Schram v. Burrillville Chevrolet, Inc.

728 A.2d 457, 1999 R.I. LEXIS 104, 1999 WL 280964
CourtSupreme Court of Rhode Island
DecidedApril 29, 1999
DocketNo. 98-193-Appeal
StatusPublished

This text of 728 A.2d 457 (Schram v. Burrillville Chevrolet, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schram v. Burrillville Chevrolet, Inc., 728 A.2d 457, 1999 R.I. LEXIS 104, 1999 WL 280964 (R.I. 1999).

Opinion

OPINION

PER CURIAM.

Was a motor-vehicle dealer that leased an allegedly defective sport-utility vehicle (SUV) to two consumer lessees properly dismissed from the lessees’ Lemon Law1 action against the manufacturer of the SUV? For the reasons explained below, we answer this question in the negative and therefore vacate the Superior Court’s judgment dismissing the dealer from this lawsuit.

The plaintiffs, Alice A. Schram and James M. Schram, were the consumer lessees of an allegedly defective SUV. They appeal from a Superior Court judgment that entered pursuant to Rule 54(b) of the Superior Court Rules of Civil Procedure. The judgment dismissed their complaint against the defendant, Bur-rillville Chevrolet, Inc. d.b.a. Burrillville Chevrolet • Geo (dealer). We ordered the parties to show cause why we should not resolve this appeal summarily. After reviewing their respective submissions and listening to their oral arguments, we conclude no such cause has been shown and that we can decide the appeal without any further briefing and argument.

On May 9, 1996, plaintiffs leased a new 1996 Chevrolet Blazer from the dealer, an authorized representative of the vehicle’s manufacturer, defendant General Motors Corporation (GMC). On four or more occasions, plaintiffs brought their new SUV to the dealer for repairs due to excessive oil consumption. Claiming that the dealer failed to solve the SUV’s oil problem, plaintiffs filed a complaint against the dealer and GMC pursuant to G.L.1956 §§ 31-5.2-2, -3, and -5 of the Lemon Law and the Deceptive Trade Practices Act, G.L.1956 chapter 13.1 of title 6. Thereafter, the dealer filed a motion to dismiss plaintiffs’ complaint arguing that, as a matter of law, the court could not find it liable under the above-referenced statutory provisions. The dealer argued that its only obligation under the Lemon Law was to make the repairs necessary to conform the vehicle to the applicable warranties and that [459]*459only the SUV’s manufacturer — not the dealer — was subject to liability under these statutes.

A Superior Court motion justice granted defendant’s motion and entered judgment thereon. On appeal, plaintiffs contend that the motion justice erred in granting defendant’s motion, arguing that the ruling, in effect, “requires a consumer to return the non-conforming vehicle to the manufacturer.” Because GMC has denied that it was a foreign corporation licensed to do business in Rhode Island, plaintiffs claim that if we uphold this ruling, GMC will require them to return the vehicle to its plant in Detroit, Michigan, or to some other inconvenient place where GMC is doing business rather than to the dealer from which they leased the SUV. The plaintiffs suggest that such an interpretation of the Lemon Law, if allowed to stand, would severely undercut one of the purposes of this law — namely, to provide an expeditious and reasonable remedy to consumers. The crux of plaintiffs’ appeal asks us to determine whether the Lemon Law allows motor-vehicle buyers and lessees to sue the dealer from which they bought or leased the allegedly defective vehicle, or whether their cause of action in this respect is solely against the manufacturer. In their amended complaint, plaintiffs allege that both the dealer and GMC violated the Lemon Law and the Deceptive Trade Practices Act by failing to repair the SUV in conformity to the warranties, by refusing to accept return of their SUV, and by failing to refund the trade-in allowance and other expenses they incurred during the term of their lease.

The issue raised by plaintiffs requires this Court to interpret the applicable provisions of the Lemon Law. In construing a statute, we endeavor to determine and e éffectuate the Legislature’s intent when it enacted this law. See C & J Jewelry Co. v. Department of Employment and Training, Board of Review, 702 A.2d 384, 385 (R.I.1997). We ascertain the intent of the Legislature “by examining the language, the nature, and the object of the statute while giving its words their plain and ordinary meaning.” Id. (quoting Asadoorian v. Warwick School Committee, 691 A.2d 573, 578 (R.I.1997)). However, we have stated repeatedly that we will not construe a statute literally if to do so would lead to an absurd result or defeat its underlying purpose. See Providence Journal Co. v. Rodgers, 711 A.2d 1131, 1134 (R.I.1998).

The relevant sections of the Lemon Law are as follows. Section 31-5.2-2 outlines the manufacturers’ obligations to fulfill warranties. It states:

“If a motor vehicle does not conform to any applicable express or implied warranties, including, but not limited to, the implied warranty of merchantability as defined in § 6A-2-314 and the implied warranty of fitness for a particular purpose as defined in § 6A-2-315, and the consumer or lessee reports the nonconformity to the manufacturer of the vehicle, its agent, or its authorized dealer or lessor during the term of protection, the manufacturer, its agent or its authorized dealer shall effect such repairs as are necessary to conform the vehicle to the warranty, notwithstanding the fact that those repairs are made after the expiration of the term.”

Thus, the Lemon Law allows the consumer/buyer or lessee of the allegedly defective vehicle to notify either the dealer or the manufacturer of any alleged problems with the vehicle, whereupon the statute requires one of them to undertake the repairs necessary to conform the vehicle to the warranties. Section 31-5.2-3 then addresses the replacement of nonconforming vehicles. Section 31-5.2-3 provides, in pertinent part:

“If the manufacturer, its agent, or its authorized dealer or lessor does not conform the motor vehicle to any applicable express or implied warranty by curing any nonconformity after a reasonable number of attempts, the manufacturer shall accept return of the vehicle from the consumer or lessee and, at the consumer’s or lessee’s option, refund the full contract price or lease price of the vehicle including all credits and allowances for any trade-in vehicle, less a reasonable allowance for use, or replace it with a comparable new motor vehicle in good working order. A manufacturer replacing a motor vehicle [460]*460shall have thirty (30) calendar days from the date of return of the motor vehicle under the provisions of this chapter to deliver a comparable motor vehicle. If, within that thirty (30) days, no comparable motor vehicle has been delivered, the manufacturer shall refund the full contract price or lease price less a reasonable allowance for use. In instances in which a vehicle is replaced by a manufacturer under the provisions of this chapter, the manufacturer shall reimburse the consumer or lessee for any fees for the transfer of registration or any sales tax incurred by the consumer or lessee as a result of that replacement.” (Emphasis added.)

The dealer contends that as an authorized representative of GMC, it had an obligation to make the necessary repairs to bring the vehicle into conformance with the applicable warranties under § 31-5.2-2, a duty which it claims to have fulfilled in this case.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Providence Journal Co. v. Rodgers
711 A.2d 1131 (Supreme Court of Rhode Island, 1998)
Asadoorian v. Warwick School Committee
691 A.2d 573 (Supreme Court of Rhode Island, 1997)
C & J Jewelry Co. v. Department of Employment & Training
702 A.2d 384 (Supreme Court of Rhode Island, 1997)

Cite This Page — Counsel Stack

Bluebook (online)
728 A.2d 457, 1999 R.I. LEXIS 104, 1999 WL 280964, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schram-v-burrillville-chevrolet-inc-ri-1999.