JOSEPH GARGUILO VS. TRI-STATE CLASSIC CAR RESTORATION (DC-008812-16, MONMOUTH COUNTY AND STATEWIDE)

New Jersey Superior Court Appellate Division·Decided December 11, 2018·No. A-0228-17T4·Unpublished

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-0228-17T4

JOSEPH GARGUILO, Plaintiff-Respondent,

v.

TRI-STATE CLASSIC CAR RESTORATION,

Defendant/Third-Party

Plaintiff-Appellant,

v. SINE-TRU TOOL CO., INC.,

Third-Party Defendant-Respondent.

Argued November 28, 2018 – Decided December 11, 2018 Before Judges Nugent and Mawla.

On appeal from Superior Court of New Jersey, Law Division, Monmouth County, Docket No. DC-008812-

16.

Christina Vassiliou Harvey argued the cause for appellant (Lomurro, Munson, Comer, Brown & Schottland, LLC, attorneys; Donald M. Lomurro and

Christina Vassiliou Harvey, of counsel and on the briefs).

James J. Kinneally, III argued the cause for respondent Joseph Garguilo (Marriott Callahan & Blair, PC, attorneys; James J. Kinneally, III, of counsel and on the brief).

PER CURIAM Defendant Tri-State Classic Car Restoration (Tri-State) appeals from an August 2, 2017 judgment, entered in favor of plaintiff Joseph Garguilo, finding Tri-State violated the Consumer Fraud Act (CFA) by concealing damage to a vehicle defendant repaired for plaintiff. We affirm.

The following facts are taken from the record. Defendant is a classic car restoration shop owned by Eugene Chillemi. In July 2013, plaintiff purchased a 1971 Z/28 Camaro from Eugene's 1 father, Michael Chillemi. Plaintiff drove the vehicle for approximately two weeks until an engine fire damaged it. Plaintiff had the car towed to defendant and inspected by plaintiff's insurance company, which covered the costs for defendant to make the necessary repairs.

After the repairs were completed, defendant discovered a noise coming from inside the motor. With approval from plaintiff's insurance company,

1 We utilize Eugene Chillemi's first name to differentiate him from his father. We mean no disrespect.

A-0228-17T4

defendant inspected the vehicle and concluded it required an engine rebuild. Defendant obtained an estimate for the work from a third-party, Sine-Tru Company (Sine-Tru). Defendant provided the estimate to plaintiff's insurer, which approved the engine rebuild.

Defendant removed the engine from the vehicle and delivered it to Sine-

Tru, which stripped and power washed the engine, and performed the rebuild to plaintiff's specifications. Pertinent to this appeal, Kenny Klewan, the owner of Sine-Tru, testified there was no crack in the engine block when he inspected it after it was power washed.

After the rebuild, Sine-Tru returned the engine to defendant to be reassembled and installed in the vehicle. According to Eugene's testimony, defendant "put the carburetor on, . . . primed the motor, checked the oil pressure in the motor, and . . . put the motor in the car." Defendant then put the alternator and spark plugs back on the vehicle, set up the car's wiring and the radiator, and tuned the engine once it was running.

Importantly, plaintiff and Eugene corresponded regarding the progress of the vehicle's reassembly while it was in defendant's possession. On one such occasion, Eugene sent plaintiff a picture of the vehicle's freshly painted tailshaft depicting a roll of blue painter's tape covering the end of the tailshaft.

A-0228-17T4

After defendant completed the work on the vehicle it was returned to plaintiff in March 2014. In September 2014, plaintiff noted a noise in the motor and brought the vehicle back to defendant. The car was then transported to Sine- Tru, which performed work on the engine, including the crankshaft. Sine-Tru also installed a new clutch and painted the transmission. Defendant then performed a five-hundred mile break-in procedure before the vehicle was returned to plaintiff.

Plaintiff continued to experience problems with the vehicle after it was returned to him. He noted the presence of metal flakes in the oil during an oil change. He sent pictures of the metallic flakes to defendant, who assured him it was not unusual. Plaintiff noted the smell of engine coolant, and when he examined the engine he noticed a "bubble in the paint on the engine block," which deposited coolant when he put pressure on it.

Plaintiff brought the vehicle to A&W Performance (A&W), which inspected it and discovered a crack in the engine block. A&W removed the paint on the engine and discovered evidence someone had applied an epoxy-like substance in the area of the crack in an attempt to repair it. A&W replaced the entire engine because the crack in the engine block could not be repaired. A&W

A-0228-17T4

also discovered the tailshaft was cracked. The tailshaft also showed signs of attempted repairs with an epoxy-like substance and a hoseclamp.

At trial, Eugene, on behalf of Tri-State, and Klewan, on behalf of Sine-

Tru, claimed to be unaware of the crack in the engine block. Eugene denied the roll of painter's tape covering a portion of the tailshaft in the picture sent to plaintiff was intended to conceal the crack and the hoseclamp. Plaintiff claimed otherwise.

Plaintiff presented expert testimony from Jason Phillips. According to his testimony, Phillips has owned an auto appraisal business, Auto Appraise, Incorporated, since 1991. Phillips became an ASE-certified mechanic in 1981 and had experience rebuilding engines. Phillips testified he currently employs approximately three-hundred subcontractors who perform inspections, mostly on classic cars, nationwide. He testified he is currently employed "full-time [to] inspect, appraise, and work for public and insurance companies doing a variety of tasks as they would relate primarily to classic cars." With respect to his business, Phillips testified:

I have four employees, five including myself, that manage the . . . [three-hundred] plus or minus collective inspectors we have at any given time, and we go out onsite and do inspections on vehicles. Those inspectors in the field take photos and notes much like the industry of insurance works, like State Farm for example, who

A-0228-17T4

sends out a field inspector that assesses . . . the damage onsite, sends that back to headquarters. Headquarters . . . puts that report together, makes a decision to total the car or not, warranty companies to repair the car or not. And so we basically operate under the same work process as a warranty company or an insurance company.

....

It started out as [one hundred] percent [classic cars], and as the market has changed and gravitated over the years, more and more we do late model total loss work, diminishment of value cases, estate work, et cetera. So you know, classic cars probably is somewhere between [fifty] and [seventy] percent of what we do now.

Phillips testified he had been qualified as an expert in the field of classic cars on several prior occasions. The trial judge qualified Phillips as an expert in the field of classic cars.

Phillips testified extensively regarding the damage to the vehicle and the attempted repairs involving the epoxy-like substance. He explained the difference in value between a vehicle whose parts bore the same serial number and those which did not, such as plaintiff's vehicle, which now had a new engine installed. He also opined as to the cause of the damage to the vehicle. Phillips explained he reviewed the photographs of the engine and tailshaft, and examined the components in person to form his opinion.

A-0228-17T4

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

JOSEPH GARGUILO VS. TRI-STATE CLASSIC CAR RESTORATION (DC-008812-16, MONMOUTH COUNTY AND STATEWIDE), (N.J. Ct. App. 2018).

JOSEPH GARGUILO VS. TRI-STATE CLASSIC CAR RESTORATION (DC-008812-16, MONMOUTH COUNTY AND STATEWIDE) (JOSEPH GARGUILO VS. TRI-STATE CLASSIC CAR RESTORATION (DC-008812-16, MONMOUTH COUNTY AND STATEWIDE)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Jimenez v. GNOC, CORP.
670 A.2d 24 (New Jersey Superior Court App Division, 1996)
State v. Moore
585 A.2d 864 (Supreme Court of New Jersey, 1991)
Taylor v. DeLosso
725 A.2d 51 (New Jersey Superior Court App Division, 1999)
Buckelew v. Grossbard
435 A.2d 1150 (Supreme Court of New Jersey, 1981)
State v. Robinson
974 A.2d 1057 (Supreme Court of New Jersey, 2009)
Estate of Hanges v. Metropolitan Property & Casualty Insurance
997 A.2d 954 (Supreme Court of New Jersey, 2010)
Rivers v. LSC PARTNERSHIP
874 A.2d 597 (New Jersey Superior Court App Division, 2005)
State v. Wilson
637 A.2d 1237 (Supreme Court of New Jersey, 1994)
Flagg v. Essex County Prosecutor
796 A.2d 182 (Supreme Court of New Jersey, 2002)
State v. Smith
121 A.2d 729 (Supreme Court of New Jersey, 1956)
McKenney v. Jersey City Medical Center
771 A.2d 1153 (Supreme Court of New Jersey, 2001)
Crespo v. McCartin
582 A.2d 1011 (New Jersey Superior Court App Division, 1990)
Payton v. New Jersey Turnpike Authority
691 A.2d 321 (Supreme Court of New Jersey, 1997)
Nieder v. Royal Indemnity Insurance
300 A.2d 142 (Supreme Court of New Jersey, 2004)
Carbone v. Warburton
94 A.2d 680 (Supreme Court of New Jersey, 1953)
Hisenaj v. Kuehner
942 A.2d 769 (Supreme Court of New Jersey, 2008)
Pomerantz Paper Corp. v. New Community Corp.
25 A.3d 221 (Supreme Court of New Jersey, 2011)
Garafola v. Rosecliff Realty Co., Inc.
93 A.2d 608 (New Jersey Superior Court App Division, 1952)
Fernandez v. BARUCH
244 A.2d 109 (Supreme Court of New Jersey, 1968)