Rocha v. Munson Ski & Inboard Water Sports, Inc.

2024 IL App (1st) 231469, 258 N.E.3d 834
CourtAppellate Court of Illinois
DecidedJune 11, 2024
Docket1-23-1469
StatusPublished

This text of 2024 IL App (1st) 231469 (Rocha v. Munson Ski & Inboard Water Sports, 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
Rocha v. Munson Ski & Inboard Water Sports, Inc., 2024 IL App (1st) 231469, 258 N.E.3d 834 (Ill. Ct. App. 2024).

Opinion

2024 IL App (1st) 231469

FIRST DISTRICT SECOND DIVISION June 11, 2024

No. 1-23-1469

REGINA ROCHA, ) Appeal from the ) Circuit Court of Plaintiff-Appellant, ) Cook County. ) v. ) ) No. 19 L 12974 MUNSON SKI & INBOARD WATER SPORTS, INC.; ) CHAPARRAL BOATS, INC.; and MERCURY ) MARINE, INC., ) ) Honorable Defendants-Appellees. ) Jerry A. Esrig, ) Judge Presiding.

JUSTICE McBRIDE delivered the judgment of the court, with opinion. Justices Ellis and Cobbs concurred in the judgment and opinion.

OPINION

¶1 Plaintiff Regina Rocha filed her cause of action against defendants Munson Ski &

Inboard Water Sports, Inc. (Munson Ski), Chaparral Boats, Inc. (Chaparral), and Mercury

Marine, Inc. (Mercury Marine) (collectively defendants) following issues that arose from her

purchase of a 2017 Chaparral 337 SSX boat (boat) from Munson Ski. The boat was

manufactured by Chaparral, with the engine built by Mercury Marine. According to her

complaint, plaintiff alleged that Munson Ski sold her the boat as “new,” but the boat was “more

likely, on information and belief, used.” She encountered multiple issues with the steering

mechanism, requiring numerous repairs, and eventually revoked her acceptance of the boat and

cancelled her contract. The case was tried before a jury on all but two counts, which were later No. 1-23-1469

heard in a bench trial. In August 2022, the jury entered a verdict in favor of defendants. In March

2023, the trial court entered judgment on the remaining two counts in favor of Munson Ski.

¶2 On appeal, plaintiff argues that the trial court erred (1) by declining to instruct the jury in

accordance with its pretrial ruling on a summary determination that the boat was “not new” and

sua sponte changing that determination, (2) by refusing to give certain nonpattern jury

instructions proffered by plaintiff, and (3) by applying equitable principles to divide the escrow

funds from the subsequent sale of the boat equally between plaintiff and Munson Ski.

¶3 In November 2019, plaintiff filed her initial complaint which she subsequently amended.

In February 2021, she filed her second amended complaint alleging 10 counts against

defendants. The following counts were alleged against Munson Ski: injunctive relief under the

Magnuson-Moss Warranty—Federal Trade Commission Improvement Act (Magnuson-Moss

Warranty Act) (15 U.S.C. § 2301 et seq. (2018)) (Count I), breach of implied warranty of

merchantability under the Magnuson-Moss Warranty Act (Count II), revocation of acceptance

and cancellation of the contract under the Uniform Commercial Code (810 ILCS 5/2-608, 2-

711(1) (West 2018)) (Count III), common law fraud for misrepresentation (Count VIII), common

law fraud for fraudulent concealment (Count IX), and a violation of the Consumer Fraud and

Deceptive Business Practices Act (Consumer Fraud Act) (815 ILCS 505/1 et seq. (West 2018))

(Count X). The complaint against Chaparral alleged a breach of express warranty under the

Magnuson-Moss Warranty Act (Count IV) and a breach of implied warranty of merchantability

(Count V). The complaint against Mercury Marine alleged a breach of express warranty under

the Magnuson-Moss Warranty Act (Count VI) and a breach of implied warranty of

merchantability (Count VII).

2 No. 1-23-1469

¶4 The trial court entered multiple rulings prior to trial. In October 2020, one of those orders

allowed Munson Ski to sell the boat. The proceeds of the which were to pay off any loans on the

boat to provide a clean title transfer to the purchaser. Any additional funds were to be held in an

escrow account until the resolution of the case.

¶5 In May 2021, plaintiff filed a motion for summary determination asking the trial court to

decide that the boat was “used.” Subsequently, the trial court granted plaintiff’s motion for a

summary determination, in part, which provided: “the Court finding that the subject boat was not

‘new’ when sold to Plaintiff, but said ruling is not holding that Plaintiff’s fraud claim against

Munson has been established.”

¶6 A jury trial was held in August 2022 on eight of the counts pled in plaintiff’s second

amended complaint. The remaining two counts for injunctive relief under the Magnusson-Moss

Warranty Act and under the Consumer Fraud Act (Counts I and X) against Munson Ski were

continued for a bench trial. See Martin v. Heinold Commodities, Inc., 163 Ill. 2d 33, 74-78

(1994) (recognizing that equitable claims do not confer the right to a jury trial). Below we

summarize the evidence presented at the jury trial.

¶7 Maryjo Munson, co-owner of Munson Ski, testified that, according to the Illinois

Department of Natural Resources, a boat is not considered used until it is registered to the first

owner. Matt Munson, the sales manager, similarly explained that a new boat is one that has never

been sold, never been titled, never been registered with the State, and received the full factory

warranties. The boat at issue was ordered from Chaparral by Munson Ski in 2016 and had a

manufacturer suggested retail price (MSRP) of $310,000. Plaintiff bought the boat on July 17,

2018, for $217,411.41, which included sales tax, freight, license, title, and registration. The boat

3 No. 1-23-1469

was registered as new, and the warranties with Chaparral and Mercury were also registered as

new. Plaintiff received the full manufacturer’s warranty with her purchase.

¶8 While the boat was in stock at Munson Ski, Matt Munson operated the boat about 7 to 10

times for approximately 2 to 4 hours per use. The boat was kept in a slip at Lake Geneva in

Wisconsin. He used the boat for multiple purposes, including demonstrations, test drives,

showing the boat to customers, and personal use. It was easier to sell boats when they were on

the water and in use because it helped showcase the “lifestyle.” According to Matt Munson, the

average hours a boat is used per season in Chicago is about 60 hours. He explained that the

purchase price in this case took into account the amount of time the boat had been in stock and

the hours used. Matt Munson testified that he discussed the hours used with plaintiff and that

those hours of operation were also displayed on a meter on the boat.

¶9 Munson Ski salesperson Mark Biasco oversaw the sale of the boat to plaintiff. The sales

contract did not refer to the boat as a “demo.” The hours of operation were not disclosed to

plaintiff in writing, but Biasco testified that he told plaintiff about the boat’s history, including

that it had been run on Lake Geneva and had hours on it. He also had Matt Munson speak with

plaintiff in part to share his experiences using the boat. Biasco denied withholding any

information that was relevant and required to be disclosed. In contrast, plaintiff denied that

anyone at Munson Ski disclosed the hours the boat had been used either verbally or in writing.

When asked if she would have bought the boat if it was “hypothetically not new,” she responded,

“Absolutely not.” She wanted a brand-new boat with a full warranty that was safe for Lake

Michigan.

¶ 10 As part of the sale, plaintiff received two days of boat training from Munson Ski with

Fred Szott.

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2024 IL App (1st) 231469, 258 N.E.3d 834, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rocha-v-munson-ski-inboard-water-sports-inc-illappct-2024.