Nick v. Toyota Motor Sales, U.S.A., Inc.

466 N.W.2d 215, 160 Wis. 2d 373, 1991 Wisc. App. LEXIS 74
CourtCourt of Appeals of Wisconsin
DecidedJanuary 23, 1991
Docket90-0762
StatusPublished
Cited by24 cases

This text of 466 N.W.2d 215 (Nick v. Toyota Motor Sales, U.S.A., 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
Nick v. Toyota Motor Sales, U.S.A., Inc., 466 N.W.2d 215, 160 Wis. 2d 373, 1991 Wisc. App. LEXIS 74 (Wis. Ct. App. 1991).

Opinions

MYSE, J.

Toyota Motor Sales appeals a judgment in favor of James Nick and against Toyota. Toyota contends that the tried court erred by ruling that Toyota was required to take back the vehicle it sold to Nick and refund the purchase price. Toyota also contends that the trial court erred in its calculation of damages. Because we conclude that Wisconsin's Lemon Law required Toyota to take back the car, we affirm that part of the judgment. Because we also conclude that the damages available for Toyota's wrongful refusal to take back the car and refund the purchase price include the consumer's share of the purchase price actually paid, sales tax, finance charges and the cost of alternate transportation in connection with repair of the vehicle, less a reasonable allowance for use, we reverse in part and remand.

On June 9, 1987, Nick purchased a new Toyota Supra from Rosemurgy Toyota, a dealer in Wausau. The purchase price was $24,907, which Nick financed [378]*378through an installment contract loan. Nick experienced problems with the vehicle during his first year of ownership. The vehicle was out of service several times during that year. Toyota admitted that the vehicle was out of service for an aggregate of more than thirty days.

Following Toyota's final return of his vehicle Nick continued to use it but within thirty days made a written demand to Toyota to take back the vehicle and issue a refund. Approximately two months after Toyota refused Nick's demand for a refund, Nick bought a Cadillac Fleetwood and drove the car 19,300 miles prior to the date the court granted Nick judgment on Toyota's liability.

In a pretrial ruling the court held that evidence that Toyota had repaired the vehicle after it had been out of service more than thirty days was irrelevant. The court ruled that under sec. 218.015(l)(h)2, Stats., Toyota had thirty days to repair the vehicle. Because Toyota admitted the car was out of service for an aggregate of more than thirty days, the court ruled that any subsequent repair was immaterial to Nick's right to demand a refund. With that ruling, no disputed factual issues remained to be tried. The court then determined damages as follows:

Item of Damages Calculation Amount Double Column Allowed Damages
Damages on Toyota Supra
Purchase price refund 24,907.00
Allowance for use -429.15 24,477.85 48,955.70
Downpayment/trade-in 2,040.31 4,080.62
Sales tax paid 742.01 1,484.02
44.00 88.00 License and title fees
Finance charges, total 6,948.50
Finance charges rebate -2,398.68 4,549.82 9,099.64
[379]*379Alternate Transportation
Cost of Mileage at 22.50 for 19,300 miles 4,342.50 8,685.00
Total Double Damages 72,392.98
Prejudgment interest at 5% May 24,1988 to January 8,1990 594.00 Days 5,890.61
Total damages with interest 78,283.59
Reasonable attorney fees and disbursements Amount to be determined

Section 218.015, Stats., is Wisconsin's Lemon Law. That statute provides that if a new motor vehicle does not conform to an applicable express warranty the nonconformity shall be repaired before expiration of the warranty or one year after delivery of the vehicle, whichever is sooner. Section 218.015(2)(a), Stats. If the nonconformity is not repaired after a reasonable attempt to repair, the manufacturer must accept return of the vehicle and, at the direction of the consumer, either replace the vehicle or refund to the consumer and to the holder of any security interest as their interests may appear "the full purchase price plus any sales tax, finance charge, amount paid by the consumer at the point of sale and collateral costs, less a reasonable allowance for use." Section 218.015(2)(b)l and 2, Stats. Reasonable attempt to repair means either that the nonconformity is subject to repair four times and the nonconformity continues or that the vehicle "is out of service for an aggregate of at least thirty days because of warranty nonconformities." Section 218.015(l)(h)l and 2, Stats.

Toyota first contends that because it repaired the vehicle prior to Nick's refund demand, the court erred by holding that Nick was entitled to a refund. Toyota argues that because sec. 218.015(2)(c), Stats., requires [380]*380the consumer to offer to transfer title of the vehicle "having the nonconformity" to the manufacturer, the statute does not apply if the vehicle no longer has the nonconformity. We reject such a statutory construction.

The construction of a statute is a question of law that we review without deference to the trial court's determination. In re R.B., 108 Wis. 2d 494, 496, 322 N.W.2d 502, 503 (Ct. App. 1982). The purpose of statutory construction is to ascertain and give effect to the legislature's intent. In re P.A.K., 119 Wis. 2d 871, 878, 350 N.W.2d 677, 681 (1984). In construing a statute, first resort is to the language itself. Id. A statute is ambiguous if reasonably well-informed persons could understand it in more than one way. Id. at 878-79, 350 N.W.2d at 682.

We conclude that sec. 218.015(2)(c), Stats., is ambiguous. That section requires the consumer to offer title of the vehicle "having the nonconformity" to the manufacturer. A reasonably well-informed person could read that phrase to simply identify the vehicle to which the statute refers. However, it could also be read to require that the vehicle continue to have the nonconformity at the time the consumer offers title to the manufacturer and demands a refund.

When a statute is found to be ambiguous, rules of construction require us to look at the statutory context, subject matter, scope, history and object to be accomplished. Midland Fin. Corp. v. DOR, 116 Wis. 2d 40, 46, 341 N.W.2d 397, 400 (1983). A statute should be construed to give effect to its leading idea, and the entire statute should be brought into harmony with the statute's purpose. State v. Clausen, 105 Wis. 2d 231, 244, 313 N.W.2d 819, 825 (1982). Remedial statutes should be [381]*381liberally construed to suppress the mischief and advance the remedy that the statute intended to afford. City of Madison v. Hyland, Hall & Co., 73 Wis. 2d 364, 373, 243 N.W.2d 422, 427 (1976). We conclude that sec. 218.015(2)(c), Stats., does not require that the car continue to have the nonconformity in order for the consumer to demand a refund when the car has been out of service for an aggregate of at least thirty days.

This construction is consistent with the remedial nature of the statute and consistent with the interpretation of the statute made by this court in Hartlaub v. Coachmen Industries, 143 Wis. 2d 791,

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Nick v. Toyota Motor Sales, U.S.A., Inc.
466 N.W.2d 215 (Court of Appeals of Wisconsin, 1991)

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Bluebook (online)
466 N.W.2d 215, 160 Wis. 2d 373, 1991 Wisc. App. LEXIS 74, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nick-v-toyota-motor-sales-usa-inc-wisctapp-1991.