Johnson v. Hyundai Motor America

• Decision Date: 29 July 1997
• Citation: 698 A.2d 631
• Parties: Steven JOHNSON and DeLee Johnson, Appellee, v. HYUNDAI MOTOR AMERICA and McCafferty Hyundai Sales, Inc., Appellees. (Two Cases.) Appeal of HYUNDAI MOTOR AMERICA, Appellant. Appeal of McCAFFERTY HYUNDAI SALES, INC., Appellant.
• Court: Pennsylvania Superior Court

Page 631

698 A.2d 631

Steven JOHNSON and DeLee Johnson, Appellee, v. HYUNDAI MOTOR AMERICA and McCafferty Hyundai Sales, Inc. Appellees. (Two Cases.) Appeal of HYUNDAI MOTOR AMERICA, Appellant Appeal of McCAFFERTY HYUNDAI SALES, INC., Appellant.

Superior Court of Pennsylvania.

Argued April 29, 1997.

Filed July 29, 1997.

Robert Tolaud, II, Philadelphia, for Hyundai Motor America.

Joseph S. Britton, Langhorne, for Steven Johnson and Delee Johnson.

Francis J. Sullivan, Newton, for McCafferty Hyundai Sales, Inc.

Before BECK, POPOVICH and MONTEMURO ^*, JJ.,

MONTEMURO, Judge.

Appellants, Hyundai Motor America (Hyundai) and McCafferty Hyundai Sales, Inc. (McCafferty) appeal from the judgment entered in the Bucks County Court of Common Pleas following the denial of their post-trial motions for judgment notwithstanding the verdict (JNOV) and/or a new trial. For the reasons set forth below, we affirm. The facts giving rise to the underlying action are as follows. On June 1, 1988, Appellees, Steven and DeLee Johnson, bought a 1988 Hyundai GLS sedan from McCafferty, an authorized Hyundai dealer and repair facility. The car was manufactured by Hyundai and was equipped with an anti-theft device installed by McCafferty. At the time of the purchase, Appellees were given a handbook that contained various warranty and consumer information including the following:

Keeping with its "can do" attitude, Hyundai is focusing its abilities and resources towards maintaining a strong sales, parts and service network throughout the U.S., with special emphasis placed on satisfying the needs of their customers. Hyundai realizes that success in the American marketplace can only be achieved by an unswerving commitment to customer satisfaction. Consistent with this understanding Hyundai is endeavoring to insure its products receive the best public acceptance of any product in automotive history.

Your satisfaction is our concern. Hyundai is a customer oriented company, dedicated to having the best customer acceptance of any product with quality design and workmanship. Hyundai dealerships are in the best position to assist you in sales, service or part needs.

(Trial Ct. Op. at 1-2) (emphasis added).

When Appellees purchased their vehicle, they obtained a warranty from Hyundai for twelve months or 12,500 miles. In addition to the manufacturer's warranty, they also separately purchased a warranty from McCafferty for five years or 50,000 miles.

Shortly after purchasing their new Hyundai, Appellees began to experience serious difficulty with its performance. The ensuing difficulties are aptly summarized by the trial court as follows:

[Approximately one month after the purchase of the Hyundai,] on July 10, 1988, the car would not start when the key was placed in the ignition. The car was towed to McCafferty. The mileage on the car at that time was 2,497 miles. McCafferty advised plaintiffs that it had fixed the car, replaced the anti-theft device, and issued a work order indicating the work done on the car. The repair order indicated that a fuse had been replaced.

Five days later, on July 15, 1988, [Appellees] experienced the no start condition again. Once again, the car was towed to McCafferty, and McCafferty purportedly fixed the car. This time, McCafferty did not provide a repair receipt, despite the fact that [Appellees] specifically asked for one. Also at this time, the anti-theft device was removed from the car.

Seven days later, on July 22, 1988, [Appellees] experienced the no start condition for the third time. At this point, the car had been driven 2,582 miles. Again the car was towed to McCafferty. McCafferty purportedly repaired the car and issued a repair order. The repair order indicated a fuse had been replaced.

Finally, on August 13, 1988, [Appellees] experienced the no start condition for the fourth time. Now, the vehicle had 2,896 miles on it. The service order again indicated that fuses had been replaced. Moreover, the service records indicate that the time spent attempting to repair the car on the third and fourth attempts was about two tenths of an hour, with minimal cost to the dealership.

(Trial Ct. Op. at 2-3).

After the fourth no start condition, Appellees decided that they were not going to accept the return of the vehicle. Instead, Appellees mailed letters to Consumer Affairs and telephoned the office of Hyundai's president, but to no avail. As a result, Appellees sought legal advice and brought suit against Hyundai and McCafferty under the Pennsylvania Automobile Lemon Law ("Lemon Law"), 73 P.S. §§ 1952-63; the Pennsylvania Unfair Trade Practices and Consumer Protection Law ("UTPCPL"), 73 P.S. §§ 201-1 to 201-9.2; the Pennsylvania Uniform Commercial Code, Article II Sales, 13 Pa.C.S.A. §§ 2101-07; and the Magnuson-Moss Warranty Act, 15 U.S.C. §§ 2301-12.

On August 12, 1995, Appellees filed a Praecipe for Arbitration. Following a hearing, an arbitration award was entered on September 28, 1995, awarding $12,500 in favor of the Appellees and against Hyundai, and $12,500 in favor of Appellees and against McCafferty. On October 23, 1995, McCafferty appealed the decision of the arbitrators, and the matter proceeded to trial.

For the eight years between August 15, 1988, when Appellees refused return of the vehicle, and the January 25, 1996 trial date, the car remained untouched at McCafferty while Appellees dutifully paid all of their monthly payments on the car loan. However, on January 24, 1996, one day before trial, two master technicians from McCafferty, Mr. Richard DeFeo and Mr. Paul, inspected the car in a serious effort to discover the problem. After six hours, they found the real difficulty. At trial, Mr. DeFeo testified that as of the time of inspection, "it was pretty obvious that there was something not right there." (N.T. 1/29/96 at 91). His thorough inspection revealed that "a short to ground had caused the system to burn" with respect to all of the no start problems. (Id. at 96).

During trial, the court entered nonsuit on Appellees' claim under the Lemon Law because their vehicle, although purchased in Pennsylvania, was registered in New Jersey and, therefore, did not meet the prerequisites for eligibility under the Lemon Law. At the close of the trial, the jury answered special interrogatories, finding both Appellants in breach of certain warranties, and finding that McCafferty had made repairs or replacements on the vehicle of a nature or quality below the standard of that agreed to in writing. The jury concluded, however, that neither Appellant acted fraudulently.

Following the damages phase of trial, the jury awarded $17,709.70 in compensatory damages. The court then trebled this award, pursuant to its discretion under UTPCPL, for a total of $53,129.10. The court also added to the award attorney's fees and costs of $11,500, and interest in the amount of $2,878.40, resulting in a total verdict of $67,507.50.

Following the verdict, Hyundai and McCafferty filed motions for post-trial relief seeking judgment notwithstanding the verdict (JNOV) and/or a new trial. After oral argument, Appellants' motions were denied by Order dated October 31, 1996. This timely appeal followed.

Both Appellants present several issues for our review. Hyundai challenges the trial court's imposition of joint and several liability as to both compensatory and treble damages, and the trial court's award of treble damages where liability was based solely upon breach of warranty. McCafferty challenges the jury's finding of liability under the UTPCPL, as well as the trial court's damages calculation, award of attorney's fees, and its refusal to consider a cross-claim for indemnification. Both Appellants challenge the trial court's award of treble damages absent a finding of fraud, and the court's admission of evidence and jury charge regarding the Lemon Law. On appeal, Appellants again seek JNOV and/or a new trial.

When reviewing the propriety of an order denying JNOV, this Court must determine whether there was sufficient competent evidence to sustain the verdict. Trude v. Martin, 442 Pa.Super. 614, 623, 660 A.2d 626, 630 (1995). In making this determination, our scope of review is very narrow: all evidence and all reasonable inferences drawn therefrom must be considered in the light most favorable to the verdict winner. Gregg v. Lindsay, 437 Pa.Super. 206, 209, 649 A.2d 935, 937 (1994). JNOV may be granted only in a clear case where the facts are such that no two reasonable minds could fail to agree that the verdict was improper. Pirozzi v. Penske Olds-Cadillac-GMC, 413 Pa.Super. 308, 312, 605 A.2d 373, 375, allocatur denied, 532 Pa. 665, 616 A.2d 985 (1992). Therefore, we will reverse the trial court's ruling on a motion for JNOV only if there is a clear abuse of discretion or error of law that controlled the outcome of the case. Scott v. Southwestern Mut. Fire Ass'n., 436 Pa.Super. 242, 247, 647 A.2d 587, 590 (1994).

Similarly, our standard of review for an order denying a motion for a new trial is limited to determining whether the trial court acted capriciously, palpably abused its discretion, or committed an error of law which controlled the outcome. Brown v. Philadelphia College of Osteopathic Medicine, 449 Pa.Super. 667, 682, 674 A.2d 1130, 1138, (1996). A new trial will be awarded only when the verdict is so contrary to the evidence as to "shock one's sense of justice." Neison v. Hines, 539 Pa. 516, 520, 653 A.2d 634, 636 (1995). As a result, if support for the trial court's decision is found in the record, its order denying the motion for a new trial must be affirmed. Randt v. Abex Corp., 448 Pa.Super. 224, 231, 671 A.2d 228, 232 (1996).

After a thorough review of the record, the briefs of the parties, as well as applicable caselaw and statutory authority, we conclude that the trial court has sufficiently addressed and properly disposed of Appellants' issues regarding UTPCPL liability, attorney's...