Xchange Motors, Inc. v. Impson

2024 IL App (3d) 240133-U
CourtAppellate Court of Illinois
DecidedDecember 3, 2024
Docket3-24-0133
StatusUnpublished

This text of 2024 IL App (3d) 240133-U (Xchange Motors, Inc. v. Impson) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Xchange Motors, Inc. v. Impson, 2024 IL App (3d) 240133-U (Ill. Ct. App. 2024).

Opinion

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

2024 IL App (3d) 240133-U

Order filed December 3, 2024 ____________________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

THIRD DISTRICT

XCHANGE MOTORS, INC., an Illinois ) Appeal from the Circuit Court Corporation, ) of the 18th Judicial Circuit, ) Du Page County, Illinois, Plaintiff-Appellant/Cross Appellee, ) ) Appeal No. 3-24-0133 v. ) Circuit No. 23-LM-41 ) ) Honorable JESSICA IMPSON, ) Kenneth L. Popejoy, ) Judge, Presiding. Defendant-Appellee/Cross Appellant. ) ____________________________________________________________________________

JUSTICE ALBRECHT delivered the judgment of the court. Justices Hettel and Davenport concurred in the judgment. ____________________________________________________________________________

ORDER

¶1 Held: The circuit court did not err in confirming the arbitration award when no gross mistake of law or fact appears on the face of the arbitration award.

¶2 Xchange Motors, Inc. (Xchange) appeals from the Du Page County circuit court’s denial

of its motion to modify or vacate the arbitration award entered against it. On appeal, it argues

that the circuit court erred in denying its motion and in confirming the arbitration award because

the arbitrator’s ruling was incorrect. We affirm. ¶3 I. BACKGROUND

¶4 This matter stems from Jessica Impson’s purchase of a 2008 modified Subaru from

Xchange. The parties proceeded to arbitration over an alleged defect and Impson’s claim that

Xchange breached its implied warranty of merchantability. After a hearing, the arbitrator found

that both parties had violated certain statutory requirements and ordered Xchange to arrange for

the Subaru’s towing for an inspection, to provide an estimate for its repair, and to repair the

vehicle at its own expense. She also awarded Impson attorney fees in a later order.

¶5 A. The Arbitration Hearing

¶6 Regarding the facts leading to arbitration, no transcripts or filings with the arbitrator have

been provided to this court other than Impson’s petition for attorney fees and the arbitrator’s

award and order granting attorney fees. Although no record has been provided from these

proceedings, the arbitrator made several findings of fact in her award and provided a summary of

the testimony elicited at the hearing.

¶7 At the hearing, Impson testified that she found the vehicle at issue online before going to

Xchange’s location and speaking with staff on site. The staff member she spoke to at the location

told her that Xchange purchased the vehicle at an auction. He also informed her that Xchange

had inspected the vehicle prior to listing it for sale, and no issues were revealed at the inspection.

After test driving it, Impson paid for the vehicle in cash on March 12, 2021. Impson did not

perform an independent inspection of the vehicle prior to the sale.

¶8 On March 23, 2021, the vehicle broke down, and Impson towed it to a Subaru dealership

in Elgin, Illinois. She stated that she immediately called Xchange when the vehicle broke down

and that she later provided Xchange with a written repair estimate. The estimate detailed that the

vehicle required a new engine, and it would cost approximately $10,000 to repair it. At the

2 arbitration hearing, Impson produced the estimate, but it was not entered into evidence as she did

not provide sufficient foundation for it and had not brought an expert witness to the hearing to

testify regarding the defects in the engine or the accuracy of the estimate. Impson further testified

that after bringing the estimate to Xchange, it refused to pay for the repair, stating that she

purchased the vehicle “as is,” therefore, it was not responsible for any problems she had after

purchase. Impson could not recall if Xchange offered to inspect or repair the vehicle itself if she

allowed it to be inspected by a repair shop of its choosing.

¶9 It was established that Impson’s son had driven the vehicle for less than 500 miles before

the engine malfunctioned. This evidence was provided in the form of a photograph of the

odometer Impson produced during her testimony, which the arbitrator admitted over Xchange’s

objections.

¶ 10 On cross examination, Impson stated that when she purchased the vehicle, she did see the

words “as is” on the Buyers Guide form and understood what that meant. She did not remember

whether she asked Xchange what modifications were done to the vehicle at the time of purchase.

She stated she did not have the vehicle inspected prior to purchasing it, and Xchange did not tell

her she could have one. She did not ask for an inspection because she trusted Xchange’s

statement that it had been inspected before being listed for sale. A review of the emails between

Impson and Xchange revealed that she requested Xchange pay $10,000 for the repairs or else

fully refund her for the vehicle.

¶ 11 Sefer Morina, a co-owner and Xchange’s general manager, also testified at the hearing.

The arbitrator noted that Morina claimed he was familiar with the situation, though he was not

the person who sold the vehicle to Impson. However, Morina testified that he initially responded

to the emails Impson sent when she first found the vehicle online. Additionally, he claimed that

3 when Impson came in with her estimate for the repair, she caused a scene and was rude to the

employees.

¶ 12 Morina testified that Xchange’s position for claiming that it had no liability was because

the vehicle was sold “as is.” When asked if the sales documents contained the required language

contained in section 2L(j)(3) of the Consumer Fraud and Deceptive Business Practices Act

(Consumer Fraud Act), Morina could not recall. 815 ILCS 505/2L(j)(3) (West 2022). He stated

that the “WE OWE/YOU OWE” form did not contain the language, and the paperwork did not

declare any particular defect related to the vehicle. There were no documented communications

regarding what modifications were made to the vehicle, nor was there anything in writing

indicating that Xchange had offered to inspect or repair the vehicle once Impson contacted it

about the vehicle breaking down. Morina stated that the initial offer to inspect and repair came

during Impson’s in-person visit, and the position that Xchange was not liable for repairs came

after Impson refused the offer to have it inspected by a shop of Xchange’s choosing.

¶ 13 Xchange produced an expert witness who testified that he inspected the vehicle prior to

Xchange listing it for sale. He stated that the vehicle had been rebuilt and heavily modified but

was in good condition. He had found no defects in the engine at that time. On cross-examination,

he stated that he was not surprised the engine blew, because it was a Subaru that had been

heavily modified. He also had not been able to tell if there were any internal problems with the

engine because that would have required him to dismantle the engine completely. The average

buyer would not have been able to tell if there were internal issues with the engine because those

problems would not have been found during a routine inspection.

¶ 14 In issuing an award, the arbitrator made several findings. First, she found that section 2L

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2024 IL App (3d) 240133-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/xchange-motors-inc-v-impson-illappct-2024.