William S. Thorn V. Sunset Chevrolet, Inc.

CourtCourt of Appeals of Washington
DecidedJune 8, 2021
Docket53739-7
StatusUnpublished

This text of William S. Thorn V. Sunset Chevrolet, Inc. (William S. Thorn V. Sunset Chevrolet, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
William S. Thorn V. Sunset Chevrolet, Inc., (Wash. Ct. App. 2021).

Opinion

Filed Washington State Court of Appeals Division Two

June 8, 2021

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II

WILLIAM S. THORN and DARLENE A. THORN, No. 53739-7-II husband and wife and the marital community comprised thereof,

Respondents,

v. UNPUBLISHED OPINION SUNSET CHEVROLET, INC., a Washington corporation, also known as SUNSET RV OF FIFE, also known as SUNSET’S WHITE RIVER RV; PHILIP MITCHELL and JANE DOE MITCHELL, husband and wife, and their marital community comprised thereof; FOREST RIVER, INC., a foreign corporation,

Appellants.

SUTTON, J. — William and Darlene Thorn bought a recreational vehicle (RV) from Sunset

Chevrolet that was manufactured by Forest River, Inc. The Thorns claim that the RV was sold as

new, after Forest River notified Sunset Chevrolet that it was cancelling its warranty because the

RV had been on the lot for too long. Sunset Chevrolet did not inform the Thorns that the warranty

had been cancelled and sold the RV as new. When the RV developed problems, Forest River

refused to pay for repairs because it had cancelled its warranty.

The Thorns argue that Forest River was required to provide a manufacturer’s one-

year/12,000 mile express warranty at sale as required under Washington’s Lemon Law, chapter

19.118 RCW, and that Forest River wrongfully cancelled the warranty. The Thorns sued Forest No. 53739-7-II

River for unfair and deceptive practices under the Consumer Protection Act (CPA), chapter 19.86

RCW.1 A jury found that Forest River did not violate the CPA. The Thorns moved for a new trial

under CR 59(f) based on the trial court’s failure to give three jury instructions related to the

warranty. The trial court determined that its failure to give the instructions was erroneous and

granted the motion for a new trial, overturning the jury’s verdict. Forest River appeals.

Forest River argues that the trial court failed to give reasons in law and fact for its ruling

as required under CR 59(f). Forest River argues that the trial court properly declined to give the

proposed warranty jury instructions and erred in granting a new trial because Washington’s Lemon

Law does not mandate that manufacturers provide a one-year/12,000 mile warranty; it only extends

the warranty, when provided, to one-year/12,000 miles when the actual warranty is less in duration.

Therefore, Forest River lawfully cancelled the warranty before the sale of the RV to the Thorns

and it was not required to provide a warranty to the Thorns.

We hold that the trial court gave definite reasons in law and fact for the order granting a

new trial, and thus, it complied with CR 59(f). However, we also hold that the law did not require

Forest River to provide an express warranty, it lawfully cancelled the warranty before the sale, and

the proposed jury instructions misstated the law. Thus, the Thorns were not entitled to the

proposed instructions, the court did not err by declining to give these instructions, but the court

erred by granting the motion for a new trial based on its erroneous ruling that it did err by declining

to give the proposed instructions. Accordingly, we reverse the trial court’s order granting a new

trial and we remand for entry of judgment upon the verdict.

1 The Thorns also sued Sunset Chevrolet, but settled those claims before trial.

2 No. 53739-7-II

FACTS

I. BACKGROUND

A. FOREST RIVER AND SUNSET CHEVROLET

Forest River is a final stage manufacturer and distributer of RVs. It purchases RV

components from hundreds of vendors and assembles them into motor homes and travel trailers.

Forest River typically provides a one-year/12,000 mile manufacturer’s warranty on all new RVs,

primarily covering the living room portion of the RV. This type of warranty is common in the RV

industry. The other vendors for each RV component separately provide warranties independent of

any warranty provided by Forest River. Consumers wanting additional protection often purchase

service plans from a third-party provider.

Forest River presumes that all of its RVs that have not been sold within two years by the

dealership to be “presumptively defective.” 4 Verbatim Report of Proceedings (VRP) at 596. As

a result, for RVs not sold within two years, Forest River has a “warranty cancellation policy” that

eliminates its costs regarding claim disputes and repairs when it determines that the warranty claim

is attributable to “lot rot” rather than a defect in the product it delivered.2 6 VRP at 880, 979-80.

A third-party dealer, Sunset Chevrolet, purchased the new Berkshire XL RV from Forest

River in 2014. The Berkshire remained unsold on Sunset Chevrolet’s lot for more than two years.

On June 8, 2016, Forest River sent a letter to Sunset Chevrolet stating that it would “no longer

participate in a warranty repair nor offer a warranty” due to the passage of time which made it

2 “Lot rot” describes defects that can arise in unsold vehicles due to exposure to the elements, extended periods of non-use, poor maintenance, and general degradation of materials. 6 VRP at 980.

3 No. 53739-7-II

difficult to distinguish a manufacturing defect from a routine maintenance defect. Clerk’s Papers

(CP at 37). In consideration for Sunset’s agreement to sell the RV “used, as-is” Forest River

included a $1,500.00 check, which Sunset cashed. CP at 37. The agreement with Sunset Chevrolet

did not alter the other warranties provided by other component manufacturers of the RV, such as

the warranty that applied to the chassis.

B. THE THORNS PURCHASE OF THE BERKSHIRE

On March 31, 2017, the Thorns purchased the Berkshire from Sunset Chevrolet. Sunset

Chevrolet advertised and sold the Berkshire as a new RV.

Sunset Chevrolet assured the Thorns that the Berkshire was fully covered by a Forest River

manufacturer’s express warranty. On the day of delivery, the Thorns signed a manufacturer’s

warranty registration form provided by Sunset Chevrolet. Per its practice, after the sale, Sunset

Chevrolet tried to register the Berkshire in Forest River’s computerized warranty program, but was

unable to do so because Forest River had entered “NO FACTORY WARRANTY” under “owner’s

name” on the registration form. Exhibits 15, 23. Sunset Chevrolet did not tell the Thorns about

this for four months. Sunset Chevrolet also did not inform Forest River that it had sold the RV to

the Thorns or that it had assured the Thorns that there was a manufacturer’s warranty on their RV.

The Thorns discovered a number of problems with the RV shortly after they purchased it.

These problems included “a defective step tread, torn fabric on the coach door, a defective propane

tank float gage, and a defective slide tray in the ‘basement’ of the RV.” CP at 12. They dropped

the RV off for repairs and picked it up upon completion. Sunset Chevrolet did warranty repairs

on the Berkshire without charge as it would ordinarily do for a new RV under warranty. The

Thorns then discovered additional defects, including a generator that did not work, a global

4 No. 53739-7-II

positioning system that did not work, slides that would not fully extend, and batteries that would

not take a charge. Again, the Thorns returned the RV for repairs which were made.

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