247 Conn. 274 | Conn. | 1998
Opinion
The sole issue in this appeal is whether the Connecticut “lemon law,” General Statutes §§ 42-179 through 42-186,
The arbitration panel to which the matter had been referred subsequent to the defendant having instituted an arbitration proceeding pursuant to General Statutes § 42-181 reasonably could have found the following facts. On October 26, 1996, the defendant purchased a new Chevrolet S-10 pickup truck (truck) from Maritime Motors (Maritime),
Maritime subsequently suggested two other possible methods of curing the defects in the paint: (1) wet sanding and (2) repainting the affected areas of the truck. The defendant, however, rejected these suggestions because he believed that both wet sanding and repainting would remove the truck’s original factory finish. In the defendant’s view, the factory process produces a paint finish superior to that of a body shop. As a result, he informed Maritime that he would not accept any repairs that would remove or alter the factory finish of the truck. Because both of the suggested repairs involved processes that would alter the truck’s original factory finish, the defendant refused to authorize additional repair attempts.
Thereafter, the defendant initiated an arbitration proceeding against the plaintiff pursuant to § 42-181.
The plaintiff filed a timely application in the Superior Court to vacate the arbitration award. See General Statutes § 52-418.
On appeal, the plaintiff claims that the trial court improperly affirmed the decision of the arbitration panel. Specifically, the plaintiff maintains that the record does not contain substantial evidence to support the arbitrators’ findings that: (1) the truck had been subject to a reasonable number of repair attempts, and (2) the defects in the paint substantially impaired the value of the truck to the defendant. See General Statutes § 42-179 (d) and (e).
Our analysis begins with a brief overview of Connecticut’s lemon law legislation. “In 1982, the Connecticut legislature enacted Public Acts 1982, No. 82-287 (Lemon Law I). That act is codified as General Statutes § 42-179. For consumer buyers of new motor vehicles, the act provides supplemental remedies of repair, replacement and refund to facilitate the enforcement of express warranties made by the manufacturers of such vehicles. These supplemental remedies come into play whenever a manufacturer or authorized dealer, after a reasonable number of repair attempts, is unable substantially to conform a new vehicle to the terms of the express warranty. . . .
“In 1984, the legislature enacted Public Acts 1984, No. 84-338 (Lemon Law II), now codified as General Statutes §§ 42-181 through 42-184. The purpose of Lemon Law II is to provide, for consumer purchasers of new motor vehicles, an alternative to civil litigation. The key provision is § 42-181, which authorizes the department of consumer protection to establish ‘an independent arbitration procedure for the settlement of disputes between consumers and manufacturers of motor vehicles which do not conform to all applicable warranties under the terms of section 42-179.’ ” Motor Vehicle Manufacturers Assn. of the United States, Inc. v. O’Neill, 203 Conn. 63, 70-71, 523 A.2d 486 (1987).
As a threshold matter, we note that judicial review of lemon law arbitration awards is governed by § 42-181 (c) (4), which provides in relevant part: “The court shall conduct a de novo review of the questions of law raised in the application. ... In reviewing questions of fact, the court shall uphold the award unless it determines that the factual findings of the arbitrators are not supported by substantial evidence in the record . . . .” Pursuant to this test, a reviewing court must
II
The plaintiff first claims that the record does not contain substantial evidence to support the arbitrators’
Section 42-179 provides in relevant part: “(d) If the manufacturer, or its agents or authorized dealers are unable to conform the motor vehicle to any applicable express warranty by repairing or correcting any defect or condition which substantially impairs the use, safety or value of the motor vehicle to the consumer after a reasonable number of [repair] attempts, the manufacturer shall replace the motor vehicle with a new motor vehicle acceptable to the consumer . . . . (e) It shall be presumed that a reasonable number of [repair] attempts have been undertaken . . . if . . . the same nonconformity has been subject to repair four or more times .... No claim shall be made under this section unless at least one attempt to repair a nonconformity has been made . . . .” (Emphasis added.)
When the lemon law was enacted in 1982, the precursor to § 42-179 (e) did not include the requirement that “[n]o claim shall be made under this section unless at least one attempt to repair a nonconformity has been made . . . .” See General Statutes (Rev. to 1983) § 42-179 (d). The legislature added that language in 1989, in
The arbitration panel acted within its discretion as a fact finder by crediting Carver’s testimony over that of the plaintiff. Chmielewski v. Aetna Casualty & Surety Co., supra, 218 Conn. 660-61 n.15; Connecticut Light & Power Co. v. Dept. of Public Utility Control, supra, 216 Conn. 640. Moreover, on the basis of Carver’s testimony, the arbitration panel reasonably could have concluded that the suggested additional repair attempts would not have produced a finish that met factory paint specifications. We conclude, therefore, that the record contains substantial evidence to support the panel’s conclusion that, under the circumstances, Maritime’s attempt to replace the truck’s hood constituted a reasonable number of repair attempts as required by § 42-179 (e).
Ill
The plaintiff next claims that the arbitrators improperly concluded that the paint defects substantially impaired the value of the truck to the defendant. Specifically, the plaintiff maintains that: (1) the standard for
A
Inteipretation of the phrase “substantially impairs the . . . value of the motor vehicle to the consumer” in § 42-179 (d) is a matter of statutory construction. “Statutory construction is a question of law and therefore our review is plenary. . . . [0]ur fundamental objective is to ascertain and give effect to the apparent intent of the legislature. ... In seeking to discern that intent, we look to the words of the statute itself, to the legislative history and circumstances surrounding its enactment, to the legislative policy it was designed to implement, and to its relationship to existing legislation and common law principles governing the same general subject matter.” (Citation omitted; internal quotation marks omitted.) Jupiter Realty Co. v. Board of Tax Review, 242 Conn. 363, 367-68, 698 A.2d 312 (1997); Ferrigno v. Cromwell Development Associates, supra, 244 Conn. 195.
Our analysis begins with the language of § 42-179 (d). Section 42-179 (d) provides in relevant part: “If the manufacturer, or its agents or authorized dealers are unable to conform the motor vehicle to any applicable express warranty by repairing or correcting any defect or condition which substantially impairs the . . . value of the motor vehicle to the consumer . . . the
Other language contained in § 42-179 (d), however, indicates that the standard for “substantial impairment” was intended to incorporate an objective component as well as a subjective component. Specifically, § 42-179 (d) provides that u[i]t shall be an affirmative defense to any claim under this section . . . that an alleged nonconformity does not substantially impair such . . . value . . . .” (Emphasis added.) The statutory provision that permits a manufacturer to show that the value of a vehicle has not, in fact, been substantially impaired, suggests that the subjective opinion of the consumer is not dispositive. If the standard were completely subjective, the manufacturer would almost never be able to prove lack of “substantial impairment,” and thus, the right to prove that the value of the vehicle had not been substantially impaired would be meaningless. “We presume that the legislature had a purpose for each sentence, clause or phrase in a legislative enactment, and that it did not intend to enact meaningless provisions. . . . Accordingly, care must be taken to effectuate all provisions of the statute.” (Citations omitted; internal quotation marks omitted.) Ferrigno v. Cromwell Development Associates, supra, 244 Conn. 196; State v. Szymkiewicz, 237 Conn. 613, 621, 678 A.2d 473 (1996); see State v. Spears, 234 Conn. 78, 93, 662 A.2d 80, cert. denied, 516 U.S. 1009, 116 S. Ct. 565, 133 L. Ed. 2d 490 (1995).
During the committee hearings on the revised bill, Representative John J. Woodcock, the bill’s sponsor, made two references to the addition of the “substantial impairment” language. 25 H.R. Proc., Pt. 10, 1982 Sess., pp. 3115-16. First, Representative Woodcock stated that the revised bill defined a nonconformity as “a defect or condition which substantially impairs the use of [sic] value of the motor vehicle.” Id., p. 3115. No mention was made of the effect of the impairment on the consumer, indicating that the term “substantial impairment” was not intended to be measured by a purely subjective standard. Second, Representative Woodcock stated that the issue of whether a nonconformity qualifies under the “substantial impairment” standard could be raised as an affirmative defense by the
Moreover, in the discussion of House Bill No. 5729 on the Senate floor, Senator Clifton A. Leonhardt remarked: “In my judgment, the genius of this bill is that it really takes [into account] the commonsense notion that a consumer should be able to return a lemon. I think we all know by commonsense what a lemon is . . . . So I really think the genius of this bill is to take the commonsense notion of fairness that [the consumer] shouldn’t be stuck with a lemon [and translate] that concept of a lemon into the precision of tort law.” (Emphasis added.) 25 S. Proc., Pt. 9, 1982 Sess., p. 2747. Senator Leonhardt’s remarks that the concept of “commonsense” underlies the definition of a lemon in House Bill No. 5729 manifests an intention to incorporate objective criteria into the determination of “substantial impairment.”
We note also that the phrase “substantially impairs the . . . value of the motor vehicle to the consumer” in § 42-179 (d) is analogous to aprovision of the Uniform Commercial Code. Specifically, in the related context of revocation of acceptance of goods pursuant to General Statutes § 42a-2-608, we previously have interpreted the phrase “[t]he buyer may revoke his acceptance of a lot . . . whose nonconformity substantially impairs its value to him . . . .” (Emphasis added.) See Web Press Services Corp. v. New London Motors, Inc., 203 Conn.
Finally, common sense dictates that the legislature did not intend § 42-179 to incorporate a purely subjective standard. Such a standard inevitably would lead to absurd results by requiring manufacturers to replace vehicles that had only trivial defects, a result that clearly undermines the spirit and purpose of the lemon law. See id., p. 236 (lemon law designed to afford consumers
We recognize that “the Lemon Law is a remedial statute that ought to be read broadly in favor of those consumers whom the law [was] designed to protect. But a recitation of that general principle merely begs the question of which consumers the Lemon Law was, in fact, designed to protect.” (Emphasis in original.) Cagiva North America v. Schenk, 239 Conn. 1, 14, 680 A.2d 964 (1996). Given the lemon law’s language, legislative history and close relationship to § 42a-2-608, we are not persuaded that its remedial purpose is broad enough to require a purely subjective standard for determining “substantial impairment.” We conclude, therefore, that under the lemon law the standard for determining whether a defect substantially impairs the use, safety or value of a motor vehicle to the consumer is both subjective and objective. The standard is subjective in that the fact finder first must examine the subjective desires, needs and circumstances of the particular consumer. In light of those desires, needs and circumstances, the fact finder then must make an objective determination as to whether the value of the motor vehicle to the consumer has, in fact, been substantially impaired. In making this determination, the fact finder must determine that the consumer’s subjective desires, needs and circumstances are reasonable.
B
Having articulated the standard for substantial impairment under the lemon law, we address the plaintiffs claim that the record does not contain substantial
During the arbitration hearing, the defendant testified that he takes great pride in the appearance of the vehicles that he owns and maintains the finish of those vehicles in factory condition. Moreover, he stated that appearance was a major factor in his decision to purchase a new truck rather than a used one. On the basis of that testimony, the arbitrators reasonably could have concluded that, had the defendant known of the defects in the paint before accepting delivery, he would not have purchased the truck, and that the statutory requirement of subjective substantial impairment had been satisfied.
Carver, the state’s technical expert, testified that, on a scale of one to ten, with ten representing the worst amount of damage, the damage to the truck constituted a three. Carver further stated that the paint defects could not be removed easily. Moreover, Carver corroborated the defendant’s contention that wet sanding and repainting the truck would remove its finish. Finally, Carver stated that the paint defects possibly could affect the resale value of the vehicle and that if the vehicle was not maintained meticulously, the affected areas could deteriorate further. Thus, on the basis of Carver’s testimony, the arbitrators reasonably could have concluded that the statutory requirement of objective substantial impairment had been satisfied.
The judgment is affirmed.
In this opinion the other justices concurred.
Unless otherwise indicated, all references herein to General Statutes §§ 42-179 through 42-186 are to the General Statutes as revised to 1995.
Maritime is not a party to this action.
General Statutes § 42-179 provides: “(a) As used in this chapter: (1) ‘Consumer’ means the purchaser, other than for purposes of resale, of a motor vehicle, a lessee of a motor vehicle, any person to whom such motor vehicle is transferred during the duration of an express warranty applicable to such motor vehicle, and any person entitled by the terms of such warranty to enforce the obligations of the warranty; and (2) ‘motor vehicle’ means a passenger motor vehicle or a passenger and commercial motor vehicle, as defined in section 14-1, which is sold or leased in this state.
“(b) If a new motor vehicle does not conform to all applicable express warranties, and the consumer reports the nonconformity to the manufacturer, its agent or its authorized dealer during the period of two years following the date of original delivery of the motor vehicle to a consumer or during the period of the first eighteen thousand miles of operation, whichever period ends first, the manufacturer, its agent or its authorized dealer shall make such repairs as are necessary to conform the vehicle to such express warranties, notwithstanding the fact that such repairs are made after the expiration of the applicable period.
“(c) No consumer shall be required to notify the manufacturer of a claim under this section and sections 42-181 to 42-184, inclusive, unless the manufacturer has clearly and conspicuously disclosed to the consumer, in the warranty or owner’s manual, that written notification of the nonconformity is required before the consumer may be eligible for a refund or replacement of the vehicle. The manufacturer shall include with the warranty or owner’s manual the name and address to which the consumer shall send such written notification.
“(d) If the manufacturer, or its agents or authorized dealers are unable to conform the motor vehicle to any applicable express warranty by repairing or correcting any defect or condition which substantially impairs the use, safety or value of the motor vehicle to the consumer after a reasonable number of attempts, the manufacturer shall replace the motor vehicle with a new motor vehicle acceptable to the consumer, or accept return of the vehicle from the consumer and refund to the consumer, lessor and hen-holder, if any, as their interests may appear, the following: (1) The full contract price, including but not limited to, charges for undercoating, dealer preparation and transportation and installed options, (2) all collateral charges, including but not limited to, sales tax, license and registration fees, and similar government charges, (3) all finance charges incurred by the consumer after he first reports the nonconformity to the manufacturer, agent or dealer and during any subsequent period when the vehicle is out of service by reason of repair, and (4) all incidental damages as defined in section 42a-2-715, less a reasonable allowance for the consumer’s use of the vehicle. No authorized dealer shall be held hable by the manufacturer for any refunds or vehicle replacements in the absence of evidence indicating
“(e) It shall be presumed that a reasonable number of attempts have been undertaken to conform a motor vehicle to the applicable express warranties, if (1) the same nonconformity has been subject to repair four or more times by the manufacturer or its agents or authorized dealers during the period of two years following the date of original delivery of the motor vehicle to a consumer or during the period of the first eighteen thousand miles of operation, whichever period ends first, but such nonconformity continues to exist or (2) the vehicle is out of service by reason of repair for a cumulative total of thirty or more calendar days during the applicable period, determined pursuant to subdivision (1) of this subsection. Such two-year period and such thirty-day period shall be extended by any period of time during which repair services are not available to the consumer because of a war, invasion, strike or fire, flood or other natural disaster. No claim shall be made under this section unless at least one attempt to repair a nonconformity has been made by the manufacturer or its agent or an authorized dealer or unless such manufacturer, its agent or an authorized dealer has refused to attempt to repair such nonconformity.
“(f) If a motor vehicle has a nonconformity which results in a condition which is likely to cause death or serious bodily injury if the vehicle is driven, it shall be presumed that a reasonable number of attempts have been undertaken to conform such vehicle to the applicable express warranties if the nonconformity has been subject to repair at least twice by the manufacturer or its agents or authorized dealers within the express warranty term or during the period of one year following the date of the original delivery of the motor vehicle to a consumer, whichever period ends first, but such nonconformity continues to exist. The term of an express warranty and such one-year period shall be extended by any period of time during which repair services are not available to the consumer because of war, invasion, strike or fire, flood or other natural disaster.
“(g) (1) No motor vehicle which is returned to any person pursuant to any provision of this chapter or in settlement of any dispute related to any complaint made under the provisions of this chapter and which requires replacement or refund shall be resold, transferred or leased in the state without clear and conspicuous written disclosure of the fact that such motor vehicle was so returned prior to resale or lease. Such disclosure shall be affixed to the motor vehicle and shall be included in any contract for sale
“(h) All express and implied warranties arising from the sale of a new motor vehicle shall be subject to the provisions of part 3 of article 2 of title 42a.
“(i) Nothing in this section shall in any way limit the rights or remedies which are otherwise available to a consumer under any other law.
“(j) If a manufacturer has established an informal dispute settlement procedure which is certified by the attorney general as complying in all respects with the provisions of Title 16 Code of Federal Regulations Part 703, as in effect on October 1,1982, and with the provisions of subsection (b) of section 42-182, the provisions of subsection (d) of this section concerning refunds or replacement shall not apply to any consumer who has not first resorted to such procedure.”
General Statutes § 42-181 provides in relevant part: “(a) The department of consumer protection, shall provide an independent arbitration procedure for the settlement, of disputes between consumers and manufacturers of motor vehicles which do not conform to all applicable warranties under the terms of section 42-179. . . .
“(b) If any motor vehicle purchased at any time on or after October 1, 1984, or leased at any time on or after June 17, 1987, fails to conform to such applicable warranties as defined in said section 42-179, a consumer may bring a grievance to an arbitration panel . . . .”
General Statutes § 52-418 provides in relevant part: “Vacating award, (a) Upon the application of any party to an arbitration, the superior court for the judicial district in which one of the parties resides or, in a controversy concerning land, for the judicial district in which the land is situated or, when the court is not in session, any judge thereof, shall make an order vacating the award if it finds any of the following defects: (1) If the award has been procured by corruption, fraud or undue means; (2) if there has been evident partiality or corruption on the part of any arbitrator; (3) if the arbitrators have been guilty of misconduct in refusing to postpone the hearing upon sufficient cause shown or in refusing to hear evidence pertinent and material to the controversy or of any other action by which the rights of any party have been prejudiced; or (4) if the arbitrators have exceeded theirpowers or so imperfectly executed them that amutual, final and definite award upon the subject matter submitted was not made. . . .”
In Motor Vehicle Manufacturers Assn. of the United States, Inc. v. O’Neill, 212 Conn. 83, 96-97, 561 A.2d 917 (1989), we concluded that the substantial evidence test that governs judicial review of the factual findings of an administrative agency pursuant to the Uniform Administrative Procedure Act; General Statutes § 4-166 et seq.; did not govern judicial review of the factual findings of an arbitration panel pursuant to General Statutes (Rev. to 1989) § 42-181. In 1990, however, the legislature amended § 42-181 to provide that the administrative standard governs judicial review of factual findings of lemon law arbitration panels. See Public Acts 1990, No. 90-8, § 1; see also 33 H.R. Proc., Pt. 4, 1990 Sess., p. 1065.
The defendant appears to concede that, in this case, the factory paint specifications would satisfy the manufacturer’s express warranty specifications as required by § 42-179.
At oral argument before this court, the plaintiff conceded that the arbitrators reasonably could have determined that the attempted replacement of the truck’s hood constituted the single repair attempt required by § 42-179 (e). As a result, it is undisputed that the defendant met the statutory prerequisite of a single repair attempt for instituting an arbitration proceeding.
The bill that ultimately amended § 42-179 (e) to provide that at least one repair attempt must be made before a consumer may initiate a lemon law arbitration proceeding was entitled “An Act Implementing Recommendations of the Legislative Program Review and Investigations Committee Concerning the New Automobile Warranties Program.” See Public Acts 1989, No. 89-173; Conn. Joint Standing Committee Hearings, Program Review, Pt. 1, 1989 Sess., p. 9.
Section 42-181 (c), the statutory provision that governs our review of lemon law arbitration proceedings, provides in relevant part: “If the arbitrators fail to state findings or reasons for the award, or the stated findings or reasons are inadequate, the court shall search the record to determine whether a basis exists to uphold the award. . . .” Consequently, we review the record in order to determine, in accordance with the appropriate subjective and objective standard, whether the arbitration panel reasonably could have determined that the defects in the truck’s paint substantially impaired its value to the defendant.