This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.
Facts
The plaintiffs purchased a 1985 Buick Riviera from the defendant, Basin Motor Company, which was sold as a "new demonstrator." Later, they discovered the car had been in an accident and repaired prior to the sale. The plaintiffs alleged that the defendant failed to disclose the repairs and misrepresented the car's condition, leading to financial losses (paras 2-3).
Procedural History
- Trial court: Found in favor of the plaintiffs, holding that Basin Motor violated the Unfair Trade Practices Act by failing to disclose the repairs. The court awarded damages, trebled under the Act, and attorney fees. It rejected claims for common-law fraud and punitive damages (paras 4-5).
Parties' Submissions
- Defendant (Basin Motor Company): Argued that it did not violate the Unfair Trade Practices Act, that damages were improperly calculated, that trebling damages was inapplicable retroactively, and that certain costs were improperly awarded (para 5).
- Plaintiffs (Hales): Contended that the trial court used the wrong measure of damages, erred in excluding common-law fraud and punitive damages, and failed to award costs for "lost paid vacation time." They also sought attorney fees and costs on appeal (para 5).
Legal Issues
- Did the defendant violate the Unfair Trade Practices Act by failing to disclose the car's prior repairs?
- Was the trial court's calculation of damages correct?
- Was the trebling of damages under the 1987 amendment to the Unfair Trade Practices Act applicable retroactively?
- Were the plaintiffs entitled to punitive damages for common-law fraud in addition to treble damages?
- Were the plaintiffs entitled to attorney fees and costs on appeal?
Disposition
- The Supreme Court affirmed the finding of a violation of the Unfair Trade Practices Act but reversed the damages award and remanded for recalculation.
- The court held that treble damages under the 1987 amendment applied retroactively.
- The court directed the trial court to reconsider the issue of common-law fraud and punitive damages.
- The plaintiffs were awarded attorney fees for the appeal (paras 28-29).
Reasons
Per Ransom J. (Sosa CJ. and Montgomery J. concurring):
Violation of the Unfair Trade Practices Act: The court found substantial evidence that the defendant violated Section 57-12-6(B) by failing to disclose the car's repairs through an affidavit. However, it rejected the claim under Section 57-12-2(D)(6), as the car was not misrepresented as "new" in the statutory sense (paras 6-11).
Damages Calculation: The trial court erred in its measure of damages. The correct measure was the cost of repairs ($840), as it was less than the diminution in value caused by the undisclosed damage (paras 13-16).
Treble Damages: The 1987 amendment allowing treble damages was deemed remedial and applied retroactively. The court reasoned that the amendment did not create new substantive rights but provided an additional remedy for existing rights (paras 17-18).
Common-Law Fraud and Punitive Damages: The trial court incorrectly concluded that treble damages precluded punitive damages for fraud. On remand, the trial court must determine whether fraud was proven and, if so, allow the plaintiffs to elect between treble damages and punitive damages (paras 19-22).
Attorney Fees and Costs on Appeal: The court held that the statutory provision for attorney fees under the Unfair Trade Practices Act extended to appeals, as it aligned with the Act's purpose of incentivizing private enforcement of consumer protection laws (paras 26-27).
Special Concurrence by Montgomery J.:
- Justice Montgomery agreed with the majority but criticized the reliance on the "substantive vs. remedial" distinction for retroactivity. Instead, he emphasized the legislative purpose of the treble damages provision, which incentivizes enforcement and deters unfair practices. He also expressed reservations about compensating "lost paid vacation time" as damages (paras 30-33).