Subaru of America, Inc. v. Peters

500 S.E.2d 803, 256 Va. 43, 1998 Va. LEXIS 93
CourtSupreme Court of Virginia
DecidedJune 5, 1998
DocketRecord 971821
StatusPublished
Cited by5 cases

This text of 500 S.E.2d 803 (Subaru of America, Inc. v. Peters) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Subaru of America, Inc. v. Peters, 500 S.E.2d 803, 256 Va. 43, 1998 Va. LEXIS 93 (Va. 1998).

Opinion

JUSTICE COMPTON

delivered the opinion of the Court.

This is the first case we have decided by written opinion under the Virginia Motor Vehicle Warranty Enforcement Act (the Act), Code §§ 59.1-207.9 through -207.16:1, since its 1984 adoption. Acts 1984, ch. 773.

The Act, Virginia’s so-called “Lemon Law,” generally provides that if a consumer has purchased a motor vehicle for nonbusiness purposes and reports, within a specified period of time, a defect or nonconformity covered by the motor vehicle manufacturer’s express warranty, the manufacturer or its agent must perform the repairs necessary to correct the problem. If the vehicle cannot be conformed to the warranty after a reasonable number of attempts, the consumer is entitled to replacement of the vehicle or refund of the purchase price.

The first state lemon law was enacted by the Connecticut legislature in 1982. Since that time, a majority of states has enacted similar legislation, although no two lemon laws are identical. Noralyn O. Harlow, Annotation, Validity, Construction, and Effect of State Motor Vehicle Warranty Legislation (Lemon Laws), 51 A.L.R.4th 872, 877 (1987). The General Assembly patterned Virginia’s Act after Connecticut’s. Carol S. Nance, Note, Virginia’s Lemon Law: The Best Treatment For Car Owner’s Canker?, 19 U. Rich. L. Rev. 405, 425 (1985).

A consumer suffering a loss by reason of a violation of any provision of the Act may bring a civil action to enforce such provi *47 sion. Code § 59.1-207.14. The Act does not impair or limit a consumer’s rights under any other law. Code §§ 59.1-207.10 and -207.13(F).

In 1996, appellee Debora C. Peters filed this action against appellant Subaru of America, Inc., arising from the plaintiff’s purchase of a used motor vehicle manufactured by defendant. Even though plaintiff, in an amended motion for judgment, sought recovery against defendant on several theories, the case evolved into an action based solely on the Act and its remedies.

The defendant denied plaintiff is entitled to the relief sought. Additionally, it filed a pre-trial motion for summary judgment asserting “the Act applies only to the purchase by a consumer of a new motor vehicle.” The trial court denied the motion.

During a jury trial, the court denied defendant’s motions to strike plaintiff’s evidence both at the conclusion of the plaintiff’s case-in-chief and at the conclusion of all the evidence. The jury found in favor of the plaintiff and, after assessing attorney’s fees against defendant, the trial court entered judgment for the plaintiff in the amount of $23,987.35. We awarded defendant this appeal from the May 1997 judgment order.

The facts are virtually undisputed. The subject of this controversy is a 1994 Subaru Legacy four-door station wagon.

The first sale of the vehicle occurred on April 7, 1994 when defendant sold it to Hertz Corporation, Greensboro, North Carolina, for use as a rental car. The second sale took place in November 1994 when defendant purchased the vehicle from Hertz and consigned it to the Greensboro Auto Auction for sale. The third sale occurred in December 1994 when Star Imports, Inc., purchased the vehicle at auction for resale at the Star Imports dealership in Lynchburg, Virginia.

The fourth sale was to the plaintiff, a resident of Appomattox County. On March 20, 1995, she purchased the vehicle from Star Imports for her “personal use.” The odometer registered 18,919 miles.

At the time of purchase, the plaintiff was entitled to the benefits of the balance of the defendánt’s vehicle warranty. The warranty’s “basic coverage” lasted for three years or 36,000 miles, “whichever comes first.” Warranty coverage began on April 7, 1994, the date the car was “delivered to the first retail purchaser,” according to the warranty.

*48 On appeal, defendant assigns error to the trial court’s denial of the summary judgment motion and denial of its “motion to strike at the close of the plaintiff’s evidence.” These assignments of error present three questions.

The first question is whether the Act applies only to the purchase of new as opposed to “used” vehicles. We hold that it applies to both, as will be demonstrated by analysis of pertinent provisions of the Act.

We look first to the Act’s title, “Virginia Motor Vehicle Warranty Enforcement Act.” Unlike some other state lemon laws, the General Assembly made no distinction in the title between “new” or “used” vehicles. See Connecticut’s lemon law entitled “New Automobile Warranties.” Conn. Gen. Stat. Ann., Title 42, § 179 et seq. (West 1992).

Moreover, in Code § 59.1-207.10, a preamble setting forth the intent of the Act, the General Assembly referred throughout to “a” motor vehicle and not to a “new” motor vehicle. This is a plain indication that the Act is meant to apply to the vehicles, new and used, that qualify for coverage under the Act. For example, the statute’s first sentence provides: “The General Assembly recognizes that a motor vehicle is a major consumer purchase, and there is no doubt that a defective motor vehicle creates a hardship for the consumer.” Likewise, the statute’s third sentence provides: “It is further the intent of the General Assembly to provide the statutory procedures whereby a consumer may receive a replacement motor vehicle, or a full refund, for a motor vehicle which cannot be brought into conformity with the express warranty issued by the manufacturer.” In both the Act’s title and preamble, the focus is upon the warranty, and not upon the vehicle’s status as new or used.

The defendant’s reliance on references in the Act to a “new” motor vehicle, to support its contention that the Act applies only to new vehicles, is misplaced. The term “new” is employed five times in the Act. The word is found at four places in Code § 59.1-207.11, where the terms “lemon law rights period,” “manufacturer’s express warranty,” “serious safety defect,” and “significant impairment” are defined; it is found in Code § 59.1-207.12, dealing with warranty conformity.

However, the word “new” is employed each time in the context of warranties issued when the vehicle is indeed “new.” Instead of limiting the Act’s applicability to a “new vehicle,” the Act focuses upon the new vehicle warranty. In other words, the Act concentrates *49 on the manufacturer’s written factory warranty for the particular vehicle, and whether that vehicle can be brought into conformity with the warranty’s terms.

The second question is whether this plaintiff qualifies as a “consumer,” as defined in the Act, so that she is entitled to claim the benefits of the Act.

According to Code §59.1-207.11, the term “consumer” means “the purchaser, other than for purposes of resale, of a motor vehicle used in substantial part for personal, family, or household purposes, and any person to whom such motor vehicle is transferred for the same purposes during the duration of any warranty applicable to such motor vehicle, and any other person entitled by the terms of such warranty to enforce the obligations of the warranty.”

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Bluebook (online)
500 S.E.2d 803, 256 Va. 43, 1998 Va. LEXIS 93, Counsel Stack Legal Research, https://law.counselstack.com/opinion/subaru-of-america-inc-v-peters-va-1998.