Superior Court Rules That Philadelphia Dealership Committed
Unfair Trade Practices
PHILADELPHIA, July 16 Nearly two years after Philadelphia
Common Pleas Judge Carolyn E. Temin ruled that Gary Barbera's Chryslerland had
committed unfair trade practices, the Superior Court of Pennsylvania affirmed
the judgment, ordering the dealership to pay $38,484.40 in damages to
Philadelphia police officer Jeffrey Hannan, plus all attorneys' fees and legal
costs. Consumer advocate and attorney Craig Thor Kimmel, of the Ambler-based
law firm of Kimmel and Silverman, P.C., represented Hannan.
The Court also ruled that Hannan could keep the 1995 Used Mazda Millennia
at the center of this case. The car, which the dealership represented as
being in excellent condition with no history of repairs or accidents, had
actually gone through three transmission replacements, three engine
replacements, and at least one automobile accident before the dealership sold
it on their lot in July 1997. Hannan purchased the car, along with an
extended warranty, for $19,242.20.
Two weeks after the purchase, Hannan's transmission began to slip when
shifting into second gear. The transmission was still under warranty and
Hannan took the car to an authorized Mazda dealership, which replaced the
transmission. But the problem recurred over the eight months that followed,
resulting in additional repairs to the brakes, power steering, water pump,
radiator hose, and motor mount. While at the authorized Mazda dealership,
Hannan learned that the car had a significant repair history pre-dating his
purchase, including three transmission replacements and three engine
replacements. Hannan obtained invoices for these prior repairs.
Hannan later obtained documents from the Pennsylvania Department of
Transportation, which revealed that the car was turned in early from its lease
to Gary Barbera's Chryslerland and was then sent to George Yelland & Company,
a wholesale auction house based in Delran, NJ. According to documents dated
May 14, 1997, Yelland performed body work and other repairs on several
sections of the vehicle, including the left rear quarter, the right front
bumper and the front cover. Parts of the car were aligned, adjusted, painted
and blended. Despite these repairs, Yelland was unsuccessful in selling the
vehicle so they returned the car to Gary Barbera's Chryslerland, who sold the
car to Hannan. Because Hannan was color-blind, he did not notice that the car
had been repainted and blended.
After finding out the information about the vehicle, Hannan returned to
the dealership and asked for a refund or another vehicle of the same kind.
The dealership refused to help him, saying, "we don't work that way." Hannan
obtained representation and filed his case in February 1998. Pursuant to the
lawsuit, an expert mechanic found that several parts of the car didn't fit
together and there were three different colors of paint on the body. In
addition, a road test indicated that the engine mount was in need of
replacement and would prevent the vehicle from passing state inspection.
Furthermore, the mechanic testified that the repair history, coupled with the
fact that the car had been in an accident, would greatly affect the value of
the car. In this condition, the car was worth approximately $14,625, nearly
$5000 less than what Hannan paid.
In August 1999, Judge Carolyn E. Temin of the Court of Common Pleas in
Philadelphia County, ruled in Hannan's favor. In her ruling, Judge Temin
stated that Gary Barbera's Chryslerland breached the implied warranties of
merchantability and suitability for purpose. Specifically, the Court found
that the dealership had misrepresented the vehicle's history in the sales
presentation to Hannan and that the defendant's conduct was "outrageous,
intentionally and maliciously misleading and in total disregard of the
requirements of the law." The Court then awarded double damages to Hannan,
totaling more than $38,000, in addition to $10,000 in counsel fees. The
dealership appealed that ruling.
The Superior Court affirmed Judge Temin's ruling, finding that Gary
Barbera's Chryslerland breached the PA Automotive Trade Practices Regulation
section 301.4 subsection 9. Despite the fact that the dealership sold the car
"as is," they did not use the exact language specified in the statute. The
Court ruled that the "as is" provision used by the dealership was insufficient
to disclaim implied warranties under state law. Furthermore, the Court ruled
that the dealership was solely responsible for misrepresenting the car's value
and condition.
"This is a moral victory," Hannan said. "The way they sold me the car was
dishonest and I hope that this ruling will help to get the word out."
"This is a tremendous victory for Officer Hannan and for Pennsylvania
consumers," says attorney Kimmel. "This judgment reaffirms the fact the
dealerships should be held responsible if they make misrepresentations to the
consumer."
Attorney Kimmel advises consumers looking to purchase used cars to take
three very important steps prior to signing any papers. "It is important to
go on-line to obtain an auto history to make sure the car has not been
salvaged, flooded or titled as a lemon buyback. Also, hire an outside
mechanic to examine the car prior to purchase and obtain a warranty repair
history from an authorized dealership of the manufacturer. These three steps
will ensure that your dream car was never someone else's nightmare."
For more information on Kimmel and Silverman, P.C., please visit the
firm's website at http://www.lemonlaw.com.
All statements made in this press release were based on court papers dated
August 12, 1999 and the Superior Court ruling dated July 10, 2001.