Manon v. Tejas Toyota, Inc.

162 S.W.3d 743, 2005 Tex. App. LEXIS 2663, 2005 WL 773881
CourtCourt of Appeals of Texas
DecidedApril 7, 2005
Docket14-03-01319-CV
StatusPublished
Cited by56 cases

This text of 162 S.W.3d 743 (Manon v. Tejas Toyota, Inc.) 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
Manon v. Tejas Toyota, Inc., 162 S.W.3d 743, 2005 Tex. App. LEXIS 2663, 2005 WL 773881 (Tex. Ct. App. 2005).

Opinion

OPINION

J. HARVEY HUDSON, Justice.

Appellants/Cross-Appellees, the Ma-nons, argue in two points of error that the trial court erred by: (1) not awarding the full amount of “cover” damages for breach of contract; and (2) refusing to award attorney fees. Appellee/Cross-Appellant, Tejas Toyota, Inc., (“Tejas”) argues: (1) “cover” damages are not the appropriate measure of damages in this simple breach-of-contract case; (2) the evidence is legally and factually insufficient to support the submission of and the jury’s answers to questions presented in the jury charge; and (3) the trial court submitted an erroneous charge which led to the award of improper damages.

Factual and Procedural Background

The record reflects that in September 2000, the Manons sought to purchase a new Toyota Sienna mini-van from Tejas. The Manons clearly specified their desire to purchase a van with a certain color exterior, wood-grained interior, and a trailer hitch. Unable to procure a 2000-model in the desired color, Tejas offered to sell the Manons a comparable 2001-model Sienna at the same price as the 2000 version. The Manons agreed and Tejas subsequently delivered a 2001 Sienna. The van, however, did not have the wood-grained interior or trailer hitch. At Tejas’ insistence, the Manons accepted the van as delivered, but did so only on condition that Tejas install the desired features. Tejas consented and assured the Manons that it had ordered the necessary parts and would install them as soon as they were delivered to the dealership.

As promised, Tejas subsequently placed a trailer hitch on the van. However, shortly after being mounted on the van, the hitch had to be removed because it began causing an excessive rattling noise. Meanwhile, approximately in March of 2001, Tejas informed the Manons that Toyota had discontinued making the wood-grained interior for the 2001-model Sienna van. As such, Tejas explained that it would be unable to install the wood-grained trim as promised. As a concession, Tejas offered to refund the approximate value of the wood trim and trailer hitch and also agreed to discount $1,000 off a new, substitute vehicle. The Manons refused to accept these terms and, instead, traded in the 2001 Sienna van to another dealership and purchased a 2001 Toyota Sequoia Sport Utility Vehicle.

After phrchasing the SUV, the Manons sued Tejas for breach of contract, fraud, negligent misrepresentation, and alleged violations of the Texas Deceptive Trade Practices Act. The Manons requested as damages either the original purchase price of the Sienna van or the difference between the cost of the SUV and the amount they received for the trade-in of the van. They also sought to recover attorney fees. The trial court granted summary judgment for the Manons on their breach-of-contract theory but ordered the parties to proceed to trial on the remaining issues— including damages and attorney fees. However, at trial, the Manons failed to introduce proof of the reasonableness of their attorney fees. Accordingly, the trial court entered an instructed verdict in Te-jas’ favor on that issue. Subsequently, the jury found Tejas hable and awarded the *747 Manons $8,422 plus interest for actual damages 1 and $5,000 in exemplary damages.

Breach-of-Contract Damages

In the Manons’ first point of error, they argue the trial court erred by not awarding the full amount of contract damages to which they are entitled. Specifically, the Manons contend they should have received “cover” damages equal to the difference between the cost of the Sequoia SUV they subsequently purchased and the price of the Sienna van they originally purchased, ie., $10,199.89. 2 Furthermore, they claim they were entitled to incidental and consequential damage of $7,300.00. 3 Thus, the Manons’ total request for breach-of-contract damages equals $17,499.89. In support of this request, the Manons rely on Texas Business & Commerce Code sections 2.608, 2.711, and 2.712.

Under Texas Business & Commerce Code section 2.608, a buyer who accepts a good is entitled to revoke acceptance if the buyer proves a non-conformity exists that substantially impairs the value of the good. Tex. Bus. & Com.Code Ann. § 2.608 (Vernon 1994). If the buyer justifiably revokes, he is entitled to “cover,” ie., purchase a reasonable substitute good and seek damages for the difference between the cost of the substitute good and the contract price of the original good. Id. §§ 2.711-.712. In addition, the buyer may recover any incidental or consequential damages he suffered. Id. §§ 2.712, 2.715.

However, to be entitled to “cover” damages the plaintiff must plead and prove that the good was non-conforming in such a way that its value was substantially impaired. See id. § 2.608; Freeman Oldsmobile Mazda Co. v. Pinson, 580 S.W.2d 112, 114 (Tex.Civ.App.-Eastland 1979, writ ref'd n.r.e.); Bill McDavid Oldsmobile, Inc. v. Mulcahy, 583 S.W.2d 160, 164 (Tex.Civ.App.-Houston [1st Dist.] 1976, no writ). In addition, the plaintiff must prove that he purchased the substitute good in “good faith” as a reasonable substitute. See Tex. Bus. & Com.Code Ann. § 2.712; Mueller v. McGill, 870 S.W.2d 673, 675-76 (Tex.App.Houston [1st Dist.] 1994, writ denied); Kiser v. Lemco Indus., Inc., 536 S.W.2d 585, 589-90 (Tex.Civ.App.-Amarillo 1976, no writ).

The Manons claim they were entitled to revoke acceptance of the Sienna because its non-conformities substantially impaired the value of the van to them. 4 They further contend that the Sequoia SUV was a reasonable substitute for the Sienna van and point to deposition testimony from one of Toyota’s own expert witnesses to support this contention. 5 In light of this evidence, the Manons argue they established the required elements under Business & Commere Code sections 2.608, 2.711, and *748 2.712 and suggest they proved their right to receive “cover” damages as a matter of law.

In response, Tejas argues in its first point of error and in reply to the Manons’ first point, that the Manons were not entitled to revoke acceptance and that “cover” damages are inappropriate. Tejas does not contest that it breached the sales contract or that it is hable for this breach. Instead, Tejas contends the Manons failed to sustain their burden on two important fact issues, namely, that: (1) the Sienna was substantially impaired due to the lack of wood-grain trim; and (2) the Sequoia SUV was a reasonable substitute for the Sienna van. As such, Tejas argues that sections 2.608, 2.711, and 2.712 of the Business & Commerce Code are inapplicable. Instead, Tejas contends that section 2.714 provides the proper measure of contract damages.

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Cite This Page — Counsel Stack

Bluebook (online)
162 S.W.3d 743, 2005 Tex. App. LEXIS 2663, 2005 WL 773881, Counsel Stack Legal Research, https://law.counselstack.com/opinion/manon-v-tejas-toyota-inc-texapp-2005.