Gehrett v. Chrysler Corp.

• Decision Date: 28 January 2008
• Docket Number: No. 2-06-0507.,2-06-0507.
• Parties: Richard GEHRETT and Denise Gehrett, Plaintiffs-Appellees, v. CHRYSLER CORPORATION, Chrysler Financial Corporation, and Authorized Auto Recovery, Inc., Defendants (Naperville Jeep/Eagle, Inc., Defendant-Appellant).
• Court: United States Appellate Court of Illinois

882 N.E.2d 1102

Richard GEHRETT and Denise Gehrett, Plaintiffs-Appellees, v. CHRYSLER CORPORATION, Chrysler Financial Corporation, and Authorized Auto Recovery, Inc., Defendants (Naperville Jeep/Eagle, Inc., Defendant-Appellant).

No. 2-06-0507.

Appellate Court of Illinois, Second District.

January 28, 2008.

Rehearing Denied March 12, 2008.

Bruce S. Terlep, David J. Riski, Swanson, Martin & Bell, LLP, Lisle, IL, for Appellant.

Norman H. Lehrer, Norman H. Lehrer, P.C., Wheaton, IL, for Appellee.

Justice ZENOFF delivered the opinion of the court:

Defendant, Naperville Jeep/Eagle, Inc. (or dealership), appeals from a judgment entered in favor of plaintiffs, Richard and Denise Gehrett, and against the dealership by the circuit court of Du Page County following a jury trial on January 27, 2005. Defendant also appeals from a judgment entered in favor of plaintiffs and against the dealership by the trial court sitting without a jury as to count V of plaintiffs' seventh amended complaint (violation of the Illinois Consumer Fraud and Deceptive Business Practices Act (Act)) (815 ILCS 505/1 et seq. (West Supp.1997)) on February 2, 2005. The trial court heard the evidence regarding count V simultaneously with the jury trial. For the reasons that follow, we affirm as modified and remand to the circuit court for further proceedings.

BACKGROUND

Defendant is a Jeep/Eagle dealership located at 3300 Ogden Avenue in Lisle, Illinois. A dispute between plaintiffs and defendant arose in June 1997 regarding plaintiffs' lease of a 1997 Jeep Grand Cherokee Laredo from defendant. The vehicle defendant leased to plaintiffs was not equipped with a Quadra-Trac on-demand-four-wheel-drive system, although the transmission indicator plate located next to the gear shift lever inside the vehicle stated it was so equipped. In January 2005, the parties proceeded to trial on plaintiffs' sixth amended complaint, which alleged breach of written warranty (count I), breach of express warranty (count II), breach of implied warranty of merchantability (count III), revocation of acceptance (count IV), violation of the Act (count V), and common-law fraud (count VI). The remaining counts of the sixth amended complaint alleged breaches by certain defendants that are not part of this appeal.

During trial, plaintiffs filed their seventh amended complaint. The seventh amended complaint alleged breach of written warranty (count I), breach of express warranty (count II), breach of implied warranty of merchantability (count III), revocation of acceptance (count IV), violation of the Act (count V), and common-law fraud (count VI). The remainder of the seventh amended complaint was directed against the defendants that are not part of this appeal. The only counts submitted to the jury were the breach of warranty and common-law fraud counts. For a reason not explained in the record, the breach of warranty count was submitted to the jury as count I, and the common-law fraud count was submitted as count II. The trial court was the trier of fact on count V. At trial, plaintiffs and defendant entered into the following stipulation:¹

"(1)That the [d]efendants warranted the 1997 Jeep was equipped with a Quadra-Trac 4-wheel drive.

(2) That the 1997 Jeep was delivered to [plaintiffs] without a Quadra-Trac 4-wheel drive.

(3) That [Chrysler] and [defendant] have breached the warranty as to the 1997 Jeep.

(4) That [p]laintiffs gave written notice of the breach to [Chrysler] and [defendant] on February 5, 1998, and this notice of breach was proper and timely under the law.

(5) [Plaintiffs] and [defendant] have further stipulated that the damages to be assessed in favor of [p]laintiffs, and against [defendant], for breach of warranty include the amounts paid by [plaintiffs] at the time the lease was signed, in the amount of $2,058 and subsequently 13 monthly payments of $497.69 each, totaling $6,469.97, for a total of $8,527.97.

(6) It is for the jury to determine whether [p]laintiffs are also entitled to an award of damages for aggravation and inconvenience, in addition.

(7) The parties have also stipulated that [p]laintiffs have returned the vehicle to Chrysler, and this took place in 1998.

(8) The [d]efendants have also stipulated that they are financially able to pay any punitive damages that maybe awarded."

Testimony at trial showed the following. Plaintiffs leased a 1994 Jeep Grand Cherokee Laredo from defendant. It was equipped with a Quadra-Trac, full-time, four-wheel-drive system that required no driver input. Plaintiffs had researched the Quadra-Trac system before leasing the 1994 Jeep. In June 1997, plaintiff Richard Gehrett received a call from Michael "Lefty" Biondini, who, according to Richard, introduced himself as a sales manager for defendant. Biondini informed Richard that the lease on the 1994 Jeep was coming to an end. He invited Richard to come to the dealership to talk to him about "buying out" the 1994 Jeep or purchasing or leasing a new 1997 Jeep. According to Richard, Biondini told him in this conversation that plaintiffs had a "tremendous amount" of equity in the 1994 Jeep that could be applied to the buyout of the 1994 Jeep or to the purchase or lease of a new 1997 model. Richard made an appointment with Biondini for June 25, 1997, at 5 p.m.

Plaintiffs arrived at the dealership about 4 p.m. on that date. Denise testified that Biondini was busy. She and Richard were approached outside the dealership by another salesman, later identified as Storto, who showed them some vehicles on the lot. Plaintiffs then followed Storto inside the dealership and into an office. Denise wanted to keep the 1994 Jeep, and she asked Storto about the buyout Biondini had mentioned to Richard. According to Denise, Storto told her she had no equity in the 1994 Jeep and that a buyout would be "very costly." Denise testified that Storto asked her what was important "in the way of a car" and whether plaintiffs would consider another Jeep. Denise said she would "definitely" consider another Jeep, but it had to have the same options as the 1994 Jeep, including Quadra-Trac. She testified that Storto checked a computer and then told her the dealership had no Quadra-Tracs, that such a vehicle would be a special order.

According to Denise, plaintiffs then went back outside to wait for Biondini because they wanted to talk to him about the buyout on the 1994 Jeep. At 7 p.m. Biondini became available to talk to plaintiffs. According to Denise, he introduced himself as a sales manager. Denise testified that Biondini told them they had no equity in the 1994 Jeep and they should lease a new one. Either Denise or Richard told Biondini that Storto had informed them the dealership did not have a Jeep with Quadra-Trac in stock. Biondini said he was sure he had one and he would "go find it." Denise testified that she would not have agreed to lease another vehicle from defendant if it did not have Quadra-Trac. She testified that this would be a "deal breaker." Biondini was gone for about 30 to 45 minutes. Denise testified that Biondini then pulled up to the front of the dealership in the 1997 Jeep they eventually leased. She testified that Biondini jumped out of the vehicle and said "he found it." He asked Denise to get into the driver's seat, and he showed her the "indicator which indicated it was a Quadra-Trac." She testified that this indicator, or emblem, was a plastic part that appeared to snap in and out. According to photos in evidence, this part is located to the left of the gear shift lever. According to Denise at the bottom of the emblem were the words "Quadra-Trac" and a Chrysler symbol. She testified that she saw other Jeeps on the lot with similar emblems that appeared to snap in and out but were labeled "Selec-Trac." She knew that Selec-Trac was a less expensive option than Quadra-Trac that was not full-time four-wheel drive but had to be manually operated. Denise testified that plaintiffs leased the 1997 Jeep that evening, based upon Biondini's representation that it was equipped with Quadra-Trac. Plaintiffs did not test-drive the vehicle before signing the lease, and Denise did not see a window sticker on it before signing the lease.

Denise testified that primarily she drove the 1997 Jeep. She noticed that it hydroplaned. On Christmas Eve, Richard was driving when the Jeep slid off the driveway and got stuck in snow. In another incident a little bit later, Denise was picking up her youngest son at school, and Richard was there also. According to Denise, Richard noticed that the wheels on the 1997 Jeep were not turning at the same time. Richard commented that the transmission was not engaged. Denise took the vehicle to defendant's service manager. She told him that there was something wrong with the Quadra-Trac, that only two wheels, instead of all four, were engaging. After inspecting the vehicle, the service manager informed Denise that there was nothing wrong, that the 1997 Jeep was a Selec-Trac and not a Quadra-Trac. The manager further informed Denise that the 1997 Jeep had "a wrong indicator plate on it."

Denise testified she told the service manager she did not want the Selec-Trac and she asked what defendant was "going to do about this." According to Denise, the service manager said he had ordered the correct indicator plate, and there was nothing further to be done. When Denise asked to speak with Biondini, the service manager told her that Biondini no longer worked for defendant. Denise then asked to speak with defendant's manager. The service manager replied that he had already spoken to the dealership's manager and that the "matter was taken care of." According to Denise, the service manager told her that if she still had a problem, she should call her lawyer.

Richard testified about plaintiffs' visit to defendant on June 25, 1997. A salesman whose name Richard did not recall told them Biondini was not available. Richard mentioned to the...