96-1065 La.App. 3 Cir. 2/26/97, Fruge v. Toyota Motor Sales, U.S.A., Inc.
| Decision Date | 26 February 1997 |
| Citation | 692 So.2d 467 |
| Parties | 96-1065 La.App. 3 Cir |
| Court | Court of Appeal of Louisiana — District of US |
Thomas Joseph DeJean, Felix Anthony DeJean, III, Opelousas, for James Fruge.
Patricia Schuster LeBlanc, Metairie, for Toyota Motor Sales, U.S.A. Inc. et al.
Edward Benjamin Dubuisson, Opelousas, for Courvelle Toyota Sales & Service, Inc.
Before DOUCET, C.J., THIBODEAUX, J., and BABINEAUX *, J. Pro Tem. [96-1065 La.App. 3 Cir. 1] THIBODEAUX, Judge.
Defendants, Courvelle Toyota Sales & Service, Inc. and Toyota Motor Sales, USA, Inc., appeal a judgment in favor of plaintiff, James Fruge. The trial judge found defendants jointly liable and awarded a sum of $9,677.82 in quanti minoris under the rules of redhibition. La.Civ.Code art. 2520 et seq. That award [96-1065 La.App. 3 Cir. 2] included the amount Mr. Fruge paid as a down payment on the purchase of his car as well as the amount of an unpaid deficiency judgment issued against Mr. Fruge. Furthermore, the trial judge awarded Mr. Fruge $5,000.00 in attorney's fees. Determining Courvelle to be a good faith seller, the trial judge awarded it $2,422.75 in attorney's fees against Toyota USA, but denied Courvelle's cross claim for indemnification against Toyota. Both Courvelle and Toyota USA appeal the judgment each citing several issues for this court's review.
We amend the judgment and award to Courvelle Toyota its claim of indemnification against Toyota USA for all sums for which Courvelle Toyota was cast in judgment to the plaintiff, James Fruge. The judgment is affirmed in all other respects.
I.
The issues presented for review in this appeal are the following:
(1) whether the trial court erred in finding a redhibitory defect;
(2) whether the trial judge improperly included an unpaid deficiency judgment against the plaintiff as part of the damage award;
(3) whether the trial court improperly disallowed a credit for use of the automobile;
(4) whether Courvelle Toyota as a good faith seller is liable for any part of the damage award; and,
(5) whether Courvelle Toyota is entitled to judgment against Toyota USA on its indemnity claim for any sums awarded against it to the plaintiff.
[96-1065 La.App. 3 Cir. 3] II.
On March 30, 1992, James Fruge bought a new 1992 Toyota Tercel from Courvelle Toyota Sales & Service, agent and dealer for Toyota Motor Sales, USA, the manufacturer. Over the course of the two and a half years following the sale, the car proved to be the proverbial lemon fraught with serious defects. Mr. Fruge's problems began unfolding in June of 1992 and continued up to December of 1994.
On June 4, 1992, Mr. Fruge brought his car into Courvelle with complaints of a malfunctioning speaker and an odor emanating from the air conditioner. Courvelle replaced the right door speaker, but did not document whether anything was done to address the air conditioning complaint. Several months later, on January 12, 1993, Mr. Fruge brought the car in to Courvelle at which time the right weather strip was replaced. Once again on June 22, 1993 Mr. Fruge had a problem with the stereo speakers; this time, it was the left speaker. Courvelle made the necessary corrections at that time. On September 29, 1993 it was again necessary for Mr. Fruge to bring his car in to Courvelle. His complaints involved the right door lock assembly and excessive gas consumption. Courvelle changed the right door lock assembly, but failed to document whether they addressed the complaint of gas consumption. Toyota paid for all repairs. Although these problems caused Mr. Fruge a great deal of inconvenience and grief, they were merely a harbinger of more serious defects yet to occur.
On December 11, 1993, the transmission had to be replaced in response to the observations of Courvelle's technician who indicated that the transmission was not pulling properly, that shifting was difficult, that the clutches and oil were burned, and that metal shavings were in the oil pan. Because the car was still under warranty [96-1065 La.App. 3 Cir. 4] registering 32,985 miles, and as Courvelle Service Manager, Emily Courvelle testified, there were no signs of abuse or neglect on the part of Mr. Fruge, Toyota covered the costs.
On April 11, 1994, Mr. Fruge found himself once again at the Courvelle dealership. This time, his complaints regarded the door lock assembly and the passenger door speaker. Courvelle changed the door lock assembly and ordered new speakers. The new speakers were installed on April 19, 1994. As the car was still under warranty, Toyota covered the costs for these repairs.
A few months later on July 29, 1994, Mr. Fruge experienced yet another problem with his car. En route to Texas, Mr. Fruge had to stop his car near Lake Charles when he heard "frying" noises under the hood. After towing his car back to Opelousas, an approximate 80 mile distance, and putting oil in it at his home, Mr. Fruge drove his car the three blocks to the Courvelle dealership. At that time, Courvelle replaced the rear main seal which, according to Ms. Courvelle's testimony, prevents oil from leaking into the engine. Ms. Courvelle further testified that this problem was not the result of improper owner maintenance nor was there any evidence of owner neglect. Accordingly, Toyota paid for the repairs. It is important to note, as did the trial court, that there was no evidence presented at the trial as to whether Courvelle checked the engine when it changed the rear main seal to determine if there was any damage to the motor as a result of the leak.
On August 9, 1994, Mr. Fruge brought his car to Courvelle because the transmission was slipping. For the second time, Courvelle replaced the transmission. Ms. Courvelle said it is unusual for a new car to have had three different transmissions. Upon Courvelle's recommendation, Toyota paid for the replacement. [96-1065 La.App. 3 Cir. 5] Ms. Courvelle testified again that had there been owner neglect, Courvelle would not have recommended that Toyota cover the costs.
One week later on August 16, 1994, Mr. Fruge brought his car to Courvelle to check the exhaust. In response, Courvelle replaced the oxygen sensor, a federal emissions part. At this point, the mileage on the car was 40,409. Toyota covered the cost of this repair. Ms. Courvelle again stated that there was no evidence up to that point of owner neglect or abuse.
Mr. Fruge next brought his car to Courvelle on November 30, 1994 at which time the mileage on the car was 43,648. He reported that the engine oil light sensor started blinking on and off and eventually stayed on. Ms. Courvelle informed Mr. Fruge that the engine oil was very black and the engine needed maintenance. She further testified that Courvelle charged customers for general maintenance after twelve months or 12,500 miles. Mr. Fruge indicated to Ms. Courvelle that he had regularly maintained his car and changed the oil up to that point and would continue to do so. Mr. Fruge testified that he purchased oil from Courvelle. At that time, Courvelle also found that a gasket or a seal around the water pump was leaking. Courvelle, however, did not make any repair or replacement for, as Ms. Courvelle testified, the mileage on Mr. Fruge's car exceeded the factory warranty.
On December 2, 1994, Mr. Fruge brought his car to Toyota for the last time again complaining of the illuminated engine oil sensor. Ms. Courvelle contacted Steven Stroder, District Service Manager of Gulf States Toyota who, in turn, requested that Courvelle examine the valve cover for sludge. Courvelle removed the valve cover and waited for Mr. Stroder to make his examination of the car. In the meantime, Mr. Fruge wanted his car put back together insisting that the warranty still applied. Courvelle, however, refused to reassemble the car.
[96-1065 La.App. 3 Cir. 6] Mr. Stroder examined the car on December 13, 1994. He testified that there was sludge build-up in the engine opining that lack of maintenance was the culprit in this situation although coolant in the engine is a potential cause. In his testimony, Mr. Stroder went on to define lack of maintenance as not changing the oil on a regular basis. Notably, Mr. Stroder is not an expert in auto mechanics and was therefore not testifying as an expert when testifying to his conclusion regarding the cause of the sludge build-up in the engine. According to his testimony, it is his duty to determine whether repairs will be covered by Toyota or by the car owner. In this case, he determined that Toyota would not cover the costs. Because the warranty did not apply and Mr. Fruge refused to pay for the repairs, Courvelle decided to leave the car disassembled on its lot.
There was some dispute as to what type of warranty Mr. Fruge purchased. Mr. Fruge testified that he paid $500.00 cash for an extended warranty which covered all services excluding general maintenance for parts that, as a rule, deteriorate with time and normal wear and tear. Mr. Fruge also paid a $1,000.00 cash down payment. Courvelle does not dispute the fact that Mr. Fruge paid $1,500.00 cash when he purchased his car although their records indicate otherwise. It contends that their Finance and Insurance Manager, Brett Peloquin, subsequently charged criminally with embezzlement of funds from Courvelle, pocketed Mr. Fruge's money, destroyed the original bill of sale of which Mr. Fruge has a copy, and drafted a new one indicating a different down payment for the Courvelle records.
After a trial on the merits, the trial judge ruled in favor of Mr. Fruge and assessed a judgment award against Courvelle and Toyota USA in the sum of $9,677.82 plus legal interest. Furthermore, the trial judge assigned $5,000.00 in attorney's fees against both defendants. Regarding Courvelle individually, the trial [...
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