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Consumer Law
Song-Beverly Act
Fraud and Misrepresentation

Dwight D. Brown v. Edgewater Powerboats LLC

Published: Jan. 5, 2008 | Result Date: May 23, 2007 | Filing Date: Jan. 1, 1900 |

Case number: GIC857249 Verdict –  $457,000

Court

San Diego Superior


Attorneys

Plaintiff

Ira James Harris


Defendant

Mark S. Bagula

Timothy D. Lucas
(Thomas Lucas)

Stephen D. Lucas
(Lucas & Haverkamp Law Firm APC)

Teresa A. Powell


Experts

Plaintiff

Robert Bornholdt
(technical)

Conrad Christensen
(technical)

Defendant

Todd Schwede
(technical)

Gordon E. Lakso
(technical)

Facts

On Sept. 29, 2004, plaintiff Dwight Brown purchased a boat manufactured by defendant Edgewater Powerboats LLC (Edgewater) from defendant Boat Depot Inc. for $62,441. Plaintiff alleged that Edgewater had failed during the manufacture of the vessel, which took place during three hurricanes hitting Florida in Summer of 2004, to install a locking or retaining nut on the livewell through hull fitting. Plaintiff alleged that this allowed water to seep into the bilge of the boat, and caused the bilge pumps to eventually burn out and fail while Mr. Brown was six miles out to sea on two separate occasions.

Plaintiff claimed that while Boat Depot attempted a repair of the boat after the first incident, neither Boat Depot or Edgewater made any attempt to investigate or repair the vessel after the second. Brown sued for fraud, negligence, and violation of the Song-Beverly Consumer Warranty Act. He settled with Boat Depot for $150,000 before trial.

Contentions

PLAINTIFF'S CONTENTIONS:
Plaintiff contended the boat made strange noises and took on large quantities of water on several occasions. The first repair was unsuccessful and defendant rejected plaintiff's subsequent requests for a refund.

DEFENDANT'S CONTENTIONS:
Defendant contended plaintiff caused the damage by neglecting to ensure the trolling motor control switch was attached to the Velcro attachment point. Boat Depot contributed to the damage by ignoring the manufacturer's recommendations and installing the switch in the wrong place.

Damages

Plaintiff sought $154,570-$306,270 in lost use, $58,873 for the cost of the boat, $3,569 in upgrades, and $6,836 for incidental damages.

Result

Plaintiff was awarded $457,000: $174,000 violation of the Song-Beverly Consumer Warranty Act (Act), reduced by $18,500 for plaintiff's usage; $240,500 civil penalty for willful violation of the Act; $5,000 negligence; $20,000 violation of warranties; $18,500 violation of Consumer Legal Remedies Act; $10,000 additional damages; $7,500 for five percent of Boat Depot settlement. The court reduced the award by the allocated settlement with Boat Depot: $10,000 for the value of the boat and $90,000 for the loss of use. It awarded $38,461 in costs and $305,935 in attorney fees, offset by $50,000 in costs and fees from the settlement. The court entered a total judgment of $651,396.

Other Information

FILING DATE: Nov. 18, 2005.


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