TA Enterprises, Inc. v. Olarte, Inc.

835 So. 2d 1235, 2003 WL 187190
CourtDistrict Court of Appeal of Florida
DecidedJanuary 29, 2003
Docket4D02-697
StatusPublished
Cited by5 cases

This text of 835 So. 2d 1235 (TA Enterprises, Inc. v. Olarte, Inc.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
TA Enterprises, Inc. v. Olarte, Inc., 835 So. 2d 1235, 2003 WL 187190 (Fla. Ct. App. 2003).

Opinion

835 So.2d 1235 (2003)

T.A. ENTERPRISES, INC., a foreign corporation, Appellant,
v.
OLARTE, INC., a Florida corporation, Appellee.

No. 4D02-697.

District Court of Appeal of Florida, Fourth District.

January 29, 2003.

*1236 Ronald P. Gossett of Gossett & Gossett, P.A., Hollywood, for appellant.

Barbara J. Brush, Fort Lauderdale, for appellee.

FARMER, J.

This Lemon Law case began with arbitration proceedings overseen by the Attorney General's office and then, following a decision against the defending party in the arbitration, ended up in circuit court. There, the court dismissed an attempt to have the matter determined in a "trial de novo" and, in effect, enforced the arbitration decision. We reverse for further proceedings in the circuit court.

The underlying facts and circumstances are these. Olarte (Buyer) purchased a model E250 van manufactured in 2000 by Ford Motor Company. The vehicle was new, but Buyer elected to have several options added to the van in a "conversion" process performed by Eclipse Conversions.[1] After allegedly having problems with the work done by Eclipse, and claiming *1237 that the vehicle was out of service for at least fifteen days as a result thereof,[2] Buyer filed a demand for arbitration under Florida's Lemon Law.[3] An Arbitration Board (Board) convened under chapter 681 and found that Eclipse had failed to file a timely response and supply certain information as required by the arbitration notice.[4] Eclipse contended that it filed the documents just four days before the arbitration hearing and that it was late only because one of its employees misplaced the notice of arbitration. The Board found that Eclipse had failed to show good cause for the late filing and, accordingly, refused to allow Eclipse to present any affirmative defenses as alleged in its late Answer or adduce any of the evidence disclosed in its tardy filing. Eclipse was allowed to participate in the hearing only to question witnesses and argue its position.

At the conclusion of the hearing, the Board granted the parties additional time to furnish evidence regarding the amount of the Buyer's alleged collateral expenses. After both parties responded, Eclipse untimely, the Board entered a final written decision with findings of fact and conclusions of law. The Board found that the vehicle was a "lemon," and required Eclipse to pay damages to Buyer, accept a return of the vehicle, and satisfy Buyer's debt on the vehicle.

At that point, Eclipse timely filed a petition for an "appeal by trial de novo" pursuant to section 681.1095(12).[5] As grounds for the appeal, Eclipse contended that the Board had erred:

(1) in concluding that Eclipse had not shown good cause for its default in the filing of the response and pre-hearing information and, also, in refusing to permit Eclipse to raise any affirmative defenses and present its own evidence and testimony;
(2) in finding that the various problems with the vehicle constituted substantial impairment of the vehicle's use, value, or safety; and
(3) in finding that the vehicle was out of repair for 45 consecutive days.

Eclipse also argued that Buyer had misused the vehicle. Eclipse sought a determination that the vehicle was not defective within the meaning of the Lemon Law, and requested an award of attorney's fees, alleging that Buyer brought its claim in bad faith.[6]*1238 Buyer moved to dismiss Eclipse's petition. Buyer argued that Eclipse was attempting to raise issues that it did not raise before the Board, that it had failed to attach a copy of the Board's decision to its petition, and that it had failed to timely send a copy of the petition to the Department of Legal Affairs. Buyer also argued that the petition lacked any justiciable issue of law or facts and that it had been filed in bad faith. Buyer prayed that the petition for review be dismissed and that it be awarded fees, costs, and treble damages allowed by the Lemon Law.[7]

Eclipse responded with argument that Buyer's motion improperly went beyond the four corners of its "complaint." Eclipse also argued that it was not precluded in the circuit court's review from raising in the de novo proceeding any issues not raised before the Board. Eclipse furnished a copy of a letter from the Attorney General which accepted the late filing of the notice without any penalty and withdrew an earlier notice of intent to seek imposition of a fine.

After a hearing, the circuit court entered an order granting Buyer's motion to dismiss the petition. The court determined that Eclipse had failed to file a timely response to the arbitration notice, as a result of which the Board properly entered a default. Because Eclipse was nevertheless permitted to cross-examine witnesses and argue its position to the arbitrators, the court reasoned, Eclipse was precluded in the trial de novo from presenting issues not raised before the arbitrators. The court also found that Eclipse had failed to serve the Department of Legal Affairs within 7 days of the filing of the petition. The court found that Eclipse demonstrated "tardiness and disdain" for the arbitration in filing a post-hearing response. Moreover, the court found, Eclipse failed to attach a copy of the transcript of the arbitration proceedings and had acknowledged that it had no idea whether a transcript was even available. These failings, the court held, "evidence a lack of pre-filing investigation and due diligence." The court granted the dismissal with prejudice. It reserved jurisdiction to award damages based on a bad faith filing in court. It concluded by saying: "Plaintiff T.A. Enterprises, shall take nothing by this action and Defendant, Olarte, shall go hence without day." Eclipse appeals the order of dismissal.

Judicial proceedings under the Lemon Law were the subject of the supreme court's consideration in Chrysler Corp. v. Pitsirelos, 721 So.2d 710 (Fla. 1998). Pitsirelos was, in turn, further illuminated by the court in Nationwide Mutual Fire Ins. v. Pinnacle Medical, Inc., 753 So.2d 55 (Fla.2000). We thus turn to Pitsirelos and Pinnacle for an understanding of the judicial role in Lemon Law cases.

The issue in Pitsirelos was the constitutionality of the Lemon Law which, it was contended, improperly required that claims under it be determined by compulsory arbitration with only limited court review. As it construed chapter 681, the court said:

"The entitlement of either the consumer or manufacturer to a trial de novo appeal proceeding in the circuit court after completion of this mandatory alternative dispute resolution procedure respects the access-to-courts provision in the Florida Constitution, due process, and separation of powers." [f.o.] *1239 721 So.2d at 713. The court held that in the trial de novo appeal the party appealing the arbitrator's decision bears the burden of going forward with the evidence and the burden of ultimate persuasion "in establishing why the Arbitration Board's decision was erroneous." 721 So.2d at 714. The court declined to hold that the arbitrator's decision was entitled to a presumption of correctness, saying that it would be received in evidence along with any other evidence adduced by the parties. It also held that in an award of damages under subsection 681.1095(14) is limited "solely to reimburse the consumer for expenses relating to the loss of use of the vehicle

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Bluebook (online)
835 So. 2d 1235, 2003 WL 187190, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ta-enterprises-inc-v-olarte-inc-fladistctapp-2003.