Hubbard v. Aase Sales, LLC

104 N.E.3d 1027, 2018 Ohio 2363
CourtCourt of Appeals of Ohio, Fifth District, Delaware County
DecidedJune 11, 2018
DocketNo. 17CAE070051
StatusPublished
Cited by4 cases

This text of 104 N.E.3d 1027 (Hubbard v. Aase Sales, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Ohio, Fifth District, Delaware County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hubbard v. Aase Sales, LLC, 104 N.E.3d 1027, 2018 Ohio 2363 (Ohio Super. Ct. 2018).

Opinion

ALLISON L. HARRISON, Allison L. Harrison Law, LLC, 175 S. 3rd St., Suite 200, Columbus, Ohio 43215, For Plaintiff-Appellee

ELLIOT B. GARVEY, Garvy Law LLC, PO Box 21137, Columbus, Ohio 43221, For Plaintiff-Appellee

JON J. SAIA, 713 South Front Street, Columbus, Ohio 43206, For Defendant-Appellant

JON L. JENSEN, 98 North Union Street, Delaware, Ohio 43015, For Defendant-Appellant

JUDGES: Hon. William B. Hoffman, P.J., Hon. Patricia A. Delaney, J., Hon. Craig R. Baldwin, J.

OPINION

Hoffman, P.J.

{¶ 1} Defendant-appellant AASE Sales LLC ("AASE Sales") appeals the May 4, 2017 Judgment Entry entered by the Delaware County Court of Common Pleas, which granted judgment in favor of plaintiff-appellee Richard Mark Hubbard ("Hubbard"), following a bench trial.

STATEMENT OF THE FACTS AND CASE

{¶ 2} AASE Sales is an Ohio limited liability corporation with its principal place of business in Galena, Delaware County, Ohio, specializing in the sale of Porsche specific parts and supplies as well as the sale of restored, classic model Porsche automobiles. AASE Sales advertises for sale on its website various restored, classic Porsche automobiles. Ron Thomas is the president of AASE Sales.

{¶ 3} Hubbard operates Hubbard Auto Sales, a classic car dealership located in Scottsdale, Arizona. As part of his job responsibilities, Hubbard purchases vehicles to place in inventory. Hubbard, himself, is a classic car enthusiast, attending car shows and auctions. He personally owns 8 collectible automobiles, which he occasionally takes to car shows. Hubbard rarely drives the vehicles and views them as investments. Hubbard stores his vehicles at Hubbard Auto Sales and displays them in a separate room. Hubbard does not personally insure the vehicles in his personal collection. Rather, the vehicles in his collection are insured through a policy issued to Hubbard Auto Sales, which also covers the inventory of the business.

{¶ 4} Hubbard searches the internet to find vehicles for inventory for Hubbard Auto Sales as well as for his personal collection. While searching the internet, Hubbard followed a link to AASE Sales'

*1032website where he found an advertisement for a 1963 Porsche 356 B/1600 T6 coup ("the 1963 Porsche"), a vehicle his father had expressed an interest in purchasing. Hubbard contacted Thomas who personally owned the 1963 Porsche. Hubbard informed Thomas he was interested in the 1963 Porsche for his father, and he was buying it for a personal collection. Thomas reiterated the information contained on the website, to wit: the Porsche was "matching numbers", "per factory Kardex", and "# 1 restored" condition. The engine number referenced in the online advertisement matched the number on the engine of the 1963 Porsche, and the VIN number referenced in the same advertisement matched the number on the chassis of the vehicle.

{¶ 5} Hubbard purchased the 1963 Porsche and another Porsche from AASE Sales for $74,000/vehicle. Hubbard did not see the vehicles prior to the purchase. He did not have the vehicles examined by anyone prior to the purchase. Hubbard's father wrote a check from his personal account for the purchase price. After AASE Sales received the payment, Thomas sent Hubbard a bill of sale reflecting Hubbard as the purchaser and indicating the 1963 Porsche was sold "as is". Tr. at 38. Hubbard received the bill of sale on April 8, 2015. On April 8, 2015, Hubbard instructed Thomas to transfer title of the 1963 Porsche to Hubbard Auto Sales. Hubbard did not complain to Thomas about the condition of the vehicle or the quality of the restoration when the vehicle was delivered on or about April 17, 2015.

{¶ 6} Hubbard had additional work completed on the vehicle, totaling over $3600.00. Hubbard ordered a Porsche Certificate of Authenticity because the 1963 Porsche did not arrive with a factory Kardex as the advertisement had stated. After receiving the Certificate of Authenticity, Hubbard compared the numbers on the vehicle to those on the Certificate and found the numbers did not match. Hubbard contacted AASE Sales on October 15, 2015, regarding the discrepancy. Hubbard and Thomas exchanged a series of emails.

{¶ 7} On April 7, 2016, Hubbard filed a complaint against AASE Sales, asserting four causes of action, to wit: rescission, breach of express warranty, violations of the Ohio consumer sales practices act, and fraud/negligent misrepresentation. Hubbard sought rescission, or, in the alternative, actual damages; consequential and incidental damages; punitive damages; and attorney fees. On May 6, 2016, AASE filed an answer and counterclaim, alleging abuse of process.

{¶ 8} Hubbard filed a motion for partial summary judgment on February 21, 2017. AASE Sales filed a motion for summary judgment and/or motion to dismiss for lack of standing on the same day. Via Judgment Entry filed March 27, 2017, the trial court denied the parties' respective motions.

{¶ 9} The matter proceeded to bench trial on April 6, 2017.

{¶ 10} At trial, Hubbard testified about his professional and personal dealings with classic cars. Hubbard detailed how he came to learn of the 1963 Porsche, the purchase of the vehicle, and the subsequent issues discovered upon his receipt of the car. He also explained the term "numbers matching" means "the engine, transmission and body all match the car that was originally built." Tr. at 30. Hubbard added in order to verify a car as numbers matching, one would look at a build sheet or, in the case of a Porsche, the factory Kardex or Certificate of Authenticity. Hubbard also stated the term "restored number one" means the vehicle is "the highest quality of restored car that is out there." Tr. at 33.

*1033{¶ 11} According to Hubbard, when the 1963 Porsche arrived, he found the restoration was not "a number one level quality of restoration" and instructed Thomas to transfer the title into the name of Hubbard Auto Center. However, correspondence between the parties revealed Hubbard contacted Thomas on April 8, 2015, regarding the title. The cars were shipped April 10, 2015, and delivered about April 17, 2015. Title was put in the Hubbard Auto Center name on April 15, 2015.

{¶ 12} Although Hubbard did not know the type of legal entity Hubbard Auto Center was, he explained he and his father evenly divide all costs, expenses, and profits at the end of each month. He noted he receives 50% of whatever the business does in a particular month.

{¶ 13} Lance Coran was called as an expert in the field of classic automobiles. Coran personally researched the 1963 Porsche with Porsche Cars North America. He physically inspected the 1963 Porsche and produced a certified inspection report, in which he concluded the 1963 Porsche was a non-numbers matching vehicle. According to Coran, "matching numbers," as the term is used in the classic car market, means the vehicle is "in its original state of manufacture, and it possesses all the parts that are associated with the original manufacture of the vehicle at its time." Tr. at 116. He detailed the manner in which a vehicle is physically inspected to establish whether it is a "matching numbers" vehicle.

{¶ 14} Caron found the 1963 Porsche to be in good or very good condition, but noted the actual advertisement upon which Hubbard relied did not accurately describe the vehicle. The 1963 Porsche had a replacement motor.

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Bluebook (online)
104 N.E.3d 1027, 2018 Ohio 2363, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hubbard-v-aase-sales-llc-ohctapp5delawar-2018.