Thomassen Lincoln-Mercury, Inc. v. Goldbaum

413 A.2d 218, 45 Md. App. 297, 1980 Md. App. LEXIS 273
CourtCourt of Special Appeals of Maryland
DecidedApril 14, 1980
Docket914, September Term, 1979
StatusPublished
Cited by9 cases

This text of 413 A.2d 218 (Thomassen Lincoln-Mercury, Inc. v. Goldbaum) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomassen Lincoln-Mercury, Inc. v. Goldbaum, 413 A.2d 218, 45 Md. App. 297, 1980 Md. App. LEXIS 273 (Md. Ct. App. 1980).

Opinion

Wilner, J.,

delivered the opinion of the Court.

One day, near the end of September, 1975, John Booher walked into the showroom of Thomassen Lincoln-Mercury, Inc., in Rockville, saw a sporty new Lincoln Continental that he thought his wife might like, and agreed to buy it. Everything was all arranged, except that he was told by the salesman and sales manager that he would be unable to take delivery until October 4, 1975. 1

Booher returned on October 4, completed all the paperwork, and took delivery of the car. The window sticker, containing the relevant price information, showed the "list” price to be $10,305.50. The actual price paid by Booher was $2,000 less. The documents evidencing the sale show a selling price of $8,305.50, plus $391.50 for taxes, tags, and credit life insurance, or a total of $8,697.00. Booher made a down payment of $3,697 and financed the balance via an installment sale agreement under date of October 6, 1975.

When he took delivery of the car, Mr. Booher received a temporary registration certificate showing him and his wife as purchasers. He also received an "Ownercard” with his name on it and an Owner’s Manual. As Mr. Booher was *299 buying the car for his wife, he went through the Owner’s Manual and underlined a number of passages in it with a green felt pen to call them especially to her attention.

From the beginning, Mr. Booher experienced trouble with the car. It overheated when he drove it home from the Thomassen showroom. The next day, he drove it to Thurmont (from Wheaton), and it again overheated. On October 6, 1975, he took it back to the dealer, but was told that "it was the new Ralph Nader attachments that made the car hot.” After additional episodes of overheating, Booher returned the car again on October 14, 1975. As he was explaining the problem, the wiring suddenly caught fire, damaging not only the wiring but also the air conditioner. Thomassen replaced the wiring and the air conditioner motor, the repair invoice of October 16, 1975, showing the mileage on the car then to be 276.

At this point, Booher said that he no longer wanted the car. Through the sales manager, George Parker, Thomassen agreed to take the car back and refund all but $300 of the money Booher had paid. As to the $300 deduction, Booher said: "I was told that they could not, that they would have to sell the car back as a used car and they could not give me any more money back for the car than that amount.” (Emphasis supplied.) After Booher executed a release, Parker "did at that time tell me and for the first time that the car would be put back in stock and sold as a new car.” (Emphasis supplied.)

Curiously, a month later, Booher received a letter from George Thomassen, President of the dealer company, congratulating him for purchasing the car. Some time later, he received a card from Ford Motor Company reminding him that it was time for the 10,000-mile checkup.

On November 20, 1975 — a month after Mr. Booher returned the car — Henry Goldbaum wandered into the Thomassen showroom looking for the car of his dreams, and, lo and behold, saw the selfsame Continental. He noticed that the odometer registered 375 miles, that the Owner’s Manual was marked up, and that the Ownercard had Mr. Booher’s *300 name on it. He inquired about these things of one Larry Epstein, a salesman for Thomassen, and was told that (1) the car was new and had not been previously owned, (2) the mileage came from driving the car back and forth from a storage lot and from "demonstration” rides, (3) Epstein had marked up the Owner’s Manual in order to call attention to the important things, and (4) the car had been sold before but the deal had fallen through, which explained why Mr. Booher’s name was on the Ownercard. These explanations seemed reasonable to Goldbaum and he accepted them. Goldbaum noticed that the price information, required by Federal law (see 15 U.S.C. §§ 1232, 1233) to be attached to the window was missing; but he did not question the omission.

Goldbaum had a 1973 Volvo to trade. Epstein had it appraised and offered Goldbaum the Continental for the Volvo plus $5,000. Goldbaum accepted and the deal was closed on that basis. The invoice described the vehicle as new and showed a purchase price of $10,600.50 plus tax and tags of $354, or a total of $10,954.50. Of this, $5,606.50 was allocated to the trade-in and Goldbaum paid $5,348 in cash. Goldbaum was never told what his Volvo had been appraised for and didn’t care. He was interested only in how much cash would be required and was delighted to learn that it was an amount he could afford. Like Booher, Goldbaum received a temporary registration permit.

In one of those rare "it’s a small world” coincidences, Mr. Booher spotted the Continental as he was driving somewhere one day in December, 1975. He followed the car onto a post office parking lot, checked the serial number on the top of the dashboard after the car was parked, and waited for its driver to return. The driver was Mr. Goldbaum; and Booher not only told him of his prior interest in the car but showed him the invoice and other documents he had received from Thomassen pertaining to it. Goldbaum, Booher said, "was dumbfounded.” He was "like a man that has just attended a funeral of his very best friend.”

At the time, Goldbaum had been having no trouble with *301 the car, and thus made no complaint to anyone about the apparent deception. In 1977, however, he moved to Frederick, and had to commute between there and his employment in Wheaton. This provided the first opportunity to drive the car any long distance, and he then began to notice that it overheated. He ultimately replaced the radiator, but still made no complaint to Thomassen. Its first indication that Goldbaum was dissatisfied came sometime in November, 1977, when the sheriff delivered a copy of Goldbaum’s multi-count Declaration charging it with breach of contract and fraud.

After trial in the Circuit Court for Montgomery County, the jury was permitted to consider whether Goldbaum had, on the evidence recounted above, made out a case of actionable fraud. 2 The jury believed he had, and accordingly returned a verdict in Goldbaum’s favor for $37,000 — $2,000 compensatory damages and $35,000 punitive damages. After some post-trial proceedings, the court "ordered” a remittitur of $15,000 in the punitive damage award and ultimately entered judgment for $22,000. Thomassen, feeling aggrieved, appeals, raising the following issues:

"I. Did the Court err in not directing a verdict for appellant due to insufficient evidence as to allegations that defendant was liable for fraud in misrepresenting (a) that the car in question was new, (b) that the mileage on the odometer resulted exclusively from the car being moved on the lot, and (c) that it had no previous owner?
"II. Was there sufficient evidence of scienter to warrant the Court’s allowing the jury to consider the alleged misrepresentation that the vehicle was new?
"HI.

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Bluebook (online)
413 A.2d 218, 45 Md. App. 297, 1980 Md. App. LEXIS 273, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomassen-lincoln-mercury-inc-v-goldbaum-mdctspecapp-1980.