Frazier v. Ford

• Decision Date: 31 August 2011
• Docket Number: Sept. Term,No. 1767,2008.,1767
• Parties: Anthony M. FRAZIER,v.CASTLE FORD, LTD. f/k/a Crystal Ford Isuzu, Ltd.
• Court: Court of Special Appeals of Maryland

200 Md.App. 285

27 A.3d 583

Anthony M. FRAZIER,

v.CASTLE FORD, LTD. f/k/a Crystal Ford Isuzu, Ltd.

No. 1767

Sept. Term

2008.

Court of Special Appeals of Maryland.

Aug. 31, 2011.

Leslie L. Gladstone, Baltimore, MD, for appellant.Jonathan E. May (Douglas W. Biser, on the brief), Towson, MD, for appellee.Panel: WOODWARD, MATRICCIANI, RAYMOND, G. THIEME, JR. (Retired, Specially Assigned), JJ.WOODWARD, J.

On July 27, 2007, appellant and cross-appellee, Anthony M. Frazier, filed a class action suit in the Circuit Court for Montgomery County alleging that appellee and cross-appellant, Castle Ford, Ltd. f/k/a Crystal Ford Isuzu, Ltd. (“Crystal Ford”) ¹, fraudulently misrepresented the start and end dates of certain extended automobile warranties sold by Crystal Ford. Crystal Ford filed a motion to deny class action certification and a motion for summary judgment on November 13, 2007, and Frazier filed a motion to compel discovery on November 26, 2007. After a hearing on the parties' motions on February 7, 2008, the circuit court (Bernard, J.) rendered an oral opinion on February 20, 2008, in which the court denied Frazier's motion to compel discovery, granted Crystal Ford's motion to deny class action certification, and granted in part Crystal Ford's motion for summary judgment, leaving outstanding Frazier's request for attorney's fees. By order dated September 15, 2008, the circuit court (Dugan, J.) awarded Frazier $20,950.52 in attorney's fees, which represented the fees incurred by Frazier for the entire litigation.

Frazier appeals from the February 20, 2008 orders of the circuit court and presents three questions for our review, which we have rephrased and reordered as follows:

I. Did the circuit court err in granting Crystal Ford's motion for summary judgment?

II. Did the circuit court err in granting Crystal Ford's motion to deny class action certification?

III. Did the circuit court abuse its discretion in denying Frazier's motion to compel discovery? ²

Because we answer the first two questions in the negative, Frazier's third question is rendered moot.

Crystal Ford cross-appeals from the September 15, 2008 order of the circuit court and presents one question for our review, which we have slightly rephrased: Did the circuit court abuse its discretion in awarding Frazier the attorney's fees and costs incurred for the entire litigation? We answer this question in the negative.

Accordingly, we shall affirm the judgment of the circuit court.

BACKGROUND

On December 23, 2004, Frazier came to Crystal Ford's dealership in Silver Spring, Maryland to purchase an extended warranty for his 2003 Ford Explorer. Frazier spoke with Tiana Robbins, a finance manager for Crystal Ford. In processing the sales transaction for a Ford Premium Care Extended Service Plan, Robbins received the relevant information from Frazier and entered it into Crystal Ford's computer. Robbins altered the computer generated form to reflect that the extended warranty coverage would expire on December 31, 2008, a duration of approximately four years, or at 100,000 miles. Robbins also informed Frazier that his extended warranty would be honored until December 31, 2008. Frazier signed the extended warranty contract, tendered a down payment, and financed the balance of the $1,700 purchase price.

In November of 2006, Frazier brought his Ford Explorer into another Ford dealership for warranty repairs. Frazier was notified, however, that his extended warranty had expired on October 30, 2006. Upon contacting Ford representatives for assistance, Frazier was advised that Crystal Ford provided an incorrect expiration date for his warranty coverage. Frazier then discussed the matter with Robbins, who informed him that the discrepancy was a result of improperly calculating the duration of the extended warranty. Robbins stated that the four year warranty coverage period did not begin on the purchase date of December 23, 2004, but related back to the “build date” of Frazier's Explorer, which was October 30, 2002. Robbins told Frazier that his only option was to purchase a new extended warranty, which he declined to do. As a result, Frazier had to pay $552.99 out of his own pocket for the warranty repairs.

When Frazier's attempts to have Crystal Ford honor the warranty contract proved unsuccessful, he retained counsel. On July 13, 2007, Frazier's attorney wrote a certified letter to Crystal Ford seeking compensation for the repairs covered by the warranty as represented by Robbins. When his demand went unanswered, Frazier filed a class action suit on July 27, 2007, alleging that Crystal Ford's misrepresentation of the coverage period, which Frazier claimed was made to “several hundreds” of other purchasers of similar extended warranties, constituted a deceptive trade practice under the Consumer Protection Act and fraud. Frazier sought compensatory damages, punitive damages, attorney's fees, and declaratory and injunctive relief for himself and members of the putative class. In August 2007, Crystal Ford paid to extend Frazier's warranty to the originally specified date of December 31, 2008, and the Ford warranty company issued a check for the warranty repairs to Frazier's Explorer, less a $100 deductible. On October 18, 2007, counsel for Crystal Ford sent a letter to Frazier's attorney confirming the warranty extension and reimbursement of Frazier's payment for the warranty repairs.

On November 13, 2007, Crystal Ford filed a motion to deny class action certification and a motion for summary judgment. Meanwhile, Frazier filed a motion seeking discovery of, among other things, Crystal Ford's past lawsuits, Crystal Ford's income, and information on all previous extended warranties sold by Crystal Ford, including the names of the purchasers of these warranties.

On February 7, 2008, the circuit court held a hearing on Frazier's and Crystal Ford's motions, the Honorable Marielsa Bernard presiding. Frazier conceded that Crystal Ford gave him the relief requested in his complaint, with the exception of attorney's fees, by extending the warranty through December 31, 2008, and securing reimbursement for the warranty repairs, but argued that additional discovery was necessary to show that Crystal Ford consistently misstated the start and end dates of the warranty coverage to numerous other customers, as well as to support an award of punitive damages. Frazier maintained that (1) the alleged fraud Crystal Ford perpetuated on purchasers of extended warranties presented common issues of reliance and damages appropriate for class action treatment; (2) any motion to deny such certification would be premature; and (3) Crystal Ford was attempting to prevent class action certification by satisfying Frazier's individual claims.

Crystal Ford recognized that Robbins incorrectly determined the duration of the extended warranties, but stated that it had begun to remedy the problem by rewriting the warranty contracts with Ford to conform with the warranty start date inserted into its customers' contracts.³ At the conclusion of the hearing, the court held the parties' motions sub curia.

On February 20, 2008, the circuit court, in an oral opinion, granted Crystal Ford's motion to deny class action certification on the grounds that, because Frazier had been made whole by the extension of the warranty and reimbursement of the warranty repairs, he no longer had an interest to act on behalf of a class. As a result, Frazier's motion to compel discovery was denied. Lastly, because Frazier received the relief he requested, the circuit court determined that Frazier's suit was moot and thus Crystal Ford was entitled to summary judgment on all issues except the issue of attorney's fees.

On September 3, 2008, a hearing to decide Frazier's request for attorney's fees was held before the Honorable Joseph Dugan, Jr. Frazier argued that he was entitled to the entirety of his legal fees due to the results achieved by the efforts of his counsel: Frazier received the relief he sought and Crystal Ford remedied the warranty contracts of similarly situated customers. Crystal Ford countered that, if the court decided an award of attorney's fees was appropriate, it should be limited to only the amount necessary to secure Frazier's relief, and not for any additional fees incurred on behalf of a denied class. After hearing argument, the trial court applied the factors discussed in this Court's opinion in Blaylock v. Johns Hopkins Federal Credit Union, 152 Md.App. 338, 831 A.2d 1120 (2003), and awarded $20,950.52 in counsel fees, which was the entire amount sought by Frazier. On September 15, 2008, the court signed a written order consistent with the court's decision.

Timely notices of appeal and cross appeal were filed. Additional facts will be set forth below as necessary to resolve the questions presented.

DISCUSSION

I.

Did the circuit court err in granting Crystal Ford's motion for summary judgment?

Frazier argues that the circuit court improperly based its grant of Crystal Ford's motion for summary judgment on the ground that Frazier was not entitled as a matter of law to injunctive relief and punitive damages. Specifically, Frazier contends that his claim for injunctive relief was not rendered moot by Crystal Ford's extension of Frazier's warranty and reimbursement of his payment for warranty repairs. According to Frazier, there was also a dispute of material fact regarding whether Robbins' conduct constituted “knowing and deliberate wrongdoing,” which would support an award of punitive damages. (Quotations omitted).

Crystal Ford responds that the circuit court correctly held that it was entitled to summary judgment, because Frazier could not prove any injury. Specifically, Crystal Ford argues that in order to recover on a claim of fraud or deceptive trade practice, a plaintiff must prove actual injury or loss. Crystal Ford claims that the alleged injury that Frazier sustained was...