Horn v. Guaranty Chevrolet Motors

270 Cal. App. 2d 477, 75 Cal. Rptr. 871, 1969 Cal. App. LEXIS 1549
CourtCalifornia Court of Appeal
DecidedMarch 6, 1969
DocketCiv. 9099
StatusPublished
Cited by29 cases

This text of 270 Cal. App. 2d 477 (Horn v. Guaranty Chevrolet Motors) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Horn v. Guaranty Chevrolet Motors, 270 Cal. App. 2d 477, 75 Cal. Rptr. 871, 1969 Cal. App. LEXIS 1549 (Cal. Ct. App. 1969).

Opinion

McCABE, P. J.

Action against car dealership for rescission, quasi-contraetual recovery and exemplary damages predicated upon fraud.

On March 15, 1966, plaintiff Gary Horn, and his wife, Sharon visited defendant’s place of business, a Chevrolet automobile dealership in Santa Ana, for the purpose of looking at and considering the purchase of an automobile. During the course of this visit, plaintiff observed a 1965 Chevrolet Impala which he eventually purchased from defendant. The ear was shown in defendant’s new car showroom and was represented by defendant as a “new” ear. The ear’s odometer showed four miles.

Plaintiff visually inspected the Impala and engaged in a discussion with defendant’s sales representative, Charles Tinch, respecting several irregularities which he noticed with regard to the automobile. Plaintiff also inquired as to why a 1965 model Chevrolet was in the new car showroom at a time when the 1966 models were available. According to plaintiff’s testimony, Mr. Tinch stated to him that the seats had been stolen from the ear while it was on the back lot and it had been necessary to wait for the insurance to go through before they could replace the seats and put the car back on the showroom floor. At trial, Mr. Tinch testified he volunteered the information to plaintiff that the Impala had been stolen and the seats and several other items had been taken from the vehicle.

The 1965 Chevrolet Impala purchased by the plaintiff had been stolen from defendant’s new car lot during the night of September 3, 1965. The ear thereafter was discovered by the police in a vacant garage on South Fairview, City of Santa Ana, a distance of approximately 2% miles from defendant’s place of business. On September 4, 1965, one of defendant’s employees drove the ear back to defendant’s lot. The police report, with statements attached thereto, indicated the two front seats, the rear seat, knobs on the dashboard and the gear selection mechanism had been removed; the car door had been “jimmied” open with a screwdriver; the ignition wires were “yanked from under the ignition” and connected; and *481 the car driven through an orange grove to the vacant garage on South Fairview.

Plaintiff contracted to purchase the Impala from the defendant on March 16, 1966. The vehicle had a list price of $3,757.70 but was sold to plaintiff for the cash selling price of $2,989. Due to plaintiff’s inability to obtain his own financing, a new contract of conditional sale was executed on April 19, 1966. This contract provided for a down payment in the form of the net value of the trade-in of plaintiff’s 1965 Volkswagen, which amounted to $297.37 and required plaintiff to make 36 monthly installments.

The March 16 and April 19, 1966 signed contracts specifically stated the 1965 Impala was a new 1965 Chevrolet Impala.

Within one week after plaintiff took possession of the car, he noticed that it was performing poorly. He returned it to defendant’s service department to have the deficiency corrected. The car ran well for a short time, then developed more trouble. Plaintiff estimated that at the minimum he had to return the car for repairs at least 10 or 12 times. This excessive need for repairs prompted plaintiff to investigate the matter with the Department of Motor Vehicles which developed the facts surrounding the theft of the vehicle. He went to the department several months after the misrepresentations were made. Thereafter, on October 28, 1966, plaintiff returned the Impala to defendant’s place of business and commenced the present action. At the time the vehicle was returned to defendant, the odometer indicated that the car had been driven approximately 13,000 miles.

In addition to the down payment of $297.37, plaintiff paid on account of the purchase of the subject vehicle one payment in the sum of $164.19 and four monthly payments of $95.29 for a total amount of $842.72.

The jury returned a verdict in favor of plaintiff, resulting in a judgment for plaintiff and against defendant in the sum of $5,000 exemplary or punitive damages, and in the sum of $842.72 in rescission of the contract in question, together with costs and disbursements in the sum of $499.51. Defendant moved for a new trial and for judgment notwithstanding the verdict, both of which motions were denied.

Defendant appeals from the judgment and order denying its motion for judgment notwithstanding the verdict and complains of the insufficiency of the evidence as to fraud, objects to the award of exemplary damages, claims the court erred in *482 giving jury instructions on the issue of punitive damages and refusing other instructions proffered by defendant on such damages.

Defendant attacks the sufficiency of the evidence, but it is basic law that when a finding of fact is attacked on the ground that there is not any substantial evidence to sustain it, the power of the appellate court begins and ends with the determination as to whether there is any substantial evidence, contradicted or uncontradicted, which will support a finding of fact. (Florez v. Groom Dev. Co., 53 Cal.2d 347, 354 [1 Cal.Rptr. 840, 348 P.2d 200]; Crawford v. Southern Pac. Co., 3 Cal.2d 427, 429 [45 P.2d 183] ; Fibreboard Paper Products Corp. v. East Bay Union of Machinists, 227 Cal.App.2d 675, 696 [39 Cal.Rptr. 64]; 3 Witkin, Cal. Procedure (1954) § 84, pp. 2245-2246.) When two or more inferences can reasonably be deduced from the facts, a reviewing court is without power to substitute its deductions for those of the trier of fact. (Green Trees Enterprises, Inc. v. Palm Springs Alpine Estates, Inc., 66 Cal.2d 782, 784-785 [59 Cal.Rptr. 141, 427 P.2d 805].) The same rule applies to fraud cases. (Hobart v. Hobart Estate Co., 26 Cal.2d 412, 422 [159 P.2d 958].)

In the instant case either a concealment that the ear. had been stolen, driven through an orange grove and “stripped” by the thief or an affirmative misrepresentation that the Impala was “new” could constitute the necessary fraud. (See Bell v. Graham, 105 Cal.App.2d 765 [234 P.2d 158]; New & Used Auto Sales, Inc. v. Ahvakana (9th Cir. 1959) 269 F.2d 189.) The evidence supports a finding, of fraud upon any or all of these grounds. Defendant’s argument that plaintiff failed to produce any objective evidence to show that the omission was of a material nature is belied by the police report.

Defendant’s contention that plaintiff did not justifiably rely upon the misrepresentation is also without merit.

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Bluebook (online)
270 Cal. App. 2d 477, 75 Cal. Rptr. 871, 1969 Cal. App. LEXIS 1549, Counsel Stack Legal Research, https://law.counselstack.com/opinion/horn-v-guaranty-chevrolet-motors-calctapp-1969.