Rose v. Mercede-Benz U.S.A., LLC

CourtAppellate Court of Illinois
DecidedDecember 28, 2007
Docket1-06-0262, 1-06-1266 Cons. NRel
StatusUnpublished

This text of Rose v. Mercede-Benz U.S.A., LLC (Rose v. Mercede-Benz U.S.A., LLC) 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
Rose v. Mercede-Benz U.S.A., LLC, (Ill. Ct. App. 2007).

Opinion

FIFTH DIVISION December 28, 2007

Nos. 1-06-0262, 1-06-1266 (consolidated)

FELICE BRESSLER ROSE, ) Appeal from the ) Circuit Court of Plaintiff-Appellee, ) Cook County ) v. ) ) MERCEDES-BENZ U.S.A., LLC, ) Honorable ) Susan McDunn, Defendant-Appellant. ) Judge Presiding.

JUSTICE GALLAGHER delivered the opinion of the court:

Plaintiff Felice Bressler Rose brought an action under the Magnuson-Moss Warranty-

Federal Trade Commission Improvement Act (the Magnuson-Moss Act) (15 U.S.C. §2301 et seq.

(2000)) for breach of express and implied warranties against defendant Mercedes-Benz after

several unsuccessful attempts to repair her 2002 Mercedes ML 500. Following a bench trial, the

trial court entered judgment for plaintiff and awarded her $8,000 in damages.

Defendant now appeals the damage award and the award of attorney fees and costs to

plaintiff. Defendant raises three main contentions pertaining to the damage award: (1) plaintiff

suffered no damages for breach of warranty because her vehicle was repaired at no cost to her and

plaintiff received full market value for the vehicle at trade-in; (2) plaintiff failed to lay an adequate

foundation for her valuation testimony of the ML 500 in its defective state; and (3) no basis exists Nos. 1-06-0262 and 1-06-1266 (consolidated)

for the $8,000 damage award. Because we agree with defendant on the second point, we reverse

the judgment of the trial court.

BACKGROUND

In January 2002, plaintiff bought a 2002 Mercedes ML 500 sport utility vehicle from the

Autohaus on Edens, a Mercedes-Benz dealership, for $47,000. The vehicle was covered by a 4-

year/50,000-mile written limited warranty.

The following testimony is relevant to the issues presented in this appeal. Between

January 2002 and July 2005, plaintiff experienced numerous problems with the ML 500 and

brought the vehicle to defendant’s dealerships for repair approximately 19 times, including 9 visits

to inspect and repair the braking system. Plaintiff offered detailed testimony about the problems

she experienced with the vehicle. Some repairs took more than one day to complete, and, by

plaintiff’s estimation, the dealerships provided her with a replacement vehicle about 80 % of the

time.

Defendant does not dispute that the various defects were not repaired in a reasonable time

or a reasonable number of attempts. On February 2, 2004, plaintiff filed a two-count complaint

against defendant seeking to revoke her acceptance of the vehicle under the Magnuson-Moss Act

and seeking damages for breach of express written warranty and the implied warranty of

merchantability. In July 2005, plaintiff traded in the ML 500, which she had driven 25,254 miles,

toward the purchase of a 2005 Lexus RX 330 sport utility vehicle at McGrath Lexus. Plaintiff

received a trade-in allowance of $24,400 for the ML 500.

2 Nos. 1-06-0262 and 1-06-1266 (consolidated)

The sole evidence of the vehicle’s diminished value was plaintiff’s lay opinion testimony,

over the defense’s objection, as to how much the ML 500 was worth when she bought it:

“If I would have known I had to go what I’ve gone through for this Court, I have

explained it, I would not have paid anything for this car. But I recognize that I

have had the ability to drive the car for very basic purposes, and I think that that

adds some value to the car.”

Plaintiff was asked her opinion of the value of the ML 500 “when she bought it, on the

date that [she] bought it, knowing what you know now.” The following colloquy occurred:

“A. I would not pay more than half price. I would not pay more than what

I traded my other Mercedes for.

Q. Now, you say you would not pay more than half. Does that give you

an opinion as to what you believe it was worth? What is your opinion as to what it

was worth?

A. Probably about $25,000. I’m just pulling you a number out of my head.

About 50 percent of what I paid.”

The defense objected that plaintiff’s testimony was speculative and lacking in foundation.

Plaintiff then stated:

“That’s not how I meant it. I meant it what 50 percent was [sic] of what I paid. I

don’t remember the exact number that I paid for that.”

The trial court heard the parties’ arguments as to the defense objection, and the court

allowed plaintiff’s counsel to ask “clarifying questions” about plaintiff’s testimony:

3 Nos. 1-06-0262 and 1-06-1266 (consolidated)

“Q. Mrs. Rose, when you said $25,000 what is it that you meant by that?”

A. 50 percent of what I paid.
Q. Okay. You paid $47,000; is that correct?
A. Correct.
Q. Doing the math, then, is your opinion that the vehicle was worth

$23,500?

A. If that’s 50 percent, yes.”

When asked the basis for that opinion, plaintiff described her trade-in of a Mercedes for

$29,000 when she bought the ML 500. Plaintiff stated that she drove the first Mercedes for 3½

years and it had more miles on it than the ML 500 did at trade-in. Plaintiff testified that her

opinions were based on “the research I’ve done, the salespeople I talked to, and everything I did

to become an educated consumer.” Over continued defense objections, the court stated that it

accepted plaintiff’s testimony as a lay opinion, ruling that the defense arguments would “go

towards [the] weight” to be given that testimony.

The defense presented, among other evidence, the testimony of Frank Tabachka, formerly

a salesperson and manager at McGrath Lexus. Tabachka’s duties included appraising the value of

automobiles, and he appraised plaintiff’s ML 500 at trade-in. The wholesale value of the ML 500

was $25,000, and the dealership gave a $24,400 trade-in allowance toward the Lexus. Tabachka

testified that $24,400 was the fair market value of the ML 500. Over plaintiff’s objection,

Tabachka testified that the $25,000 appraisal for the ML 500 was not based on the vehicle’s

service history or mechanical condition.

4 Nos. 1-06-0262 and 1-06-1266 (consolidated)

At the close of evidence, the trial court concluded that defendant breached its express and

implied warranties to plaintiff. The court awarded plaintiff “diminished value damages” of

$8,000. The court accepted plaintiff’s lay opinion testimony, finding that it met the foundational

factors set out in Kim v. Mercedes-Benz U.S.A., Inc., 353 Ill. App. 3d 444, 818 N.E.2d 713

(2004). The court noted plaintiff’s testimony that she researched the vehicle and applied that

research to her valuation of the car on the date it was purchased, compared to the value of the car

had it been as warranted. The court stated that it did not award damages to plaintiff for loss of

use, aggravation or inconvenience, but rather, in arriving at the damage award, the court

considered the mileage accumulated on the car and the benefit of the repairs that were performed.

On December 21, 2005, the trial court entered judgment for plaintiff for breach of express

and implied warranties, and the court awarded plaintiff $8,000 in damages. On March 29, 2006,

the court granted plaintiff’s claim for attorney fees and costs in the amount of $31,565.65.

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