Pulido v. Gaestel CA5

CourtCalifornia Court of Appeal
DecidedDecember 26, 2013
DocketF063388
StatusUnpublished

This text of Pulido v. Gaestel CA5 (Pulido v. Gaestel CA5) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pulido v. Gaestel CA5, (Cal. Ct. App. 2013).

Opinion

Filed 12/26/13 Pulido v. Gaestel CA5

NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIFTH APPELLATE DISTRICT

ADOLFO PULIDO et al., F063388 & F063914 Plaintiffs and Appellants, (Super. Ct. No. CU149576) v.

R. J. GAESTEL, INC. et al., OPINION Defendants and Respondents.

APPEAL from a judgment of the Superior Court of Merced County. Harry L. Jacobs, Commissioner. Law Offices of Robert Padrick, Robert Padrick; The Meridian Law Firm, Jaimie Mak; Rosner, Barry & Babbitt, Hallen D. Rosner, Christopher P. Barry and Angela J. Patrick for Plaintiffs and Appellants. Canelo, Wilson, Wallace & Padron and James H. Wilson for Defendants and Respondents. -ooOoo- Appellants Adolfo Pulido and Margarita Pulido, purchased a used Honda Accord from respondent R. J. Gaestel, Inc., doing business as Merced Honda (Merced Honda), through a conditional sale contract. Accordingly, the transaction was governed by the Automobile Sales Finance Act (ASFA). (Civ. Code,1 § 2981 et seq.) Approximately 15 months later, appellants demanded remediation or rescission of the sale contract on the ground that it violated certain ASFA provisions. Thereafter, appellants filed the underlying lawsuit seeking rescission of the sale contract, restitution and damages. Appellants also claimed respondents violated the Consumers Legal Remedies Act (CLRA) (§ 1750 et seq.) and the requirement that a buyer who negotiates in Spanish be provided with a Spanish copy of the entire contract (§ 1632). Following a bench trial, the court ruled in favor of Merced Honda and the holder of the sale contract, respondent American Honda Finance Corporation (Honda Finance). The court concluded that appellants had not complied with the rescission requirements under the ASFA and therefore had elected to keep the contract in force. The court also found the CLRA was inapplicable because respondents had not engaged in unfair or deceptive practices. The court awarded attorney fees to respondents as the prevailing parties. Appellants contend the trial court incorrectly applied the ASFA and the CLRA. Appellants further dispute the validity of the attorney fee award. As a matter of law, appellants are not entitled to relief under the ASFA, the CLRA or section 1632. Moreover, respondents are entitled to attorney fees. Accordingly, the judgment will be affirmed.

1 Statutory references are to the Civil Code unless otherwise specified.

2. BACKGROUND Merced Honda purchased a repossessed 2003 Honda Accord from an auto auction dealer on December 9, 2004. The auction dealer estimated that fees of $504 were due to the Department of Motor Vehicles (DMV). On January 7, 2005, Merced Honda posted $310 with the DMV for past due fees and penalties relating to this vehicle. On January 8, 2005, appellants went to Merced Honda. They wanted to trade in a 2005 Honda Civic that they had purchased from Merced Honda in October 2004 and purchase a larger vehicle. Appellants were shown the 2003 Honda Accord and began negotiating with Merced Honda salesmen to purchase this vehicle. These negotiations were primarily in Spanish. After several failed attempts to secure financing for a proposed sale, Honda Finance approved the agreement reached by the parties on January 11, 2005. Appellants advised the salesman they could not afford to make the $1,500 cash downpayment. Appellants requested they be allowed to make payments on the downpayment portion of the transaction and the salesman agreed. Merced Honda prepared the conditional sale contract in both English and Spanish. Appellants gave Merced Honda two checks for the downpayment, one for $300 dated January 11 and one for $1,200 dated February 11, 2005. Merced Honda agreed to hold the January 11 check until January 14 and to hold the February 11 check until February 18. However, the contract reflected that appellants made a $1,500 cash downpayment on January 11. Regarding fees payable to the DMV, the contract disclosed a charge of $500 as an estimated amount for license fees and that registration, transfer and titling fees were included. On January 19, 2005, Merced Honda sent an additional $210 to the DMV to cover fees on the Honda Accord. On January 26, the DMV issued a reconciliation report stating that the total amount of fees due was $274. On January 31, Merced Honda issued

3. a check to appellants for $246, the difference between what appellants had paid in fees and what the DMV had charged. Although Merced Honda held appellants’ checks as promised, both checks were dishonored. In March 2005, appellants gave Merced Honda $1,500 in cash to replace those checks. Merced Honda did not charge appellants for the dishonored downpayment checks. By letters dated April 4, 2006, to Merced Honda and Honda Finance, appellants, through their counsel, complained of ASFA and CLRA violations. Specifically, appellants accused Merced Honda of “[o]vercharging for vehicle license fees and failing to refund the overcharge; [¶] [o]vercharging for smog abatement fees and failing to refund the overcharge; and [¶] [f]ailing to properly disclose deferred down payments on retail installment sale contracts.” Appellants demanded that Merced Honda and Honda Finance remedy these violations within 30 days of their receipt of the letter. Honda Finance had purchased the sale contract from Merced Honda. Honda Finance replied that, as the assignee of the contract, it would defer to Merced Honda and thus would not respond to appellants’ demands for remediation or rescission until such time as Merced Honda informed it that appellants’ claims had merit. Merced Honda responded on April 25, 2006, and pointed out that the excess fees had been refunded to appellants. Merced Honda also enclosed an amended contract to correct the error of not separately listing the deferred downpayment. The amended contract stated that $300 had been paid at contract signing and $1,200 had been deferred. On May 10, 2006, appellants responded to Merced Honda. Appellants noted the overcharge had been returned but stated that a dispute remained as to the nondisclosure of the deferred downpayment. Appellants further asserted that Merced Honda’s attempt to correct the contract was untimely. In July 2006, appellants filed the underlying action. They sought rescission of the sale contract, restitution and damages under the ASFA and CLRA based on Merced

4. Honda’s failure to disclose the deferred downpayment. In June 2009, appellants filed a first amended complaint that alleged additional statutory violations based on Merced Honda having bundled the license fees with the registration, transfer and titling fees. The case was tried to the court beginning in March 2010. The court rendered its judgment in August 2011. Appellants continued to drive the Honda Accord throughout the litigation. However, appellants stopped paying on the vehicle loan after October 2007. In December 2007, Honda Finance “charged off” this loan with a balance of approximately $16,700. The trial court ruled in favor of respondents. The only remedy provided by the ASFA is rescission of the contract at the option of the buyer. The court concluded that, by continuing to use the vehicle for over four years during the litigation, appellants elected not to rescind the contract and thus could not prevail under the ASFA. The court further found that appellants were not entitled to relief under the CLRA because respondents did not use unfair methods or deceptive practices in selling the vehicle to appellants.

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