Martin Chevrolet Sales, Inc. v. Dover

501 N.E.2d 1122, 1986 Ind. App. LEXIS 3329
CourtIndiana Court of Appeals
DecidedDecember 30, 1986
Docket4-485A91
StatusPublished
Cited by15 cases

This text of 501 N.E.2d 1122 (Martin Chevrolet Sales, Inc. v. Dover) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Martin Chevrolet Sales, Inc. v. Dover, 501 N.E.2d 1122, 1986 Ind. App. LEXIS 3329 (Ind. Ct. App. 1986).

Opinion

MILLER, Judge.

J. Fred Dover, purchaser of a 1980 Monte Carlo new demonstrator automobile, initially sued Martin Chevrolet Sales, Inc., the dealership-seller, and General Motors Corporation, the manufacturer, for fraud and breach of warranties after discovering the Monte Carlo had been damaged and repaired three times before its purchase. GMC settled before the trial for $200.00. The jury returned a general verdict for Dover and against Martin, awarding $2500.00 in compensatory damages and $500.00 in punitive damages. The trial court entered judgment and later granted Dover's request for attorney fees of $9,278.50 pursuant to IND.CODE 26-1-2-721 (attorney fees for fraud).

On appeal, Martin Chevrolet challenges the sufficiency of the evidence; the jury instructions and amount of punitive damages; Dover's witness' testimony on a single similar occurrence; the award of attorney fees; and, the trial court's refusal to reduce Dover's judgment by the amount received in settlement from former defendant GMC.

We affirm the judgment except for the award of punitive damages.

FACTS

Martin Chevrolet Sales, Inc., a car dealership with offices in Bremen, Indiana, received a 1980 Monte Carlo on October 10, 1979. A stock index card and new car packet were prepared, 1 and the Monte Carlo was assigned stock number 5714. The list price was $7,890.69. On October 16, 1979, the Monte Carlo became a demonstrator and was given to a Martin salesman, Johansen, 2 who drove and showed the car to customers.

The Monte Carlo sustained damage and was repaired three times between February and August 1980. First, Johansen had an accident and on February 11, 1980 Cecil Wilson, one of Martin's body shop employees, prepared an estimate for work on the car along the driver's side including the left quarter panel. The work was completed on February 15, 1980 and an invoice was prepared and sent to Martin's Used Car Manager, who charged Johansen $208.16 for the cost of repairs.

On February 18, 1980, Cecil Wilson prepared a second invoice for repairs of $42.90 to the Monte Carlo which was submitted to and paid by GMC under warranty.

*1124 On July 24, 1980, Cecil Wilson prepared a third invoice for repairs of $48.40 for the front fender and "rocker" of the Monte Carlo. This invoice was also submitted to and paid by GMC under warranty. Total repairs from all three invoices were $294.46 according to Martin's records.

Martin's standard operating procedure was to place the estimate and second copy of the invoice in the car packet. The original invoice was placed in a chronological cross-file. The third copy was retained in the warranty file if submitted to GMC, or thrown away. The final hard copy was placed in the employee's file for payroll purposes.

Martin had a sale on October 1, 1980 and Plaintiff Dover, a 21 year old who worked as a high speed cutter at a local box manufacturing plant, stopped in to look at the cars. A Martin salesman, Rick Anderson, showed Dover several cars including a new 1981 Monte Carlo, but Dover could not afford the 1981 model. Anderson then suggested he had a new demonstrator for sale, the 1980 Monte Carlo. Anderson described the 1980 Monte Carlo as a "show car" used by Martin employees to show particular car models to prospective buyers. The sticker price on the window was $7,890.69, several thousand dollars less than the 1981 model. Anderson told Dover the car had been driven 6,800 miles but that the mileage "didn't mean anything" and a new car warranty of 12,000 miles would be added to the 6,800 miles already on the 1980 Monte Carlo. Anderson also told Dover that the trade-in available on Dover's 1978 Chevette was no different on the 1980 than the 1981 model.

Fred Dover signed a purchase order for the 1980 Monte Carlo that evening. The form included boxes indicating the car as "new", "used", or "demo". Only the box marked "new" was checked on the copy of the purchase order Dover was given on October 1, 1980. Dover took the car home that night to show it to his wife. He observed no damage to the car. It looked to him like a new car.

The next day, October 1, 1980, he returned to Martin and agreed to buy the car. After credit approval, the sale was concluded in a series of papers including the purchase order, now with checks in both the "new" and "demo" boxes, a new vehicle pre-delivery checklist; and the security agreement. While preparing these papers, Anderson told Dover, "It is a new car'". While Anderson had negotiated the sale, Joe Martin, President of Martin Chevrolet Sales, Inc., approved the sale and signed the security agreement which described the car as "1980 New Chevrolet Monte Carlo Landau 3

At no time during the process by which Dover purchased the car did anyone tell him that the car had been repaired three times or that one of the repairs resulted from an accident involving one of the dealership's salespersons. Anderson stated at trial that, as of the sale in October 1980, he did not know Johansen had involved the car in an accident. Joe Martin testified that had he known of the damage, he would not have told Dover and, further, that he often sells demonstrator vehicles that have been damaged as new with no adjustment to the price, Anderson testified he did not inform buyers of damage and repaired new cars that the cars had been in wrecks because he had been "told by his supervisors not to give the consumer that kind of information".

Two months later, Dover noticed a scratch above the driver's door handle. He took the car to Max Virgil's body shop for repair. Virgil discovered the car had been wrecked from the driver's door to the left rear tail light. The top half of the door had been dented and fiberglass filler used *1125 on three-quarters of the door. The left quarter panel had a dozen holes drilled into it in order to insert pull rods which were used as part of the process of pulling the dents out. The left quarter panel was extensively damaged. The door paint varied where the repairs had been done, blending the car's original light beige to a darker brown. A sculptured contour on the left quarter panel stopped after one inch, whereas the contour on the right quarter panel extended nine inches. Virgil concluded the contour on the left side was missing because the entire area had been smashed.

Virgil estimated the retail cost to properly repair the damage he observed would be between $600 and $700. Martin's invoices showed an in-house total repair cost of $294.46. Apparently the in-house repair cost of the specific damage at issue here was $208.16.

Virgil explained the damage to Dover, who immediately contacted Anderson. Anderson denied knowing anything about a wreck. Dover went to Martin Chevrolet the next morning and met with Anderson and Joe Martin. Martin knew of the two warranty invoices totalling $86.30 in repairs but did not tell Dover and instead promised to check the dealership records after he returned from a two week vacation. Dover returned five or six times through January and February 1981. Martin told Dover he was unable to find any record of an accident to the 1980 Monte Carlo while in the dealership's possession.

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501 N.E.2d 1122, 1986 Ind. App. LEXIS 3329, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martin-chevrolet-sales-inc-v-dover-indctapp-1986.