Smith v. Reinhart Ford

68 Pa. D. & C.4th 432, 2004 Pa. Dist. & Cnty. Dec. LEXIS 217
CourtPennsylvania Court of Common Pleas, Lancaster County
DecidedSeptember 29, 2004
Docketno. CI-03-03183
StatusPublished
Cited by4 cases

This text of 68 Pa. D. & C.4th 432 (Smith v. Reinhart Ford) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Lancaster County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Reinhart Ford, 68 Pa. D. & C.4th 432, 2004 Pa. Dist. & Cnty. Dec. LEXIS 217 (Pa. Super. Ct. 2004).

Opinion

PEREZOUS, J.,

— This matter is before the court on preliminary objections filed by defendants, Reinhart Ford, Reinhart-Flynn Inc., Chadd M. Turnbull, Nicholas J. Reinhart, A1 Dempsey and Carl Reinhart (collectively referred to as Reinhart), against the complaint of the plaintiff, Alice Smith. Specifically, the defendants contend that: (1) plaintiff’s allegations contained in Counts I, III, and IV of the complaint fail to state a claim upon which relief can be granted because such claims are barred by the economic loss doctrine; (2) plaintiff’s claims for punitive damages should be stricken because such damages are not allowed under the alleged facts; and (3) plaintiff’s claims for attorney fees should be stricken. For the following reasons, this court sustains, in part, and overrules, in part, the first preliminary objection, and overrules the second and third preliminary objections.

This case arose from the plaintiff’s purchase of a 1999 Ford Explorer from the defendants. On or about February 28,2002, plaintiff entered into a purchase agreement with the defendants regarding the Explorer. The gravamen of plaintiff’s complaint is that the defendants defrauded her by making certain misrepresentations about the vehicle. [434]*434Plaintiff claims that the defendants sold her an Explorer that they knew or should have known was damaged in a prior accident, and concealed this information from her. Furthermore, she avers that the damage from the prior accident brings into question the safety and reliability of die vehicle, reduces its value, and necessitates constant repair and maintenance. Other misrepresentations alleged in the complaint concern the odometer reading, and the amount of mileage on the sport utility vehicle.

The plaintiff filed the complaint involved in this matter on or about April 21,2003. The complaint sets forth claims for relief based on theories of tort and contract law. Summarily, Count Í of the complaint includes claims for fraud based upon the defendants’ alleged misrepresentations. In Count II, plaintiff seeks relief on a breach of contract theory because of the defendants’ alleged failure to deliver the Explorer for which she contracted. Count III claims that the defendants were negligent in failing to take several measures. For instance, plaintiff claims that defendants negligently failed to discover defects in the vehicle, comply with state laws and regulations, hire and supervise competent personnel, and warn the plaintiff about the defects. In Count IV, plaintiff alleges a violation of Pennsylvania’s Unfair Trade Practices and Consumer Protection Law. Count V alleges a breach of the implied warranty of merchantability. Finally, Count VI includes a claim based upon a theory of negligent misrepresentation. On or about June 3, 2003, defendants filed preliminary objections to the complaint. The preliminary objections were re-filed on June 25, 2004.

Pennsylvania law is well-settled and, accordingly, “[preliminary objections in the nature of demurrers are to be sustained only where facts averred in a complaint [435]*435are clearly insufficient to establish the pleader’s right to relief.” HCB Contractors v. Liberty Place Hotel Associates, 539 Pa. 395, 397, 652 A.2d 1278, 1279 (1995). In determining whether to grant a demurrer, the court must accept as true all of the well-pleaded material facts set forth in the complaint and all of the inferences fairly deducible from those facts. Small v. Horn, 554 Pa. 600, 608, 722 A.2d 664, 668 (1998). When doubt exists as to whether a demurrer should be sustained, the doubt should be resolved in favor of overruling the demurrer. Green v. Mizner, 692 A.2d 169, 172 (Pa. Super. 1997). Therefore, in considering the present preliminary objections, the court accepts as trae all of the well-pleaded facts set forth in the complaint, and will resolve all doubts in favor of Ms. Smith.

In their initial preliminary objection, defendants demur to plaintiff’s claims for relief based upon theories of fraud, negligence and Pennsylvania’s Unfair Trade Practices and Consumer Protection Law (UTPCPL). Defendants contend that such claims are barred by the economic loss doctrine. This is not the case, however. The economic loss doctrine bars the plaintiff’s negligence claim, but the doctrine does not bar plaintiff’s fraud or UTPCPL claims. Therefore, this court sustains, in part, and overrules, in part, this preliminary objection.

First, the economic loss doctrine bars plaintiff’s negligence claim found in Count III of the complaint: In Pennsylvania, the doctrine “precludes recovery for economic losses in a negligence action where the plaintiff has suffered no physical or property damage.” First Republic Bank v. Brand, 50 D.&C.4th 329, 340 (2000). See e.g., Spivack v. Berks Ridge Corp. Inc., 402 Pa. Super. 73, 78, 586 A.2d 402, 405 (1990); Aikens v. Baltimore & Ohio R.R. Co., [436]*436348 Pa. Super. 17, 20, 501 A.2d 277, 279 (1985). When the doctrine applies, the plaintiff’s recovery for pure economic loss is limited to an action on the contract. New York State Electric and Gas Corporation v. Westinghouse Electric Corporation, 387 Pa. Super. 537, 551, 564 A.2d 919, 926 (1989). Such is the case when a product “fails to conform.” Id. The foundation of this doctrine rests in a “concern for maintaining the separate spheres of the law of contract and tort.” Id. at 550, 564 A.2d at 925 (citing East River S.S. Corp. v. Transamerica Delaval Inc., 476 U.S. 858, 870-73, 106 S.Ct. 2295, 90 L.Ed.2d 865 (1986)). Thus, when a plaintiff seeks recovery for pure economic harm, courts will not entertain a theory of recovery that is based on negligence.

Here, in Count III of plaintiff’s complaint, Ms. Smith sets forth a claim based solely on negligence. Based on the foregoing discussion, it is well settled in Pennsylvania that such a claim is barred by the economic loss doctrine. Thus, plaintiff’s averments in Count III fail to state a claim upon which relief can be granted, and defendants’ first preliminary objection is sustained, in part.

Second, the economic loss doctrine does not bar plaintiff’s fraud claim found in Count I of the complaint. Although Pennsylvania courts apply the doctrine to cases dealing with negligence, courts have chosen not to apply the doctrine in cases dealing with fraudulent misrepresentation. In First Republic Bank, the court noted, “[wjhile the economic loss doctrine applies to claims based on a defendant’s negligence, it is far from clear that the doctrine applies to intentional torts.” First Republic Bank, 50 D.&C.4th at 342. In determining whether to apply the doctrine, that court recognized that some courts have broadened the doctrine’s scope to include tortious behav[437]*437ior other than negligence. Id.

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Bluebook (online)
68 Pa. D. & C.4th 432, 2004 Pa. Dist. & Cnty. Dec. LEXIS 217, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-reinhart-ford-pactcompllancas-2004.