2008 Ohio 2799 | Ohio Ct. App. | 2008
Lead Opinion
{¶ 2} Appellee initiated this action by filing a six count complaint against GMAC and Midway Motors Sales, Inc. ("Midway"), on a strict liability theory under the Ohio Odometer Rollback and Disclaimer Act ("Odometer Act"), codified in R.C.
{¶ 3} The vehicles were then sold to authorized dealers at dealer-only auctions. In the spring of 2004, GMAC discovered the odometer tampering scheme. Apparently, 85 vehicles had altered odometers, 72 of which were in the hands of retail customers. *3 GMAC implemented a remediation plan concerning the current owners of these vehicles.2 GMAC also reported the incident to the Ohio Attorney General.
{¶ 4} On January 6, 2005, the instant litigation was filed. GMAC filed an answer and a counterclaim for abuse of process. Midway did not file an answer, but did file a notice of filing bankruptcy in the United States Bankruptcy Court for the Northern District of Ohio. Thereafter, a default judgment was rendered against Midway, but the trial court did not award damages due to Midway's bankruptcy filing. The trial court did, however, impose a civil penalty of $93,000, and permanently enjoined Midway from engaging in acts and practices described as violations of the Odometer Act and Consumer Sales Practices Act.
{¶ 5} On October 12, 2005, appellee filed a motion for partial summary judgment on its claim under the Odometer Act, and for summary judgment on GMAC's counterclaim for abuse of process. The trial court granted appellee's motion for both summary judgment on the counterclaim and partial summary judgment on appellee's complaint. The issue of damages was reserved pending a hearing. Thereafter, appellee dismissed the remaining counts in the complaint pursuant to Civ. R. 41(A). GMAC filed a motion for reconsideration that the trial court denied on May 23, 2007. On May 25, 2007, a damages hearing was held. On August 15, 2007, the trial court imposed a statutory fine against GMAC of $1,000 per violation, and then suspended said fine.
{¶ 6} GMAC timely appeals and brings the following ten assignments of error for our review:
*51. Because GMAC Provided Truthful Odometer Disclosures To The Best Of Its Knowledge As *4 Required By State Law, the Trial Court erred in Holding GMAC Strictly Liable For An Alleged Disclosure violation As A Matter Of Affirmative Summary Judgment.
2. The Trial Court Erred In Granting Affirmative Partial Summary Judgment Against GMAC On The Basis Of The State's Own Misleading Affidavit Form, Because That Form Amounts To Unconstitutional Entrapment.
3. The Trial Court Erred In Imposing Strict Liability On GMAC On The Basis Of What Amounted To Altered Evidence.
4. The Trial Court Was Not Entitled To Decide "Knowledge" As a Matter Of Law, Because "Knowledge" Is A Question Of Fact Precluding Summary Judgment.
5. The Trial Court Erred In Granting Affirmative Partial Summary Judgment Against GMAC Under O.R.C. §
4549.46 (A) Because GMAC Cannot Be Liable For The Acts Of A Previous Owner.6. The Trial Court Erred In Holding That GMAC Should Be Liable For Unknowingly Making Allegedly False Odometer Disclosures To Midway, The Wrongdoer Who Engaged In Secret Odometer Tampering; Principles Of Equity An Fairness Preclude Such A Finding.
7. The Trial Court Erred In Denying GMAC's Motion for Reconsideration Of The Affirmative Partial Summary Judgment Decision On Liability.
8. The Trial Court Erred in Granting Summary Judgment Against GMAC On Its Counterclaim For Abuse Of Process, Because Genuine Issues Of Material Fact Exist.
9. The Trial Court Erred In Refusing GMAC's Constitutional Right To A Jury Trial.
10. The Trial Court Erred In Imposing A Statutory Penalty Of $1,000 Per Violation Of O.R.C. §
4549.46 (A) Because Not A Single Violation Was Established.
{¶ 7} This matter was decided in the trial court by summary judgment, which under Civ. R. 56(C) may be granted only when there remains no genuine issue of material fact, the moving party is entitled to judgment as a matter of law, and reasonable minds can come to but one conclusion, that conclusion being adverse to the party opposing the motion.Tokles Son, Inc. v. Midwestern Indemn. Co. (1992),
{¶ 8} An appellate court's review of summary judgment is de novo.Koos v. Cent. Ohio Cellular, Inc. (1994),
{¶ 9} One of the core issues in this case is whether or not R.C.
No person shall fail to provide the true odometer disclosures required by section
4505.06 of the Revised Code. The transferor of a motor vehicle is not in violation of this section's provisions requiring a true odometer reading if the odometer reading is incorrect due to a previous owner's violation of any of the provisions contained in sections4549.42 to4549.46 of the Revised Code, unless the transferor knows of the violation.
{¶ 10} The statute incorporated by reference R.C.
"The registrar shall prescribe an affidavit in which the transferor shall swear to or affirm the true selling price and odometer reading of the motor vehicle. * * *"
Flint v. The Ohio Bell Tel. Co. (1982),
{¶ 11} The leading case interpreting the Odometer Act as it existed prior to 1987 was Flint, supra, wherein the plaintiff bought a van in which the seller executed an odometer mileage statement and affidavit stating that the vehicle had an actual mileage of 18,483, when, in fact, the vehicle had an actual mileage of 118,483. The seller argued the Odometer Act, when read in conjunction with R.C.
{¶ 12} In 1987, R.C.
(A) No transferor shall fail to provide the true and complete odometer disclosures required by section
4505.06 of the Revised Code. The transferor of a motor vehicle is not in violation of this division requiring a true odometer reading if the odometer reading is incorrect due to a previous owner's violation of any of the provisions contained in sections4549.42 to4549.46 of the Revised Code, unless the transferor knows of or recklessly disregards facts indicating the violation.
{¶ 13} R.C.
{¶ 14} Despite the plethora of cases interpreting R.C.
I (we) certify to the best of my (our) knowledge that the odometer now reads ___, ___ miles and is the actual mileage of the vehicle unless one of the following statements is checked * * *
{¶ 15} Because R.C.
{¶ 16} It is also noteworthy that the incorporation of R.C.
{¶ 17} Given the precedent from this and various other Ohio courts, we are not persuaded by GMAC's arguments that R.C.
{¶ 18} In its second assignment of error, GMAC argues imposing strict liability in this instance amounts to entrapment. GMAC contends by prescribing an odometer disclosure affidavit with a knowledge requirement, the Ohio Registrar put persons on notice that there is no liability under the odometer laws so long as the disclosures are to the best of their knowledge. In other words, according to GMAC, the state of Ohio is *10 inducing parties to unwittingly make a "false" disclosure, in order to later prosecute the party for a violation of the "hidden strict liability statute." (Appellant's brief, at 21.)
{¶ 19} The defense of entrapment is established where the criminal design originates with the officials of the government, and they implant in the mind of an innocent person the disposition to commit the alleged offense and induce its commission in order to prosecute. State v.Italiano (1985),
{¶ 20} In its third assignment of error, GMAC argues that to impose strict liability here, appellee is in effect removing the "to the best of my knowledge" language from the Ohio Registrar's affidavit, and is thereby altering evidence.
{¶ 21} This argument, however, really is a reiteration of that argued in the first assignment of error. Given our disposition of GMAC's first assignment of error, that, despite the form used by the registrar, R.C.
{¶ 22} In its fourth assignment of error, GMAC argues that since R.C.
{¶ 23} In its fifth assignment of error, GMAC argues the granting of partial summary judgment in favor of appellee was improper as GMAC cannot be liable for the acts of a previous owner. As discussed previously, R.C.
No transferor shall fail to provide the true and complete odometer disclosures required by section
4505.06 of the Revised Code. The transferor of a motor vehicle is not in violation of this division requiring a true odometer reading if the odometer reading is incorrect due to a previous owner's violation of any of the provisions contained in sections4549.42 to4549.46 of the Revised Code, unless the transferor knows of or recklessly disregards facts indicating the violation.
{¶ 24} According to GMAC, facts are present here to trigger the second sentence of R.C.
{¶ 25} If we were to accept GMAC's position, however, an anomalous result would occur as exemplified in the following scenario. Assume A is a transferor, B is a prior owner, C is an outside party, and D is a transferee. Unbeknownst to A, C, an outside party such as one performing maintenance of As vehicle, alters the odometer of As vehicle during As ownership. A then transfers the vehicle with an odometer disclosure, such as the one at issue here, to D. A would be strictly liable for failing to provide a true odometer reading pursuant to R.C.
{¶ 26} We agree with GMAC's proposition that when interpreting legislation, courts must give the words their plain and ordinary meaning. However, we cannot find that the legislature intended the divergent results that would occur if R.C.
{¶ 27} We also note, as did the trial court, the statements fromHughes, supra, are demonstrative. In Hughes, the court stated:
Strict liability under R.C.
4549.46 applies to a transferor when a discrepancy in the odometer reading occurs during their ownership of the vehicle, unless the transferor properly discloses the discrepancy upon transfer. * * * The second sentence of R.C.4549.46 places liability only on the transferor of a vehicle which has not had its odometer tampered with during his ownership, but the transferor nevertheless has actual knowledge of tampering with, or discrepancy in, the odometer reading.
Id. (Emphasis added.)
{¶ 28} Admittedly, the court in Hughes did not have the same factual scenario presented herein. Nonetheless, we find the court's explicit reference to strict liability under R.C.
{¶ 29} Accordingly, we overrule GMAC's fifth assignment of error.
{¶ 30} In it's sixth assignment of error, GMAC argues principles of equity and fairness preclude the trial court's finding that GMAC is strictly liable for those odometer disclosures made on vehicles transferred from GMAC to Midway, the entity responsible for the odometer alterations.3 We have already determined that GMAC's knowledge is irrelevant for purposes of strict liability here. Further, as held by the court in Triplett, supra:
It is no defense that the transferee had knowledge that the odometer reading was incorrect. Baek v. Cincinnati (1988), *1443 Ohio App. 3d 158 ,161 ,539 N.E.2d 1149 . Whether Triplett knew that the odometer was not accurate, or whether she even told Voros not to disclose the true mileage is not relevant to Voros's liability under R.C.4549.46 . The public at large has a substantial interest in preventing inaccurate odometers from entering the stream of commerce. Flint, supra.
Id. at 270. (Footnote omitted.)
{¶ 31} Accordingly, we overrule GMAC's sixth assignment of error.
{¶ 32} In its seventh assignment of error, GMAC argues the trial court erred in overruling its motion for reconsideration of the trial court's decision granting partial summary judgment in favor of appellee. For the reasons stated in our disposition of GMAC's previous assignments of error, we overrule GMAC's seventh assignment of error.
{¶ 33} In its eighth assignment of error, GMAC argues the trial court erred in granting summary judgment in favor of appellee on GMAC's counterclaim for abuse of process of the authority granted by the Odometer Act and the Consumer Sales Practices Act. According to GMAC, there exists genuine issues of material fact on this issue that precluded the grant of summary judgment.
{¶ 34} "In order to establish a claim of abuse of process, a plaintiff must satisfy three elements: `(1) that a legal proceeding has been set in motion in proper form and with probable cause; (2) that the proceeding has been perverted to attempt to accomplish an ulterior purpose for which it was not designed; and (3) that direct damage has resulted from the wrongful use of process.'" Robb v. Chagrin LagoonsYacht Club (1996),
{¶ 35} We have already determined in our disposition of GMAC's previous assignments of error that strict liability under R.C.
{¶ 36} Accordingly, finding no evidence to support GMAC's abuse of process claims, we overrule GMAC's eighth assignment of error.
{¶ 37} In its ninth assignment of error, GMAC contends the trial court erred in striking its demand for a jury trial. We find this issue rendered moot. We have decided that rendering summary judgment in favor of appellee on its claim pursuant to the Odometer Act was appropriate, thereby eliminating the necessity of a trial of any sort. Further, as previously indicated, appellee dismissed its remaining claims pursuant to Civ. R. 41(A). "An appellate court is not required to render an advisory opinion on a moot question or to rule on a question of law that cannot affect matters at issue in a case." VanMeter v. VanMeter, Franklin App. No. 03AP-1107, 2004-Ohio-3390, citing Saffold v.Saffold (May 13, 1999), Cuyahoga App. No. 72937. "`Actions become moot when resolution of the issues presented is purely academic and will have no practical effect on the legal relations between the parties.'"VanMeter, at ¶ 5, quoting Saffold. Accordingly, we overrule GMAC's ninth assignment of error as moot. *16
{¶ 38} In its final assignment of error, GMAC argues the trial court erred in imposing a statutory penalty of $1,000 per violation of R.C.
In addition to the remedies otherwise provided by this section, the attorney general may request and the court shall impose a civil penalty of not less than one thousand nor more than two thousand dollars for each violation. A violation of any provision of sections4549.41 to4549.46 of the Revised Code shall, for purposes of this section, constitute a separate violation with respect to each motor vehicle or unlawful device involved, except that the maximum civil penalty shall not exceed one hundred thousand dollars for any related series of violations by a person. Civil penalties ordered pursuant to this division shall be paid as follows: one-fourth of the amount to the treasurer of the county in which the action is brought; three-fourths to the consumer protection enforcement fund created by section1345.51 of the Revised Code.
{¶ 39} In the case at bar, appellee requested civil penalties. It is undisputed that the vehicles at issue were transferred in Ohio by GMAC with odometer disclosure statements that failed to state the true and actual mileage of the vehicles. To this extent, GMAC has not disputed this, but, rather, has vehemently argued it was not aware of the odometer alterations. Though GMAC states appreciation for the trial court's suspension of the statutory penalties imposed, GMAC argues the penalties should not have been imposed at all. However, as we have already concluded, strict liability under R.C.
{¶ 40} Based on R.C.
{¶ 41} Based on the preceding discussion, we find no error in the trial court's imposition of a statutory fine and subsequent suspension of the same. Accordingly, we overrule GMAC's tenth assignment of error.
{¶ 42} For the foregoing reasons, GMAC's ten assignments of error are overruled and the judgment of the Franklin County Court of Common Pleas is hereby affirmed.
Judgment affirmed.
BROWN, J., concurs.
FRENCH, J., concurs separately.
Concurrence Opinion
{¶ 43} Based on this court's opinion in Hubbard v. Bob McDormanChevrolet (1995),