Maloof Racing Engines v. Champion CA2/2

CourtCalifornia Court of Appeal
DecidedMay 9, 2013
DocketB237039
StatusUnpublished

This text of Maloof Racing Engines v. Champion CA2/2 (Maloof Racing Engines v. Champion CA2/2) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maloof Racing Engines v. Champion CA2/2, (Cal. Ct. App. 2013).

Opinion

Filed 5/9/13 Maloof Racing Engines v. Champion CA2/2

NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA SECOND APPELLATE DISTRICT DIVISION TWO

MALOOF RACING ENGINES, INC. B237039

Plaintiff and Respondent, (Los Angeles County Super. Ct. No. BC417790) v.

CHARLES CHAMPION,

Defendant and Appellant.

APPEAL from a judgment of the Superior Court of Los Angeles County. Debra K. Weintraub, Judge. Affirmed.

Corey & Corey and Edward E. Corey for Defendant and Appellant.

No appearance for Plaintiff and Respondent. Charles Champion (appellant) appeals from a judgment entered after a bench trial in favor of Maloof Racing Engines, Inc. (respondent). The matter arises out of a transaction between appellant and respondent for a comprehensive restoration of appellant’s 1965 Ford Mustang automobile. The trial court found in favor of respondent on respondent’s claims against appellant for breach of written contract, breach of the implied covenant of good faith and fair dealing, common count for goods sold and delivered, common count for open book account, unjust enrichment, and quantum meruit. We affirm. CONTENTIONS Appellant contends: (1) the judgment in favor of respondent was not proper because respondent was not licensed with the Bureau of Automotive Repair (BAR) as required by Business & Professions Code section 9884.16;1 (2) the trial court erred in determining that respondent provided appellant with a valid written estimate pursuant to section 9884.9; (3) the trial court erred in determining that the additional authorizations complied with the requirements of section 9884.9, subdivision (a); (4) the trial court incorrectly calculated the sums that appellant paid for the restoration; and (5) the trial court erred in awarding respondent judgment for open book account when that cause of action had previously been dismissed. FACUTAL BACKGROUND Respondent is in the business of repairing, restoring, and building custom cars. On May 18, 2007, appellant brought his Mustang to respondent’s facility to have it restored. The Mustang was in poor condition and required a complete restoration. After a brief inspection, Sam Maloof, the owner and operator of respondent, provided appellant with a work authorization form, with an estimated price of “$65,000+” for the estimated cost of the restoration. The work authorization form did not detail any parts or labor to be performed. Respondent retained the Mustang at its facility for a more detailed inspection and informed appellant that the estimate could be higher

1 All further statutory references are to the Business & Professions Code.

2 than the $65,000 listed on the work authorization form. After being so notified, appellant signed the work authorization form and left the Mustang with respondent for further inspection. Appellant returned to respondent’s facility on July 10, 2007, after the Mustang had been thoroughly inspected. On that date respondent provided appellant with a three-page document (the “initial estimate”) which incorporated the work authorization form. The initial estimate listed individual parts needed to restore the Mustang and a detailed description of the labor required for restoring the Mustang. The total cost for parts and labor listed on the initial estimate was $69,624.89. Appellant authorized the work on the initial estimate and provided a check for $30,000 as a deposit. After receipt of the initial $30,000, respondent began work on the Mustang. Appellant later provided an additional $20,000 deposit. During the restoration, appellant visited respondent’s facility many times to inspect the vehicle and participate in the restoration. Appellant also made requests for modifications to the restoration, which delayed completion of the restoration. Appellant did not authorize any specific additional labor on the Mustang other than that listed on the initial estimate. No written authorization was obtained from appellant for any additional labor that respondent performed. Maloof brought the Mustang to appellant’s home on March 15, 2009. Although the restoration was nearly complete and a final invoice had been prepared, Maloof did not bring the final invoice to appellant’s home. Maloof left the Mustang with appellant, so he could drive it and “get all the quirks out.” Appellant was not fully satisfied with the Mustang and returned it to respondent’s facility on March 25, 2009, requesting modifications. On April 1, 2009, appellant returned to respondent’s facility, inspected the Mustang, and was presented with a final invoice of $106,659.69. Appellant had previously paid $61,106.36 towards the restoration. He was surprised by the final cost and declined to sign the final invoice. Appellant was informed by Scot Kimble, an individual who assisted with the restoration, that he could not take possession of the

3 Mustang until the balance on the final invoice was paid. Appellant left without the Mustang. However, subsequently, with Maloof’s permission, appellant took possession of the Mustang on the evening of April 1, 2009. Appellant informed Maloof that he would pay the additional balance owed. However, he never signed the final invoice. Appellant subsequently informed Maloof that he would not be paying the balance on the final invoice. Appellant testified that when he returned the Mustang to respondent’s facility on March 25, 2009, he reported numerous, significant problems with the vehicle. However, the court found Maloof and Kimble to be credible in their testimony that the Mustang was mechanically, cosmetically, and structurally sound when appellant took possession of it in April 2009. Appellant filed a complaint with the BAR. The complaint was investigated by Freeman Baldwin of the BAR. Baldwin inspected the work authorization form initially provided to appellant on May 18, 2007, and the initial estimate presented to appellant on July 10, 2007. Baldwin concluded that the work authorization form failed to comply with the Automotive Repair Act (§§ 9880 et seq.) because it failed to specify any specific job and failed to specify any parts for work on the Mustang. Although Baldwin testified that respondent failed to comply with the Act in a variety of ways, the inadequacy of the work authorization form was the only violation reported in Baldwin’s final BAR report. On the work authorization form, appellant checked the box marked “yes” in response to a question of whether he wanted the used Mustang parts returned to him. Appellant testified that he requested the parts and they were never returned to him. However, the trial court found Kimble credible when he testified that when appellant was offered the used parts, he indicated they should be disposed of or given away. There was conflicting testimony about the payments appellant made with respect to the restoration of the Mustang. It was undisputed that appellant paid a $30,000 down payment when he authorized the initial estimate, and subsequently paid a $20,000 deposit. However, the parties disagreed about an additional $10,106.36 paid by appellant. The trial court found that any payments made by appellant in excess of the

4 initial $50,000 in deposits did not relate to parts or labor on the initial estimate. Instead, the court found that the $10,106.36 related to additional parts authorized by appellant but not included in the initial estimate. In addition to the restoration of the Mustang, appellant requested that respondent perform work on his F-450 pick-up truck.

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Maloof Racing Engines v. Champion CA2/2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maloof-racing-engines-v-champion-ca22-calctapp-2013.