Green Tree Acceptance, Inc. v. Pierce

768 S.W.2d 416, 1989 Tex. App. LEXIS 548, 1989 WL 23958
CourtCourt of Appeals of Texas
DecidedMarch 20, 1989
Docket12-88-00140-CV
StatusPublished
Cited by22 cases

This text of 768 S.W.2d 416 (Green Tree Acceptance, Inc. v. Pierce) 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
Green Tree Acceptance, Inc. v. Pierce, 768 S.W.2d 416, 1989 Tex. App. LEXIS 548, 1989 WL 23958 (Tex. Ct. App. 1989).

Opinion

BILL BASS, Justice.

Appellees, Alvin and Joyce Pierce, sued Commodore Home Systems, Inc. (hereinafter Commodore), Porter Affordable Homes, Inc. (hereinafter Porter), and Green Tree Acceptance, Inc. (hereinafter Green Tree), seeking damages, attorney’s fees, and costs allegedly sustained by them as a result of violations of the Deceptive Trade Practices Act (hereinafter DTP A) that occurred in regard to their purchase of a mobile home.

Judgment was entered upon the jury’s verdict rescinding the retail installment contract and directing Green Tree to return the $6,435.15 paid by the appellees under the terms of the installment contract. The judgment also granted Green Tree the right to possession of the mobile home and awarded appellees $7,500.00 in attorney’s fees. We reverse and render in part and affirm in part.

On October 2, 1984, appellees bought a Lifestyle Wildwood mobile home. The home was manufactured by Commodore and sold to the appellees by Porter. The purchase was financed by Green Tree after they were assigned the retail installment contract.

There was evidence offered at trial that the mobile home collided with a bridge during the course of its delivery to the appel-lees’ homesite. After it was delivered to the appellees, they began to notice defects in the mobile home. On January 27, 1986, Larry Lykins, a Texas Department of Labor and Standards representative, inspected the mobile home and found seventy-two (72) defects.

Suit was originally filed against Green Tree as well as Commodore and Porter. Both Commodore and Porter subsequently filed for protection under the United States Bankruptcy Code and were severed from this cause.

*418 Appellees did not allege that Green Tree was liable except derivatively under the “FTC rule.” 1 The evidence showed that the appellees made payments to Green Tree under the contract of $6,435.13 which consisted of thirteen (13) payments of $495.01 each.

In point of error number 3, appellant contends that there was no finding made by the jury that Green Tree, Commodore, or Porter committed a deceptive act or practice and, therefore, the appellees’ motion for judgment should not have been granted.

In Special Issue Number 1 the jury was asked to determine if the mobile home that was delivered was merchantable. The jury found that the home was not merchantable.

Tex.Bus. & Com.Code § 17.50(a)(2) provides as follows:

(a) A consumer may maintain any action where any of the following constitute a producing cause of actual damages:
(2)breach of an express or implied warranty.

The DTPA does not define the term “warranty.” Furthermore, the Act does not create any warranties; therefore, any warranty must be established independently of the Act. La Sara Grain Company v. First National Bank of Mercedes, 673 S.W.2d 558, 565 (Tex.1984), on remand, 676 S.W.2d 183 (Tex.App.—Corpus Christi 1984, no writ). Implied warranties are derived primarily from statute. Id. In La Sara, the court indicated that Tex.Bus. & Com.Code Ann. §§ 2.314, 2.315 (Vernon 1968) were examples of such statutorily derived implied warranties. Id.

Tex.Bus. & Com.Code Ann. § 2.314 (Vernon 1968) reads, in part:

Sec. 2.314. Implied Warranty: Merchantability; Usage of Trade
(a) Unless excluded or modified (Section 2.316), a warranty that the goods shall be merchantable is implied in a contract for their sale if the seller is a merchant with respect to goods of that kind ...
(b) Goods to be merchantable must be at least such as....
[[Image here]]
(3)are fit for the ordinary purposes for which such goods are to be used....

The jury found a breach of an implied warranty, a violation of the DTPA which entitled the appellees to the protections and remedies provided by the Act. Point of error number 3 is overruled.

In point of error number 2, appellant contends that there was no finding by the jury of producing cause and, therefore, the trial court erred in rendering judgment for the appellees.

Tex.Bus. & Com.Code Ann. § 17.50(b)(1) and (3) (Vernon 1981) reads as follows:

(b) In a suit filed under this section, each consumer who prevails may obtain:
(1) the amount of actual damages found by the trier of fact. In addition, the court shall award two times that portion of the actual damages that does not exceed $1,000. If the trier of fact finds that the conduct of the defendant was committed knowingly, the trier of fact may award not more than three times the amount of actual damages in excess of $1,000;
[[Image here]]
(3) orders necessary to restore to any party to the suit any money or property, real or personal, which may have *419 been acquired in violation of this sub-chapter; ....

The term “actual damages” in subdivision (1) has been interpreted to mean common-law damages. Smith v. Kinslow, 598 S.W.2d 910, 915 (Tex.Civ.App.—Dallas 1980, no writ). The amount of damages for breach of warranty at common law is the amount that will give the complaining party the full benefit of the contract. Id. On the other hand, subdivision (3) is a statutory recognition of the equitable remedy of rescission and restitution, based on the theory that the complaining party may elect to avoid the contract, surrender any benefits received, and recover that which he parted with. Id.

If appellees had sought to recover damages under the contract, they would have been required to show that the deceptive trade practice complained of was the producing cause of their actual damages. Tex.Bus. & Com.Code Ann. § 17.50(a) (Vernon 1968).

However, in the present case, appellees sought to avoid the contract and were therefore required to prove only those facts necessary to justify its rescission. A plaintiff pursuing the remedy provided by subdivision (3) must meet all the requirements mandated by Tex.Bus. & Com.Code Ann. § 2.608 (Vernon 1968). Freeman Oldsmobile Mazda v. Pinson, 580 S.W.2d 112, 114 (Tex.Civ.App.—Eastland 1979, writ ref’d n.r.e.).

The elements of revocation of acceptance under sec.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Ginn v. NCI Building Systems, Inc.
472 S.W.3d 802 (Court of Appeals of Texas, 2015)
Cruz v. Andrews Restoration, Inc.
364 S.W.3d 817 (Texas Supreme Court, 2012)
Hannon, Inc. v. Ronny Scott, D/B/A Dollar Land
Court of Appeals of Texas, 2011
Cordova v. Southwestern Bell Yellow Pages, Inc.
148 S.W.3d 441 (Court of Appeals of Texas, 2004)
Henry v. Low
132 S.W.3d 180 (Court of Appeals of Texas, 2004)
Paul Mueller Co. v. Alcon Laboratories, Inc.
993 S.W.2d 851 (Court of Appeals of Texas, 1999)
Koch Oil Co. v. Wilber
895 S.W.2d 854 (Court of Appeals of Texas, 1995)
Stewart Title Guaranty Co. v. Sterling
822 S.W.2d 1 (Texas Supreme Court, 1992)
Perez v. Briercroft Service Corp.
809 S.W.2d 216 (Texas Supreme Court, 1991)
Briercroft Service Corp. v. Perez
820 S.W.2d 813 (Court of Appeals of Texas, 1991)
Murrco Agency, Inc. v. Ryan
800 S.W.2d 600 (Court of Appeals of Texas, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
768 S.W.2d 416, 1989 Tex. App. LEXIS 548, 1989 WL 23958, Counsel Stack Legal Research, https://law.counselstack.com/opinion/green-tree-acceptance-inc-v-pierce-texapp-1989.