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White v. Lima Auto Mall, Inc., 1-07-86 (5-19-2008)

Citation: 2008 Ohio 2403Docket: No. 1-07-86.

Court: Ohio Court of Appeals; May 19, 2008; Ohio; State Appellate Court

Narrative Opinion Summary

In this case, the plaintiffs, a couple, appealed a final judgment from the Court of Common Pleas in Allen County, Ohio. The dispute originated from the plaintiffs' attempt to purchase a Cadillac from the Auto Mall, financed through GMAC. Despite an executed purchase contract, disagreements arose regarding the delivery time of the vehicle, leading the plaintiffs to cancel the contract and purchase a similar vehicle elsewhere. The Auto Mall and GMAC resisted the cancellation, resulting in financial repercussions for the plaintiffs and a subsequent lawsuit alleging violations of the Consumer Sales Practices Act, fraud, and credit disparagement. The trial court allowed the plaintiffs to amend their claims but subsequently dismissed several claims, ruling that rescission of the contract was the only available remedy and dismissing claims for damages. The plaintiffs appealed, arguing that rescission was inappropriate since the contract was revoked, and that credit disparagement claims should be considered independently. The appellate court upheld the trial court's decision, finding no abuse of discretion in choosing rescission over damages, and dismissed the credit disparagement claim due to insufficient evidence of special damages. The court affirmed the trial court's decision, concluding the plaintiffs' choice of rescission precluded other remedies and that claims for credit disparagement were moot without proof of special damages.

Legal Issues Addressed

Libel and Credit Disparagement

Application: The plaintiffs’ libel and credit disparagement claims were dismissed due to failure to plead and prove special damages, as required for libel per quod claims.

Reasoning: In this case, the plaintiffs, the Whites, failed to allege or demonstrate specific harm from the alleged defamatory statements made by GMAC regarding their credit.

Motion to Dismiss under Civ. R. 12(B)(6)

Application: The court found dismissal appropriate since the Whites did not prove any facts to support a claim for relief concerning their credit disparagement.

Reasoning: GMAC and the Auto Mall filed motions to dismiss under Civ. R. 12(B)(6), which requires that it must be evident that the plaintiff cannot prove any facts supporting their claim for relief.

Rescission and Damages Under R.C. 1345.09

Application: The trial court determined that the plaintiffs could not pursue both rescission and damages, as rescission of the contract was chosen, thus forfeiting any claim for damages related to the contract.

Reasoning: Rescission was determined to be the appropriate remedy for the Whites since they did not complete the vehicle purchase from the Auto Mall. Under the Consumer Sales Practices Act, remedies for a violation include rescission, recovery of damages, or potentially treble damages, but a consumer must choose between rescission and damages.

Revocation of Acceptance under R.C. 1302.66

Application: The court found that the late delivery of the vehicle did not constitute a substantial impairment of value, thus the Whites did not properly revoke the contract with the Auto Mall.

Reasoning: Late delivery does not constitute a substantial impairment of value under R.C. 1302.66, and the Whites do not demonstrate how the alleged late delivery diminished the vehicle's worth.