bien the features on the Pathfinder and they took a test drive. After test driving the Pathfinder, Bien noticed a 300ZX and indicated he liked it. Maturelli and Bien then test drove a red 300ZX. After the test drive, pursuant to the APB System, Maturelli parked the ear on the sold fine even though it had not been sold.

Maturelli next took Bien on a tour of the dealership. Following the tour, Maturelli bought Bien a coke. This is also done pursuant to the APB System to detain the customer and obligate him to the salesperson. Under Grubbs’ APB System, the salespeople were taught to put money in the coke machine before asking the customer what he is drinking. Thus, the customer cannot refuse the drink and becomes psychologically obligated to the salesperson. This is also done to make it difficult to leave since it is hard to drive with a drink in one’s hands.

After Maturelli bought Bien a coke, they went into Maturelli’s office where Maturelli began filling out a worksheet listing the various information about the 300ZX. This too is part of the APB System. It is done in an effort to impress the customer with the product, and in an attempt to obtain a bid on the vehicle from the customer.

After Maturelli filled out the worksheet and the price, he wrote the word “now” on a blank line for the delivery date. Bien responded that he did not want to buy the car at that time. Despite this, Maturelli wrote a note asking if Bien would be willing to do business that day if he could get an acceptable price. He then instructed Bien to put his initials beside this note and Bien complied. Maturelli next filled out a document on Bien’s truck. He then went and pulled a computer price and equipment confirmation sheet on the 300ZX. It was at this point that the “negotiations” began.

Maturelli began by asking Bien what he would like to offer for the car. Bien offered to pay $18,500, less $4,775 trade-in for his truck. Maturelli asked Bien about a down payment and Bien said he could make a $4,000 down payment. Maturelli then feigned being Bien’s friend and told Bien he needed some form of money to show his manager. Maturelli insisted that he needed Bien to write a $4,000 check so Maturelli could use it as leverage against his boss to get a good deal. 4 Contrary to his assertions, Maturelli knew his manager did not need to see a check to approve a deal. Rather, obtaining the check was simply another part of the APB System to prevent Bien from leaving and to exert psychological pressure on him.

Bien was hesitant to write the check, but Maturelli assured Bien he would return the check. However, according to the APB System under which Maturelli and the other Grubbs Nissan salespeople were trained, the cheek is only returned as an ultimate last resort because customers will not leave without it.

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Cite This Page — Counsel Stack

Bluebook (online)
881 S.W.2d 843, 1994 Tex. App. LEXIS 1870, 1994 WL 387457, Counsel Stack Legal Research, https://law.counselstack.com/opinion/george-grubbs-enterprises-inc-v-bien-texapp-1994.