Sergey Krayev v. David J. Johnson, Jr.

CourtCourt of Appeals of Georgia
DecidedApril 21, 2014
DocketA14A0233
StatusPublished

This text of Sergey Krayev v. David J. Johnson, Jr. (Sergey Krayev v. David J. Johnson, Jr.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sergey Krayev v. David J. Johnson, Jr., (Ga. Ct. App. 2014).

Opinion

THIRD DIVISION BARNES, P. J., BOGGS and BRANCH, JJ.

NOTICE: Motions for reconsideration must be physically received in our clerk’s office within ten days of the date of decision to be deemed timely filed. http://www.gaappeals.us/rules/

April 21, 2014

In the Court of Appeals of Georgia A14A0233. KRAYEV et al. v. JOHNSON.

BARNES, Presiding Judge.

This dispute over the purchase of a used car went to trial, and the jury returned

a verdict in favor of the purchaser, David J. Johnson, Jr., and against the sellers,

Sergey Krayev and Elite Motor Sports, LLC (collectively, “Krayev”). Among other

things, the jury found that Johnson had rescinded the purchase agreement for fraud

and awarded him $10,500 in actual damages and $12,500 in punitive damages. After

the jury reached its verdict, the trial court conducted an evidentiary hearing and found

that Johnson was entitled to $63,702.53 in attorney fees and expenses. Krayev now

appeals from the trial court’s entry of final judgment, contending that the court erred

in denying his motion for a directed verdict on Johnson’s claims for rescission and

attorney fees. Krayev further contends that the trial court’s award of attorney fees was

improper because Johnson failed to show which fees were attributable solely to his

rescission claim. For the reasons stated below, we affirm. Following a jury verdict, we view the evidence “in a light most favorable to the

prevailing party with every presumption and inference in favor of sustaining the

verdict.” (Citation omitted.) Moore v. Stewart, 315 Ga. App. 388 (727 SE2d 159)

(2012). So viewed, the evidence shows that on August 26, 2011, Johnson purchased

a used BMW from Krayev. The purchase agreement signed by the parties provided

that Johnson would make a down payment of $10,000 and 20 monthly payments of

$753.61 beginning in October 2011. The purchase agreement also included a merger

clause that stated: “This Agreement constitutes the entire agreement and

understanding between the parties and there are no other representations, agreements

or understandings by or between the parties.”

Before the parties signed the purchase agreement, Krayev told Johnson that he

owned Elite Motor Sports, which he said “dealt in high end cars.” Krayev also gave

Johnson an emissions inspection report for the BMW from July 2011 that showed that

the car had passed its most recent emissions test. Krayev assured Johnson that the

BMW was in “great condition” and discouraged him from consulting with an

independent mechanic because he “had just had the car checked out.” Krayev further

assured Johnson that although he did not have the certificate of title to the BMW with

him, he would deliver it to Johnson the next day. Based on his conversation with

2 Krayev, Johnson signed the purchase agreement, paid the $10,000 down payment to

him, and took possession of the BMW.

Immediately following the sale, Johnson bought new tires and rims for the

BMW. Hours later, the BMW broke down, and Johnson had the car towed to his

house. The next day, Johnson had an emissions inspection performed on the BMW

and had two automobile repair shops inspect the car. The BMW failed the emissions

test and was diagnosed with a defective transmission and catalytic converter. Johnson

obtained an estimate from one of the repair shops indicating that it would cost

between $4,500 and $6,000 for a transmission “overhaul.” Moreover, Krayev failed

to deliver the certificate of title to Johnson that day as he had promised.

Johnson called Krayev to discuss the problems with the BMW, but Krayev did

not answer the phone or return his voice message. Unable to reach Krayev by phone,

Johnson wrote a letter to Krayev and Elite Motor Sports on August 28, 2011 that

described the problems with the BMW and requested that Krayev agree to pay for all

of the necessary repairs. Johnson’s letter further stated: “If I can’t have all [of] these

problems corrected, I want a full refund of my down payment and would like to

terminate our contract[.]” Johnson also hired an attorney, who wrote a second letter

3 to Krayev regarding the BMW. Additionally, Johnson tried to stop payment on the

check for $10,000 that he had written to Krayev, but the check had already cleared.

Krayev called Johnson in response to the two letters. Johnson “asked him to

take the car back” and return his down payment of $10,000 if he would not repair the

car, but Krayev refused. Krayev was upset that Johnson had hired an attorney and told

him, “This is not Wal-Mart, so you can’t just return things, you know, if they don’t

work properly.” Consequently, Johnson continued driving the BMW.

During September 2011, the BMW would drive normally for a few days before

breaking down. Johnson had the car towed three times that month and paid for several

additional repairs, but not the expensive repairs needed to correct the transmission

and catalytic converter. Furthermore, because Krayev never provided him with the

certificate of title, Johnson was unable to get a permanent license tag for the car or

obtain insurance during this time period. Finally, in late September 2011, Johnson

stopped driving the BMW altogether. He made the first monthly payment of $753.61

in October 2011 but then refused to make any additional payments in light of the

problems with the car.

Johnson had several conversations with Krayev about the problems with the

BMW in an effort to resolve the matter before the instant lawsuit was filed. During

4 these conversations, Johnson offered to return the BMW in exchange for a refund of

his money. But Krayev refused to give Johnson his money back while at the same

time refusing to pay for any repairs to the car. Instead, Krayev demanded that Johnson

unconditionally return the BMW to him because Johnson had stopped making the

monthly payments, but Johnson refused to return the car until Krayev refunded his

purchase money.

In December 2011, Johnson, who was no longer represented by counsel, filed

suit pro se in the Fulton County Magistrate Court against Krayev, alleging in his

Statement of Claim that the purchase agreement was “illegal,” that the parties had

engaged in a “failed transaction,” and that Krayev had improperly refused to refund

his $10,000 down payment. Krayev removed the case to superior court and asserted

counterclaims against Johnson for trover, conversion, breach of the purchase

agreement, trespass to chattel, unjust enrichment, attorney fees, and punitive damages

and asked the court to issue a writ of possession. In August 2012, the superior court

issued a writ of possession against Johnson, who then returned the car to Krayev.

In October 2012, Johnson retained new counsel to represent him in the

litigation, and the following month, his counsel filed an amended complaint that

added Elite Motor Sports as a defendant and added several claims, including claims

5 for breach of implied and express warranties, fraud, negligent misrepresentation,

violation of the Fair Business Practices Act (the “FBPA”), attorney fees and expenses

under OCGA § 13-6-11, and punitive damages.1 In December 2012, Johnson’s

counsel filed a second amended complaint, formally adding claims for breach of the

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