Seekings v. Jimmy GMC of Tucson, Inc.

638 P.2d 223, 131 Ariz. 1
CourtCourt of Appeals of Arizona
DecidedJune 9, 1981
Docket2 CA-CIV 3638
StatusPublished
Cited by3 cases

This text of 638 P.2d 223 (Seekings v. Jimmy GMC of Tucson, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seekings v. Jimmy GMC of Tucson, Inc., 638 P.2d 223, 131 Ariz. 1 (Ark. Ct. App. 1981).

Opinion

BIRDSALL, Judge.

This case involves the sale of a Beaver motor home to appellees Seekings. They filed a complaint alleging breach of contract, breach of express warranty, breach of implied warranty, fraud and consumer fraud. Upon request the trial court made findings of fact and conclusions of law. As relief appellees sought a declaration that appellant Jimmy GMC of Tucson, Inc. (Jimmy) had breached its contract of sale and that a contract be rescinded with resulting consequential and incidental damages. In the alternative appellees prayed for compensatory damages for breach of warranties from both appellants. They also prayed for punitive damages but none were awarded and that issue is not before us.

At the conclusion of the court trial appel-lees elected to seek rescission. 1 The trial court found that there were continuing and material defects in the unit which appellants, Jimmy and Beaver Coaches, Inc., and each of them, had been unable to cure. Further that there had been a revocation of acceptance and that appellants had jointly sold a defective product to appellees who were entitled to rescission. The court also awarded appellees incidental and consequential damages consisting of the trade in allowance for appellees’ former motor home, monies paid on the purchase price and certain warranties not included in the sale, and payments of licensing fees made by appellees. These damages totalled $14,-885.10 and judgment was entered against appellants jointly and severally for that amount and attorney’s fees. 2 Appellants were further ordered to hold appellees harmless on their financing obligation on the unit.

Both appellants have appealed from the judgment. Appellees have filed a cross appeal contending that the trial court erred in not awarding them “loss of use” damages and that attorney’s fees awarded them were inadequate. The trial court allowed them $3,465.00 for their attorney’s fees. They do not question this allowance insofar as it covers services through trial but contend they are entitled to an additional allowance for services in post-trial matters in the trial court. All parties seek attorney’s fees in this court.

We will comment upon the facts further as necessary while discussing the issues. Aside from attorney’s fees we believe there is only one issue between appellant Beaver and appellees which we need to address.

Is the purchaser of a motor home entitled to rescission and resulting consequential damages from the manufacturer where the unit was purchased from a retail dealer? We hold that he is not.

Although we held in Flory v. Silvercrest Industries, Inc., Ariz., 633 P.2d 424 (1980) 3 that despite a lack of privity between the buyer and manufacturer the manufacturer is liable to the buyer for damages resulting from a breach of implied warranty, that is not the issue now before us.

*3 We recognize that the trial court found that the manufacturer sub judice, “Beaver”, jointly sold this unit to appellees but we find this conclusion wholly unsupported by the evidence. The motor home was sold by appellant Jimmy, a retail dealer of recreational vehicles in Tucson, to appellees and was an ordinary retail transaction. Appellant Beaver manufactured the coach portion of the unit and fitted it into the cab and chassis of a Dodge truck. It fabricated and furnished all of the “living unit” of the motor home. It then sold it to Jimmy in the regular course of their business for resale by the dealer. Beaver issued a written “Limited One Year Warranty” on the unit which was delivered to appellees by Jimmy at the time of the sale. Repairs and replacements under that warranty were to be made by authorized centers. Jimmy was such an authorized center and did attempt repairs on the unit for appellees on behalf of Beaver on several occasions after the sale.

There were no contacts between appellees and Beaver until long after the sale when appellees’ then attorney wrote Beaver concerning the complaints about the unit and Beaver replied. Later the attorney notified Beaver that appellees were revoking acceptance of the unit. The only theory by which Beaver could be found to be a seller is agency. There are no facts to support a conclusion that Jimmy acted as the agent of Beaver in the sale of the unit. Jimmy was Beaver’s agent only for the purpose of delivering Beaver’s warranty and servicing the unit.

Although this appears to be a case of first impression in Arizona and Durfee v. Rod Baxter Imports, Inc. (Minn.), 262 N.W.2d 349 (1978) is contrary authority, we are persuaded by the well-reasoned opinion in Conte v. Dwan Lincoln-Mercury, Inc., 172 Conn. 112, 374 A.2d 144 (1976). In that case the buyer brought an action against both the dealer-seller and the manufacturer on the same theories as the case sub judice. The Supreme Court of Connecticut set aside a verdict against the manufacturer on the theory of rescission. It found, as we do here, that there was no evidence that the manufacturer either sold or contracted to sell the automobile. The court quoted from the Restatement of Agency as follows:

“[NJormally dealers in new automobiles, although commonly spoken of as agents, are purchasers from the manufacturers, their only attribute as agents being authority to extend to the purchasers from them the limited warranty of the manufacturers.” Restatement (Second), 1 Agency § 14J, comment e; 1 Williston, Sales (4th Ed.) § 2-1.

See also Voytovich v. Bangor Punta Operations, Inc., 494 F.2d 1208 (6th Cir. 1974).

The issues as to appellant Jimmy are different. Jimmy does not dispute that under A.R.S. 44-2371 the buyer may revoke his acceptance of the motor home within a reasonable time if its non-conformity substantially impairs its value to him and such non-conformity has not been seasonably cured. In other words, the seller (Jimmy) does not argue that the buyer may not be entitled to rescind provided that he comes within the statute and that the seller is bound by an implied warranty of merchantability or fitness for a particular purpose as to which there has not been an effective disclaimer. See A.R.S. 44-2331. Appellant Jimmy argues, however, to have disclaimed effectively all warranties other than the manufacturer’s in accordance with A.R.S. 44-2333(B) which states:

“Subject to subsection C, to exclude or modify the implied warranty of merchantability or any part of it the language must mention merchantability and in case of a writing must be conspicuous, and to exclude or modify any implied warranty of fitness the exclusion must be by a writing and conspicuous. Language to exclude all implied warranties of fitness is sufficient if it states, for example, that ‘There are no warranties which extend beyond the description of the face hereof’.”

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Seekings v. Jimmy GMC of Tucson, Inc.
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Cite This Page — Counsel Stack

Bluebook (online)
638 P.2d 223, 131 Ariz. 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seekings-v-jimmy-gmc-of-tucson-inc-arizctapp-1981.