Raysoni v. Payless Auto Deals, LLC

• Decision Date: 03 March 2014
• Docket Number: No. A13A0714.,A13A0714.
• Citation: 323 Ga.App. 583,753 S.E.2d 313
• Parties: RAYSONI v. PAYLESS AUTO DEALS, LLC et al.
• Court: Georgia Court of Appeals

323 Ga.App. 583

753 S.E.2d 313

RAYSONI

v.PAYLESS AUTO DEALS, LLC et al.

No. A13A0714.

Court of Appeals of Georgia.

July 9, 2013.

Certiorari Granted March 3, 2014.

T. Michael Flinn, Carrollton, for Appellant.

William Kevin Kincheloe, for Appellee.

McMILLIAN, Judge.

Subdoh Raysoni appeals the dismissal of his complaint against a used car dealership and its salesman. Raysoni alleges that Payless Auto Deals, LLC and its salesman Ahsan Ul–Haque (collectively referred to as “ Payless”) orally misrepresented that the used vehicle that he purchased had not been wrecked when, in fact, it had previously sustained significant frame damage. The trial court granted a motion for judgment on the pleadings because the buyer's order attached to the complaint disclosed to Raysoni in writing that the vehicle had been damaged and was replete with disclaimers. Finding no error, we affirm.

A motion for judgment on the pleadings should be granted only if the moving party is clearly entitled to judgment as a matter of law. When we review the grant of a motion for judgment on the pleadings, we owe no deference to the decision of the court below. And, like the court below, we must accept the truth of the factual allegations contained in the pleadings of the nonmoving party, and we view the pleadings in the light most favorable to the nonmoving party.

(Citations omitted.) Pryce v. Rhodes, 316 Ga.App. 523, 729 S.E.2d 641 (2012).¹ Thus, “[f]or purposes of the motion, all well-pleaded material allegations by the nonmovant are taken as true, and all denials by the movant are taken as false. But the trial court need not adopt a party's legal conclusions based on these facts.” (Citation and punctuation omitted.) Hall v. Sencore, Inc., 302 Ga.App. 367, 691 S.E.2d 266 (2010) (appellate court's review of trial court's order granting judgment on the pleadings is de novo).

So viewed, Raysoni's complaint asserts that on or about September 18, 2011, he visited Payless looking for “a reliable and durable automobile,” and the salesman ² showed him a 2008 Honda Odyssey (the “vehicle”). Raysoni specifically asked the salesman whether the vehicle “had anything wrong with it, such as a prior wreck or damage,” and the salesman represented that the vehicle was clean and undamaged. Raysoni also requested to see a Carfax report and the salesman showed him a report from the Carfax website reflecting no accident or damage to the vehicle.³

Over time, however, Raysoni began to notice a musty smell in the vehicle, and he decided to trade it in. On November 23, 2011, he took the vehicle to Carmax, where he was told that the vehicle had frame damage and that extensive paint and body work had been performed on it. Carmax appraised the vehicle at $7,000.⁴ Raysoni then had the vehicle inspected and discovered that it had suffered significant frame damage, that anyone in the used car business would have known the vehicle had sustained this damage due to a wreck, and that the vehicle needed $10,000 to $12,000 in repairs to address the obvious and exposed damage, without regard to any required mechanical repairs.Even with these repairs, the vehicle would not be in “pre-accident” condition, and the loss in the vehicle's value would be at least $8,000. Thus, the vehicle was not clean and undamaged as represented and had, in fact, been wrecked. At the automobile auction, the vehicle had been announced as a frame-damaged car, and thus Payless knew the frame was damaged and used the lag time in reporting the accident to Carfax to represent the vehicle as “clean.” Raysoni asserts that he would not have purchased the vehicle had he been told that it had been in a prior wreck and sustained significant frame damage.

Raysoni returned the car to Payless and asked for a re-purchase, but Ul–Haque refused, stating that he did not buy back cars, and Raysoni subsequently sent Payless notice pursuant to OCGA § 10–1–399 of Georgia's Fair Business Practices Act (“FBPA”), OCGA §§ 10–1–390 et seq. His subsequent complaint asserted claims for rescission based upon misrepresentation of material facts, violations of fair trade practices, deceit, and revocation of acceptance.

Payless moved for judgment on the pleadings, and the trial court granted that motion finding that “the undisputed facts made clear from Plaintiff Raysoni's own exhibit entitles [Payless] to judgment as a matter of law. In fact, the Bill of Sale [Raysoni] attached to his Complaint is replete with disclaimers cautioning the buyer about the purchase of the vehicle.” The trial court, however, did not specifically address each of Payless' asserted claims. On appeal, Raysoni asserts that the trial court erred in granting Payless' motion for judgment on the pleadings as to his FBPA, fraud, and revocation of acceptance claims.

1. Raysoni asserts that the trial court erred in dismissing his FBPA claims, which alleged that Payless orally assured him in response to a direct inquiry that the vehicle had not been wrecked when Payless, in fact, knew that the car had been wrecked.

“A dealer's sale of a used car falls within the ambit of the FBPA.” (Citation omitted.) Isbell v. Credit Nation Lending Serv., LLC, 319 Ga.App. 19, 29(4), 735 S.E.2d 46 (2012). “A prerequisite to stating a claim for relief under the [FBPA] is the commission of some unfair act or deceptive practice, from which the Act is designed to protect the public. OCGA § 10–1–391(a).” Rivergate Corp. v. McIntosh, 205 Ga.App. 189, 192, 421 S.E.2d 737 (1992). And “[l]ike a claim for common-law fraud, a claim under the [FBPA] requires a showing that a defendant committed a volitional act constituting an unfair or deceptive act or practice conjoined with culpable knowledge of the nature (but not necessarily the illegality) of the act.” (Citations and punctuation omitted.) Paulk v. Thomasville Ford Lincoln Mercury, 317 Ga.App. 780, 783(2), 732 S.E.2d 297 (2012).

Here, taking the allegations of the complaint as true, the salesman knowingly misrepresented the condition of the vehicle by stating that it was clean and undamaged. But even assuming, without deciding, that this misrepresentation violated the FBPA, “[a] private FBPA claim has three elements: a violation of the Act, causation, and injury.” (Punctuation and citation omitted.) Tiismann v. Linda Martin Homes Corp., 281 Ga. 137, 139(2), 637 S.E.2d 14 (2006). And “[t]he [FBPA] incorporates the ‘reliance’ element of the common law tort of misrepresentation into the causation element of a FBPA claim. [Cit.]. Consequently, justifiable reliance is an essential element.” (Citations and punctuation omitted.) Lynas v. Williams, 216 Ga.App. 434, 437(3)(b), 454 S.E.2d 570 (1995). Therefore, “[w]hen the alleged FBPA violation is a misrepresentation, the consumer must show that he exercised due diligence to ascertain the falsity of the statement. Otherwise, the cause of the injury is the consumer's lack of proper diligence, rather than the alleged FBPA violation.” Tiismann, 281 Ga. at 141(2), 637 S.E.2d 14.

The Buyer's Order attached to Raysoni's complaint,⁵ upon which he relies in support of his claims of misrepresentation, contains numerous disclaimers. Right above the first signature line on the Buyer's Order is a disclaimer indicating that the vehicle was being sold “ AS–IS NO WARRANTY ” and that the “Customer will pay all costs for any repairs. The dealership assumes no responsibility for any repairs regardless of any oral statements about the vehicle.” And at the bottom of the page, right above the third signature line, in slightly smaller type but in all caps, is language indicating that the customer agrees that no warranty was being offered on numerous parts of the vehicle, including the frame and body, and that any representation by the salesman was not binding on Payless. That portion of the Buyer's Order also indicates that “THIS VEHICLE WAS ANNOUNCED HAVING UNIBODY DAMAGE AT THE AUCTION” and that Payless “STRONGLY RECOMMEND[ED] CUSTOMERS SHOULD GET VEHICLE INSPECTED BY A MECHANIC OF THEIR CHOICE BEFORE MAKING THE PURCHASE.”

Although Raysoni argues that these disclaimers are themselves deceptive, we find that they are sufficiently prominent and unambiguous to put Raysoni on notice of the prior damage to the vehicle.

To be deceptive, a business practice must have the tendency or capacity to deceive. Disclaimers and qualifications are not deceptive if they are sufficiently prominent and unambiguous to change the apparent meaning of other unconditional claims and to leave an accurate impression.

(Citations and punctuation omitted.) Tiismann, 281 Ga. at 140, 637 S.E.2d 14. Here, the disclaimers were either listed under the boldface notification that the car was being sold “as is” or in all caps, and they appeared directly above the buyer's signature lines.⁶ These disclaimers informed Raysoni that he should not rely upon the salesman's representations, that the vehicle was listed as having prior damage when it was sold at auction, and that Payless recommended that he get an independent evaluation of the vehicle before he bought it.

Lack of justifiable reliance bars a claim under the FBPA. Lynas, 216 Ga.App. at 437(3)(b), 454 S.E.2d 570. And “[i]n order to prove ... justifiable reliance, a party must show that he exercised his duty of due diligence. Fraud cannot be the basis of an action if it appears that the party alleging the fraud had equal and ample opportunity to prevent it and yet made it possible through the failure to exercise due diligence.” (Citation omitted.) Isbell, 319 Ga.App. at 26(2)(b), 735 S.E.2d 46. Here, Raysoni ignored the information concerning prior damage and the recommendation for an independent inspection. Although at Raysoni's request, he was shown a Carfax report on the car, which reflected no damage, the disclaimers indicated otherwise.⁷ Raysoni had notice and the opportunity to detect the issues with his vehicle before he made his purchase, and his “blind reliance on the salesman's...