Montgomery v. Nostalgia Lane, Inc.

891 N.E.2d 994, 383 Ill. App. 3d 1098, 2008 WL 2610559
CourtAppellate Court of Illinois
DecidedJune 30, 2008
Docket2-07-0661
StatusPublished
Cited by4 cases

This text of 891 N.E.2d 994 (Montgomery v. Nostalgia Lane, Inc.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Montgomery v. Nostalgia Lane, Inc., 891 N.E.2d 994, 383 Ill. App. 3d 1098, 2008 WL 2610559 (Ill. Ct. App. 2008).

Opinion

JUSTICE BYRNE

delivered the opinion of the court:

Plaintiff, Todd Montgomery, contacted defendant, Nostalgia Lane, Inc., to restore his 1970 Plymouth Roadrunner. Defendant inspected the vehicle and provided plaintiff a written estimate that the project was expected to cost $35,000 but that the final bill would reflect the actual cost of parts and labor. Plaintiff agreed to the project and paid installments amounting to $33,500, but defendant deviated from the estimated cost. Plaintiff paid defendant the outstanding balance of $5,899 to retrieve the vehicle, and this dispute ensued. Plaintiff filed a six-count, third-amended complaint, and the parties filed opposing motions for summary judgment. The trial court ruled for defendant on all of the counts, and plaintiff appeals.

On appeal, plaintiff argues that the trial court committed reversible error in granting defendant summary judgment on count I of the third-amended complaint. However, count I is unfocused in that it alleges several statutory claims. Count I alleges that defendant violated several provisions of the Automotive Repair Act (815 ILCS 306/1 et seq. (West 2006)) and that those violations are actionable under section 2Z of the Illinois Consumer Fraud and Deceptive Business Practices Act (Consumer Fraud Act) (815 ILCS 505/2Z (West 2006)). Count I also alleges a more general claim of fraud under section 2 of the Consumer Fraud Act in that defendant prepared a “low-ball” estimate to lure plaintiff into the transaction, intending to extract more money from plaintiff after the car was disassembled. 815 ILCS 505/2 (West 2006). Plaintiff abandons his remaining claims.

We agree with plaintiff that the trial court committed reversible error in entering summary judgment for defendant on count I. We reverse the judgment and remand the cause for proceedings consistent with this opinion.

FACTS

Some facts are undisputed. When plaintiff purchased the car in 1989, it could not be driven. Plaintiff initially contacted defendant in May 1998 to inquire about fixing it. In the spring of 1999, Roger Merrill and Mike Furth, defendant’s chairman and general manager, respectively, viewed the car. Plaintiff told Merrill and Furth that he wanted the car to be “mechanically perfect” and “wouldn’t mind if it looked nice, too,” but plaintiff also said that his budget was limited to $20,000 to $25,000.

On May 12, 1999, defendant gave plaintiff a written estimate for the restoration project. Defendant estimated the cost of parts and labor to be $35,000, with a notation that “all jobs [will be] ultimately billed as time, materials, labor + parts[;] estimates may change + or -.” Plaintiff was to make progress payments of $3,500 every two weeks. At his deposition, plaintiff testified that Furth privately assured him that the project would not cost more than $35,000. However, plaintiff admitted that he was informed “right up front” that defendant would charge labor costs at $42 per hour.

In September 1999, defendant took possession of the car. Plaintiff periodically went to the shop to observe the progress, and he never objected to the quality of the workmanship. Plaintiff made progress payments amounting to $33,500, but cost overruns caused the total bill to surpass the $35,000 estimate.

On August 3, 2000, defendant sent plaintiff a letter demanding a progress payment of $3,500 to be applied to the outstanding balance of $5,899. Defendant’s letter stated that the work would resume as soon as plaintiff made the progress payment but that plaintiff could take possession of the car only if he paid the outstanding balance in full. Defendant wrote that “a worst case scenario for completion of your vehicle would be in the $20,000 to $25,000 range.” Defendant reported that 643 hours of labor charges had accrued and that “[t]he average for a total restoration is 900-1,000” hours.

In early December 2000, plaintiff paid the outstanding balance of $5,899 and took possession of the car. Plaintiff stored the car for several months before towing it to another shop, where the project was completed. The new shop did not provide an estimate for finishing the project, but plaintiff initially agreed to pay $26,500 for labor. Using a parts list provided by defendant, plaintiff purchased all of the remaining parts himself for about $12,000. Plaintiff eventually paid the new shop $31,416 for the labor, which meant that plaintiff spent an additional $43,416 to complete the project after he reclaimed the car from defendant.

On January 7, 2004, plaintiff filed his third-amended complaint, in which he alleged that defendant knowingly gave him a “grossly inadequate, ‘low-ball’ estimate” to induce plaintiff to hire defendant for the restoration project. Plaintiff alleged that Merrill and Furth knew, before starting the project, that the $35,000 estimate would not cover even the $42-per-hour labor costs, considering the car’s “rough” condition. Merrill and Furth gave the “unrealistic” estimate to lure plaintiff into the transaction, intending to extract more money once the car was disassembled. Plaintiff alleged that he relied on defendant’s expertise in the field as well as Furth’s oral assurances that the amount billed would not exceed the estimate.

Based on the factual allegations, plaintiff claimed several violations of the Automotive Repair Act and the Consumer Fraud Act. Section 2Z of the Consumer Fraud Act provides that “[a]ny person who knowingly violates the Automotive Repair Act *** commits an unlawful practice within the meaning of this Act.” 815 ILCS 505/2Z (West 2006).

If an automotive project falls within the scope of the Automotive Repair Act, the motor vehicle repair facility must give the consumer a written estimated price for labor and parts for a specific repair and shall not charge for work done or parts supplied in an amount that exceeds the estimate by more than 10% without oral or written consent of the consumer. 815 ILCS 306/15(b), 20 (West 2006). Plaintiff alleges that the Automotive Repair Act applies in this case and that defendant violated sections 15(b) and 20, among others.

Section 10 of the Automotive Repair Act prescribes the types of repairs and repair facilities that are governed by the statute’s regulatory provisions. Section 10 defines various terms and provides as follows:

“ ‘Automotive repair’ includes, but is not limited to:
(1) All repairs to motor vehicles that are commonly performed in a motor vehicle repair facility by a motor vehicle technician, including the diagnosis, installation, exchange, or repair of mechanical or electrical parts or units for any vehicle, the performance of any electrical or mechanical adjustment to any vehicle, or the performance of any service work required for routine maintenance or repair of any vehicle.

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891 N.E.2d 994, 383 Ill. App. 3d 1098, 2008 WL 2610559, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montgomery-v-nostalgia-lane-inc-illappct-2008.