Thomka v. AZ Chevrolet, Inc.

• Decision Date: 16 April 1979
• Docket Number: Civ. A. No. 78-66.
• Citation: Thomka v. AZ Chevrolet, Inc., 469 F. Supp. 580 (E.D. Pa. 1979)
• Parties: Albert E. THOMKA, Plaintiff, v. A. Z. CHEVROLET, INC., Defendant.
• Court: U.S. District Court — Eastern District of Pennsylvania

469 F. Supp. 580

Albert E. THOMKA, Plaintiff, v. A. Z. CHEVROLET, INC., Defendant.

Civ. A. No. 78-66.

United States District Court, W. D. Pennsylvania.

April 16, 1979.

Michael J. Murphy, Munhall, Pa., for plaintiff.

Stephen J. Laidhold, Pittsburgh, Pa., for defendant.

OPINION

ROSENBERG, District Judge.

The plaintiff, Albert E. Thomka, brings this action for statutory damages against the defendant, A. Z. Chevrolet, Inc., for the alleged violations of the Federal Consumer Credit Protection Act, 15 U.S.C. § 1601 et seq., and Federal Reserve Regulation Z, 12 CFR § 226.1 et seq.

The defendant denying the plaintiff's claims, asserts that it has complied with the applicable provisions of the Federal Consumer Credit Protection Act and the Federal Reserve Regulations.

From all the evidence presented by the parties at the hearing on March 21, 1979, I find that on November 4, 1977, the plaintiff and the defendant entered into a contract for the lease of an automobile; that the agreement was entitled "Non-Maintenance Lease Agreement"; that approximately one week afterwards, an "Open-End Vehicle Lease Disclosure Statement" was signed by the plaintiff when submitted to him by the defendant, as backdated to November 4, 1977 to correspond with the original lease; and that the plaintiff's brother was the original salesman in this case and represented the seller, but because he was a new salesman he received aid from another employee of the defendant in the make-up of the "Non-Maintenance Lease Agreement" (Plaintiff's Exhibit 1), and which, together with other disclosure statements (Plaintiff's Exhibit 2), the brother took out to the plaintiff's home for the signature of the plaintiff.

In the various charges made by the plaintiff to sustain a claim in this action, he charged that the defendant failed to make the required disclosures prior to the consummation of the transaction in violation of 15 U.S.C. § 1667a and Regulation Z, 12 CFR 226.15(a) in that the defendant failed to disclose the total amount payable under the lease and the term for officials fees, registration, certificate of title and the like, and failed to disclose the total amount of other charges not included in the periodic payments; that it failed to disclose the type and amount of insurance coverage required; that it failed to disclose express warranties or guarantees; that it failed to identify the party responsible for maintaining or servicing the leased property; that it failed to describe any security interest held or to be retained by the lessor appropriately; that it failed to disclose delinquency penalties or late payment charges; that it failed to disclose any option which the plaintiff would have in purchasing the property and under what circumstances; and that it failed to disclose the conditions under which the lessee or lessor could terminate the lease prior to the end of the term.

In all of the evidence presented in this case, I find nothing to give credible support to the charges made by the plaintiff. Since this is a lease contract it comes under Part-E Consumer Leases (New), § 1667a, where the law requires that the lessor shall give the lessee, prior to the consummation of the lease, a dated written statement on which the lessor and lessee are identified setting out accurately in a clear and conspicuous manner the following points:

1. A brief description and identification of the leased property;

2. The amount of any payment by the lessee required at the inception of the lease;

3. The amount payable by lessee for fees, registration, certificate of title, or license fees or taxes;

4. The amount of other charges payable by lessee not included in the periodic payments;

5. A statement of the amount or method of determining the amount of any liabilities the lease imposes upon the lessee at the end of the term and whether or not the lessee has the option to purchase the leased property and at what price and time;

6. A statement relating to all express warranties and guarantees;

7. A description of insurance and payments required;

8. A description of security interest retained by lessor with identification of property;

9. The number, amount and due dates or periods of payments under the lease and total amount of such periodic payments;

10. The lessee's liability for anticipating fair market value; and

11. A statement of conditions for termination of the lease.

The answers for the most part to the plaintiff's contentions appear in Plaintiff's Exhibit 1 and Defendant's Exhibit A, which disclose:

The number, amount and due dates of payments scheduled under the lease and the total amount of such payments are found in paragraphs six, twelve, nineteen and twenty-one of Plaintiff's Exhibit 1 and Defendant's Exhibit A;

The total amount payable by the lessee for official fees, registration, certificate of title, or license fees is found in paragraphs fifteen, seventeen and twenty-six The total amount of all other charges are found in paragraph entitled "Summary of Monthly Charges";

The type and amount of insurance coverage is found in the paragraph entitled "Description of Insurance Coverage Obtained by Lessee" and in paragraph twenty-four.

Express warranties are discussed in paragraph thirty-five.

The identification of the party responsible for maintaining the lease property is found in paragraph twenty-five.

The description of any security interest is found in the actual description of the automobile on the top portion of side one. The consequences for default or late payment are found in paragraphs twenty-two and thirty-two;

The option to purchase the leased property is found in paragraph thirty by way of construction; and

The conditions under which the lessee or the lessor may terminate the lease prior to the end of the lease term are found in paragraph thirty-one.

During the hearing, the defendant offered testimony showing that the Defendant's Exhibit A, which is a copy of the Plaintiff's Exhibit 1, the "Non-Maintenance Lease Agreement" was a document the plaintiff signed approximately one week following the original agreement. It was the plaintiff who neglected to initial the insurance section of the "Non-Maintenance Lease Agreement". However, the number of months, being 24, was left blank. But to these two errors, if errors they be, the plaintiff does not object to their substance but only to the form of late completion. The plaintiff, at the time of leasing and accepting possession before...