Maneri v. FCA US LLC

Summary

The California Court of Appeal addresses remedies arising from a breach of implied and express warranties involving a defective Ram truck under the Song-Beverly Consumer Warranty Act and the Commercial Code. It holds that replacement-vehicle and rental costs were not recoverable as cover or incidental damages, reduces other improperly awarded damages, requires return of the vehicle, and limits attorney fees based on FCA’s more favorable Code of Civil Procedure section 998 offer. The court otherwise affirms summary adjudication of the express warranty claim.

Holdings

1. After justifiably revoking acceptance, Maneri could not recover the costs of long-term rentals or the Ford truck as cover or incidental damages. The costs were not recoverable cover damages because they did not represent additional costs of substitute goods, and they were not incidental damages because they were unrelated to the care or custody of the Ram.
2. The trial court improperly awarded loan interest attributable to the Ford truck and insurance premiums attributable to other vehicles or to driving-related coverage for the Ram. On remand, the damages award had to be reduced by the amounts unsupported by the evidence or not recoverable as incidental damages.
3. A buyer who justifiably revokes acceptance under the Commercial Code must return the goods to the seller. The judgment was therefore required to direct Maneri to return the Ram to FCA.
4. FCA's $70,000 statutory settlement offer was more favorable than Maneri's ultimate recoverable damages. Because Maneri rejected the offer and failed to obtain a more favorable judgment, he was not entitled to postoffer attorney fees under Code of Civil Procedure section 998.
5. The trial court correctly granted FCA summary adjudication on Maneri's express-warranty claim. FCA could satisfy its statutory obligation by making a compliant repurchase offer; actual repurchase was not required where the buyer did not accept the offer.

Questions Presented

1. Whether the costs of rental vehicles and a replacement Ford truck were recoverable as cover or incidental damages for breach of the implied warranty of merchantability after Maneri revoked acceptance.
2. Whether the trial court improperly awarded loan interest and insurance premiums not attributable to the Ram, including liability-related coverage.
3. Whether the trial court was required to order Maneri to return the Ram after awarding him the purchase price under Commercial Code remedies.
4. Whether FCA's Code of Civil Procedure section 998 settlement offer was more favorable than Maneri's ultimate recovery and therefore barred recovery of postoffer attorney fees.
5. Whether FCA's repurchase offer satisfied its obligations under Civil Code section 1793.2 and supported summary adjudication on Maneri's express-warranty claim.

Disposition

reversed_and_remanded