Facts

Colleen Ruiz purchased a vehicle from Iman Goddousi d/b/a Seven Valleys Motors. Ruiz paid $6,000 and agreed to pay $1,234 the next month. The purchase agreement provided that the car's engine and transmission system were covered by a 30-day warranty. Goddousi would pay for half of any repairs required during the warranty period. Eleven days after purchase, the clutch exploded, sending pieces through the bell housing and into the hood, requiring a new transmission. The repair cost $3,837, but Goddousi refused to pay the $1,919, representing half of the bill. Ruiz never paid Goddousi the outstanding $1,234 because he never honored the warranty. A year and half later, on Christmas day, Ruiz discovered that Goddousi had repossessed the car. He presented her with a bill for the outstanding $1,234, plus 19 months of five percent late fees for her default. Ruiz filed suit.

Plaintiff's complaint contained six causes of action, 1. Violation of Consumers Legal Protection Act, 2. Song Beverly express warranty, 3. Breach of implied warranty, 4. Intentional misrepresentation, 5. Negligent misrepresentation, 6. Conversion. Plaintiff also sought punitive damages. The jury found for plaintiff only on count two.

PLAINTIFF'S CONTENTIONS:
Plaintiff alleged conversion and breach of the Song-Beverly Consumer Warranty Act. She called the service manager at the dealership that repaired the car to testify that the damage to the transmission was not due to misuse and called Mark Lassagne to testify that the clutch was defective and was part of the transmission system. She asserted that there were no exclusions for clutches in the warranty, and that defendant was liable for half the cost of repairs. Further, she contended, even if she was in default the purchase agreement stipulated to only one 5 percent late fee, and that defendant had wrongfully compounded the one-time late fee 19 times.

DEFENDANT'S CONTENTIONS:
Defendant claimed that the clutch was not part of the transmission or engine assembly. Defendant presented an expert with over 50 years experience who testified the clutch is a separate system, not part of the transmission. He also stated that the only way the clutch could have exploded in such a violent manner is if the vehicle was being misused.

Settlement Discussions

Plaintiff demanded the value of the car and $1,919 for the cost of repair on the transmission plus attorney fees. Defendant offered to return the car, as-is.

Damages

Plaintiff sought $1,919 for half the cost of repairs of the transmission. she also claimed defendant's failure to honor the warranty was a willful breach of warranty, and sought to treble her damages. Finally, she requested damages for the full value of the car on the day it was repossessed, plus interest, and punitive damages for conversion.

Result

The jury found defendant liable for a willful breach of warranty and awarded $5,756 in damages. They found for the defendant on the conversion allegation.

Other Information

Plaintiff moved for a judgment not withstanding the verdict on the conversion allegation. The conversion claim was granted as a matter of law, and a new trial is scheduled to determine damages for conversion, with a motion for attorney's fees to follow.

Deliberation

three hours

Poll

12-0

Length

four days