Rasmussen Buick-GMC, Inc. v. Roach

314 N.W.2d 374, 1982 Iowa Sup. LEXIS 1271
CourtSupreme Court of Iowa
DecidedJanuary 20, 1982
DocketNo. 65225
StatusPublished
Cited by5 cases

This text of 314 N.W.2d 374 (Rasmussen Buick-GMC, Inc. v. Roach) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rasmussen Buick-GMC, Inc. v. Roach, 314 N.W.2d 374, 1982 Iowa Sup. LEXIS 1271 (iowa 1982).

Opinion

LeGRAND, Justice.

This appeal from a judgment in favor of defendant on her counterclaim for malicious prosecution raises only the issue of sufficiency of the evidence. Defendant cross appeals from the trial court’s refusal to submit additional grounds for recovery asserted in her counterclaim. We affirm on both appeals.

In 1979 defendant, Julie A. Roach (Roach), bought a used 1976 Pontiac Grand Prix automobile from Rasmussen Buick-GMC, Inc. (Rasmussen), an automobile dealer in Council Bluffs. As part of the $4,595 purchase price, she traded her 1974 Chevrolet Camaro, which was appraised at $1,845, and signed a purchase agreement for the balance of $2,750.

At the time of the transaction, the Cama-ro’s odometer was inoperative, a fact which Roach says was made known to Rasmussen’s sales representatives. Rasmussen, on the other hand, claims it did not know of this fact until a potential buyer of the Ca-maro called attention to an old oil-change sticker attached to the car. The sticker, which was nine months old, listed the car’s mileage at the identical figure the odometer [375]*375showed at' the time the car was traded. This meant the mileage traveled between the date of the oil change and the date of the trade-in had not been recorded.

Rasmussen notified Roach that the car had been over-appraised because of the false odometer statement she had signed at the time of trade-in and demanded an additional $1,000, which she refused to pay.

Rasmussen then informed the Federal Bureau of Investigation that Roach had furnished a false odometer statement. After an investigation, the FBI submitted a report to the United States Attorney, who charged Roach with rolling back the odometer in violation of 15 U.S.C. §§ 1984, 1990c. The charge was later dismissed without trial.

Rasmussen sued Roach, asserting the alleged difference in the car’s value as appraised and its true value was $1,064.60. The petition asked treble damages under the provisions of 15 U.S.C. § 1989, which authorizes civil actions to enforce liability for violations of odometer requirements. Roach filed a counterclaim for malicious prosecution. A jury rejected Rasmussen’s claim and awarded Roach $18,000 on her counterclaim. Rasmussen was also ordered to pay $738.98 toward Roach’s attorney fees.

I. Malicious Prosecution.

In 1974 Congress passed legislation making it a crime to disconnect, reset, or alter a car’s odometer. 15 U.S.C. § 1984. It also made it a crime to submit a false statement, of the actual mileage a car had traveled. 15 U.S.C. § 1988.

Roach’s tort action for malicious prosecution is based on the allegation she was falsely accused and later prosecuted for violation of section 1984.

In Mills County State Bank v. Roure, 291 N.W.2d 1, 3 (Iowa 1980), we set out these six elements of malicious prosecution:

(1) a previous prosecution, (2) instigation or procurement thereof by defendant, (3) termination thereof by an acquittal or discharge of plaintiff, (4) want of probable cause, (5) malice in bringing the prosecution on the part of the defendant, and (6) damage to the plaintiff.

This appeal claims only that the evidence is insufficient to show Rasmussen instigated or procured the prosecution which is the second of the elements listed above. We limit our review accordingly.

Rasmussen alleges Roach gave a false odometer statement at the time she traded her Camaro. The circumstances regarding this issue are determinative of this appeal, and we examine the evidence concerning them in detail.

Shortly after Roach bought the Ca-maro, the odometer became inoperative. It was never repaired. The car was driven for approximately nine months without registering mileage. There is substantial evidence that Roach told Rasmussen’s employees of this while negotiating for the purchase of the Grand Prix. This evidence comes from Roach herself and from her mother. There is also substantial evidence that Roach signed the odometer statement in blank at Rasmussen’s request. It was later completed by Rasmussen’s sales manager, who inserted a figure of 37,514 miles, which he knew was incorrect.

In addition to this, Steve Kinstler, Rasmussen’s sales manager, and Gary Runyon, a car salesman, test-drove the Camaro before accepting it as a trade. Both say they “cannot remember” if the odometer was then operating. Finally, after the car was taken in trade and while it was being serviced for resale, a repair order was issued by Rasmussen to its service department directing the repair of the “speedo” (speedometer). It is conceded that if speedometer needed repair, the odometer probably did too.

In the face of this evidence tending to show knowledge of the true circumstances, Ralph Leslie, Rasmussen’s general manager, testified he did not know of the odometer malfunction until sometime later where an unidentified customer called the oil change sticker to his attention. Even if this is accepted as true, it does not excuse Rasmus[376]*376sen. A corporation acts through its officers, employees, and agents, and it may be liable for malicious prosecution based on the knowledge and acts of its officers or agents. Ashland v. Lapiner Motor Co., 247 Iowa 596, 601, 75 N.W.2d 357, 360 (1956).

In the present case, there was abundant evidence permitting the jury to find that both Rasmussen’s salesman and its sales manager knew the odometer was not functional at the time this transaction was completed. Rasmussen is legally held to have this same information. The jury was also justified in finding Rasmussen’s report to the FBI claiming Roach had furnished a false odometer statement was itself false. The jury could further have found it was knowingly false in view of the fact Ralph Leslie, who furnished the incriminating information, is the one who authorized repairs to the car’s speedometer and odometer. Thus at the very time he said the odometer was functional, Leslie was authorizing his service department to repair it. Leslie explained this apparent conflict, but the jury was not obliged to accept his explanation.

This brings us to Rasmussen’s rationale for insisting it did not instigate or procure the criminal charge against Roach because the information furnished to the FBI did not support the exact charge brought. Roach was accused of violating a statute which provides that no person shall “disconnect, reset, or alter or cause to be disconnected, reset, or altered, the odometer of any motor vehicle with intent to change the number of miles indicated thereon.” 15 U.S.C. § 1984.

Rasmussen says the information furnished to the FBI might have supported a charge that Roach gave a false odometer statement in violation of 15 U.S.C. section 1988

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