Koenen v. Royal Buick Company

873 P.2d 822 (1989)

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Nature of the Case

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Facts

P wanted to purchase one of the 500 special editions of the Buick Regal Grand National Automobile. D received official notification that it would receive one of the 500 GNX autos. P contacted salesperson William Yalen at D. P, along with his father and brother, collected cars under the name of Koenen Classic Cars. Their collection was stored in an air-conditioned California warehouse. P had previously conducted transactions with D and Yalen. P agreed to pay D the window sticker price for the vehicle. In December 1986, D's General Manager Tom Bird orally agreed to sell the GNX to Gary Gerovac. No purchase order was completed. On January 5, 1987, Jeff Buchner signed a purchase order agreement to purchase a GNX from D. Although Buchner offered to give D a $1000 deposit in connection with the purchase order, he was told that a $100 deposit was satisfactory. At that time, sales manager Sagar assured Buchner that he was 'first in line.' On February 16, 1987, a purchase order form was signed by P, Yalen, and Sagar regarding the GNX. The document contained the notation: Order is not binding on Seller until accepted in writing by officer, or Sales-manager of Seller, and until Purchaser's credit has been approved. The purchase order also contained the notation: 'Price and Availability To Be Determined?' P was listed on the form as the purchaser. P told Sagar and Yalen that he was willing to pay up to $30,000 if that was the sticker price. Sagar and Yalen told P that no one else had made a deposit and that P was number one to receive a GNX. P gave Yalen a check for $500 as a deposit for the GNX but asked that the check not be cashed. On February 17, 1987, Royal Buick filled out a purchase order form for David Woon and accepted a $500 deposit from him for purchase of the GNX. On February 20, 1987, P replaced the February 16, 1987 check with a $500 check from his father. In a letter dated April 21, 1987, General Motors notified D that it would receive one GNX. The window sticker price for the vehicle was $29,290. D's General Manager Tom Bird placed a market value of $44,900 on the vehicle. Yalen contacted P to see if P wanted to bid on the vehicle. On May 8, 1987, D returned the deposits to P, Buchner, and Woon. When Buchner received the letter, he contacted Sagar to protest. Sagar asked Buchner if he would be interested in bidding on the vehicle. D received the GNX in September 1987. D placed a price of $44,900 on the vehicle. In April 1988, D sold the vehicle for $39,750 to an Oklahoma physician. P filed a civil a breach of contract action. P sought a temporary restraining order preventing D from selling the GNX. On November 30, 1987, a preliminary injunction was denied and D was permitted to sell the GNX. Buchner joined in the suit. The trial court awarded P and Buchner $15,610 each, representing the difference between the manufacturer's suggested retail price ($29,290) and the fair market value of the automobile ($44,900). D appealed.