Carpenter v. Chrysler Corporation

853 S.W.2d 346 (1993)

Facts

CPW (D), an automobile dealer and had received the car at issue here, a 1986 Chrysler LeBaron, from Chrysler's Detroit, Michigan plant in February 1986. In March 1986, D discovered a leak in the power steering system. In April 1986 Chrysler (D) sent d a recall notice and repairs kit to correct a wiring harness defect causing intermittent failure to start. D did not make the repair. On August 25, 1986, P went to d to buy two cars, one for himself and another automobile primarily for the use of his older daughter Kendra, then sixteen. P told the salesman he wanted a reliable car for his daughters. P did not test-drive the car because it would not start. The salesman attributed the difficulty to a dead battery. P signed a sales contract that day to buy the LeBaron. The salesman told him the car would be taken care of and would be ready in two days. D left. The next day D noted a 'powerless steering' problem on the LeBaron and made repairs adjusting a valve and some belts and putting power steering fluid in the car. A mechanic at D inspected the car and prepared a vehicle inspection certificate on August 26 indicating that the odometer recorded sixteen miles and that the car was in good mechanical order. D also replaced the steering gear on August 28, 1986. As part of the purchase, P paid $497 for an extended warranty or service contract. P began experiencing problems with the car almost immediately after his purchase. He returned the car to D on September 1, 1986, complaining of problems with the power steering, ignition, leaky oil, and the electronic dash display. D repaired it. P returned it one week later on September 11, 1986, because of persistent oil leaks. D replaced seven items. Problems persisted. On the third trip, D removed the transmission and replaced the torque converter with a rebuilt assembly, replaced the oil pump and sent the car to Firestone for realignment. Problems persisted. P asked that the car be replaced. He took the car in for repairs several times in October and November, but no further work was done by Don those occasions. P received notice of the recall for the defective wiring harness. He took the car to D in December for repairs for difficulties with the transmission, the steering, the radio, and oil leaking. The car was in the shop from December 1 through December 9. D again replaced the torque converter, the speed sensor switch, and the entire transaxle. D did not repair the defective wiring harness. Problems persisted. P notified Mercantile, the assignee of the installment contract on the car, that he intended to make no further car payments because of the car's numerous defects. P then got a love note that said his car had been part of a special testing program where Chrysler (D) employees drove new Chrysler cars, ready to be shipped, from work to home and back to work in order to evaluate the vehicle's quality. The odometers were disconnected. P quit driving the LeBaron sometime in July or August 1987. The car was eventually repossessed while sitting in P's driveway by D which had repurchased the installment car contract from Mercantile Bank. P sued Ds. P submitted their action to the jury against Chrysler (D) on their first count for statutory odometer fraud and count five for fraudulent misrepresentation. The jury awarded the Carpenters $3,400 on count one and $3,400 actual and $1.19 million punitive damages on count five against Chrysler (D). The jury awarded P's against CPW (D) $7,200 for breach of warranty and $3,400 actual and $ 17,000 punitive damages for fraudulent misrepresentation on count five. Ps now appeal from the judgment entered by the trial court granting the motions for new trial filed by Ds.