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

750 N.E.2d 531, 92 Ohio St. 3d 327
Ohio Supreme Court·Decided June 28, 2001·No. No. 00-1076·Published·Cited by 23 cases

Opinions

Pfeifer, J.

In this case, we address Ohio’s Lemon Law, specifically the portion of R.C. 1345.73 that addresses whether a manufacturer has had a reasonable opportunity to repair a defective automobile. We hold that a consumer enjoys a presumption of recovery under R.C. 1345.73(B) if his or her vehicle is out of service by reason of repair for a cumulative total of thirty or more calendar days in the first year of ownership regardless of whether the vehicle was successfully repaired at some point beyond that thirty-day period.

Factual and Procedural Background

The facts here are not in dispute. On February 3,1996, appellant Kimberly G. Royster leased a new 1996 Toyota 4-Runner at the Toyota on the Heights dealership in Cleveland Heights, Ohio. The vehicle was warranted by appellee, Toyota Motor Sales U.S.A., Inc. (“Toyota”). Toyota issued Royster a three-year/thirty-six-thousand-mile warranty on the vehicle. Approximately nine months after gaining possession of the vehicle, on November 7, 1996, Royster noticed that it was leaking a red fluid. The vehicle was towed to the dealership that day. At that time it had an odometer reading of approximately 10,129 miles.

The dealership determined that the 4-Runner had a leaking head gasket that needed to be replaced. However, the dealership had difficulty locating the correct part. Thus, the dealership did not complete the repair until December [328]*32831, 1996, after the vehicle had been unavailable to Royster for fifty-five days. Toyota on the Heights had provided Royster with a used Toyota Camry as a loaner at no charge beginning on November 15,1996.

On January 6, 1997, Royster returned the vehicle to the dealership to correct problems with the paint on a door and with the brakes. The brakes required resurfacing due to disuse during the extended repair period. The repairs were made, and Royster picked up her vehicle. After that, Royster experienced no further mechanical difficulties with the 4-Runner.

On May 30, 1997, Royster filed a Lemon Law claim against Toyota. Both parties filed motions for summary judgment. On June 9, 1998, the trial court granted Royster’s motion. The court held that Royster had demonstrated her right to recovery based upon the Lemon Law’s presumption in favor of recovery if a vehicle is “out of service by reason of repair for a cumulative total of thirty or more calendar days” in the first year of ownership. The court awarded her and her lienholder $38,565.54 and also entered an additional $7,649 judgment against Toyota for Royster’s attorney fees. Toyota appealed the ruling.

The Eighth District Court of Appeals overturned the trial court’s decision. The court held that the trial court had erred in finding that the car’s fifty-five days out of service created a presumption of recovery for Royster under the Lemon Law. The appellate court held that the dealership made a reasonable number of attempts to repair the vehicle and was ultimately ■ successful in conforming the car to its warranty. The court reasoned that Royster would have had a valid Lemon Law claim only if the vehicle had not conformed to its warranty after the dealership’s “reasonable number of repair attempts.” The cause is before this court upon the allowance of a discretionary appeal.

Law and Analysis

The car-buying experience may be the most complicated mating dance in all of the animal world. It seems a given that both parties must engage in half-truths (“I don’t know if I can afford this”), double meanings (“Let’s see if we can make the numbers work”), semantic gymnastics (“Priced below invoice”), expressions of powerlessness (“Let me talk to my manager”/“Let me talk to my spouse”), and white lies (“I’m talking to someone at another dealership”) before the relationship finally culminates in a deal. Once the deal for a new automobile is complete, however, the clear language of the General Assembly takes over, without any hidden meanings or purposely confusing wordplay.

Ohio’s Lemon Law is designed to protect consumers from chronically defective new automobiles. It requires new vehicles to live up to warranties given by manufacturers. The Lemon Law attaches a clear duty to sellers, and provides a clear remedy to buyers should the seller breach its duty.

[329] Pursuant to R.C. 1345.72(A), a vehicle must abide by its warranty, and if the condition of the automobile does not meet what is warranted, the seller must repair it:

“If a new motor vehicle does not conform to any applicable express warranty and the consumer reports the nonconformity to the manufacturer, its agent, or its authorized dealer during the period of one year following the date of original delivery or during the first eighteen thousand miles of operation, whichever is earlier, the manufacturer, its agent, or its authorized dealer shall make any repairs as are necessary to conform the vehicle to such express warranty, notwithstanding the fact that the repairs are made after the expiration of the appropriate time period.”

While R.C. 1345.72(A) attaches a clear duty on sellers and gives them the opportunity to preclude recovery by making prompt repairs, R.C. 1345.72(B) provides consumers a swift and simple remedy should the car not be made right within a reasonable number of attempts. During the time at issue R.C. 1345.72(B) stated:

“(B) If the manufacturer, its agent, or its authorized dealer is unable to conform the motor vehicle to any applicable express warranty by repairing or correcting any defect or condition that substantially impairs the use, safety, or value of the motor vehicle to the consumer after a reasonable number of repair attempts, the manufacturer shall, at the consumer’s option, and subject to division (D) of this section replace the motor vehicle with a new motor vehicle acceptable to the consumer or accept return of the vehicle from the consumer and refund each of the following:

“(1) The full purchase price including, but not limited to, charges for undercoating, transportation, and installed options;

“(2) All collateral charges, including but not limited to, sales tax, license and registration fees, and similar government charges;

“(3) All finance charges incurred by the consumer;

“(4) All incidental damages, including any reasonable fees charged by the lender for making or canceling the loan.” 1987 Am.Sub.H.B. No. 232, 142 Ohio Laws, Part II, 3011.

Thus, if a manufacturer cannot repair a new automobile after a reasonable number of attempts, a buyer may request a refund or a replacement. Lest there be a doubt, and subsequent exhaustive litigation, as to what constitutes “a reasonable number of repair attempts,” R.C. 1345.73 sets limits. During the time at issue it provided:

“It shall be presumed that a reasonable number of attempts have been undertaken by the manufacturer, its dealer, or its authorized agent to conform a [330] motor vehicle to any applicable express warranty if, during the period of one year following the date of original delivery or during the first eighteen thousand miles of operation, whichever is earlier, any of the following apply;

“(A) Substantially the same nonconformity has been subject to repair three or more times and continues to exist;

“(B) The vehicle is out of service by reason of repair for a cumulative total of thirty or more calendar days;

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Royster v. Toyota Motor Sales, U.S.A., Inc., 750 N.E.2d 531, 92 Ohio St. 3d 327 (Ohio 2001).

750 N.E.2d 531 (Royster v. Toyota Motor Sales, U.S.A., Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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