Silver, B. v. Porsche of the Main Line

Superior Court of Pennsylvania·Decided March 10, 2015·No. 1057 EDA 2014·Unpublished

Opinion

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

BRETT SILVER IN THE SUPERIOR COURT OF PENNSYLVANIA

Appellant

v.

PORSCHE OF THE MAIN LINE AND ROBERT DISTANISLAO

Appellee No. 1057 EDA 2014

Appeal from the Order Entered February 27, 2014 In the Court of Common Pleas of Bucks County Civil Division at No(s): 2013-01615

BEFORE: LAZARUS, J., MUNDY, J., and PLATT, J.* MEMORANDUM BY MUNDY, J.: FILED MARCH 10, 2015 Appellant, Brett Silver, appeals from the February 27, 2014 order sustaining the preliminary objections filed by Appellees, Porsche of the Main Line (the Dealer) and Robert DiStanislao, to Silver’s amended complaint. After careful review, we affirm.

We summarize the facts and procedural history of this case as follows.

On October 8, 2012, Silver entered into a purchase order contract with the Dealer for a used 2009 Ferrari 599 GTB (Ferrari) for the purchase price of $232,630.56. Appellant’s First Amended Complaint, 4/30/13, at ¶¶ 6, 9. Silver and the Dealer had engaged in several prior sales transactions for

*

Retired Senior Judge assigned to the Superior Court.

other vehicles without incident. Id. at ¶ 26. At the time the parties entered into the purchase order contract, the Dealer did not have the Ferrari in its inventory or on its lot. Id. at ¶ 10. Instead, DiStanislao, the principal shareholder of the Dealer, located a number of comparable vehicles at Silver’s request, and Silver selected the Ferrari from those vehicle listings. Id. at ¶¶ 27-31. Silver alleges that DiStanislao made various representations about the condition of this Ferrari, including, in part, that it had no prior history of damage or paintwork. Id. at ¶ 31.

There is no dispute that Silver and the Dealer entered into the purchase order contract on October 8, 2012. Preliminary Objections of Appellees to Appellant’s First Amended Complaint, 5/20/13, at ¶ 1, Exhibit A; Appellant’s Answer to Preliminary Objections of Appellees, 6/21/13, at ¶ 1. The contract indicates that Silver is purchasing a used 2009 Ferrari 599 GTB. Preliminary Objections of Appellees to Appellant’s First Amended Complaint, at Exhibit A (Purchase Order Contract). Under the “Additional Equipment” section of the purchase order, it states “AS-IS NO WARRANTY.” Id. Further, the purchase order contains a separate box labeled “WARRANTY INFORMATION” that is set off from the rest of the contract with the following “AS IS” provision, “AS IS – This motor vehicle is sold ‘AS IS’ without any warranty either expressed or implied. The purchaser will bear the entire expense of repairing or correcting any defect that presently exists or that may occur in the vehicle.” Id. (emphasis in original). Directly below

that provision in the warranty information box is a signature line, which Silver signed separately. Id. Moreover, the purchase order contains an integration clause specifying, in relevant part, as follows.

Purchaser agrees that this order includes all of the terms and conditions on both the face and reverse side hereof, that this order cancels and supercedes any prior agreement and as of the date hereof comprises the complete and exclusive statement of the terms of agreement relating to the subject matters covered hereby.

Id. Silver and the Dealer’s representative endorsed the contract on the signature line directly below the foregoing clause. Id.

Thereafter, the Dealer purchased the vehicle from a third-party dealer, who then delivered it to the Dealer. Appellant’s First Amended Complaint, 4/30/13, at ¶¶ 31-32. The Dealer inspected the Ferrari, and Silver accepted delivery and took possession of the vehicle on October 20, 2012. Id. at ¶ 35-36, 40. On the same day, Silver drove the Ferrari to a third-party Ferrari dealer, Algar Ferrari (Algar). Id. at ¶ 41. Silver visited Algar to inspect a different vehicle he had ordered that was being prepared for shipment to his vacation home in Florida. Id. While at Algar, an Algar representative noticed that several locations of Silver’s Ferrari exhibited signs of damage to the clear coat1 as well as evidence of repainting. Id. at ¶¶ 42-45. Silver

1 The clear coat is a glossy, transparent coating applied over the basecoat to protect it from abrasion and ultraviolet light.

claims this cosmetic damage significantly impairs the value of the Ferrari. Id. at ¶¶ 23-25. After discovering the damage, Silver contacted the Dealer and DiStanislao, who inspected the Ferrari and offered to accept it back in exchange for full market value as long as Silver used the credit to purchase another vehicle from DiStanislao. Id. at ¶ 52. Silver rejected this proposal and instituted the instant action. Id. at ¶ 53.

On March 6, 2013, Silver filed his complaint. Thereafter, on April 30, 2013, Silver filed his amended complaint in response to Appellees’ initial preliminary objections. In count one of his amended complaint, Silver claims Appellees made fraudulent representations by failing to provide a true description of the condition of the vehicle, upon which representations Silver reasonably relied in deciding to purchase the vehicle. Id. at ¶¶ 61-81. In count two of his amended complaint, Silver avers Appellees violated the Pennsylvania Unfair Trade Practices and Consumer Protection Law (UTPCPL), 73 P.S. §§ 201-1 to 201-9.3, by misrepresenting the condition of the vehicle. Id. at ¶¶ 82-100. In count three, Silver alleges Appellees contravened the federal Magnuson-Moss Warranty Improvement Act, 15 U.S.C. §§ 2301-2312, by not honoring express warranties as well as those implied by Pennsylvania law. Id. at ¶¶ 101-112. In count four, Silver asserts Appellees violated the Pennsylvania Uniform Commercial Code (UCC) by delivering a vehicle that did not conform to the material terms of the sale. Id. at ¶¶ 113-122. In count five, Silver contends Appellees

negligently misrepresented the history and condition of the vehicle. Id. at ¶¶ 123-136.

Thereafter, on May 20, 2013, Appellees filed preliminary objections to the amended complaint in the nature of demurrers and a motion to strike. Appellees first argued that DiStanislao could not be held personally liable for his conduct that was within the scope of his employment, agency, and authority as the primary shareholder of the Dealer. Appellees’ Preliminary Objections to Appellant’s First Amended Complaint, 5/20/13 at 8-9. Next, Appellees contended that the combination of the “as is” warranty and the integration clause in the purchase order rendered Silver’s claims legally insufficient as any oral representations would be impermissible parol evidence. Id. at 10-23. Further, Appellees claimed that the tort claims based on fraudulent conduct in counts one, two, and five were barred by the “economic loss doctrine,” which prevents plaintiffs from recovering in tort for claims that arise solely out of a breach of contract. Id. at 23-27. Finally, Appellees moved to strike the demands for punitive damages because Appellees’ alleged conduct would not support the imposition of said damages. Id. at 27.

In its February 27, 2014 order,2 the trial court sustained Appellees’

preliminary objections. On March 26, 2014, Silver filed a timely notice of appeal and a concise statement of errors complained of on appeal pursuant to Rule 1925(b) of the Pennsylvania Rules of Appellate Procedure. On May 28, 2014, the trial court filed its opinion pursuant to Rule 1925(a). In its opinion, the trial court explained that it sustained the demurrers to holding DiStanislao individually liable and to all of the counts against the Dealer based on the “as is” warranty combined with the integration clause. 3 Trial Court Opinion, 5/28/14, at 1-2.

On appeal, Silver raises the following issues for our review.

Is Appellant entitled to a reversal of the trial court’s ruling when, applying Pennsylvania law, the trial court abused its discretion and/or misapplied the law by:

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