Wendt v. Beardmore Suburban Chevrolet, Inc.

366 N.W.2d 424, 219 Neb. 775, 40 U.C.C. Rep. Serv. (West) 1659, 1985 Neb. LEXIS 1001
CourtNebraska Supreme Court
DecidedApril 26, 1985
Docket84-044
StatusPublished
Cited by9 cases

This text of 366 N.W.2d 424 (Wendt v. Beardmore Suburban Chevrolet, Inc.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wendt v. Beardmore Suburban Chevrolet, Inc., 366 N.W.2d 424, 219 Neb. 775, 40 U.C.C. Rep. Serv. (West) 1659, 1985 Neb. LEXIS 1001 (Neb. 1985).

Opinion

Boslaugh, J.

This case arose out of a controversy concerning an automobile sold by the defendant, Beardmore Suburban Chevrolet, Inc., to the plaintiffs, Darrell D. and Tonja L. Wendt, husband and wife, and Dwayne L. Arehart.

The plaintiffs’ amended petition, filed in the county court for Sarpy County, Nebraska, alleged that on or about May 27, 1982, plaintiffs purchased a 1981 Chevrolet Citation from the defendant for $6,475 in reliance on express oral statements by the defendant that the vehicle (1) was in new condition; (2) had been used only as a new car demonstrator; (3) had been neither damaged nor involved in a collision; (4) was under a new car warranty; (5) had been titled only in the name of a new car Chevrolet dealership or General Motors Acceptance Corporation and had not been otherwise titled out; (6) was qualified as a new car demonstrator for new car low interest financing, for which used cars did not qualify; and (7) was safe to drive. Plaintiffs further alleged that after delivery of the vehicle plaintiffs discovered that in May 1981 the title had been transferred to the Ashland-Greenwood Public Schools in Ashland, Nebraska; that the automobile had been used as a high school driver training vehicle; and that it had been rolled in an accident and, as a result, was seriously damaged. The petition also alleged that on June 7, 1982, plaintiffs notified defendant of the “true condition” of the vehicle and demanded return of the purchase price and that defendant refused to refund any portion of the purchase price or to accept return of the vehicle. The petition prayed for damages in the amount of *777 $4,445, the difference between the alleged value of the automobile and the contract price, and for other damages in the amount of $555.

After a trial to the court, the county court found against the plaintiffs on both theories of recovery and dismissed their petition. Upon appeal to the district court, the judgment was affirmed. The plaintiffs have now appealed to this court.

Although the plaintiffs’ petition alleged a number of express warranties and prayed for damages, the plaintiffs insisted several times during the trial in the county court that the case was being tried solely on a theory of revocation of acceptance. Their brief filed in this court states that the action was for revocation of acceptance under Neb. U.C.C. § 2-608 (Reissue 1980) and that the district court erred in finding that the plaintiffs had waived their right of revocation.

Since this was an action at law, the finding by the trial court was the equivalent of a jury verdict and may not be set aside unless clearly wrong. Miller Chemical Co., Inc. v. Tams, 211 Neb. 837, 320 N.W.2d 759 (1982). The plaintiffs cannot succeed on this appeal unless the evidence compelled a finding in their favor as a matter of law.

The record shows that in April 1982 General Motors Acceptance Corporation (GMAC) repossessed a number of vehicles, including the car purchased by plaintiffs, from Gaebel Chevrolet, Inc., an automobile dealer in Ashland, Nebraska. When GMAC solicited bids for their resale, the used car sales manager for the defendant looked at some of the vehicles and purchased the 1981 Chevrolet Citation, the car in question here, for $5,451.

Although it is undisputed that the title to the car had been transferred to the Ashland-Greenwood Public Schools and that the car had been used as a high school driver training vehicle and involved in an accident, GMAC did not disclose those facts to the defendant. The defendant first became aware of those facts when informed of them by the plaintiffs after the sale.

The plaintiffs purchased the Citation from the defendant for $6,475. At that time the odometer showed a mileage of 3,901 miles. Prior to the purchase, the plaintiffs test-drove the vehicle and had it inspected by a mechanic. On one occasion Tonja *778 Wendt noticed some broken glass in the back seat of the car. When she “jokingly” asked one of the defendant’s employees if the car had been wrecked, he replied that “to his knowledge he didn’t think so.” Instead, the salesman suggested that the broken glass might be from a pop bottle. On another occasion Darrell Wendt noted that there was an area on the car where the paint did not match, and the salesman conjectured that it could have been painted twice at the factory. It is not controverted that the defendant’s salesmen referred to the car as a demonstrator.

The plaintiff Arehart, the father of Tonja Wendt, cosigned the plaintiffs Wendts’ loan for the car. In order for him to read the necessary documents prior to signing them, the Wendts brought the documents to his residence in Kearney, Nebraska, over the 1982 Memorial Day weekend. The Wendts drove the Citation on this trip.

While using the car on a rainy day that weekend, Arehart noticed that the windshield leaked, and there were other problems leading him to suspect that the car had been wrecked.

Arehart testified that when he turned the first corner, water ran in around the upper right corner of the windshield. He then noticed there was an excessive “gap” between the post and windshield — close to an inch wide — that had been puttied in with sealer. Later, he noticed the truck lid alignment was off by a half to three-quarters of an inch on one side, and almost touching on the other. He then “suspicioned very highly that it had probably been in a pretty good wreck to get that much damage, especially on the front post and that much on the back.” Nevertheless, Arehart and the Wendts signed the papers necessary for the purchase of the car. All such documents referred to the car as “used” and that it was being sold “as is.”

Approximately 1 week after purchasing the car, plaintiffs learned of its use as a high school driver training vehicle and its having been wrecked. On June 7, 1982, the plaintiffs notified the defendant by letter that they were revoking acceptance of the car. The plaintiffs, however, retained possession of the automobile and continued to make monthly payments on the car.

Furthermore, Darrell Wendt testified that although they *779 borrowed a car in August and September, they drove the Citation for the remainder of time after the revocation of acceptance. At the time of trial they had driven the automobile 11,000 miles since it had been purchased.

In Ford Motor Credit Co. v. Harper, 671 F. 2d 1117, 1121-22 (8th Cir. 1982), the court of appeals held:

Under the Code, once goods are accepted buyer is entitled to cancel the contract and recover so much as has been paid only upon establishing that he has justifiably revoked his acceptance. [Citation omitted.] The Code also provides that buyer may recover damages in a suit for breach of warranty in regard to accepted goods. [Citation omitted.] The two options are nonalternative in character and buyer may pursue either remedy or both. [Citation omitted.] They are, however, separate remedies treated in entirely different sections of the Code and they offer separate forms of relief.

Previously, Koperski v. Husker Dodge, Inc., 208 Neb.

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Bluebook (online)
366 N.W.2d 424, 219 Neb. 775, 40 U.C.C. Rep. Serv. (West) 1659, 1985 Neb. LEXIS 1001, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wendt-v-beardmore-suburban-chevrolet-inc-neb-1985.