Lois Bush and Randy Busch v. Johnson-Sewell Ford Lincoln Mercury

CourtCourt of Appeals of Texas
DecidedDecember 12, 2008
Docket03-07-00443-CV
StatusPublished

This text of Lois Bush and Randy Busch v. Johnson-Sewell Ford Lincoln Mercury (Lois Bush and Randy Busch v. Johnson-Sewell Ford Lincoln Mercury) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lois Bush and Randy Busch v. Johnson-Sewell Ford Lincoln Mercury, (Tex. Ct. App. 2008).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN




NO. 03-07-00443-CV

Lois Bush and Randy Busch, Appellants



v.



Johnson-Sewell Ford Lincoln Mercury, Appellee



FROM THE DISTRICT COURT OF BURNET COUNTY, 33RD JUDICIAL DISTRICT

NO. 32,428, HONORABLE GUILFORD L. JONES III, JUDGE PRESIDING

M E M O R A N D U M O P I N I O N



Appellants, spouses Lois Bush and Randy Busch (the "Bushes" (1)), appeal a final summary judgment that they take nothing on claims against Johnson-Sewell Ford Lincoln Mercury and awarding Johnson-Sewell attorney's fees on a counterclaim for breach of a settlement agreement. We will affirm.



BACKGROUND

On April 23, 2005, the Bushes purchased a two-wheel drive 2005 Lincoln Aviator sport utility vehicle from Johnson-Sewell in exchange for a trade-in vehicle and a note. The Bushes allege that Johnson-Sewell sales staff induced them into purchasing the Aviator by misrepresenting that it had all-wheel drive (AWD) rather than two-wheel drive. The Bushes also claim that Johnson-Sewell engaged in a bait-and-switch scheme, misrepresenting that it had in stock vehicles having AWD and other features they inquired about when, in fact, the dealership had no such vehicles on its lot. Johnson-Sewell disputes these allegations. It suggests that, at most, the Bushes may have misunderstood the nature of a "Positrac" function on the Aviator they purchased and whether vehicles the dealership indicated were "available" meant they were physically on its lot versus being available in the wholesale market.

Approximately two weeks after purchase, the Bushes allege they learned, to their "shock and consternation," that their Aviator did not have AWD. Thereafter, the parties negotiated at least five potential options for resolving the Bushes' complaint. One option they discussed was a transaction in which the Bushes would have traded in the Aviator for an Aviator having AWD and other features the Bushes desired that had been located at a Houston dealership. In this context, on May 26, 2005, the Bushes' counsel sent a DTPA (2) demand letter to Johnson-Sewell on their behalf. Among other complaints, the Bushes asserted that Johnson-Sewell "ha[d] refused to give the Bushes what they paid for," "ha[d] refused to rescind the deal and return their trade-in vehicle," and that "[t]hey even offered to accept a non-conforming vehicle, but you insisted that they pay you an additional $5,800 for the privilege of driving off in a vehicle that is not what they wanted and not what they paid for!" The Bushes further stated:



The Bushes want what they paid for. However, as one last attempt at reconciliation, the Bushes would consider [emphasis in original] taking the available vehicle if it is modified to include a premium sound system, heated and cooled seats, and adequate pin striping, subject to their right to inspect and ensure the vehicle is to their satisfaction, and if you pay their attorney's fees ($500 at this point).



If you cannot provide a vehicle acceptable to the Bushes, they demand that you rescind the sales transaction, return their trade-in vehicle (with a depreciation or rental payment if it has been damaged or driven a significant number of miles), return any cash they paid, pay or cancel their purchase note, reimburse them for any payments made on the note (both principal and interest), and pay their attorney's fees.



In a letter dated June 14, 2005, Johnson-Sewell's managing partner, Robert H. Sewell, wrote back to the Bushes' counsel on the dealership's behalf:



Marilyn Schaefer with our office called and spoke with you on June 7, 2005 as to our offer to settle the notice of intent to file suit against us you communicated on behalf of Randy and Lois Bush.



Per her conversation with you we agreed to meet the terms spelled out on Page 4, Paragraph 4 of the above-referenced letter by:

  • •Rescinding the transaction
  • •Paying the $500.00 attorney fee
  • •Making their payments to Ford Credit while we had the vehicle (2 payments)
  • •The vehicle has not been driven a significant number of miles so there would be no rental due
  • •The vehicle has not depreciated in that we spent our monies on the vehicle to make it ready for sale. In fact the vehicle is in better shape than when we received it. (This vehicle has not depreciated any more than the Aviator you have in your possession)


"Page 4, Paragraph 4," as referenced by Mr. Sewell, corresponds to the location of the second of the two above-quoted paragraphs from the Bushes' DTPA demand letter--the portion referring to rescission. Sewell continued that "[y]ou indicated to Mrs. Schaefer you would speak to Mr. and Mrs. Bush and get back with her," but that Johnson-Sewell had not heard from him even after leaving several messages. Sewell concluded, "We are ready, willing and able to meet the terms of their offer to settle and we are waiting to finalize the transaction."

The Bushes did not consummate this transaction. Instead, approximately three months after purchasing the Aviator from Johnson-Sewell, the Bushes traveled to Houston themselves and traded in the vehicle for the Aviator that had been located there. Subsequently, in January 2006, the Bushes filed suit against Johnson-Sewell. They alleged causes of action for DTPA violations, common-law fraud, negligent misrepresentation, and breach of express or implied warranty.

Johnson-Sewell answered with a general denial. Also, relying on the parties' prior correspondence quoted above, the dealership pled that the parties had formed a valid, enforceable agreement to settle the Bushes' claims in exchange for Johnson-Sewell's rescinding the sale transaction and performing the other terms in "Page 4, Paragraph 4"of the Bushes' DTPA demand letter. On this basis, Johnson-Sewell asserted the affirmative defense of estoppel by contract and a counterclaim for breach of contract.

On March 28, 2007, the Bushes filed a traditional motion for partial summary judgment "with respect to liability" on each of its causes of action against Johnson-Sewell. (3) On April 16, Johnson-Sewell filed a response to the Bushes' motion and objections to their summary-judgment evidence. On April 18, Johnson-Sewell filed a traditional motion for final summary judgment on its affirmative defense of estoppel by contract and its breach-of-contract counterclaim. Johnson-Sewell sought judgment that the Bushes take nothing on each of their claims, as well as breach-of-contract damages in the form of attorney's fees it incurred in having to defend the lawsuit despite the alleged settlement, as well as attorney's fees incurred in prosecuting the counterclaim itself. Johnson-Sewell attached its counsel's affidavit to prove up the amount of these fees. On the same day, Johnson-Sewell also filed a no-evidence summary-judgment motion challenging elements of each of the Bushes' causes of action. On April 24, the Bushes filed a response and counter-motion addressed solely to the contractual theories asserted in Johnson-Sewell's traditional motion. The Bushes did not file a response explicitly directed to the dealership's no-evidence motion.

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Lois Bush and Randy Busch v. Johnson-Sewell Ford Lincoln Mercury, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lois-bush-and-randy-busch-v-johnson-sewell-ford-li-texapp-2008.