132 So. 3d 1009
La. Ct. App.2014Background
- Wilks purchased a 2003 Pontiac Grand Am GT for $4,958 (with trade-in Lincoln LS for $3,250 and $1,745 paid by check; total $5,003).
- Ramsey Auto represented the car as inspected and in good condition; Wilks was told it was purchased “as is” with no warranty.
- Car developed immediate coolant issues; Wilks repeatedly sought repairs over about a year, totaling ~15,000 miles driven.
- Dealership mechanics initially found no leak; multiple repairs failed to resolve overheating and gasket leak.
- Trial court found redhibitory defects, rejected the waiver of warranty, and awarded rescission plus damages ($7,000) and $2,500 attorney fees.
- Appellate court amended damages to $5,003 (purchase price plus expenses) and awarded an additional $1,500 in attorney fees for the appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are there redhibitory defects in the vehicle? | Wilks asserts defects existed at sale; car unusable for transportation. | Ramsey Auto contends defects were normal wear or caused by operation; waiver precludes redhibition. | Yes; defects existed making car unusable; redhibition supported. |
| Was there a valid waiver of warranty? | Waiver ineffective due to lack of clear language and seller assurances. | As-is language and waiver language satisfied statutory requirements. | Waiver ineffective; implied warranty due to redhibitory defects remains. |
| What damages are recoverable on rescission? | Damages include purchase price and related losses. | Damages should be limited to purchase price plus use value as allowed by statutes. | Damages reduced to $5,003 (purchase price) plus reasonable expenses. |
| Are attorney fees appropriate on appeal? | Need fees for successful appeal. | Attorney fees should align with trial outcomes. | Award of $1,500 for appellate attorney fees upheld. |
| Is Ramsey Auto's exception of no cause of action meritorious? | Statutory redhibition claim exists under La. R.S. 32:783(F). | Waiver language complies with statute and bars remedy. | Exception denied; redhibition claim sustained. |
Key Cases Cited
- Gaston v. Bobby Johnson Equip. Co., Inc., 771 So.2d 848 (La.App.2d Cir. 2000) (proof of redhibitory defect may be direct or circumstantial)
- Berney v. Rountree Olds-Cadillac Co., Inc., 763 So.2d 799 (La.App.2d Cir. 2000) (burden to prove defect exists at sale; use of implied warranty)
- Royal v. Cook, 984 So.2d 156 (La.App.4th Cir. 2008) (waiver language must clearly and unambiguously curtail warranties)
- Young v. Ford Motor Co., 595 So.2d 1123 (La.1992) (buyer need not know exact defect; must prove actual defect)
- Ross v. Premier Imports, 704 So.2d 17 (La.App.1st Cir. 1997) (as-is sale does not automatically bar implied warranties)
- Ford New Holland Credit Co. v. McManus, 833 So.2d 1130 (La.App.2d Cir. 2002) (waiver can be undermined by seller misrepresentation)