Shaw v. CTVT Motors, Inc.
300 P.3d 907
Ariz. Ct. App.2013Background
- Shaws contracted CTVT Motors for hail-damage repairs to their vehicle; CTVT represented it could complete repairs competently and timely but needed parts first.
- Parts arrived in early November 2010; CTVT repeatedly told Shaws repairs would be finished in a few days.
- In December 2010 the Shaws retrieved their car; on driving it to California, it malfunctioned; a Phoenix shop found repair work was not done properly.
- May 2011 Shaws sued in superior court asserting CFA misrepresentations in selling services, seeking damages including loss of vehicle value, use, and re-repair costs.
- CTVT moved for judgment on the pleadings under Rule 12(c), arguing CFA claims were barred by the economic loss rule since the Shaws alleged no non-economic damages.
- Superior court granted the motion, dismissing the CFA claim, leading to the Shaws’ appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the economic loss rule bars CFA claims. | Shaws rely on CFA to remedy deceptive practices, not contract terms. | CTVT argues economic loss rule bars CFA since only contract remedies available. | Economic loss rule does not apply to CFA claims. |
Key Cases Cited
- Salt River Project Agricultural Improvement & Power Dist. v. Westinghouse Electric Corp., 143 Ariz. 368 (Ariz. 1984) (economic loss rule applies to purely economic loss in strict-liability contexts)
- Flagstaff Affordable Housing Ltd. Partnership v. Design Alliance, Inc., 223 Ariz. 320 (Ariz. 2010) (limits on contract remedies absent injury to persons or property in construction defects)
- Sellinger v. Freeway Mobile Home Sales, Inc., 110 Ariz. 573 (Ariz. 1974) (private CFA remedy acknowledged to counteract unfair practices)
- Madsen v. W. Am. Mortg. Co., 143 Ariz. 614 (Ariz. App. 1985) (CFA remedial, broad purposes; private remedy recognized)
- Cook v. Orkin Exterminating Co., 258 P.3d 149 (Ariz. App. 2011) (applied or discussed economic loss rule in context of fraud/contract remedies)
