Tammi v. Porsche Cars North America, Inc.

536 F.3d 702, 2008 U.S. App. LEXIS 16477, 2008 WL 2955577
CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 4, 2008
Docket07-1832
StatusPublished
Cited by16 cases

This text of 536 F.3d 702 (Tammi v. Porsche Cars North America, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tammi v. Porsche Cars North America, Inc., 536 F.3d 702, 2008 U.S. App. LEXIS 16477, 2008 WL 2955577 (7th Cir. 2008).

Opinion

MANION, Circuit Judge.

Bruce Tammi filed suit against Porsche Cars North America, Inc. (“Porsche”) in Wisconsin state court seeking damages for violations of the Wisconsin Lemon Law (“Lemon Law”), Wisconsin Statute Section 218.0171, involving the 2003 Porsche 911 Turbo he leased from U.S. Bank. Porsche removed the case to federal court on the basis of diversity jurisdiction where the case proceeded to a jury trial. The jury entered a verdict in favor of Tammi and awarded him $26,600.00 in damages. The parties filed post-trial motions. The district court denied Porsche’s motion for judgment notwithstanding the verdict and granted Tammi’s motion to alter the verdict on damages awarding Tammi $266,159.76. Porsche appeals. We affirm the jury’s verdict on the sufficiency of the evidence. However, because Wisconsin law does not provide sufficient guidance on the important issue of pecuniary loss under its Lemon Law, we stay the remand of this appeal and certify four questions to the Wisconsin Supreme Court, pursuant to Circuit Rule 52 and Wisconsin Statute Section 821.01.

I.

On May 30, 2003, Bruce Tammi, a member of the Porsche Club of America, leased a 2003 Porsche 911 Turbo. Tammi’s lease through U.S. Bank was for a 36-month term and required an initial payment of $1,999.85 and 35 monthly payments of $1,912.35 (for a total amount of lease payments of $68,844.50). The lease provided a purchase option at the end of the lease for $64,344.10 plus taxes, and it imposed a $395.00 termination fee if the lessee elected not to purchase the vehicle.

Tammi testified at trial that he leased the vehicle for use in competitive car club events as well as for his work commute, which consisted primarily of highway driving. The car Tammi leased was equipped with a rear spoiler that was designed to deploy automatically when the vehicle exceeded 75 m.p.h. in order to provide aerodynamic stability to the car. The spoiler was designed to retract automatically at 40 m.p.h. While he did not experience any problems with the spoiler when participating in auto-cross competitions, Tammi testified that on occasion when he drove the car on the highway between 55 m.p.h. and 70 m.p.h., the spoiler failed. Specifically, the spoiler would deploy, but would not retract. In addition, Tammi explained that when the spoiler failed, it prompted an audible chime to ring intermittently, a red warning light to illuminate, and a red warning message image to display in the center instrument cluster. Tammi stated that while he was able to temporarily stop the warning lights and sounds by stopping the vehicle, upon restarting the vehicle and returning to the highway, the warning would reappear and sound approximately every five minutes. Tammi found the warning light and the chimes startling and distracting. Tammi also complained that the car radio volume would blast upon start-up and then resume a normal volume *705 after a few minutes. Tammi’s wife also testified at trial that when she was driving the car no more than 65 m.p.h., the rear spoiler system failed causing her to pull off the highway, turn off the car, and call for assistance because she was unsure whether the car was safe to drive. Moreover, Tammi’s wife stated that the warning lights and sounds continued after she restarted the car.

Tammi first took the car to Concours Service Inc. (“Concours”), a certified Porsche service provider, on March 2, 2004, noting that the rear spoiler failed to automatically retract and the radio volume was very loud when the car was first started. Between March 2004 and August 13, 2004, Tammi took the car to Concours, Zimbrick European of Madison, and International Autos at least eight times for service on the spoiler because of recurring failures without receiving a successful repair. Evidence of these service visits was presented at trial. At oral argument before this court, Porsche’s attorney conceded that Tammi had taken his car in for repairs at least four times. Tammi again experienced another spoiler failure after the August 13, 2004, service visit at Zim-brick.

On September 7, 2004, Tammi submitted to Porsche the required notice under the Wisconsin Lemon Law, Wisconsin Statute Section 218.0171. In that notice, Tammi indicated that his vehicle had been “made available for repair at least 4 times for the same defect during its first year of warranty,” and demanded “[a] refund calculated in accordance with the Lemon Law, plus collateral costs.” Tammi also listed the date, dealership, and problems reported for each service visit and indicated that the vehicle was leased from U.S. Bank. Porsche responded with a letter dated October 6, 2004, rejecting Tammi’s Lemon Law notice stating that it was its understanding that Tammi’s vehicle had been repaired.

A little over a week later on October 14, 2004, Tammi filed a complaint in Wisconsin state court alleging a violation by Porsche of the Wisconsin Lemon Law, Wisconsin Statute Section 218.0171. Porsche removed the case to federal court, with the court having diversity jurisdiction over the case because Tammi was a citizen of Wisconsin, Porsche is a Delaware corporation with its principal place of business in Georgia, and the amount in controversy exceeded $75,000.

During the course of the lease, Tammi paid the $1,999.85 initial payment followed by 29 monthly payments of $1,912.35 (for a total of $55,458.15), some of which were paid after Tammi filed suit. As the litigation continued and before his lease expired, Tammi purchased the car in December 2005 with a final payment of $75,621.88, despite the problems that persisted with the rear spoiler. 1 Essentially, Tammi bought a vehicle that he claimed was a lemon.

In August 2006, the case proceeded to a jury trial. Before the case was submitted to the jury, the district court held two hearings with Tammi, an attorney who was proceeding pro se, and Porsche’s counsel, Jeffrey Fertl. During the course of these hearings, the parties argued about the proper scope of damages in this case. Tammi stated that he was seeking recovery of his lease payments ($57,458.00), the amount he paid for the purchase of the car under the buy-out option of the lease ($75,- *706 621.88), insurance ($2,457.85), winter tires ($2,044.11) and floor mats and an auto manual ($788.71), for a total of $138,370.55. In addition, Tammi sought to retain ownership of the car. Porsche asserted that the lease payments Tammi made were proper subjects of damage, but that the other items were not related to the vehicle repairs. The district court concluded that it was going to allow Tammi “to seek damages for the insurance and the like and reconsider after whatever verdict is returned.” The parties stipulated that the mileage of the car as of the first service date was 6,576 miles.

The parties also discussed jury instructions and questions in the presence of the district court judge. The judge handed the parties a set of proposed instructions and interrogatories, which they reviewed at that time.

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Cite This Page — Counsel Stack

Bluebook (online)
536 F.3d 702, 2008 U.S. App. LEXIS 16477, 2008 WL 2955577, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tammi-v-porsche-cars-north-america-inc-ca7-2008.