859 N.W.2d 451
Wis. Ct. App.2014Background
- Mueller bought a 1995 Mercedes-Benz from Kaufmann for $16,021.89, relying on a Buyers' Guide and salesman statements that the car was in good/legal condition. She alleged multiple defects (oil/fuel leaks, duct-taped fuel filler pipe, defective rear seatbelt buckles).
- She reported problems immediately; Kaufmann gave a written promise to repair certain items, but Mueller did not bring the car in for repairs and the car was later parked.
- Mueller sued under Wis. Stat. § 100.18 (Deceptive Trade Practices), Wis. Stat. § 218.0116(l)(f), and common-law intentional misrepresentation seeking damages, rescission or refund of the purchase price, and fees.
- At trial the court limited the disputed misrepresentations to three issues (fuel system, seatbelts, leaks) and excluded Mueller's testimony about what the car was "worth to her," permitting only testimony about what she might get if she sold it.
- The trial court directed a verdict for Kaufmann, ruling Mueller presented no evidence of "pecuniary loss" under §100.18 (construed as benefit-of-the-bargain damages) and that alleged misrepresentations were not material for rescission on the intentional-misrepresentation claim.
- On appeal the court reversed and remanded, holding §100.18 can allow monetary recovery up to full purchase price (but not rescission), that rescission remains available for material intentional misrepresentation, and that the trial court erred in excluding Mueller's testimony about value to her.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Wis. Stat. §100.18 permits rescission or a refund of purchase price | Mueller: §100.18 allows recovery of pecuniary loss including refund of full purchase price (and she sought rescission/refund) | Kaufmann: recovery under §100.18 limited to benefit-of-the-bargain (repair costs or diminution in value); rescission not available | §100.18 permits monetary recovery including full refund in some cases, but does not permit non-monetary rescission; reversed as to availability of refund remedy |
| Meaning of "pecuniary loss" under §100.18 (scope of damages) | Mueller: "pecuniary loss" is broad and includes full purchase-price refund | Kaufmann: "pecuniary loss" limited to benefit-of-the-bargain damages | Court: plain meaning includes any monetary loss (costs of repair, diminution, or full refund) — not limited to benefit-of-the-bargain |
| Admissibility of owner's testimony about value to owner | Mueller: owner may testify that the car was worth nothing to her; that plus purchase price can establish damages | Kaufmann: such subjective testimony is unreliable; court limited owner testimony to objective resale value | Court: trial court erred in excluding Mueller's testimony about the car's value to her; owner testimony on value is admissible and weight is for the jury |
| Availability of rescission for intentional misrepresentation and materiality standard | Mueller: rescission is an available equitable remedy when misrepresentation is material | Kaufmann: defects were minor; rescission inappropriate absent total breach or proof vehicle was worth nothing | Court: rescission remains available for intentional misrepresentation when misrepresentation is "material"; materiality is a jury question, so dismissal on that ground was error |
Key Cases Cited
- Kalal v. Circuit Court for Dane County, 271 Wis. 2d 633 (statutory interpretation principles)
- K & S Tool & Die Corp. v. Perfection Mach. Sales, Inc., 301 Wis. 2d 109 (purpose of §100.18 and support for full-purchase-price recovery)
- Benkoski v. Flood, 242 Wis. 2d 652 (availability of full-purchase-price refund under related unfair-practice statute)
- Ollerman v. O'Rourke Co., 94 Wis. 2d 17 (benefit-of-the-bargain damages defined)
- D'Huyvetter v. A.O. Smith Harvestore Prods., 164 Wis. 2d 306 (non-expert owner may testify that property was worth nothing; sufficed to prove damages)
- Bank of Sun Prairie v. Esser, 155 Wis. 2d 724 (rescission available for fraud/misrepresentation when misrepresentation is material)