State Ex Rel. Tierney v. Ford Motor Co.

436 A.2d 866, 1981 Me. LEXIS 1001
CourtSupreme Judicial Court of Maine
DecidedNovember 3, 1981
StatusPublished
Cited by20 cases

This text of 436 A.2d 866 (State Ex Rel. Tierney v. Ford Motor Co.) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Tierney v. Ford Motor Co., 436 A.2d 866, 1981 Me. LEXIS 1001 (Me. 1981).

Opinion

ROBERTS, Justice.

This action arises from the sale of automobiles manufactured by the defendant, Ford Motor Company (Ford), to Maine residents and consumers. Following the Superior Court’s denial of its motion to dismiss, Ford, as an “aggrieved party,” moved the Superior Court pursuant to M.R.Civ.P. 72(c) to report the case to the Law Court. 1 The Superior Court granted Ford’s motion to report the case over the Attorney General’s opposition on the grounds that the issues presented were of sufficient doubt and importance to justify report to this Court. We reverse in part the ruling of the Superi- or Court.

I. Factual Background

The Attorney General commenced two actions against Ford in 1979. 2 Both actions are predicated upon claims that between 1974 and 1977 Ford vehicles were sold to Maine buyers in defective condition; that Ford included misleading maintenance specifications with the vehicles; and that Ford later failed to repair the vehicles. The Attorney General alleges Ford vehicles were sold with latent defects including piston scuffing, piston slapping, excessive camshaft and rocker arm wear, cracked engine blocks and other “malfunctioning conditions.” These alleged defects may lead to shortened engine life and the possibility of premature major engine repair.

The initial complaint brought by the Attorney General, CV 79-415 (415), contains five counts against Ford. Three of the five *869 counts, Counts One, Two and Four, allege violations of the Maine Unfair Trade Practices Act (UTPA), 5 M.R.S.A. §§ 206-214. 3 Count Three alleges that Ford’s improper lubricant specifications constituted a false material representation which injured buyers of its products. Count Five is a class action claim wherein the State, relying on the aforementioned grounds, seeks to bring a class action on behalf of the consumers injured by Ford’s acts and omissions.

The second complaint before us, CV 79— 737 (737) contains three counts against Ford. Counts One and Three allege Ford’s breach of warranty, failure to honor the warranty and improper lubricant specifications constitute violations of Maine’s UTPA. Count Two alleges the improper lubricant specifications constitute false material representations.

Ford, pursuant to M.R.Civ.P. 12(b), moved to dismiss 415 on fourteen grounds and moved to dismiss 737 on thirteen grounds. The Superior Court conducted an evidentiary hearing and heard oral argument regarding Ford’s motion. At oral argument Ford relied primarily on its position that 5 M.R.S.A. § 208(2) bars the Attorney General from bringing an action sounding under the UTPA and deprives the Superior Court of jurisdiction over the action and that the Attorney General is not a proper party to prosecute the class action claim.

Section 208(2) of Title 5 contains what is commonly referred to as the “interstate commerce exemption” of the UTPA. This section of the UTPA provides:

Nothing in this chapter shall apply to:
2. Interstate commerce. Trade or commerce of any person of whose gross revenue at least 20% is derived from transactions in interstate commerce, excepting however transactions and actions which occur primarily and substantially within the State, and as to which the Federal Trade Commission or its designated representative has failed to assert in writing within 14 days of notice to it and to said person by the Attorney General its objection to action proposed by him and set forth in said notice; the burden of proving exemption, under this subsection, from this chapter shall be upon the person claiming the exemption.

5 M.R.S.A. § 208(2). 4 The parties stipulated that the defendant derived at least 20% of its gross revenue from interstate commerce. Ford argued that section 208(2) should apply as “the transactions and actions” complained of did not occur “primarily and substantially within the State” so as to bring the action within the intrastate exception to the section 208(2) interstate commerce exemption, but rather, occurred, if they occurred at all, on a nationwide scale. 5

The Attorney General, in opposition to the motion, argued that a 1973 amendment to the Maine Uniform Commercial Code (U.C.C.), 11 M.R.S.A. § 2-316(5)(a), “jumped over,” or “superseded” the provisions of section 208(2). 6 In addition, the Attorney Gen *870 eral argued that the implied warranties which arise under the provisions of the Maine U.C.C., 11 M.R.S.A. §§ 2-314, 2-315, 2-316, are created solely by state statute and that if a “violation” of the implied warranties created by §§ 2-314, 2-315, and 2-316 constitutes a violation of the Maine UTPA by virtue of 11 M.R.S.A. § 2-316(5)(a) then that violation must be construed to occur primarily and substantially within the state which created the warranties.

The Superior Court denied Ford’s motion holding that “section 208(2) does not apply to actions asserting private rights.” The Court also noted that “[although the Attorney General and Ford have raised many other issues in support of their respective positions, it is the Court’s view that resolution of the matters presented at oral argument encompasses these other issues.” Following the denial of its motion to dismiss, Ford, over the State’s opposition, moved the Court to report the case to the Law Court, pursuant to M.R.Civ.P. 72(e).

II. The Propriety of a Report Pursuant to M.R.Civ.P. 72(c)

A report brought before this Court pursuant to Rule 72(c) presents the Law Court with the entire case, not only the issue underlying the decision complained of below. 7 Although presented with the entire case, we emphasize that our review must concurrently conform with our function as an appellate tribunal. Matheson v. Bangor Publishing Co., Me., 414 A.2d 1203, 1205 (1980). As we have said many times in the past, “the Law Court retains power to make its own independent determination whether in all the circumstances of a given case its decision ‘on report’ would be consistent with the Court’s basic function as an appellate tribunal.” Bangor Publishing Co., 414 A.2d at 1205, quoting State v. Foley, Me., 366 A.2d 172, 173 (1976); see Gendron v. Pawtucket Mutual Ins. Co., Me., 409 A.2d 656, 660 n.10 (1979). Notwithstanding the provisions of Rule 72, we have consistently reiterated our strong policy against piecemeal appellate review. In re Spring Valley Development, Me., 300 A.2d 736, 754 (1973). See, e. g., Bar Harbor Banking & Trust Co. v. Alexander, Me., 411 A.2d 74, 76 (1980);

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Bluebook (online)
436 A.2d 866, 1981 Me. LEXIS 1001, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-tierney-v-ford-motor-co-me-1981.