McFadden v. Import One, Inc.

56 So. 3d 1212, 10 La.App. 3 Cir. 952, 2011 La. App. LEXIS 165, 2011 WL 408872
CourtLouisiana Court of Appeal
DecidedFebruary 9, 2011
DocketNo. 10-952
StatusPublished
Cited by22 cases

This text of 56 So. 3d 1212 (McFadden v. Import One, Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McFadden v. Import One, Inc., 56 So. 3d 1212, 10 La.App. 3 Cir. 952, 2011 La. App. LEXIS 165, 2011 WL 408872 (La. Ct. App. 2011).

Opinion

SAUNDERS, Judge.

|! This is a case where a consumer wishing to purchase a vehicle and a business that sells vehicles negotiated a sales agreement that was dependant upon the business obtaining financing for the consumer in order to perfect the sale. As part of the purported sale, the business took the consumer’s vehicle as a trade-in.

The business was unable to obtain financing according to the agreed upon terms. However, the business was able to obtain financing for the consumer at a higher interest rate with a longer life of the loan. The business did this in order to keep the monthly payments close to the original agreed upon financing terms. The consumer refused to enter into second financing agreement and requested that she return the vehicle to the business and the business return her vehicle to her. The business refused and sent a letter to the consumer threatening to report the business’ vehicle in the consumer’s possession as stolen if the consumer did not agree to enter into a sale.

The business reported the vehicle as stolen, as it had threatened. Law enforcement seized the vehicle at the consumer’s workplace in front of the consumer’s coworkers and clients. After the business obtained possession of the vehicle, it refused to return the consumer’s vehicle to her.

Thereafter, the consumer filed suit against the business alleging, inter alia, that the business had engaged in unfair trade practices under La.R.S. 51:1401, et seq. and that the business committed conversion of her vehicle. The consumer filed suit and also filed a complaint with the Louisiana Attorney General’s office against the business for unfair trade practices under La.R.S. 51:1401, et seq. After a trial, the trial court awarded the consumer damages for conversion, loss of use of the vehicle, insurance payments made on the vehicle, humiliation and embarrassment, and ^attorney’s fees under La.R.S. 51:1409(A).

Both parties appealed. We affirm, as amended, and award the consumer attorney’s fees for work done on appeal.

FACTS AND PROCEDURAL HISTORY:

In January 2008, Millie S. McFadden (McFadden) went to the Lafayette, Louisiana location of Import One, Inc. (Import One) to purchase a vehicle. She selected a 2005 Infiniti G35 and signed a sales agreement that reflected a purchase price of $27,462.86 with a condition that Import One would obtain the financing for McFadden at an interest rate of 7.82% from Capital One Bank. Also part of the sales agreement was that McFadden agreed to trade in her 2002 Saturn L300. Although the sales agreement was not contemporaneously signed by Import One, it allowed McFadden to leave with the Infiniti while it retained possession of the Saturn.

Later, Import One learned that Capital One refused to finance McFadden’s loan. At that point, Kim Guidry, Import One’s general manager, obtained financing for McFadden from Trustmark National Bank at a rate of 9.69%. Import One informed McFadden of this change and attempted to [1216]*1216enter into a second sales agreement with her for the Infiniti. McFadden refused and told Import One that she would either abide by the first financing agreement or that she wanted her Saturn returned.

McFadden, on multiple occasions, attempted to return the Infiniti to Import One in exchange for her Saturn. Import One refused, instead attempting to force McFadden to agree to purchase the Infini-ti. Import One then sent a letter to McFadden wherein it stated that it would report the Infiniti as stolen if McFadden did not return the vehicle. In response, McFadden again attempted to arrange that she lsreturn the Infiniti in exchange for the Saturn. Rather than make this exchange, Import One reported the Infiniti as stolen.

In early March 2008, the Crowley Police went to McFadden’s workplace due to the report filed by Import One and took possession of the Infiniti. Thereafter, the police returned the Infiniti to Import One. After Import One gained possession of the Infiniti, it still refused to return McFadden’s Saturn.

On March 25, 2008, McFadden filed suit against Import One seeking return of her vehicle and damages for, inter alia, conversion, insurance payments, car payments, loss of use, humiliation and embarrassment, and attorney’s fees. On June 19, 2008, the Louisiana Attorney General’s office sent a letter to Import One notifying it that McFadden sought the return of her vehicle and that McFadden alleged that Import One had engaged in unfair trade practices under La.R.S. 51:1401, et seq. Still, Import One did not return McFadden’s Saturn until September 2008.

After a trial on the merits, the trial court awarded McFadden damages for conversion, embarrassment and humiliation, loss of use of her vehicle, insurance and car payments made on her vehicle, and attorney’s fees. The trial court denied McFadden’s claim to entitlement of treble damages under La.R.S. 51:1401, et seq. Both parties appealed the judgment of the trial court, alleging the following assignments of error:

IMPORT ONE’S ASSIGNMENTS OF ERROR:

1. The trial court erred in ruling that Import One committed the act of conversion.
2. The trial court erred in awarding McFadden damages for insurance payments, car payments, and conversion since it awarded specific damages for loss of use and embarrassment and humiliation.
3. The trial court erred in awarding McFadden attorney’s fees.

LMcFADDEN’S ASSIGNMENT OF ERROR:

1. The trial court erred in failing to award treble damages under La.R.S. 51:1409(A) which allows treble the actual damages as well as reasonable attorney’s fees.

IMPORT ONE’S ASSIGNMENT OF ERROR NUMBER ONE:

Import One alleges in its first assignment of error that the trial court erred in ruling that Import One committed the act of conversion.

The facts at issue on this particular assignment are not in dispute. We must determine, given the undisputed facts, whether the trial court was legally correct in finding that Import One committed conversion on McFadden’s Saturn. When conducting a review of such questions of law, appellate courts merely determine whether the lower court was legally correct. Sanchez v. La. Nursery, 09-1247 (La.App. 3 Cir. 4/7/10), 34 So.3d 1047.

[1217]*1217The Louisiana Supreme Court, in Dual Drilling Co. v. Mills Equipment Investments, Inc., 98-843, pp. 4-5 (La.12/1/98), 721 So.2d 853, 857, defined conversion as the following (emphasis added):

A conversion is committed when any of the following occurs: 1) possession is acquired in an unauthorized manner; 2) the chattel is removed from one place to another with the intent to exercise control over it; 3) possession of the chattel is transferred without authority; 4) possession is withheld from the owner or possessor; 5) the chattel is altered or destroyed; 6) the chattel is used improperly; or 7) ownership is asserted over the chattel. FraNK L. Maraist & Thomas C. Galligan, Louisiana Tort Law § 1-2, at 3 (1996 & Supp.1998); Import-sales, Inc. v. Lindeman, 231 La. 663, 92 So.2d 574 (La.1957); see also Louisiana State Bar Assoc. v. Hinrichs, 486 So.2d 116 (La.1986).

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Bluebook (online)
56 So. 3d 1212, 10 La.App. 3 Cir. 952, 2011 La. App. LEXIS 165, 2011 WL 408872, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcfadden-v-import-one-inc-lactapp-2011.