2009 WI App 65
court of appeals of
published opinion
Case No.: |
2008AP1199 |
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Complete Title of Case: |
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Randy W. Kaskin,
Plaintiff-Appellant, v. John Lynch Chevrolet-Pontiac Sales, Inc., a corporation,
Defendant-Respondent. |
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Opinion Filed: |
April 29, 2009 |
Submitted on Briefs: |
March 5, 2009 |
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JUDGES: |
Brown, C.J., |
Concurred: |
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Dissented: |
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Appellant |
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ATTORNEYS: |
On behalf of the plaintiff-appellant, the cause was
submitted on the briefs of Vincent P. Megna and Susan M. Grzeskowiak of |
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Respondent |
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ATTORNEYS: |
On behalf of the defendant-respondent, the cause was
submitted on the brief of Jeffrey Leavell and Anissa M. Boeckman of Jeffrey Leavell, S.C. of |
Nonparty ATTORNEYS: |
A nonparty brief was filed by Paul R. Norman and M. Tess O’Brien-Heinzen of Boardman, Suhr, Curry & Field, LLP for Wisconsin Automobile & Truck Dealers Association A nonparty brief was filed by John S. Green, assistant attorney general, and J.B. Van Hollen, attorney general, for the Wisconsin Department of Justice. A nonparty brief was filed by Sarah J. Orr for the University of Wisconsin Law School Consumer Litigation Clinic. |
2009 WI App 65
COURT OF APPEALS DECISION DATED AND FILED April 29, 2009 David
R. Schanker Clerk of Court of Appeals |
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NOTICE |
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This opinion is subject to further editing. If published, the official version will appear in the bound volume of the Official Reports. A party may file with the Supreme Court a petition to review an adverse decision by the Court of Appeals. See Wis. Stat. § 808.10 and Rule 809.62. |
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Appeal No. |
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STATE OF |
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Randy W. Kaskin,
Plaintiff-Appellant, v. John Lynch Chevrolet-Pontiac Sales, Inc., a Wisconsin corporation,
Defendant-Respondent. |
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APPEAL
from a judgment of the circuit court for
Before Brown, C.J.,
¶1 BROWN, C.J. This
case concerns that part of our consumer protection law dealing with
unauthorized motor vehicle repair.
¶2 In so holding, we reject the theory of the repair shop, Lynch Chevrolet in this case, that “pecuniary loss” as the term appears in Wis. Stat. § 100.20(5) (2007-08)[2] means the amount the consumer can prove he or she paid, either to the repair shop or to another repair shop, to correct a bad repair job done by the shop being complained against. That circumstance has nothing to do with unexpected repair or expense and everything to do with faulty repair—which is not the mischief the rule was designed to prevent. Consumers do not need § 100.20(5) to bring a cause of action for a bad repair job. They can avail themselves of common law remedies for faulty repair. And we also reject Lynch’s alternative theory that the measure of “pecuniary loss” is the difference between the amount the motor vehicle owner was forced to pay to get the car back and the lesser amount the owner can prove would have been paid had the owner been so informed and gone somewhere else to get the repair done. Because the circuit court adopted Lynch’s primary position at summary judgment, and in so doing, held that the disputed fact about authorization was immaterial, and because the issue of authorization otherwise remains disputed, we reverse and remand with directions that the authorization issue be tried.
¶3 In August 2006, Kaskin bought a brand new 2007 Chevrolet
Silverado truck. That November, after
about 3300 miles, the engine started knocking.
Eventually, Kaskin had his truck towed to Lynch and explained via
telephone to an assistant service manager that something was wrong with his
truck. The next day, Kaskin spoke in
person with the assistant service manager at Lynch, who gave him a repair order
that provided a preliminary estimate of one penny because Lynch assumed the
truck was under warranty.
¶4 Kaskin claims that Lynch did not request any authorization
from him to diagnose or inspect the vehicle.
He further claims that, to the extent he authorized any investigation or
repairs, it was only with the understanding that whatever needed to be fixed
was under warranty. However, Lynch
claims that Kaskin not only requested investigation and nonwarranty repair, he
demanded it and authorized it. Here is
the disputed fact that the trial court will have to address on remand.
¶5 About a week after dropping his truck off, Kaskin got a call
from Lynch that his truck was done.
Kaskin got some good news from Lynch:
they fixed his truck. The truck
had bad fuel in the fuel tank and the fuel had ruined the engine
injectors. Lynch replaced all eight
injectors and the truck now ran smoothly.
Kaskin also got some bad news: he
now owed Lynch almost $5000. Kaskin protested because he thought it
was a warranty repair. But Lynch would
not give Kaskin his truck back until he paid the bill, so Kaskin paid.
¶6 Outraged that he had to pay a bill for a repair that he had
assumed was under warranty, Kaskin filed an action under Wis. Stat. § 100.20(5) claiming
that since he never authorized any nonwarranty repairs, Lynch violated Wis. Admin. Code ch. ATCP 132. Lynch moved for summary judgment and the
circuit court denied the motion because the parties disputed a material
fact: whether Kaskin had authorized the
repairs at his expense. On
reconsideration, Lynch asserted that authorization was immaterial, contending
that Kaskin did not suffer a pecuniary loss because of Lynch’s alleged
violation. Lynch explained to the
circuit court that it did not cause Kaskin’s truck to need engine repair and
Kaskin paid a fair price for a proper repair that fixed his truck. The circuit court agreed, holding that the
engine problems were caused by bad fuel and not Lynch’s alleged failure to
obtain Kaskin’s authorization. Therefore, the circuit court concluded
that the authorization issue was immaterial because Kaskin did not suffer a
pecuniary loss, or at least not a pecuniary loss caused by the lack of
authorization.
¶7 On appeal, Kaskin asserts that the circuit court erred in its interpretation of pecuniary loss in Wis. Stat. § 100.20(5). He argues that the term “pecuniary loss,” as it appears in the statute, means the amount a customer has to pay a repair shop for unauthorized motor vehicle repairs performed in violation of Wis. Admin. Code ch. ATCP 132. Therefore, Kaskin contends, his pecuniary loss was the almost $5000 he paid to Lynch.
¶8 We review the circuit court’s decision to grant summary
judgment de novo. Snyder v. Badgerland Mobile
Homes, Inc., 2003 WI App 49, ¶7, 260
¶9 Kaskin’s appeal requires us to interpret the meaning of “pecuniary loss because of a violation” as used in Wis. Stat. § 100.20(5). Section 100.20(5) states:
(5) Any person suffering pecuniary loss because of a violation by any other person of any order issued under this section may sue for damages therefor in any court of competent jurisdiction and shall recover twice the amount of such pecuniary loss, together with costs, including a reasonable attorney’s fee.
This language provides a
private remedy for consumers who fall victim to the unfair methods of
competition and trade practices prohibited by, inter alia, general orders of
the Department of Agriculture, Trade and Consumer Protection promulgated under
§ 100.20(2). In other words,
§ 100.20(5) “supplies the teeth” to the DATCP orders. Benkoski v. Flood, 2001 WI App 84, ¶16,
242
¶10 The forbidden trade practice at issue in this case is found in Wis. Admin. Code ch. ATCP 132. Chapter ATCP 132 is entitled motor vehicle repairs and its sections explain the information motor vehicle repair shops must provide to customers and the customer authorization shops must obtain before beginning repairs. See §§ ATCP 132.02, 132.03. Of particular importance to the case at bar, § ATCP 132.02 says that “[n]o shop may perform any repair that has not been authorized by the customer.” It further informs that a shop representative must record the repair authorization on a written repair order as provided by another section of the code. Section ATCP 132.04 outlines the price information that must be given to the customer. We quote this provision in full in a footnote.[3] Suffice it to say, the requirements are clear-cut and stringent.
¶11 Also relevant is that shops are prohibited from demanding or receiving payment for unauthorized repairs and refusing to return the customer’s vehicle if the customer declines to pay for unauthorized repairs. Wis. Admin. Code § ATCP 132.09(3)(a), (4)(e). For the purpose of determining the meaning of “pecuniary loss because of a violation,” we will assume that Lynch required Kaskin to pay for unauthorized repairs before it returned his vehicle, therefore violating ch. ATCP 132.
¶12 The construction of statutes and administrative rules and
regulations are both questions of law we decide without deference to the
circuit court’s conclusions. Moonlight
v. Boyce, 125
¶13 Lynch theorizes that, with respect to Wis. Stat. § 100.20(5), the term “‘because of a
violation’ clearly indicates that there must be causation between Lynch’s
actions that violate the code and any pecuniary loss suffered by Mr.
Kaskin.” It contends that the language
of § 100.20(5) plainly requires the injured party to prove that the shop
caused the need for the repairs, or that the repairs were somehow unnecessary
or billed at an excessive rate.
¶14 We have no quarrel with the assertion that a violation of the
code must “cause” a pecuniary loss to the consumer. In fact, that is exactly what the statute and
the code mean to say. The quarrel
instead is: how is “pecuniary loss”
measured? Both Wis. Stat. § 100.20 and Wis. Admin. Code ch. ATCP 132 are silent as to
whether pecuniary loss means the amount the consumer paid for unauthorized
motor vehicle repairs. There is also no
case in
This chapter is adopted under authority of s. 100.20
(2) Stats., and is administered by the
¶15 It is our view that the preposition “because of” modifies the
verb “suffering” as it appears in the statute and “suffers” as is found in the
code. Thus, a consumer “suffers” or is
“suffering” because of a violation of the chapter. And since the chapter prohibits unauthorized
repairs, it follows that unauthorized repairs make the consumer “suffer.” Therefore, using the common understanding of
the term “because of,” we think that the “monetary” or “pecuniary loss” is clearly
the amount suffered to be paid as a result of the violation of the code. There is nothing, either in the statute or
the code, which says that the consumer must prove something different. We are constrained from adding words to a
statute that are not there. Fond
du Lac County v. Town of Rosendale, 149
¶16 The case law that we have collected on this subject supports
our interpretation of the statute. In Huff
& Morse, 118
¶17 The “informed consent” concept is an integral part of consumer
protection law, not only here, but across the nation. Many states have adopted stringent rules
regarding motor vehicle repair. See Jay M. Zitter, Annotation, Automobile Repairman’s Duty to Provide
Customer with Information, Estimates, or Replaced Parts, Under Automobile
Repair Consumer Protection Act, 25 A.L.R. 4th 506 (2008). These states have crafted statutes or rules
requiring disclosures by automotive repairers before work is begun, just as
this state does. Why?
¶18 That same understanding was evident in Huff & Morse. Although we did not decide whether pecuniary
loss is the amount the customer paid for the unauthorized repairs, it is
self-evident that we understood how the disclosure provisions were designed to
address problems of unexpected repairs and unexpected charges for repairs. In Huff & Morse, the customer did
not pay the repair bill or file an action under Wis. Stat. § 100.20(5).
Huff & Morse, 118
¶19 Benkoski further informs.
There we explained that courts should liberally construe remedial
statutes, such as Wis. Stat. § 100.20(5),
to suppress the mischief and advance the remedy that the statute intended to
afford.[4]
Benkoski, 242
¶20 In Moonlight, 125
¶21 If we followed Lynch’s logic, which is similar to the landlord’s logic in Moonlight, the tenant would not have suffered a pecuniary loss because the tenant lost his security deposit due to damage he did to the apartment. No damage was caused by the landlord wrongfully withholding the tenant’s security deposit. Therefore, under Lynch’s theory, the tenant’s only pecuniary loss would be the amount attributable to improper repairs or repairs for which the landlord overcharged.
¶22 The court in Moonlight, however, concluded that
the opposite was true. It held that once
an administrative code violation was found, the tenant suffers a pecuniary loss
under Wis. Stat. § 100.20(5)
in the amount of the security deposit, regardless of the amount of damages the
landlord may recover on a counterclaim. Moonlight,
125
¶23 A similarly broad interpretation of pecuniary loss was repeated
in Hughes
and Pliss v. Peppertree Resort Villas, Inc., 2003 WI App 102, 264
Wis. 2d 735, 663 N.W.2d 851.[5] In calculating the pecuniary loss under lemon
law, the court in Hughes concluded that pecuniary loss included the entire
purchase price that the business wrongfully retained. Hughes, 197
¶24 We take away from Moonlight, Hughes and Pliss the following rule: where a general order promulgated by DATCP under Wis. Stat. § 100.20(2) prohibits the retention or receipt of the customer’s money, the consumer suffers a pecuniary loss under § 100.20(5) in the amount that was wrongfully retained or received. As applied here, this rule supports our construction of the statute and the code—that when a motor vehicle repair shop receives money from a customer for repairs that the customer did not authorize, or at a price not authorized, the customer’s pecuniary loss is the entire amount of the unauthorized charges that the customer paid to the motor vehicle repair shop. A customer filing an action under § 100.20(5) is therefore not required to prove anything except that (1) he or she paid and (2) that payment was for unauthorized repairs or repairs otherwise performed in violation of Wis. Admin. Code ch. ATCP 132.[6]
¶25 Following Lynch’s theory would also be contrary to the
legislative intent of both Wis. Stat. § 100.20(5)
and Wis. Admin. Code ch. ATCP 132. Limiting pecuniary loss to the amount by
which the repair shop caused the need for the repairs, or charged at above
market rates, for unnecessary repairs, or for “phantom” repairs that never
occurred, would emasculate the law to such an extent that consumers would
essentially be back to the status quo before the legislature enacted
§ 100.20(5). Instead of encouraging
consumers to enforce their rights and deterring prohibited conduct through
liberal private remedies, the law would leave many consumers with minimal
damage awards. This would defeat the
manifest object of the code by allowing repair shops to perform unauthorized
repairs without the severe penalty of nonpayment. See Baierl, 245
¶26 The repair shop and amicus curiae, Wisconsin Auto and Truck
Dealers Association, believe this construction to be unfair, especially if, as
they claim is undisputed in this case, the repairs made actually fixed the
vehicle in a satisfactory manner such that the consumer received a valuable
benefit. We understand that and
commiserate with the repair shop and amicus curiae to the extent that the
repair shop acted in good faith in not engaging in excessive and unnecessary
repair. But to paraphrase an
oft-repeated and now trite expression, the law is what the law is. If the association feels that the statutory
damage provision is out of proportion to the harm done by the lack of
authorized consent, its recourse is through the legislature, not the
courts. See Estate of Furgason v.
Wisconsin DHSS, 211
¶27 And frankly, our view is that the requirement of a written repair estimate with an estimated price is a simple procedure that does not impose a great economic burden on repair shops. This is important because the policy makers in this instance obviously weighed that insignificant cost to the marketplace against the need to curtail the persistent practices of exploitive merchants bent on targeting the unknowledgeable motor vehicle owner. The policy makers no doubt intended to protect consumers against misunderstandings arising from less-than-clear estimates and the legal disputes and litigation that result from the fait accompli nature of claims for repair work already done. See Osteen v. Morris, 481 So. 2d 1287, 1290 (Fla. Dist. Ct. App. 1986).
¶28 We hold that a repair shop, which finds itself outside the law
and which has taken money from a consumer after violating the law, causes
pecuniary loss to the consumer because of the violation. This is so because the consumer has been
prevented from exercising a statutory right—the right of informed consent. It is not the consumer’s burden to prove that
he or she would have done something differently had the proper information been
given. Rather, the burden is wholly upon
the repair shop. Strict as it is, the
policy makers obviously believed that only by exposing the repair shop industry
to strict conformance at the risk of having to pay back double if sued, could
the problem of consumer exploitation be resolved. See Benkoski, 242
By the Court.—Judgment reversed and cause remanded with directions.
[1] All references to the Wis. Admin. Code ch. ATCP 132 are to the October 2004 version unless otherwise noted.
[2] All references to the Wisconsin Statutes are to the 2007-08 version unless otherwise noted.
[3]
ATCP 132.04 Repair price information. (1) Estimate alternatives or firm price quotation; shop’s choice. Before a shop starts any repairs whose total price may exceed $50, a shop representative shall provide the customer with a written statement of estimate alternatives under sub. (2) or a firm price quotation under sub. (3). This requirement does not apply if there has been no face-to-face contact between the customer and a shop representative.
(2) Statement of estimate alternatives. (a) A statement of estimate alternatives, if provided, shall be conspicuously printed in the following form, either on the repair order or on a separate document attached to the repair order:
“YOU ARE ENTITLED TO A
PRICE ESTIMATE FOR THE REPAIRS YOU HAVE AUTHORIZED. THE REPAIR PRICE MAY BE
LESS THAN THE ESTIMATE, BUT WILL NOT EXCEED THE ESTIMATE WITHOUT YOUR
PERMISSION. YOUR SIGNATURE WILL INDICATE
YOUR ESTIMATE SELECTION.
1. I
request an estimate in writing before you begin repairs.
_____________________________________________
2. Please
proceed with repairs, but call me before continuing if the price will exceed $
_____.
_____________________________________________
3. I do
not want an estimate.
________________________________________________”
(b) If the statement of estimate alternatives under par. (a) is printed on a separate document, rather than on the repair order, the separate document shall include the repair order number or other information which uniquely identifies the authorization with the repair order. The shop shall keep a copy of the signed authorization with its records.
(3) Firm price quotation. (a) A firm price quotation, if provided, shall be written on the repair order and shall be accompanied by the following conspicuous statement on the repair order: “THIS PRICE FOR THE AUTHORIZED REPAIRS WILL NOT BE EXCEEDED IF THE MOTOR VEHICLE IS DELIVERED TO THE SHOP WITHIN 5 DAYS.”
(b) A shop may not exceed the firm price quoted under par. (a) for the specified repairs to the vehicle, component, part or accessory, if the customer delivers that motor vehicle, component, part or accessory to the shop within 5 days after the date on which the firm price is quoted.
(c) Notwithstanding sub. (4), a shop is not required to give a customer an estimate for repairs if the shop gives the customer a firm price quotation under par. (a) for those repairs.
(4) Estimate required. If any of the following has occurred, a shop representative shall give the customer an oral or written estimate, and shall write that estimate on the repair order before the shop starts any repairs whose total price may exceed $50:
(a) The customer has signed estimate alternative 1 under sub. (2).
(b) There has been face-to-face contact between the customer and a shop representative, but the customer has not signed any of the estimate alternatives under sub. (2).
(c) The shop has accepted any prepayment from the customer.
(d) The customer has requested an estimate before authorizing a repair under s. ATCP 132.02.
[4] The Consumer Law Litigation Clinic, in its amicus curiae brief, provided an example of the mischief the legislature sought to suppress and the importance of the “private attorney general” remedy in Wis. Stat. § 100.20(5):
[T]he [Consumer Law Litigation Clinic] represented a couple who took their only car to a local repair shop to be fixed. The family was, in the truest sense, one unexpected expense away from financial disaster. The shop performed repair after repair, without pre-authorization or written estimates, until the couple could no longer afford to pay. The shop refused to release the car, despite the couple’s payment of hundreds of dollars above the initial “estimate.” Without transportation, the husband lost his job, leaving the family on the brink of homelessness. [Under Wis. Stat. § 100.20(5),] [t]hat couple was able to sue for damages, attorney’s fees and costs—an impossibility without the mantle of the “private attorney general.”
[5] In Pliss v. Peppertree Resort Villas, Inc., 2003 WI App 102, ¶5, 264 Wis. 2d 735, 663 N.W.2d 851, a customer sued a timeshare resort under Wis. Stat. § 100.20(5) for a violation of Wis. Admin. Code ch. ATCP 121 (1968).
[6] We
acknowledge that not every violation of Wis.
Admin. Code ch. ATCP 132 amounts to the repairs being
unauthorized by the customer. See, e.g., Huff & Morse, Inc. v. Riordon, 118