135 A.3d 819
Me.2016Background
- Darling’s Auto Mall, a General Motors (GM) franchisee, performed warranty repairs and sought reimbursement from GM under their Dealer Sales and Service Agreement and Maine’s Dealers Act (10 M.R.S. § 1176).
- Section 1176 requires franchisors to reimburse franchisees for parts at the retail rate customarily charged; Darling’s has an established parts markup of 91.7%.
- Dispute: whether “core” (exchange) charges must be reimbursed by GM at the 91.7% markup. Core charges are separately stated, refunded when defective cores are returned, and not actually borne by nonwarranty customers at Darling’s.
- Darling’s won in District Court, which ordered GM to reimburse core charges at the markup; GM appealed and obtained a jury trial de novo in Superior Court.
- At trial the jury found the price Darling’s paid for parts excluded the core charge; the Superior Court entered judgment for GM. Darling’s moved for judgment as a matter of law, which the court denied; Darling’s appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether court erred in granting a jury trial de novo | Granting jury was improper because invoice total undisputed | Grant was proper due to genuine factual dispute about whether core was included in price | Not reviewable as interlocutory here; verdict reviewable instead |
| Whether as a matter of law core charges must be reimbursed at 91.7% markup under §1176 | §1176 has no exception; core charges are part of "parts" and must be marked up | Statute silent on cores; factual inquiry required about how cores factor into price and industry practice | Denied — reasonable view of evidence supports jury finding that cores were excluded |
| Whether jury instructions should have referenced §1176 or its legislative history | Jury should be instructed on §1176 so jury can decide statutory requirement for cores | Statutory interpretation is for courts, not juries; proposed instruction was argumentative and confusing | Denied — trial court properly refused statutory instruction and gave permissible instructions |
| Whether denial of motion for judgment as a matter of law was erroneous | Judgment as a matter of law required because statute is plain and mandates markup | Evidence and reasonable inferences permitted a contrary factual finding; jury verdict supported | Denied — review de novo but verdict supported by evidence |
Key Cases Cited
- State v. Diana, 89 A.3d 132 (Me. 2014) (standard for viewing facts in light most favorable to verdict)
- Goodell v. Andy’s Barn, 518 A.2d 719 (Me. 1986) (analogy between jury-trial-de-novo determinations and summary judgment)
- Johnson v. Jones, 515 U.S. 304 (U.S. 1995) (interlocutory appeals not appropriate from determinations that factual disputes remain)
- Russell v. ExpressJet Airlines, Inc., 32 A.3d 1030 (Me. 2011) (standard of review for denial of judgment as a matter of law)
- State v. Tucker, 117 A.3d 595 (Me. 2015) (review of jury instructions for prejudicial error)
- State v. Hanaman, 38 A.3d 1278 (Me. 2012) (requirements for vacating judgment based on refused instruction)
