825 N.E.2d 1138 | Ohio Ct. App. | 2005
[EDITORS' NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.] *21
[EDITORS' NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.] *22 {¶ 1} Plaintiffs-appellants, Denver and Desiree Martin, appeal the decision of the Mahoning County Common Pleas Court granting summary judgment in favor of defendant-appellee Spartan Chevrolet and partial summary judgment for defendant-appellee General Motors Acceptance Corporation, North America ("GMAC"). The first issue is whether the trial court erred in granting summary judgment for Spartan. The second issue is whether the trial court erred in granting summary judgment for GMAC. The final issue is whether the trial court erred in denying the Martins' motion to compel discovery. For the reasons stated below, the decision of the trial court is hereby affirmed.
{¶ 3} Martin subsequently failed to make the monthly payments. This default resulted in GMAC's repossessing the vehicle. While the vehicle was being repossessed, Martin chased the tow truck, a chase that resulted in a confrontation between him and the tow truck's driver and passenger.
{¶ 4} GMAC then notified Martin that pursuant to the note, he could redeem the truck if he paid GMAC the unpaid balance due, $18,070.46. Martin tried to redeem the truck by authorizing GMAC to withdraw $2,567.23 from his checking account to pay the deficiency on his loan. GMAC accepted the payment but did *23 not return the vehicle, as it was not the amount set forth by the note that was required for redemption.
{¶ 5} On September 17, 2002, Martin filed a compliant, which he amended on October 8, 2002. The complaint alleged that GMAC had breached the peace in repossessing the truck, that GMAC had violated R.C.
{¶ 6} After the depositions of Denver Martin and Leonard Rodgers (an employee of GMAC) were taken, the parties began filing their motions for summary judgment. Spartan filed its motion for summary judgment, claiming that there was no genuine issue of material fact as to whether it had violated R.C.
{¶ 7} "1) copies of all financing agreements/promissory notes/security agreements signed by individuals in the State of Ohio from January 1, 2001 to present who have defaulted on the terms conditions of loans resulting in repossession of their vehicles;
{¶ 8} "2) copies of all letters sent to those individuals referred to in item 1 above who had their vehicles repossessed from January 1, 2001 to present, setting forth the terms and conditions in which they would be permitted to redeem their motor vehicle;"
{¶ 9} GMAC responded by filing a motion in opposition to the motion to compel. On March 2, 2004, the trial court ruled on the summary judgment motions and the motion to compel. The trial court granted Spartan's motion for *24 summary judgment, and it denied Martin's motion for partial summary judgment. It also granted in part and denied in part GMAC's motion for partial summary judgment. It granted summary judgment as to GMAC's establishment of a security interest in the truck; however, it denied summary judgment as it pertained to the breach of peace, stating that there was still a genuine issue of material fact as to whether a breach of peace had occurred. Last, the trial court denied the motion to compel discovery.
{¶ 10} Martin timely appeals from the trial court's grant of summary judgment, raising three assignments of error.
{¶ 12} The arguments made under this assignment of error are directed solely to the grant of summary judgment for Spartan. An appellate court conducts a de novo review of a trial court's decision to grant a motion for summary judgment, using the same standards as the trial court as set forth in Civ.R. 56(C).Grafton v. Ohio Edison Co. (1996),
{¶ 13} Martin contends that the trial court erred in concluding that given the facts and the law under R.C.
{¶ 14} R.C.
{¶ 15} "(A) No supplier shall commit an unconscionable act or practice in connection with a consumer transaction. Such an unconscionable act or practice *25 by a supplier violates this section whether it occurs before, during, or after the transaction.
{¶ 16} "(B) In determining whether an act or practice is unconscionable, the following circumstances shall be taken into consideration:
{¶ 17} "(1) Whether the supplier has knowingly taken advantage of the inability of the consumer reasonably to protect his interests because of his physical or mental infirmities, ignorance, illiteracy, or inability to understand the language of an agreement;
{¶ 18} "* * *
{¶ 19} "(5) Whether the supplier required the consumer to enter into a consumer transaction on terms the supplier knew were substantially one-sided in favor of the supplier."
{¶ 20} Spartan does not dispute that it is a supplier, that Martin is a consumer, and that a consumer transaction occurred between them. "Consumer transaction" is defined as the sale of a good to an individual for primarily personal, family, or household use. R.C.
{¶ 21} Accordingly, R.C.
{¶ 22} In an affidavit attached to his motion for partial summary judgment, Martin stated that he "did not read or understand the pre printed [sic] terms on the back of the [security] Agreement." First, his claim that he did not read the terms of the contract fails as a matter of law. Failure to read the terms of a contract is not a valid defense to enforcement of the contract. Haller v. Borror Corp. (1990),
{¶ 23} Next, regarding his claim that he did not understand the terms of the contract, even if we assume that this statement is true, his deposition testimony indicates that despite his alleged lack of understanding, he was still able to protect his interests. He testified that he went to several dealerships searching *26 for the best deal and that he went to Spartan more than once to talk about a deal on a truck.
{¶ 24} Additionally, he was asked the following:
{¶ 25} "Q. By the time you signed this document, you already had an understanding as to what the terms of your purchase from Spartan were, right?
{¶ 26} "A. No different than the same terms I made with the Blazer or any other vehicle, yes."1
{¶ 27} This testimony is an admission that he had previously negotiated purchases of automobiles, and one of them was from Spartan. The fact that he shopped around at other dealerships before purchasing this vehicle undermines any argument that he was unable to protect his interests. See Henkel v. BritishPetroleum, Inc. (June 4, 1992), 8th Dist No. 60816,
{¶ 28} He further testified that he agreed to the price, he understood that he had to borrow the full amount for the truck, he knew that Spartan was looking for companies to finance the truck for him, and he knew that Spartan was not loaning him the money. He also testified that before signing the note he verified the amount financed, the rate of interest, and the monthly payments. All of this testimony shows that he did have a basic understanding of the terms of the contract and was able to protect his interests.
{¶ 29} Furthermore, the language on the back of the contract is clear. It states:
{¶ 30} "Repossession of the Goods. Repossession means that, if you fail to pay according to the payment schedule or if you break any of the agreements in this contract (default), the Creditor can take the goods from you. * * *
{¶ 31} "Getting the Goods Back After Repossession. If the Creditor repossesses the goods, you have the right to get them back (redeem) by paying the entire amount you owe on the contract (not just past due payments)."
{¶ 32} An average person with the ability to read who is able to shop for the best deal and negotiate terms of a sale of a car would be able to understand these terms. Thus, for all the above reasons, summary judgment was warranted on the subsection (B)(1) claim.
{¶ 33} As mentioned, under subsection (B)(5), Spartan would act unconscionably if it required Martin to enter into a consumer transaction on terms Spartan *27 knew were substantially one-sided in its favor. Martin's argument fails for two reasons.
{¶ 34} First, the evidence does not remotely suggest that Spartan required Martin to sign the note. In fact, Martin went to more than one dealership looking for the terms he wanted. Martin picked Spartan because it was able to acquire financing through GMAC, the financing company, with the terms he wanted. Thus, Martin's own action of looking for the deal he wanted shows that Spartan did not require him to sign the note.
{¶ 35} Second, the note was an agreement between Martin and GMAC. Martin testified that he was aware that he was borrowing money from GMAC and not Spartan. Spartan was just looking for a financing company that could provide Martin with a zero down payment and a monthly payment around $400. Therefore, every party involved was aware that Spartan was not a party to the note. As Spartan was not a party to the agreement, the agreement was not substantially one-sided in Spartan's favor. Therefore, the trial court appropriately granted summary judgment in Spartan's favor on the subsection (B)(5) claim.
{¶ 36} Thus, for the reasons stated above, the trial court did not err in granting summary judgment for Spartan. This assignment of error lacks merit.2
{¶ 38} As stated above, an appellate court conducts a de novo review of a trial court's decision to grant a motion for summary judgment, using the same standards as the trial court as set forth in Civ.R. 56(C). Grafton,
{¶ 39} Martin sets forth two arguments under this assignment of error. The first argument is based on R.C.
{¶ 41} "(A) All installments due or past due at the time of such delivery;
{¶ 42} "(B) Any unpaid delinquency or deferred charges;
{¶ 43} "(C) The actual and reasonable expenses incurred by the secured party in retaking possession of the collateral provided that any portion of such expenses which exceeds twenty-five dollars need not be delivered to the secured party pursuant to this division, but shall be added to the time balance;
{¶ 44} "(D) A deposit by cash or bond in the amount of two installments, to secure the timely payment of future installments by the debtor. The secured party may apply such cash or the proceeds of such bond toward the satisfaction of the debt in the event of another default by the debtor." R.C.
{¶ 45} The security agreement at issue here differs from this section in that it requires the debtor to pay the entire amount owed on the contract, not just the delinquent amount. Martin argues that R.C.
{¶ 46} RISA governs only retail installment sales that arise out of "consumer transactions." R.C.
{¶ 47} Thus, RISA is inapplicable, and R.C.
{¶ 48} R.C.
{¶ 49} "`Dealer in intangibles' includes every person who keeps an office or other place of business in this state and engages at such office or other place in the business of lending money, or discounting, buying, or selling bills of exchange, drafts, acceptances, notes, mortgages, or other evidences of indebtedness, or of buying or selling bonds, stocks, or other investment securities, whether on the person's own account with a view to profit, or as agent or broker for others, with a view to profit or personal earnings. Dealer in intangibles excludes institutions used exclusively for charitable purposes, insurance companies, and financial institutions."
{¶ 50} The first factor to be considered in determining whether GMAC is a dealer in intangibles is whether GMAC "keeps an office or other place of business" in Ohio and conducts business at this office. R.C.
{¶ 51} The second factor under R.C.
{¶ 52} Therefore, R.C.
{¶ 53} A "`Retail installment sale' includes every retail installment contract to sell specific goods, every consumer transaction in which the cash price may be paid in installments over a period of time, and every retail sale of specific goods to any person in which the cash price may be paid in installments over a period of time." R.C.
{¶ 54} Under the above definition, it is clear that the purchase of the vehicle was not a "retail installment contract." The retail order between Spartan and Martin states that Martin will purchase the vehicle for $20,214.28 and that that amount is due upon delivery. The note indicates that Martin borrowed $20,214.28 from GMAC and that GMAC will pay that amount to Spartan. The agreement further states that Martin will pay the loan off over 66 months for $427.05 per month and that the APR on the loan is 12.66 percent.
{¶ 55} Thus, the transaction between GMAC and Martin involves money. Under R.C.
{¶ 57} R.C.
{¶ 58} Furthermore, as mentioned, GMAC is a dealer in intangibles, and thus, a consumer transaction could not have occurred. R.C.
{¶ 60} We review a trial court's resolution of discovery issues under an abuse-of-discretion standard of review. Lightbody v.Rust (2000),
{¶ 61} GMAC argues that this issue is premature since not all issues have been resolved by the trial court. The issue still remaining before the trial court is the breach-of-peace issue. Thus, GMAC argues that we should not address this assignment of error.
{¶ 62} Typically, a discovery order is not subject to immediate review, and an abuse of discretion does not in and of itself render final an interlocutory order. State ex rel. Daggett v.Gessaman (1973),
{¶ 63} Therefore, our analysis turns to whether the court abused its discretion in denying the motion to compel. Martin sought to compel all financing agreements signed by individuals in the state of Ohio from January 1, 2001, to June 20, 2003, who have defaulted on their loans and all letters that were sent to those individuals that set forth the conditions under which they would be permitted to redeem their motor vehicles. GMAC filed a response to this motion to compel, claiming that it was too burdensome and irrelevant.
{¶ 64} The trial court in effect held that the information requested was irrelevant. It stated that the facts of the case before it are limited solely to Martin, and thus, discovery should pertain to the issues raised as a result of the default and repossession of his vehicle. Additionally, the court cited a First Appellate District case that held that it was not an abuse of discretion for a court to overrule a motion to compel certain discovery when it was filed after the defendant moved for summary judgment and when the court was convinced, in *32
light of the evidentiary materials before it, that the information was not vital or necessary in resolving the controversy. Glick v. Marler (1992),
{¶ 65} Considering the reasoning of the court, it was not an abuse of discretion to deny the motion to compel. Although the motion to compel was filed before GMAC moved for partial summary judgment, the information sought by the motion to compel could still be determined to be burdensome and irrelevant. The terms of another person's note would not typically affect the decision in this case, nor would the statements made in letters to other people about the redemption process in their case. The notes and letters would not add any evidence that GMAC was not a dealer in intangibles or that it was making retail installment contracts. Furthermore, Martin's argument provides no explanation how this sought information would establish any of the above. Thus, the denial of the motion to compel is affirmed.
{¶ 66} For the foregoing reasons, the judgment of the trial court is hereby affirmed.
Judgment affirmed.
DONOFRIO, P.J., and DeGENARO, J., concur.