Hubacher v. Volkswagen Central, Inc.

298 S.E.2d 533, 164 Ga. App. 791, 1982 Ga. App. LEXIS 2945
CourtCourt of Appeals of Georgia
DecidedDecember 1, 1982
Docket64436; 64437
StatusPublished
Cited by14 cases

This text of 298 S.E.2d 533 (Hubacher v. Volkswagen Central, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hubacher v. Volkswagen Central, Inc., 298 S.E.2d 533, 164 Ga. App. 791, 1982 Ga. App. LEXIS 2945 (Ga. Ct. App. 1982).

Opinion

Sognier, Judge.

On August 21,1979, Dan N. and Lee Ann Lawhon purchased a 1978 Volkswagen Scirocco from Volkswagen Central, Inc. Volkswagen Central had on July 26, 1979, purchased the vehicle from an individual who had acquired it from a salvage dealer and repaired it. At the time of the purchase Lawhorn signed an Acknowledgement of Disclosure by Dealer of Damage to Motor Vehicle, indicating that the vehicle had received damage to both sides (i.e., both doors), a rear quarter panel, and the roof.

On March 20, 1980, Lawhon sold the car to Hubacher without disclosing the damage described in the Acknowledgement. Due to a misunderstanding as to where the certificate of title should be mailed, Hubacher did not receive it until some five weeks after the sale. He then saw that it was stamped, “Rebuilt per Salvage Act, Special.” See Ga. Code Ann. § 68-420a (c) (1979 Ga. Laws, p. 1108, eff. July 1,1979). Hubacher complained to Lawhon, who had not known that the certificate of title was so marked because it had been sent directly to his bank. When Mrs. Lawhon, in whose name the car was [792]*792titled, had signed the certificate of title over to Hubacher, she had not looked at the front of it to see the “Rebuilt” stamp.

Hubacher attempted to rescind the sale and to return the vehicle; Lawhon refused the tender. Hubacher then sued the Lawhons for fraud. Approximately one month after Hubacher filed the suit, the vehicle “threw a rod” and ceased to operate.

The Lawhons brought a third-party action against Volkswagen Central, Inc., which they later dismissed. Hubacher amended his complaint to add Volkswagen Central as a defendant. The case was tried and the jury returned a verdict for Hubacher, awarding $5,000 actual damages, $5,000 attorney fees, and $10,000 punitive damages. The trial court subsequently granted Volkswagen Central’s motion for judgment notwithstanding the verdict and denied the Lawhons’ motion for judgment n.o.v. Hubacher appeals and the Lawhons cross-appeal.

1. Hubacher contends that the trial court erred in granting Volkswagen Central’s motion for judgment notwithstanding the verdict because the evidence presented issues of fact for jury determination. We do not agree.

“One of the prerequisites of fraud ... is: that the injured party must have relied on the fraudulent statement.” State Farm Mutual Automobile Ins. Co. v. Wendler, 120 Ga. App. 839, 841 (172 SE2d 360) (1969). See also Hudson v. Venture Industries, 147 Ga. App. 31, 34 (248 SE2d 9) (1978), affd. 243 Ga. 116 (252 SE2d 606) (1979); Garbutt Lumber Co. v. Walker, 6 Ga. App. 189 (1) (64 SE 698) (1909). The evidence showed that Volkswagen Central knew, but failed to disclose to Lawhon, that the vehicle had been wrecked and rebuilt. Assuming that this was a false representation made with scienter (see City Dodge, Inc. v. Gardner, 232 Ga. 766, 769, n. 1 (208 SE2d 794) (1974) for the five elements of fraud and deceit in Georgia), it was made to Lawhon only. Hubacher testified that he had no dealings with Volkswagen Central before purchasing the car and that he was not relying on any kind of representations made to him by Volkswagen Central about the car. The evidence established that Lawhon told Hubacher nothing of what Volkswagen Central had disclosed to him about damage to the car. Hubacher testified that he relied entirely upon statements made by Lawhon about the car. Therefore, Hubacher did not rely upon any representations made by Volkswagen Central to Lawhon or to anyone else about the car.

There was no conflict in the evidence concerning Hubacher’s reliance on any representations of Volkswagen Central. Since Hubacher failed to present evidence establishing at least one of the essential elements of fraud, Volkswagen Central was entitled to judgment as a matter of law and the trial court did not err in granting [793]*793its motion for judgment notwithstanding the verdict. See Romedy v. Willett Lincoln-Mercury, Inc., 136 Ga. App. 67, 68 (220 SE2d 74) (1975). See generally Ga. Power Co. v. Williams, 132 Ga. App. 874, 879 (209 SE2d 648) (1974); Joines v. Shady Acres Trailer Court, 132 Ga. App. 854, 856 (209 SE2d 268) (1974).

Hubacher relies heavily upon our holding in Preiser v. Jim Letts Oldsmobile, 160 Ga. App. 658 (288 SE2d 219) (1981) to argue that he has sufficiently established a case in fraud and deceit against Volkswagen Central. In that case, the buyer sued the automobile dealer and manufacturer, General Motors (GM), after GM disclosed, subsequent to delivery and acceptance, that his Oldsmohile had a Chevrolet engine. Hubacher contends that since GM, which had no direct dealings with the buyer, might still be liable to the buyer in a fraud action, similarly, Volkswagen Central should be liable to Hubacher. We do not dispute that a plaintiff may recover in fraud from a party with whom he has not dealt directly, but whose false and knowing representations have induced reliance and caused damage. See James v. Crosthwait, 97 Ga. 673, 677-678 (25 SE 754) (1895); Lincoln Land Co. v. Palfery, 130 Ga. App. 407, 412 (203 SE2d 597) (1973). However, the requirements of proof of fraud in such cases are the same as those in cases where the plaintiff dealt directly with the defendant, including proof of the element of reliance. See State Farm, 120 Ga. App. at 841, supra. Preiser came to this court on appeal after the trial court granted GM’s motion for summary judgment. We reversed, because issues of fact remained. In contrast, the instant case comes to us after the trial where the plaintiff, having been put to his proof, has failed to produce evidence on at least one of the essential elements of an action in fraud.

The trial court’s granting of Volkswagen Central’s motion for judgment notwithstanding the verdict is affirmed.

2. The Lawhons, on cross-appeal, contend throughout their twenty-one enumerations of error that they are entitled to a new trial because the judgment notwithstanding the verdict in favor of Volkswagen Central leaves them shouldering, to their prejudice, the entire liability for actual and punitive damages and attorney fees awarded Hubacher.

“[Remaining joint tortfeasors are not entitled to a new trial where one of them is adjudged not liable on the merits by a motion for judgment notwithstanding the verdict.” Ammons v. Horton, 128 Ga. App. 273, 276 (196 SE2d 318) (1973). Despite the Lawhons’ assertions to the contrary, the jury found the Lawhons and Volkswagen Central joint tortfeasors, the tort being that of fraud. Unless the Lawhons establish in their enumerations of error that they are entitled on other grounds to a new trial, a new trial will not be granted simply [794]*794because their co-defendant was granted judgment n.o.v. Accordingly, the jury’s verdict as to the Lawhons’ liability to Hubacher for actual damages is unchanged.

However, the award of punitive damages or attorney fees against all defendants cannot stand undisturbed by the judgment notwithstanding the verdict granted to one of the co-defendants. Where fraud and deceit in the sale of an automobile is proved, aggravating circumstances of the alleged tort may authorize a jury to impose punitive damages. McMichen v. Martin Burks Chevrolet, 128 Ga. App. 482, 484 (197 SE2d 395) (1973). Such aggravating circumstances may occur either in the act or the intention of the wrongdoer. Code Ann.

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Bluebook (online)
298 S.E.2d 533, 164 Ga. App. 791, 1982 Ga. App. LEXIS 2945, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hubacher-v-volkswagen-central-inc-gactapp-1982.