Anderson v. Gulf Stream Coach, Inc.
662 F.3d 775
| 7th Cir. | 2011Background
- In Aug 2008, Andersons ordered a 2009 Gulf Stream Tourmaster from Royal Gorge; vehicle later delivered with alleged defects.
- MCO and related documents listed 360 HP engine; some consumer-facing docs and the website stated 425 HP as standard for 2009 models.
- Andersons reported multiple defects and pursued repairs under Gulf Stream's Limited Warranty; Gulf Stream and dealer engaged in extensive warranty remediation efforts.
- January 23, 2009 letter from Andersons alleged misrepresentation of engine horsepower and requested cure; Gulf Stream offered to repair or extend warranty in March 2009.
- Tourmaster chassis was manufactured in 2007 (two-stage process); final designation as a 2009 model year was assigned when sold, though production occurred in 2007–2008; FTC consent regimes govern model-year designation for multi-stage vehicles.
- District court granted summary judgment against Andersons on all claims; on appeal, Seventh Circuit reversed in part, holding questions of cure, model-year designation, and implied warranties survive for some claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Andersons gave Gulf Stream a reasonable opportunity to cure | Andersons gave timely, repeated cure opportunities under warranty terms. | Any cure opportunities were not reasonable; timing and conduct failed to meet requirements. | Gulf Stream did not establish as a matter of law that cure opportunity was lacking; genuine questions of fact remain. |
| Whether implied warranty of merchantability claim survives | Implied warranty covers merchantability; defects render the RV unfit for ordinary use. | Implied warranty properly limited or disclaimed per MMWA provisions; examination showed latent/patent issues. | Andersons may proceed on implied warranty of merchantability; issues of defect type (latent vs patent) for jury to resolve. |
| Whether Gulf Stream could designate the Tourmaster as a 2009 model year under IDCSA | Designation misled consumers; violates IDCSA by misrepresenting standard/quality of the vehicle. | Model-year designation permitted by federal regulations for multi-stage vehicles; not deceptive. | Regulations do not support designating the 2007 chassis-based Tourmaster as a 2009 model; disputed facts remain on disclosures. |
| Whether IDCSA uncured/deceptive-act theory and fraud claims survive | Gulf Stream's representations and nondisclosures show intent to deceive; uncured acts warranted. | Disclosures to maintain compliance; absence of intent to deceive undermines these claims. | Summary judgment proper for fraud and incurable-deceptive-act claims; insufficient proof of intent to deceive. |
Key Cases Cited
- Agrarian Grain Co., Inc. v. Meeker, 526 N.E.2d 1189 (Ind. Ct. App. 1988) (notice may be satisfied by actual knowledge of defects)
- McClure Oil Corp. v. Murray Equip., Inc., 515 N.E.2d 546 (Ind. Ct. App. 1987) (notice sufficiency principle informing seller of problems)
- Aamco Transmission v. Air Sys., Inc., 459 N.E.2d 1215 (Ind. Ct. App. 1984) (opportunity to remedy defects may be required by warranty terms)
- Hahn v. Ford Motor Co., Inc., 434 N.E.2d 943 (Ind. Ct. App. 1982) (distinction between remedy limitations and disclaims under MMWA)
- Mack Trucks, Inc., 94 F.T.C. 236 (FTC 1979) (consent agreements regarding model-year designations for incomplete vehicles)
- Jones v. Abriani, 350 N.E.2d 635 (Ind. App. 1976) (illustrative of implied warranty considerations in manufactured goods)