177 Conn. App. 423
Conn. App. Ct.2017Background
- McLeod bought a 2008 Saab from A Better Way Wholesale Autos; purchase documents inconsistently recorded odometer readings and the statutorily required 60‑day/3000‑mile express warranty was issued without a contemporaneous odometer entry.
- After mechanical failure in December 2012, the dealer disputed coverage as the car allegedly exceeded the 3000‑mile warranty limit; McLeod sought repairs, revoked acceptance, and sued claiming (inter alia) breach of implied warranty, a Magnuson‑Moss Act violation, breach of the express statutory warranty, common‑law fraud, revocation of acceptance, and CUTPA violation.
- At the close of McLeod’s case the trial court granted defendant’s Practice Book § 15‑8 motion and dismissed counts 1 (implied warranty), 5 (revocation), and 6 (CUTPA), but allowed counts 2, 3, and 4 to proceed; the dealer then presented evidence.
- In its final memorandum of decision the trial court found for McLeod on counts 1–4, awarding $5,435 actual damages, $15,000 punitive damages, and $7,045.35 attorney’s fees (fees were awarded under the Magnuson‑Moss count).
- On appeal the dealer challenged (1) the trial court’s post‑dismissal judgment on count 1; (2) the Magnuson‑Moss ruling (count 2) tied to the dismissed implied‑warranty claim; (3) the award of attorney’s fees; (4) sufficiency of the fraud finding; and (5) punitive damages amount. The appellate court vacated or reversed parts of the judgment and remanded for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| 1. Trial court rendered judgment on a previously dismissed implied‑warranty count | McLeod relied on the court’s later factual findings to sustain liability on count 1 | Court had dismissed count 1 at close of plaintiff’s case; later merits ruling cannot revive it without reopening | Reversed/vacated as to count 1 — court lacked authority to decide a count previously dismissed absent reopening on record; judgment vacated on that count |
| 2. Magnuson‑Moss Act liability (count 2) premised on implied warranty | McLeod argued Magnuson‑Moss claim went “hand in hand” with warranty claims and is supported by court’s warranty findings | Dealer argued count 2 was pleaded as tied to implied‑warranty (count 1), which was dismissed, so Magnuson‑Moss cannot stand | Reversed as to count 2 — Magnuson‑Moss claim was pleaded based on the implied warranty dismissed at trial; trial court cannot sustain it (and plaintiff did not plead a Magnuson‑Moss claim based on express warranty) |
| 3. Award of attorney’s fees (tied to Magnuson‑Moss) | McLeod sought fees under Magnuson‑Moss statutory authorization | Dealer argued American Rule bars fees absent statutory/contractual basis; here Magnuson‑Moss basis collapses with reversal of count 2 | Reversed — fee award vacated because it was awarded under count 2 (now reversed) and no other viable statutory/contractual basis was shown |
| 4. Fraud finding and punitive damages | McLeod argued dealership deliberately misrecorded odometer readings, inducing purchase and denying warranty; punitive damages represent litigation expenses | Dealer contended fraud not proven by clear and convincing evidence and punitive award unsupported by evidence of litigation expenses | Fraud finding affirmed — appellate court found clear‑and‑convincing support for deliberate misrecording and inducement. Punitive damages vacated and remanded for new damages hearing because court gave no factual basis and record lacked evidence of total litigation expenses |
Key Cases Cited
- Gambardella v. Apple Health Care, Inc., 86 Conn. App. 842, 863 A.2d 735 (Conn. App. 2005) (standard for granting judgment of dismissal under Practice Book § 15‑8 requires plaintiff to have failed to make out a prima facie case)
- Sanzo v. Sanzo, 137 Conn. App. 216, 48 A.3d 689 (Conn. App. 2012) (court may correct clerical errors or clarify ambiguous judgments)
- Carabetta v. Carabetta, 133 Conn. App. 732, 38 A.3d 163 (Conn. App. 2012) (court may open a judgment but generally does so only upon motion)
- Clemens v. DaimlerChrysler Corp., 534 F.3d 1017 (9th Cir. 2008) (Magnuson‑Moss claims based on state law warranties ‘‘stand or fall’’ with those state warranty claims)
- ACMAT Corp. v. Greater New York Mut. Ins. Co., 282 Conn. 576, 923 A.2d 697 (Conn. 2007) (statement of the American Rule: attorney’s fees are not recoverable absent statutory or contractual exception)
- Leonard v. Commissioner of Revenue Services, 264 Conn. 286, 823 A.2d 1184 (Conn. 2003) (elements of common‑law fraud)
- Paranteau v. DeVita, 208 Conn. 515, 544 A.2d 634 (Conn. 1988) (finality of judgment on the merits for appeal purposes even when attorney’s fees remain to be determined)