Werner Feil v. the Wittern Gp.

784 So. 2d 302, 2000 WL 1763258
CourtCourt of Civil Appeals of Alabama
DecidedDecember 1, 2000
Docket2990346
StatusPublished
Cited by8 cases

This text of 784 So. 2d 302 (Werner Feil v. the Wittern Gp.) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Werner Feil v. the Wittern Gp., 784 So. 2d 302, 2000 WL 1763258 (Ala. Ct. App. 2000).

Opinion

[EDITORS' NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.] *Page 304

[EDITORS' NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.] *Page 305

Werner Feil d/b/a E W Enterprises sued The Wittern Group, Inc. ("Wittern"); Continental Vending Cooperative, Inc. ("Continental"); VendNet, Inc.; Fawn Vendors, Inc.; and Inland Finance Company on November 21, 1997, alleging claims for breach of contract, breach of express warranty, breach of implied warranty of fitness for a particular purpose, breach of implied warranty of merchantability, negligence, wantonness, misrepresentation, and fraudulent suppression. These claims all arose arising out of Feil's purchase of vending machines.1 Feil alleged in his complaint that Wittern was a holding company and that Continental, VendNet, Fawn Vendors, and Inland Finance were acting as its agents.2

The defendants answered the complaint on January 14, 1998. Inland Finance also asserted a counterclaim against Feil on that date, alleging a breach of an installment sales contract and a security agreement. The defendants moved for a summary judgment on March 16, 1999. Inland Finance also moved for a summary judgment on its counterclaim on that date. On November 8, 1999, the court entered a summary judgment in favor of all defendants on all counts. The court also entered a summary judgment in favor of Inland Finance on its counterclaim and scheduled a damages hearing for November 22, 1999. The damages hearing was rescheduled several times; ultimately the court entered an order awarding Inland Finance "$32,873.03 principal, $1,647.24 interest, and a reasonable attorney's fee of $10,000 plus court costs."3 Feil appeals. *Page 306 This case was transferred to this court by the supreme court, pursuant to § 12-2-7, Ala. Code 1975.

In reviewing a summary judgment, we use the same standard the trial court used in determining whether the evidence before it presented a genuine issue of material fact and whether the movant was entitled to a judgment as a matter of law. Bussey v. John Deere Co., 531 So.2d 860,862 (Ala. 1988); Rule 56(c), Ala.R.Civ.P. When the movant makes a prima facie showing that no genuine issue of material fact exists, the burden shifts to the nonmovant to present substantial evidence creating such an issue. Bass v. SouthTrust Bank of Baldwin County, 538 So.2d 794 (Ala. 1989). Evidence is "substantial" if it is of "such weight and quality that fair-minded persons in the exercise of impartial judgment can reasonably infer the existence of the fact sought to be proved." Westv. Founders Life Assurance Co. of Florida, 547 So.2d 870, 871 (Ala. 1989). This court must review the record in a light most favorable to the nonmovant and must resolve all reasonable doubts against the movant.Hanners v. Balfour Guthrie, Inc., 564 So.2d 412 (Ala. 1990).

Feil, who at the time of the hearing was 60 years old, had been employed as a comptroller, as a bookkeeper, and as a real-estate agent. He has a high-school education, as well as technical training in accounting. He first considered the vending business in May or June 1996 when he saw an advertisement in a local newspaper. Feil telephoned the toll-free number listed in the advertisement and spoke with someone at Continental. Thereafter, Greg Poe, an employee of Continental, contacted Feil and scheduled an appointment to meet with him. Poe traveled to Foley and met there with Feil and his wife. Feil testified that he informed Poe that he was "fishing" for a business to get into. Poe informed Feil that he represented Continental and that Continental was in the business of selling vending machines. At this meeting, Poe gave Feil a brochure entitled "Making Cents." Poe asked Feil to study the brochure and to then contact him.

The "Making Cents" brochure contains information about the vending industry and about Continental. It contains a "10 Steps to Vending Success" guarantee, which describes 10 services that Continental provides to its affiliates, including a market-feasibility study and maintenance training. The brochure also provides a potential-profit analysis; however, it contains the following disclaimers: 1) "Neither Continental Vending Co-operative, Inc. nor its representatives can guarantee profit or sales levels. This illustration is used only as an example." 2) "Because each operator is different, this is NOT to be understood as a guarantee. The above is a hypothetical earnings chart and is not to be interpreted that any location will sell as many or as few sales per week as shown."

Feil testified that Poe told him Continental would "provide the machinery, provide the training, and anything necessary to get you going in this business" and that he "would be sufficiently trained to go into the business." He also stated that Poe told him that he "would be sufficiently and adequately prepared and trained to service [his] machines" and that this "training was to take place upon the delivery of the machines at [his] location."

Feil testified that he studied the "Making Cents" brochure "extensively." He also telephoned other vendors affiliated with Continental, vendors referenced in the back of the brochure, and discussed with them their vending businesses and their experiences. He completed a credit *Page 307 application and gave his authorization for Continental to conduct a market survey.

Approximately a week after his meeting with Poe, Feil met with Jim Doyle, who was also employed by Continental. Feil testified that he and Doyle discussed the vending business and that he expressed some concern to Doyle regarding his lack of mechanical skills. Feil stated that Doyle told him that he would be sufficiently trained to service the machines and that the machines were under warranty. Feil also testified that Doyle told him that Continental had a service-support group located in Calera that would assist him when needed. Feil, however, also testified that Doyle told him that he (Feil) would be responsible for servicing and maintaining the machines himself. Before Feil purchased any machines, Doyle performed a market survey on behalf of Continental and spent several days soliciting business and establishing accounts for Feil.

Feil signed a purchase order on July 1, 1996, to purchase 19 vending machines from Continental. Included in this purchase order were four 20-select "Deli Junior" cold-food machines. The purchase order contained a one-year warranty limited to repair and replacement of defective parts. On July 8, 1996, Feil entered into an installment sales contract and a security agreement with Continental for the purchase of the vending machines, for $76,720. He made a down payment of $20,245, leaving a balance owed of $56,475. The sales contract contained a merger clause, as well as a disclaimer of any warranty of merchantability or fitness for a particular purpose and any other express or implied warranties. Continental assigned its interest in the sales contract and the security agreement to Inland Finance.

The vending machines were delivered to Feil in August 1996.

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Bluebook (online)
784 So. 2d 302, 2000 WL 1763258, Counsel Stack Legal Research, https://law.counselstack.com/opinion/werner-feil-v-the-wittern-gp-alacivapp-2000.