Brown v. Dick Smith Nissan, Inc.

Summary

The South Carolina Supreme Court reversed the Court of Appeals and reinstated the trial court's judgment for Latoya Brown against Dick Smith Nissan, Inc. and its surety. The court held that the dealer violated the South Carolina Dealers Act by obtaining financing for a different vehicle, making inaccurate representations, and failing to correct the financing documents, causing Brown damage.

Holdings

1. Dick Smith violated the South Carolina Dealers Act by acting in bad faith in procuring financing for a Nissan Altima rather than the Mazda 6 and by failing to timely correct the financing and collateral documents after learning of the problem.
2. The inaccurate financing information was not mere puffing; it consisted of material false information concerning the borrower, income, collateral, and vehicle being financed, and it contributed to actionable damage.
3. The Court of Appeals exceeded its standard of review by ignoring factual findings supported by the record and substituting its own findings.

Questions Presented

1. Whether Dick Smith's false statements in procuring financing for a different vehicle and its failure to correct the financing documents constituted bad faith, unfair or deceptive conduct, or other actionable conduct under the South Carolina Dealers Act.
2. Whether the financing condition in Brown's installment contract and Dick Smith's failure to obtain financing for the Mazda 6 caused actionable damage to Brown.
3. Whether the Court of Appeals exceeded its limited standard of review by substituting its factual conclusions for those of the trial court.

Disposition

reversed