Tanguay v. Seacoast Tractor Sales, Inc.

494 A.2d 1364, 1985 Me. LEXIS 745
CourtSupreme Judicial Court of Maine
DecidedJune 24, 1985
StatusPublished
Cited by4 cases

This text of 494 A.2d 1364 (Tanguay v. Seacoast Tractor Sales, Inc.) 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
Tanguay v. Seacoast Tractor Sales, Inc., 494 A.2d 1364, 1985 Me. LEXIS 745 (Me. 1985).

Opinion

McKUSICK, Chief Justice.

In this action founded on both common law fraud principles and the Used Car Information Act (the UCIA), 10 M.R.S.A. §§ 1471-1477 (1980 & Supp. 1984-1985), the buyer of a second-hand Cadillac seeks to recover for the sellers’ failure to disclose to him known damage to the car from its earlier submersion in salt water. After a jury trial, the Superior Court (York County) entered judgment for the buyer for compensatory damages in the amount of $4,500 and punitive damages of $2,500, and awarded attorney’s fees under the UCIA1 of $2,520. On their appeal, the sellers make only two arguments: (1) that they were not “dealers” within the provisions of the UCIA and so there is no authority for the Superior Court’s award of attorney’s fees and (2) that this court should declare as the law of the state of -Maine that punitive damages may no longer be awarded except where they are explicitly authorized by statute. We reject both arguments.

Defendant Richard Petrin is president of, and does business through, defendant Seacoast Tractor Sales, Inc., of Scarborough. Petrin was the only agent of Seacoast with whom Raymond Tanguay dealt during the events that gave rise to this lawsuit. Seacoast’s primary business is the retail sale of tractors and farm equipment. In July of 1979, Seacoast purchased a 1977 Cadillac Seville for the use of Petrin from Copp Motors for $6,500. No sales tax was paid; Petrin gave Copp Seaeoast’s sales tax exemption number.2 Copp provided Petrin with a disclosure statement stating that: “the odometer has been repaired, replaced and serviced”; “running gear has more mileage than car shows, running gear replaced”; “the seller knows this automobile to have been saltwater damaged submerged.”

After Seacoast had' owned the car for several months, Tanguay learned that the auto was for sale. Tanguay visited Sea[1350]*1350coast and inquired about the Cadillac. In their trial testimony, the parties disagreed about what was said at their meeting concerning the history of the car. Petrin testified that, well before the sale, he told Tan-guay that the Cadillac had been submerged in salt water. Tanguay specifically denied being told of the submersion; on the contrary, he testified that Petrin blamed the stains on the seats (in fact caused by salt water) upon discoloration by the sun. Tan-guay also testified that Petrin made several statements concerning the car’s good working order. During that visit Tanguay road-tested the Cadillac using Seacoast’s “dealer plates.” The parties agreed to a price of $7,500, which included a sum paid and collected as sales tax. Petrin transferred the title to Tanguay on December 12, 1979. Petrin filed the certificate of title application with the Secretary of State, filling out the form as if Seacoast was a car dealer. During the weeks before registration of the car was complete, Tanguay drove the Cadillac with two successive sets of 10-day temporary plates provided by Petrin.

Within two weeks, the car developed the first of what became an unending series of problems for its new owner. Initially, the starter broke. Later, several electrical switches malfunctioned, and all these parts were found to be corroded, showing damage consistent with a vehicle that had been submerged in salt water. Petrin repaired the initial problems at no cost. Later still, the car developed further malfunction in its electrical system. Tanguay testified that he had to have additional repairs done on the car, at a total cost of $2,000.

I. Attorney’s fees under the Used Car Information Act

The Used Car Information Act prohibits any “dealer” from selling a used motor vehicle unless he furnishes to the buyer a written statement containing certain information, including:

A statement identifying the type of damage, if any, that the vehicle has sustained, such as fire, water or substantial collision damage, if that information is known to the dealer.

10 M.R.S.A. § 1475(2)(D). The UCIA gives an aggrieved buyer a private remedy, including liquidated damages up to $1,000 and, what is critically significant to the case at bar, the award of attorney’s fees. Id., § 1477(3). Defendant-sellers’ only argument against the imposition of attorney’s fees here is that, in selling the used Cadillac to Tanguay, they were not “engaged in the business of selling, offering for sale, or negotiating the sale of used motor vehicles” and so were not “dealers” under the UCIA.3

Specifically, the sellers contend that the definition of “dealer” for purposes of the UCIA is, or should be, the same as the definition of a “dealer” who is required to be licensed under title 29. Under title 29, a person must have a license if he “buys ... [for] resale, sells or offers to negotiate the sale of more than 5 motor vehicles in any 12-month period, or displays ... 3 or more motor vehicles for sale at any one time or within any 30-day period upon premises owned or controlled by him_” 29 M.R. S.A. § 342 (Supp.1984-1985). We reject the sellers’ attempt to incorporate the numerical test of the title 29 dealer’s licensing law into the UCIA.

In the first place, a different standard of interpretation is in order when we construe the definition of “dealer” in the [1351]*1351UCIA in title 10 than when we construe the same word in the context of the dealers’ licensing law in title 29. The UCIA is a civil consumer-protection act,4 while the dealers’ licensing law is a regulatory statute enforced by criminal sanctions.5 The UCIA will be interpreted liberally to carry out the legislature’s beneficent purpose of protecting purchasers of used cars. See Eastern of Maine, Inc. v. Vintners Group Ltd., 455 A.2d 936, 941 (Me.1983) (statutes should be interpreted so as to achieve the purpose intended by the legislature); Schwanda v. Bonney, 418 A.2d 163, 165-66 (Me.1980) (courts should implement legislative policy as well as legislative intent). On the other hand, the dealers’ licensing law, being enforced by criminal sanctions of up to $500 as a fine and 6 months in jail for an individual and up to $5,000 for a corporation,6 must be strictly construed. See State v. Goyette, 407 A.2d 1104, 1110 (Me.1979); State v. Millett, 392 A.2d 521, 525 (Me.1978).

In the second place, analysis of the definition section of the UCIA (section 1471) precludes the inference that the legislature intended that the title 29 numerical test should be imported into title 10’s definition of “dealer.” Section 1471 of the UCIA states that, “As used in this chapter, unless the context otherwise indicates, the following words shall have the following meanings.” Subsection 2 of that section then gives a definition of “dealer” using general language, and never resorts to any numerical test, as does title 29, for determining when one is engaged in the business of selling autos. The UCIA in defining “dealer” conspicuously omits any reference to title 29 or any other outside source of meaning. Importantly, whenever the legislature wanted the section 1471 definitions to be read in conjunction with other statutes, it said as much.

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Related

State v. DeCoster
653 A.2d 891 (Supreme Judicial Court of Maine, 1995)
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569 A.2d 1206 (Supreme Judicial Court of Maine, 1990)

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494 A.2d 1364, 1985 Me. LEXIS 745, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tanguay-v-seacoast-tractor-sales-inc-me-1985.