Miller's Apple Valley Chevrolet Olds-Geo, Incorporated, a West Virginia Corporation v. Mark Goodwin

Docket: 98-1425

Court: Court of Appeals for the Fourth Circuit; May 19, 1999; Federal Appellate Court

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In Miller's Apple Valley Chevrolet Olds-GEO, Inc. v. Mark Goodwin, the Fourth Circuit addressed the interpretation of the Motor Vehicle Information and Cost Savings Act of 1972, specifically regarding the entitlement to attorney's fees under 49 U.S.C. § 32710(b). Mark Goodwin, after purchasing a vehicle and trading in a Volkswagen Jetta, was found to have misrepresented the Jetta's mileage. Although the jury ruled in his favor, he sought to recover costs and attorney's fees based on the Act's language, claiming that the court was required to award fees to the prevailing party. The district court denied his motion, interpreting the provision as protecting only the buyer of a vehicle, not the seller or a prevailing defendant. The Fourth Circuit affirmed this decision, emphasizing that statutory interpretation begins with the statute's language and intent, which in this case clearly aimed to safeguard buyers from odometer fraud without extending the same protections to sellers or defendants.

49 U.S.C. § 32710(b), titled "Civil Actions," allows individuals to initiate civil actions to enforce claims related to odometer fraud within two years of the claim's accrual. The provision mandates that the court shall award costs and reasonable attorney's fees only to "the person" when a judgment is entered in their favor. The interpretation of "the person" is crucial: it refers specifically to the plaintiff authorized to bring the action, not to any prevailing party, including defendants like Goodwin. The language of the statute, particularly the definite article "the" and the clause "when judgment is entered for that person," limits the award of fees and costs to successful plaintiffs only, excluding defendants. Goodwin's argument that this creates an unfair situation for car dealer plaintiffs is deemed a policy issue for Congress to address, rather than a legal concern for the courts. Ultimately, the statute permits only successful plaintiffs to recover attorney's fees and costs.

In typical cases under the Act, individual purchasers are the plaintiffs who suffer from odometer fraud by dealers or previous owners. Congress designed the Act to protect consumers, who generally lack information compared to sellers, by emphasizing the importance of accurate odometer readings for vehicle assessment. This principle is reflected in various statutory provisions, which state that consumers rely on odometer readings for vehicle safety and value. However, the current case presents an atypical scenario where a dealer, as the purchaser, accuses an individual seller of odometer fraud. The court finds that this situation does not warrant a reinterpretation of the Act's provision regarding attorney's fees. Specifically, Section 32710(b) is clear in permitting only prevailing plaintiffs to recover costs and attorney's fees, leading to the affirmation of the district court's order. The Act was originally codified in 1972 at 15 U.S.C. § 1981 et seq. and recodified in 1994 at 49 U.S.C. § 32701 et seq., with Congress stating that the recodification did not intend to alter its substantive meaning.