Smith v. Max Thieme Chevrolet Company, Inc.

315 So. 2d 82
CourtLouisiana Court of Appeal
DecidedApril 1, 1975
Docket12546
StatusPublished
Cited by32 cases

This text of 315 So. 2d 82 (Smith v. Max Thieme Chevrolet Company, Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Max Thieme Chevrolet Company, Inc., 315 So. 2d 82 (La. Ct. App. 1975).

Opinion

315 So.2d 82 (1975)

Robert N. SMITH, Plaintiff-Appellant,
v.
MAX THIEME CHEVROLET COMPANY, INC. and General Motors Corporation, Defendants-Appellees.

No. 12546.

Court of Appeal of Louisiana, Second Circuit.

April 1, 1975.

*84 Gahagan & Gahagan, by Henry C. Gahagan, Jr., Natchitoches, for plaintiff-appellant.

Polk, Foote, Randolph, Percy & Ledbetter by Edward G. Randolph, Jr., Alexandria, for General Motors, Inc.

James L. Womack, Winnfield, for Max Thieme Chevrolet Co., Inc.

Before BOLIN, HALL and DENNIS, JJ.

DENNIS, Judge.

This is a redhibitory action. Plaintiff, an architect, bought for use in his profession a new 1972 Chevrolet pickup truck from defendant automobile dealer, Max Thieme Chevrolet Company, Inc. for a price of $2,921.88, including sales taxes, with funds which the plaintiff had borrowed from his bank. The dealer had acquired the truck from defendant manufacturer, General Motors Corporation. Plaintiff began to discover defects in the truck immediately after the sale. The major vices consisted of water leaks in the cab, severe vibration of the transmission, and overheating of the engine. He attempted for some time to have the defects corrected before seeking to rescind the sale. During this period he made limited use of the truck and drove it approximately 15,000 miles.

*85 Plaintiff sued the dealer and the manufacturer, alleging the existence of redhibitory defects rendering the truck unfit for use in his practice, and prayed for a recission of the sale, return of the purchase price, reimbursement of finance charges and other expenses occasioned by the sale, and attorney's fees. After a trial on these issues, the district court found that the vehicle was so defective the buyer would not have purchased it with knowledge of the defects. Judgment was rendered rescinding the sale, awarding plaintiff $2,921.88, which is the aggregate of the purchase price and sales taxes, but rejecting plaintiff's claims for attorney's fees and finance charges, and granting defendants a credit of $1,200 against the judgment as compensation for plaintiff's use of the truck.

Plaintiff appealed contending the trial court erred in awarding defendants a credit against the judgment as compensation for his use of the vehicle, and in failing to award plaintiff attorney's fees and repayment of finance charges. Defendants did not appeal.

1. Plaintiff's Right To Rescind The Sale

In Louisiana sales, the seller is bound by an implied warranty that the thing sold is free of hidden defects and is reasonably fit for the product's intended use. C.C. Arts. 2475, 2476, 2520; Rey v. Cuccia, 298 So.2d 840 (La.Sup.Ct.1974). A redhibitory defect entitling the buyer to annul the sale is a defect in a thing sold "which renders it either absolutely useless, or its use so inconvenient and imperfect, that it must be supposed that the buyer would not have purchased it, had he known of the vice." Article 2520. The buyer must prove that the defect existed before the sale was made to him. Article 2530. Rey v. Cuccia, supra.

The trial court held that plaintiff proved these essential elements of his case, and defendants did not appeal. Therefore, in our consideration of the proceedings, we begin with the premise that plaintiff is entitled to a recission of the sale and to all other consequences which flow from a successful redhibitory action.

2. Attorney's Fees

The Civil Code draws a basic distinction between sellers with and without knowledge of the defects of the thing sold in providing for the measure of their liability in redhibitory actions. It provides:

"Art. 2531. The seller who knew not the vices of the thing, is only bound to restore the price, and to reimburse the expenses occasioned by the sale, as well as those incurred for the preservation of the thing, unless the fruits, which the purchaser has drawn from it, be sufficient to satisfy those expenses. (Prior to amendment by Acts 1974, No. 673, § 1.)[1]
*86 * * * * * *
"Art. 2545. The seller, who knows the vice of the thing he sells and omits to declare it, besides the restitution of the price and repayment of the expenses, including reasonable attorneys' fees, is answerable to the buyer in damages."

The trial judge determined that Max Thieme Chevrolet Company, Inc. was without knowledge of the vices of the truck at the time of the sale. Plaintiff does not question this finding of fact. Therefore, the dealer was bound only to restore the price and the expenses of the sale in accordance with C.C. Art. 2531, and the trial court's rejection of a judgment for attorneys' fees against Max Thieme Chevrolet Company, Inc. was not erroneous.

The record contains evidence to the effect that the malfunction of the transmission and the leaks in the cab of the truck were due to defects in their manufacture. In his written reasons for judgment the trial judge expressly found that the problem in the transmission was "chargeable to General Motors, the manufacturer of this vehicle." Because General Motors Corporation did not appeal from the judgment below, it has been established for purposes of our review that at least one redhibitory defect in the manufacture or design of the truck existed at the time the manufacturer sold it to the dealer.

Recently the Louisiana Supreme Court held that a consumer may recover from the manufacturer for pecuniary loss resulting from the purchase of a new automobile that proves unfit for use because of latent defects, even if there is no privity between the consumer and the manufacturer. Media Production Consultants v. Mercedes-Benz of N. A., Inc., 262 La. 80, 262 So.2d 377 (1972). In a later case the court made it clear that the consumer's cause of action is for the most part governed by Civil Code principles pertaining to the redhibitory action. Rey v. Cuccia, supra.

There are apt to be conceptual difficulties in this marriage of the modern consumer protection policy and the redhibitory action, which was conceived in the context of a simpler market. We find, however, that one of the thorny problems, with which we were prepared to deal, viz., whether the manufacturer must pay attorneys' fees, has been resolved. It was established in Media Production Consultants, Inc. v. Mercedes-Benz of N. A., Inc., supra, that the manufacturer may be held solidarily liable for performance of the dealer's obligations to restore the retail price and expenses of the sale as provided by Article 2531. In Rey v. Cuccia, supra, the Supreme Court held that in addition to his solidary obligations the manufacturer is liable to the consumer for attorneys' fees. This conclusion was based on the jurisprudential rule that the manufacturer is presumed to know of the defects in the thing made by him, and consequently, is liable under Article 2545 for damages and attorneys' fees, in addition to restitution of the price and repayment of the expenses of the sale. Radalec, Incorporated v. Automatic Firing Corporation, 228 La. 116, 81 So.2d 830 (1955); Tuminello v. Mawby, 220 La. 733, 57 So.2d 666 (1952); George v. Shreveport Cotton Oil Company, 114 La. 498, 38 So. 432 (1905). Thus the manufacturer's liability will be measured by Article 2531 and Article 2545 when a consumer successfully sues both the dealer and the manufacturer in redhibition. Compare, however, concurring opinion of Dixon, J., Media Production Consultants v. Mercedes-Benz of N. A., Inc., supra; Casenote, 47 Tul.L.Rev. 473 (1973).

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