Mueller v. Harry Kaufmann Motorcars, Inc.

2015 WI App 8, 859 N.W.2d 451, 359 Wis. 2d 597, 2014 Wisc. App. LEXIS 1032
CourtCourt of Appeals of Wisconsin
DecidedDecember 23, 2014
DocketNo. 2014AP351
StatusPublished
Cited by13 cases

This text of 2015 WI App 8 (Mueller v. Harry Kaufmann Motorcars, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mueller v. Harry Kaufmann Motorcars, Inc., 2015 WI App 8, 859 N.W.2d 451, 359 Wis. 2d 597, 2014 Wisc. App. LEXIS 1032 (Wis. Ct. App. 2014).

Opinion

BRENNAN, J.

¶ 1. At the heart of this case are Sylvia E Mueller's allegations that Harry Kaufmann Motorcars, Inc. misrepresented the condition of a 1995 Mercedes-Benz it sold to her, and that she is entitled to rescission of the purchase contract and/or a refund of the full purchase price of the vehicle, pursuant to Wis. Stat. §§ 100.18 and 218.0116(l)(f) (2011-12),1 and common law intentional misrepresentation principles. The trial court rejected Mueller's rescission and/or refund argument and dismissed all her claims on Kaufmann's motion for directed verdict. The trial court concluded that Mueller's recovery on her § 100.18 claim was limited to benefit-of-the-bargain damages, namely cost of repair or diminution in value, and that she failed to present sufficient evidence to demonstrate that she was entitled to such damages. On her intentional misrepresentation claim, the trial court concluded that the evidence was insufficient to show that the misrepresen[604]*604tations were material and that Mueller again failed to present sufficient damage evidence.

¶ 2. On appeal, Mueller argues that the trial court erred when it concluded that: (1) rescission and/or refund were not remedies available for statutory misrepresentation under Wis. Stat. § 100.18; (2) her evidence was insufficient to show that the misrepresentations were substantial enough to warrant imposition of the equitable remedy of rescission on the common law misrepresentation claim; (3) she failed to prove benefit-of-the-bargain damages on both claims; and (4) Mueller could not testify as to the car's value to her.2

¶ 3. We conclude, for the reasons set forth below, that Wis. Stat. § 100.18 permits plaintiffs, in some instances, to recover a refund of the purchase price. However, the plain language of the statute, which permits recovery only for "pecuniary loss," does not permit rescission as a remedy. Plaintiffs can, however, receive rescission as a remedy for intentional misrepresentation when the misrepresentation is "material." We also conclude that the trial court erroneously exercised its discretion when it prohibited Mueller from testifying as to the value of the car to her. Because it is up to a jury [605]*605to determine whether Mueller's evidence was sufficient to demonstrate a "pecuniary loss" or a "material misrepresentation," we reverse and remand for further proceedings.

BACKGROUND

¶ 4. In August 2011, Mueller filed this action, alleging that Kaufmann purposely misrepresented the condition of the 1995 Mercedes-Benz E320 it sold to Mueller. In February 2012, Mueller filed an amended complaint, alleging violations of Wis. Stat. §§ 100.18 and 218.0116(l)(f), as well as intentional misrepresentation. Specifically, Mueller alleged that Kaufmann intentionally misrepresented the condition of the car, including that the car:

had signs of a blown head gasket, had a shifting problem, had known or visible leaks, had gauges and warning device [] problems and had an air conditioning system problem; that the restraining devices, seats and seat belts were not legal, that the horn was not legal, that the steering components were not legal, that the windshield wipers and washers were not legal and that the fuel system was not legal in that the fuel filler neck is being held in by duct tape.

Mueller asserted that Kaufmann's alleged misrepresentations entitled her to collect damages, including but not limited to: punitive damages, rescission of the purchase agreement, a refund of the purchase price, attorney fees, and other costs incurred during the action.

¶ 5. Following pre-trial motions, the trial court set forth in a written order the three alleged misrepresentations to be presented to the jury: (1) whether Kaufmann misrepresented that the fuel system was [606]*606legal; (2) whether Kaufmann misrepresented that the seatbelts were legal; and (3) whether Kaufmann misrepresented that there were no known or visible leaks, excluding minor seepage. A jury trial was held on October 28-30, 2013. Mueller, her daughter, and James Dentici, an automobile expert, testified on Mueller's behalf. The following facts were elicited at trial.

¶ 6. Mueller testified that on August 17, 2011, she purchased a 1995 Mercedes Benz convertible from Kaufmann for $16,021.89. Prior to purchasing the car, she read "[m]ost of' the accompanying Wisconsin Buyers' Guide. Mueller told the jury that at the time she purchased the car she understood the Buyers' Guide to set forth "the general condition of the vehicle." She testified that she did not see any problems with the car listed in the Buyers' Guide and that all of the boxes next to the car's "conditions" were checked as "legal." Mueller also said that Peter Obradovich, the salesman she spoke to when purchasing the vehicle, told her "it was a good car." Mueller told the jury that she relied on the Buyers' Guide and Obradovich's representations when deciding to purchase the vehicle.

¶ 7. Mueller told the jury that she began experiencing problems with the car only hours after purchasing it. She returned to Kaufmann's dealership that same day and reported that fluid had leaked out of the vehicle. Obradovich told her he would make arrangements with a mechanic to take care of the problem.

¶ 8. On August 20, 2011, Mueller returned to the dealership with her daughter to complain of other problems with the car. Because Kaufmann was busy, Mueller and her daughter were asked to return the following Monday.

¶ 9. Mueller and her daughter did return to Kaufmann's the following Monday, but they did not [607]*607bring the Mercedes with them. After speaking with Harry Kaufmann, Mueller and Kaufmann entered into the following written agreement: "August 22, 2011: I'm aware that the vehicle I purchased has no warranty, and out of good will, Harry Kaufmann Motorcars, Inc. will repair the following mechanical items; windshield washer hose, engine oil leak, air conditioning, and that the seatbelts are safe." Kaufmann then made arrangements to have a mechanic look at the car the following day, but Mueller admitted at trial that she never brought the car in for repairs. Mueller told the jury that approximately 300 miles have been put on the car since it was purchased and that it has been "parked" since "about a week after [she] bought the car."

¶ 10. During Mueller's testimony, her trial counsel asked her what the Mercedes was "worth today to you?" The trial court, sua sponte, refused to let Mueller respond, stating:

You can ask her what she thinks she could get for the car if she sold it, but that's different than saying what's the car worth to you. I mean, it's worth a lot more than anybody else in the world would pay for it, but that's not a fair value of the car.
What we're concerned about in the court, because we're trying to be objective about this, is to figure out if, in fact, the value of that car has changed, how much it has changed from an objective point of view. So that gets back to what does she think she could get for the car if she sold it?

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Bluebook (online)
2015 WI App 8, 859 N.W.2d 451, 359 Wis. 2d 597, 2014 Wisc. App. LEXIS 1032, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mueller-v-harry-kaufmann-motorcars-inc-wisctapp-2014.