Perry v. Gulf Stream Coach, Inc.

• Decision Date: 31 August 2004
• Docket Number: No. 49A02-0403-CV-225.,49A02-0403-CV-225.
• Citation: 814 N.E.2d 634
• Parties: James L. PERRY and Carolyn S. Perry, Appellants-Plaintiffs, v. GULF STREAM COACH, INC. and Mark's RV Sales, Inc., Appellees-Defendants.
• Court: Indiana Appellate Court

814 N.E.2d 634

James L. PERRY and Carolyn S. Perry, Appellants-Plaintiffs, v. GULF STREAM COACH, INC. and Mark's RV Sales, Inc., Appellees-Defendants.

No. 49A02-0403-CV-225.

Court of Appeals of Indiana.

August 31, 2004.

Robert S. Rifkin, Clinton E. Blanck, Maurer Rifkin & Hill, P.C., Carmel, IN, Attorneys for Appellants.

Brian L. Hoffer, Randy J. Spitaels, Kindig & Sloat, PC, Nappanee, IN, Attorneys for Appellee Gulf Stream Coach, Inc.

Christopher R. Whitten, Craig J. Helmreich, Scopelitis Garvin Light & Hanson, Indianapolis, IN, Attorneys for Appellee Mark's RV Sales, Inc.

OPINION

BAILEY, Judge.

Case Summary

Appellants-Plaintiffs James L. Perry and Carolyn S. Perry (the "Perrys") appeal the trial court's grant of summary judgment to Appellees-Defendants Gulf Stream Coach, Incorporated ("Gulf Stream") and Mark's RV Sales, Incorporated ("Mark's RV"). We affirm in part and reverse in part.

Issue

The Perrys raise one issue, which we expand and restate as:

I. Whether the trial court erroneously granted summary judgment to Gulf Stream because genuine issues of material fact exist regarding whether the limited warranty offered by Gulf Stream fails of its essential purpose; and

II. Whether the trial court erroneously granted summary judgment to Mark's RV because genuine issues of material fact exist concerning whether Mark's RV breached express and implied warranties and violated Indiana's Deceptive Consumer Sales Act.

Facts and Procedural History

I. Background

The relevant designated facts are undisputed. In 1999, the Perrys decided to purchase "a Class A motor home with a length of 25 or 26 feet." Appellants' App. at 27, ¶ 13. Because Gulf Stream is in the business of manufacturing and selling motor homes, the Perrys contacted Gulf Stream and inquired into purchasing a Class A motor home. Gulf Stream gave the Perrys the contact information for Mark's RV, an authorized dealer for Gulf Stream. On December 8, 1999, the Perrys arrived at Mark's RV and read a brochure ("Brochure") regarding the "Conquest 2000 by Gulf Stream." The Brochure indicated that the Conquest 2000 had power steering and brakes and a Front Gross Axle Weight Rating ("Front GAWR") of 4,800 pounds.¹ In addition, the Brochure highlighted numerous features of the Conquest 2000, including "Generous Overhead Storage," "Large Under Bed Storage," and "Steel-Formed Exterior Storage." Gulf Stream's App. at 230. The Brochure directed those who wish to purchase the Conquest 2000 to "v MARK'S [RV] BEFORE YOU BUY." Id. (emphasis in original). The Brochure also provided potential customers with Mark's RV's business address, phone number, and Internet address.

II. Purchase Agreement and Limited Warranty

At Mark's RV, the Perrys walked through the Conquest 2000 ("Motor Home") for five to ten minutes "to see if it matched the [B]rochure." Appellants' App. at 27, ¶ 18. The Perrys did not test drive the Motor Home. That same day, the Perrys agreed to purchase the Motor Home for a price of $54,521.50. The Purchase Agreement between Mark's RV and the Perrys provides, in part, that:

Purchasers certify that the matter printed on the back hereof has been read and agreed to as a part of this agreement the same as though it were printed above the signatures....

Mark's RV App. at 162. On the back of the Purchase Agreement, the following clause appears:

7. Warranties: The dealer shall give over to the buyer copies of any and all written warranties covering the within described unit, or any appliance or component therein, which have been provided by the manufacturer of the unit or compliance or component, respectively. IT IS UNDERSTOOD AND AGREED THAT EXCEPT AS MAY BE REQUIRED UNDER APPLICABLE STATE LAW THE DEALER MAKES NO WARRANTIES WHATSOEVER REGARDING THE UNIT OR ANY APPLIANCE OR COMPONENT CONTAINED THEREIN. THE DEALER EXPRESSLY DISCLAIMS ANY IMPLIED WARRANITES [WARRANTIES], INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR USE.

The purchaser further represents he has examined the product and found it suitable for his particular needs, that it is of acceptable quality, and that he did rely on his own judgment and inspection and not on any warranty, express or implied.

Id. at 163 (emphasis in original). On the bottom of the back page, the following integration clause appears:

This agreement contains the entire understanding between buyer and seller and no other representation or inducement, verbal or written, has been made which is not set forth herein.

Id.

Along with the Purchase Agreement, Mr. Perry also signed the "Gulf Stream Coach, Inc. Limited Warranty" ("Limited Warranty"), which provides, in relevant part, that:

1. WHAT IS COVERED

Your new recreational vehicle has a limited warranty by [Gulf Stream] to the original purchaser as follows:

a) A two (2) year or 24,000 miles of use warranty (whichever comes first) against structural defects in floors, walls and roof.

b) A full one (1) year or 12,000 miles of use warranty (whichever comes first) under normal use against defects in materials and/or workmanship in the construction of the vehicle and its original components.

... All obligations of Gulf Stream pursuant to this Limited Warranty are limited to replacing or repairing the defective part or component.

This limited warranty is expressly IN LIEU of any other express warranty and is further IN LIEU of any implied warranty, including, but not limited to, any implied WARRANTY OF MERCHANTABILITY or FITNESS for a particular purpose except as may otherwise be required by applicable valid Federal or State law at time of manufacture.

Id. at 166 (emphasis in original).

III. Weight-Bearing Capacity of the Motor Home

The Motor Home has the following manufacturer's rated capacities: (1) a fifty gallon fresh water tank at 8.328 pounds per gallon for a total weight of 416.4 pounds; (2) a fifty gallon water gray holding tank for a total weight of 416.4 pounds; (2) a fifty gallon water black holding tank for a total weight of 416.4 pounds; (3) an LP gas tank with a capacity of sixty-five pounds; (4) a forty gallon fuel tank at six pounds per gallon for a total weight of 240 pounds; (5) four passengers at one hundred and fifty pounds per person when the passengers are seated, belted, and traveling for a total weight of 600 pounds.

Despite these weighted capacities, the Certificate of Origin of the chassis of the Motor Home, which was built by Workhorse Custom Chassis, LLC, ("Workhorse") demonstrates that the shipping weight of the chassis was 4,221 pounds and that the Gross Vehicle Weight Rating ("GVWR") is 12,300 pounds. The Certificate of Origin of the Motor Home, i.e., chassis and motor home body, indicates that the shipping weight of the vehicle was 11,073 pounds and that the GVWR is 12,300 pounds. The latter shipping weight, however, did not include the weight of any fluids. The difference between the GVWR — i.e., the maximum weight capacity of the Motor Home — and the shipping weight of the Motor Home after it was fully assembled by Gulf Stream is 1,227 pounds.

IV. Owner's Manual of the Motor Home

The owner's manual to the Motor Home provides, in relevant part, as follows:

VEHICLE LOADING

Carrying Capacity

During the design and development of our motor homes, the number and size of storage compartments are maximized for value and convenience. If the motor home operator fills all liquid tanks to capacity, fills all storage compartments and cupboards to maximum volume and fills all available seating positions with passengers, the motor home will probably be overloaded. According to National Highway Traffic Safety Administration figures, an average vehicle occupant weighs 150 pounds, each gallon of gasoline weighs six pounds and each gallon of water weighs over eight pounds. The operator is responsible for analyzing the conditions in which the motor home will be utilized for each trip.

The number of passengers and placement of cargo will affect the amount of water and cargo that you can carry. The passenger capacity will vary depending on whether the vehicle is being used for overnight camping or day use. A smaller passenger capacity for camping will provide reasonable cargo capacity for trips taking more than one day. The passenger capacity for day use can be larger providing that less cargo is carried for trips and activities not involving overnight stays. It may be necessary to reduce the amount of water carried and unload some cargo items normally carried for camping in order to provide carrying capacity for the additional 1(one) day use passengers.

Thoughtful consideration of the weight placed in the motor home can yield important benefits:

• maximum flexibility in the use of the liberal storage facilities provided in the motor home • improved handling characteristics and ride comfort;

• better fuel mileage and reduced tire wear.

Periodically reweigh your motor home. Different traveling configurations may change your loading and weight pattern.

WARNING: DO NOT EXCEED THE RATED LOAD OF THE MOTOR HOME, OR THE RATED LOAD OF ANY AXLE.

NOTE: THE CARRYING CAPACITY OF YOUR MOTOR HOME CAN BE DETERMINED BY WEIGHING, AS SHOWN IN FIG. 2. THE SHIPPING WEIGHT DOES NOT INCLUDE OPTIONS SUCH AS LEVELING JACKS, AWNINGS, ROOF PODS, ETC. THE WEIGHT OF THESE ITEMS MUST BE SUBTRACTED FROM THE TOTAL OF THE PASSENGER AND CARGO CARRYING CAPACITIES. IF YOU TOW A TRAILER ...

Notice: Empty all holding tanks before filling fresh water tank otherwise you will limit cargo and/or passenger capacity.

* * * * *

WARNING: EXCEEDING THE GAWR OR GVWR[²] OF YOUR MOTOR HOME CAN CAUSE UNDESIRABLE HANDLING CHARACTERISTICS AND MAY CREATE A SAFETY HAZARD.

Id. at 175-76.

V. The Perrys' Use of the Motor Home

After purchasing the Motor Home and driving it for approximately 2,000 miles, Mr. Perry noticed problems with steering. In January of 2000, the Perrys took their first trip in the Motor Home and experienced "problems with stopping, braking and handling the...