LEYKA ROSARIO VS. NJ AUTO GROUP, LLC (DC-011718-15, UNION COUNTY AND STATEWIDE)

CourtNew Jersey Superior Court Appellate Division
DecidedJanuary 24, 2019
DocketA-0565-16T3
StatusUnpublished

This text of LEYKA ROSARIO VS. NJ AUTO GROUP, LLC (DC-011718-15, UNION COUNTY AND STATEWIDE) (LEYKA ROSARIO VS. NJ AUTO GROUP, LLC (DC-011718-15, UNION COUNTY AND STATEWIDE)) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LEYKA ROSARIO VS. NJ AUTO GROUP, LLC (DC-011718-15, UNION COUNTY AND STATEWIDE), (N.J. Ct. App. 2019).

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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court."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-0565-16T3

LEYKA ROSARIO and CEZAR ROSARIO,

Plaintiffs-Respondents,

v.

NJ AUTO GROUP, LLC and MANUCHAR SURGULADZE,

Defendants-Appellants. _______________________________

Argued September 13, 2018 - Decided January 24, 2019

Before Judges Fuentes and Accurso.

On appeal from Superior Court of New Jersey, Law Division, Union County, Docket No. DC-011718-15.

Joseph A. Bahgat (The Privacy Firm, PC) argued the cause for appellants.

David C. Ricci argued the cause for respondents.

PER CURIAM Defendants NJ Auto Group, LLC and Manuchar Surguladze appeal from

two orders, entered on reconsideration after trial, vacating a judgment for

plaintiffs Leyka and Cezar Rosario for $4970 and entering a new trebled

judgment of $14,910 and awarding $10,000 in attorney's fees under the

Consumer Fraud Act, N.J.S.A. 56:8-1 to -195. Because plaintiffs failed to

provide defendants with the materials supporting their motion for

reconsideration, and the court's findings and conclusions on reconsideration are

not supported by the evidence in the record, we reverse both orders and reinstate

the judgment for $4970.

This dispute arose out of plaintiffs' purchase of a used car from defendants

in September 2015. The case was tried over the course of one day in the Special

Civil Part. Plaintiffs testified they went to defendants' used car dealership on

September 2 to look at a 2006 Ford Escape advertised on Car Guru. Plaintiffs

acknowledged Surguladze told them the "check engine" light flashed

intermittently and that he thought the problem attributable to a loose hose that

was leaking air. Based on its low mileage and Surguladze's representation it had

a "clean title," plaintiffs purchased the car for $6180 plus tax of $432.60, for a

total of $6612.60.

A-0565-16T3 2 Plaintiffs paid half the purchase price by debit card and put the balance on

a credit card. They also purchased a "6 months/7,500 miles" service contract

because they "really wanted to get a warranty." Plaintiffs drove the car off the

lot but did not sign documents transferring the title. They were to return for the

title and tags after their funds were deposited into defendants' account.

Plaintiffs testified they immediately experienced problems with the car.

Cezar Rosario claimed the car began to smoke on the drive home. He claimed

he pulled over and called Surguladze, who told him the car had been sitting for

some time and might be "that it's oil burning, or something of that nature."

Rosario had the car looked over by a mechanic friend who "said pretty much the

same thing." Plaintiffs took the car to STS for an oil change, and was told there

was "a hole in the manifold . . . [o]r something of that nature."

Leyka Rosario claimed the car "shut down" while she was driving within

a week of purchasing it. She called Surguladze on September 7, reporting the

problem and demanding he take the car back. Surguladze told her the car was a

hybrid vehicle designed to shut off when it came to a stop. As for taking the car

back, she testified Surguladze told her "he had to think about it" but was not

inclined to take it back. Following that conversation, she concluded Surguladze

"was not willing to cooperate with us" and did not want the car back.

A-0565-16T3 3 Rosario also testified that once, after parking the car at her mother-in-

law's, she "wasn't able to turn it on." Their mechanic friend recommended a

locksmith, who came and unlocked the car, and told her "there was something

going on with some fuse in the front." Plaintiffs took the car to a Ford dealership

on September 11, which advised the car was subject to a recall for "some type

of electrical problem that . . . makes the car have issues." Plaintiffs also asked

the dealership to diagnose the manifold problem and were advised there was a

problem with a leaking hose and "a bad PCV [(positive crankcase ventilation)]

valve." The dealership replaced the car's coolant pump and repaired the water

pump without charge as a result of the recall.

On or about September 12, plaintiffs received a letter from the entity

issuing the service contract advising the warranty did not cover hybrid cars. On

September 23, Cezar Rosario returned to the dealership to sign documents

transferring the title, and defendants provided him a check for a full refund of

the amount plaintiffs paid for the service contract. He testified he did not meet

with Surguladze but with a "Spanish gentleman, the same guy who showed us

the car."1 He claimed the man did not mention anything about the title but

1 Surguladze testified he was the only person who dealt with plaintiffs as he was the sole employee of the dealership. A-0565-16T3 4 simply opened a folder with "the back of the title open for me, ready for me to

sign." Rosario claimed he signed it, the man "handed me over the check and I

walked out."

On September 28, Leyka Rosario, now suspicious about the condition of

the car, obtained a Carfax report and learned, for the first time, the car had an

accident history and its title was branded salvage. The report stated that six days

before, on September 22, 2015, "[d]ealer took title of this vehicle while it was

in inventory" and a "SALVAGE TITLE/CERTIFICATE ISSUED." Plaintiffs

thereafter, unsuccessfully, disputed that part of the purchase price charged to

their credit card. They claimed the car remained at their home in inoperable

condition.

Surguladze testified he told plaintiffs the car's title was clean because it

was both true and what he knew to be true when he sold them the car. He

explained he bought the car from a dealer he dealt with regularly, who purchased

the car at auction. When he took possession of the car, he was given the original,

clean New York title, which he still possessed when he sold the car to plaintiffs

on September 2, along with a reassignment to NJ Auto Group from the purchaser

at auction. It was only when he applied to the New Jersey Division of Motor

A-0565-16T3 5 Vehicles to "flip" the title to his company twenty days after the sale that he

learned the New Jersey title would be issued as salvage.

Surguladze testified he called Cezar Rosario from the DMV office on

September 22 when he learned the title was going to be issued as salvage and

explained the problem to him. Surguladze claimed he offered to take the car

back and issue plaintiffs a refund. Rosario, however, voiced no objection to the

salvage title or to the warranty company's recent refusal to issue a service

contract on a hybrid car.

Surguladze insisted he told plaintiffs the car had been in an accident but

admitted the issue with the warranty was his mistake. He claimed he did not

regularly sell hybrids and thought the "warranty would work for this car." When

he learned it would not work, he refunded the purchase price of the warranty

contract to plaintiffs. Surguladze testified he was the person Cezar Rosario met

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LEYKA ROSARIO VS. NJ AUTO GROUP, LLC (DC-011718-15, UNION COUNTY AND STATEWIDE), Counsel Stack Legal Research, https://law.counselstack.com/opinion/leyka-rosario-vs-nj-auto-group-llc-dc-011718-15-union-county-and-njsuperctappdiv-2019.