Maring-Crawford Motor Co. v. Smith

233 So. 2d 484, 285 Ala. 477, 1970 Ala. LEXIS 1057
CourtSupreme Court of Alabama
DecidedJanuary 22, 1970
Docket6 Div. 574
StatusPublished
Cited by62 cases

This text of 233 So. 2d 484 (Maring-Crawford Motor Co. v. Smith) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maring-Crawford Motor Co. v. Smith, 233 So. 2d 484, 285 Ala. 477, 1970 Ala. LEXIS 1057 (Ala. 1970).

Opinions

HARWOOD, Justice.

The complaint in this action was in two counts.

Count I alleged that the plaintiff contracted with defendant to purchase, and did purchase, an automobile from the defendant for an agreed price of $2,780; that the servants, agents, or employees of the defendant, acting within the line and scope of their authority represented to the plaintiff that the automobile was a new one and had never been sold and delivered to any previous owner; that such representations were false in that the defendant had sold and delivered the automobile to a prior owner, which prior owner had used the automobile and driven it several hundred miles.

The count further alleged that the representations made to the plaintiff were of material facts and were made with knowledge by the defendant that the representations were false and were made to deceive the plaintiff; that the plaintiff relied on the ■ truth of such representations in purchasing the automobile, and as a proximate result of such representations and reliance thereon, she was damaged in that said automobile was substantially less valuable than it would have been if it had been as represented by the defendant.

The plaintiff claimed damages in the amount of $50,000, and also claimed punitive damages.

Count II is essentially in the same language as Count I, except that it alleges as an additional alternative that the representations made by the defendant were made recklessly without knowledge, and with intent to deceive the plaintiff; that the plaintiff was deceived and relied on such representations in purchasing the automobile and as a proximate consequence thereof she was damaged, etc. The plaintiff also claimed punitive damages in this count.

In brief counsel for appellant asserts that Count I was based on Section 110, Title 7, Code of Alabama 1940, and that Count II was based on Section 108, Title 7, Code of Alabama 1940. The court so instructed the jury in the proceedings below.

Section 108 provides that:
“Misrepresentations of material fact, made wilfully to deceive, or recklessly without knowledge, and acted on by the [481]*481opposite party, or if made by mistake and innocently, and acted on by the opposite party, constitute legal fraud.”

The alternative appearing in this section “made by mistake and innocently, and acted on by the opposite party” is an effort to enact a principle of constructive fraud. Hornaday v. First National Bank, 259 Ala. 26, 65 So.2d 678.

Under the above alternative in Section 108, an innocent misrepresentation, if the other elements are proven, is as much a legal fraud as an intended misrepresentation. Chemical National Bank of New York v. Jackson, 214 Ala. 458, 108 So. 53. Thus, under Section 108, the good faith of a party in making what proves to be material misrepresentation is immaterial if the other party acted on such misrepresentation to his injury. Standard Oil Co. v. Johnson, 276 Ala. 578, 165 So.2d 361; First National Bank of Auburn v. Dowdell, 275 Ala. 622, 157 So.2d 221.

However, it appears under our decisions that the innocence or willfulness of a party in making a misrepresentation goes to the matter of damages to be awarded, for in an action of deceit punitive damages may not be awarded unless the fraud is gross, oppressive, and committed with an intent to injure. Boriss v. Edwards, 262 Ala. 172, 77 So.2d 909. Whether such representation is gross, oppressive, or committed with an intent to deceive, is dependent upon the facts of a particular case.

The defendant filed a demurrer to the complaint which was overruled. Thereafter the pleading was in short by consent, etc.

The evidence tended to show that on Monday, 14 June 1965, Julia Emma Smith, the appellee herein, a school teacher for some 20 years in the Birmingham school system, went to the Maring-Crawford Motor Company, Inc., a new car showroom. Maring-Crawford is a Ford dealer in Birmingham. Ed Tray wick, a salesman for the defendant company, asked her if she were interested in buying a new car and she replied she was. After looking at the automobiles in the showroom, she became particularly interested in a two door hardtop Mustang. The hood was raised and the engine observed, as was the trunk compartment in the rear. No license tag was observed by the appellee on the automobile. Tray wick took her for a demonstration ride in the automobile, and the appellee saw that the speedometer showed a mileage of six miles.

No trade was closed at this time as appellee stated she wanted to visit other automobile agencies. However, Tray wick made out and gave to her a “Retail Buyers Order” which described the automobile by motor number, model, type, accessories, etc. The purchase price was shown to be $2,-700, plus $58.00 tax. The space to indicate “Used vehicle license” was left blank on the “Retail Buyers Order” given the appellee. This document was dated “6-14-65.”

The defendant-appellant offered into evidence a second “Retail Buyers Order” dated “6-17-65” which was kept in appellant’s files. This retail order is substantially the same as the order given the appellee except that a license tag number, 1 A 92900, is shown in the space to indicate a used vehicle.

On Thursday, 17 June 1965, the appellee decided to buy the Mustang from the appellant. She took the Retail Buyers Order given to her to the office of her teachers credit union. There an application for an automobile loan was filled out in longhand by H. L. Waller, an official of the credit union, and signed by the appellee. Waller testified that the loan was to pay for a new automobile. The application was received in evidence and shows it was for the purpose of buying a new 1965 two door Mustang. Waller testified that in his best judgment he called Maring-Crawford and got information concerning the automobile. In this connection the appellee testified that she saw Waller fill in the data con[482]*482cerning the automobile during a phone call he made to Maring-Crawford. A loan in the amount of $2,300 was made pursuant to the application, the interest being fixed at a rate charged for loans on new automobiles. A check payable to appellee and to Maring-Crawford was issued. The credit union required an insurance policy to be taken out by the appellee covering the Mustang, and the insurance policy described the automobile as being a new one.

The appellee, after securing the check from the teachers union returned to Maring-Crawford and paid the full purchase price of the automobile with the check and apparently with an individual payment by herself of the balance due. She was given a receipt for the payment of $2,758, and the receipt bears the notation “New Car.” The automobile was delivered to her that afternoon.

In a few days she received from Maring-Crawford a bill of sale covering the subject automobile. It indicated that the automobile was a used automobile. The appellee called the salesman Tray wick about the word “used” on the bill of sale. He told her that he had already bought a tag for the car and for that reason “used” appeared on the bill of sale. Traywick did not tell her that the automobile had ever been sold and delivered previously to another person.

About two weeks after the delivery of the automobile, she was handed a 1965 Registered Owners Manual which she did not examine. On the back of the front binding of the manual under the legend “Ford Registered Owner Plan” Otis E. Garrison is shown as the owner of the automobile.

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Bluebook (online)
233 So. 2d 484, 285 Ala. 477, 1970 Ala. LEXIS 1057, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maring-crawford-motor-co-v-smith-ala-1970.