DaimlerChrysler Corporation v. Gaylord Smelser
Annotate this Case
Download PDF
SUPREME COURT OF ARKANSAS
No. 07-01006
DAIMLERCHRYSLER CORPORATION,
APPELLANT,
VS.
GAYLORD SMELSER,
APPELLEE,
Opinion Delivered December
11, 2008
APPEAL F RO M THE COLUMBIA
COUNTY CIRCUIT COURT
NO. CV2004-230-4,
HON. CAROL CRAFTON ANTHONY,
JUDGE,
AFFIRMED.
ANNABELLE CLINTON IMBER, Associate Justice
1.
CONTRACTS –
THERE WAS CON F LICT IN G TESTIM ONY REGARDING WHETHER THERE WAS A
– NO ERROR WHERE CIRCUIT COURT FOUND THAT THERE WAS NO
SETTLEM ENT .– Where there is conflicting testimony, the credibility of witnesses is for the trial judge
to determine, and the supreme court defers to the superior position of the trial judge in matters of
credibility; here, appellant asserted that the parties’ attorney had reached a settlement agreement,
but appellee denied ever authorizing the parties’ purported settlement agreement; he testified that
his former attorney never communicated with him about the settlement offer; and, there was
conflicting testimony whether the settlement included a “lifetime warranty”; it could not be said that
the circuit court clearly erred in finding that there was no settlement of the matter.
SET TLEM ENT AGREEM ENT
2.
STATUTES – CONSTRUCTION – ARKANSAS LEM ON LAW ALLOWED FOR RECOVERY OF CERTAIN
EXPENSES.– The circuit court did not err in interpreting Ark. Code Ann. § 4-90-415(c) to allow
for the recovery of copy costs and mileage expenses; the legislature expressly designated attorney’s
fees as a recoverable expense; otherwise, the only limitation on the recovery of any expenditure
or outlay is that the court must determine it to have been reasonable and incurred in connection with
the prosecution of an action under the Arkansas Lemon Law; such a limitation insures against a
windfall for Lemon Law claimants; in essence, section 4-90-415(c) seeks to make a prevailing
consumer whole.
3.
STATUTES – CONSTRUCTION – REM EDIES PROVIDED UNDER THE ARKANSAS LEM ON LAW.– It is
evident from the plain language of the Arkansas Lemon Law that the legislature sought to address
-1-
the hardship a defective vehicle creates for a consumer; the legislature intended that a good-faith
motor vehicle warranty complaint by a consumer be resolved by the manufacturer within a specific
period of time; the statute also provides for an informal dispute settlement proceeding at the option
of the manufacturer; if the manufacturer fails to resolve a good-faith complaint, it will be at the
manufacturer’s peril to let the dispute be resolved in court.
Barrett & Deacon, A Professional Association, by: Kevin W. Cole and Brandon J. Harrison,
for appellant.
James M. Pratt, Jr., P.A., by: James M. Pratt; and Brian G. Brooks, Attorney at Law, PLLC,
by: Brian G. Brooks, for appellee.
Appellant
DaimlerChrysler Corporation appeals from a judgment entered against it in
the Circuit Court of Columbia County for violation of the Arkansas New Motor Vehicle
Quality Assurance Act (“Arkansas Lemon Law”), codified at Ark. Code Ann. §§ 4-90-401 to
-417 (Repl. 2001).
The judgment awarded Appellee Gaylord Smelser the sum of $41,489.26,
plus attorney’s fees, copy costs, and mileage expenses.
Appellant
raises two points of error
on appeal: 1) the circuit court erred in declining to enforce a settlement agreement negotiated
by the parties’ attorneys; and 2) the circuit count erred in allowing Appellee to recover copy
costs and mileage expenses under Ark. Code Ann. § 4-90-415(c). Our jurisdiction is pursuant
to Arkansas Supreme Court Rule 1-2(a)(5) and (b)(1) (2008). We find no error and affirm.
On July 14, 2003, Appellee Gaylord Smelser bought a 2003 Dodge 4WD-diesel truck
manufactured by DaimlerChrysler Corporation from a Chrysler dealership in Camden,
Arkansas.
Almost immediately, he began having problems with the vehicle’s transmission.
Beginning in early August 2003, Appellee took the vehicle back to the Camden dealership for
repair. Over the course of the next eight months, the vehicle was returned to the dealership a
- 2-
total of six times, but the transmission problem persisted.
Appellee, with help from his
daughter-in-law, Erin Smelser, then sent two letters to DaimlerChrysler’s customer assistance
center. In the first letter dated May 13, 2004, he demanded a repair within ten days under the
Arkansas Lemon Law. Ark. Code Ann. § 4-90-406(a)(2) (Repl. 2001). After Appellant failed
to respond, Appellee sent a second letter on June 25, 2004, demanding a replacement vehicle
or a refund pursuant to Ark. Code Ann. § 4-90- 406(b). When Appellant failed to respond to
the second letter, Appellee hired attorney David P. Price to represent him.
A complaint was filed against Appellant in the Circuit Court of Columbia County on
October 28, 2004.
The complaint alleged claims for breach of implied warranty of
merchantability and implied warranty of fitness for a particular purpose and for violation of the
Arkansas Lemon Law.
One year later, on September 23, 2005, Appellant filed a motion for
summary judgment or, in the alternative, motion to enforce settlement, alleging that a
settlement had been reached on April 6, 2005, between the parties’ attorneys.
In his reply to
the summary-judgment motion, Appellee disputed the validity of any alleged settlement,
claiming that his former attorney lacked authority to settle the matter.
The circuit court
declined to grant the motion to enforce settlement on the pleadings; instead, at a hearing in
January 2007, the court heard testimony concerning the alleged settlement.
Shortly thereafter,
the circuit court denied Appellant’s summary-judgment motion, finding that “there was not a
settlement of the matter.”
In the meantime, Appellee had hired his current attorney, James M. Pratt, Jr., after Mr.
Price withdrew as counsel in July 2005.
Appellee eventually nonsuited the two warranty
- 3-
claims, and the case went to trial in May 2007 on the remaining claim for violation of the
Arkansas Lemon law. Following a jury verdict in favor of Appellee, the circuit court entered
its judgment on June 11, 2007, awarding Appellee the sum of $41,489.26. In a separate order
entered on July 18, 2007, the court awarded Appellee attorney’s fees and costs in the amounts
of $11,100.00 and $197.50, respectively, pursuant to Ark. Code Ann. § 4-90-415(c).
Appellant filed timely notices of appeal.
In its first point on appeal, Appellant argues that the circuit court erred in finding that
there was no settlement of the matter between the attorneys.
Appellant further suggests that
the circuit court should have declared a settlement on the terms it deemed reasonably certain
based on the proof.
Appellee, on the other hand, contends there was no settlement agreement
because the conflicting evidence shows there was no meeting of minds on a material term.
Courts will enforce contracts of settlement if they are not in contravention of law.
McCoy Farms, Inc. v. J & M McKee, 263 Ark. 20, 563 S.W.2d 409 (1978), reh’g denied April
17, 1978.
The essential elements of a contract include (1) competent parties, (2) subject
matter, (3) legal consideration, (4) mutual agreement, and (5) mutual obligations.
Ward v.
Williams, 354 Ark. 168, 118 S.W.3d 513 (2003). We keep in mind two legal principles when
deciding whether a valid contract was entered into: (1) a court cannot make a contract for the
parties but can only construe and enforce the contract that they have made; and if there is no
meeting of the minds, there is no contract; and (2) it is well settled that in order to make a
contract there must be a meeting of the minds as to all terms, using objective indicators.
Alltel
Corp. v. Sumner, 360 Ark. 573, 203 S.W.3d 77 (2005). Both parties must manifest assent to
- 4-
the particular terms of the contract. Id. Moreover, the terms of a contract cannot be so vague
as to be unenforceable. City of Dardanelle v. City of Russellv ille, 372 Ark. 486, ___ S.W.3d
___ (2008).
The terms of a contract are reasonably certain if they provide a basis for
determining the existence of a breach and for giving an appropriate remedy. Id.
In the instant case, Appellant has the burden of proving the existence of a contract. See
Thompson v. Potlatch Corporation, 326 Ark. 244, 930 S.W.2d 355 (1996). Whether or not
there was a meeting of the minds is an issue of fact, and we do not reverse a trial court’s factfinding unless it is clearly erroneous.
(2003).
Sanford v. Sanford, 355 Ark. 274, 137 S.W.3d 391
A finding is clearly erroneous when, although there is evidence to support it, the
reviewing court on the entire evidence is left with a definite and firm conviction that a mistake
has been committed. Id. We view the evidence in a light most favorable to the appellee,
resolving all inferences in favor of the appellee. Id.
Disputed facts and determinations of the
credibility of witnesses are within the province of the factfinder.
Ford Motor Credit Co. v.
Ellison, 334 Ark. 357, 974 S.W.2d 464 (1998).
Appellant asserts that the parties’ attorneys reached a settlement agreement. In support
of that assertion, Appellant points to a letter faxed by Appellant’s attorney to Appellee’s
former attorney, David P. Price, on April 6, 2005.
The letter states in pertinent part as
follows:
This letter confirms that we have settled this case premised upon
the following:
1.
$1,000.00 payable to you and your client to be applied
toward fees and expenses;
- 5-
2.
Repair of the subject vehicle in accordance with the
vehicle inspection conducted by the DaimlerChrysler field
representative; this repair will be arranged through your
o ffic e and will be completed at your lo c a l
DaimlerChrysler dealership; and
In return, your client will execute a Release in favor of
DaimlerChrysler.
3.
On the same day, Appellant’s attorney faxed a letter to the circuit court’s case coordinator
informing the court that the case had been settled and requesting that the trial scheduled for
April 12, 2005, be canceled.
Shortly thereafter, on April 15, 2005, Mr. Price informed
Appellant’s attorney that Appellee refused to accept the terms of settlement set forth in the
April 6, 2005 letter.
On May 10, 2005, Appellant’s attorney sent Mr. Price a release and
settlement agreement and consent order of dismissal, but Appellee never signed
the
documents.
During the hearing on Appellant’s motion to enforce the settlement, Mr. Price testified
that Appellee instructed him to initiate negotiations on a possible settlement.
According to
Mr. Price, he relayed the terms of the settlement to his client on April 6, 2005, and Appellee
told him to “go ahead” with the settlement. Mr. Price admitted that he never sent Appellee the
confirmation letter drafted by Appellant’s attorney and that, during their meeting on April 15,
2005, Appellee denied ever authorizing the settlement.
Mr. Price also testified to his
understanding that the settlement would include a “lifetime warranty” for the vehicle.
Mr.
Price acknowledged, however, that he did not read or object to the terms contained in the
confirmation letter.
settlement offer.
Appellee testified that Mr. Price never communicated with him about the
In fact, when he called Mr. Price’s office on April 11, 2005, Appellee still
- 6-
thought the case was going to trial on April 12, 2005. In sum, Appellee testified that he never
authorized or agreed to the alleged settlement terms.
His testimony was corroborated by Erin
Smelser, Appellee’s daughter in law.
As stated earlier, the April 6, 2005 confirmation letter drafted by Appellant’s attorney
provides for the “[r]epair of the subject vehicle in accordance with the vehicle inspection
conducted by the DaimlerChrysler field representative; this repair will be arranged through
your office and will be completed at your local DaimlerChrysler dealership.”
There is no
reference in the letter to a “lifetime warranty,” or any time period during which Appellant
would be responsible for the repair.
Appellee’s former attorney, however, testified without
objection that it was his understanding the “[t]ransmission was supposed to be fixed. . . . if there
was going to be any problems with the transmission that was supposed to be taken care of for
the duration of Mr. Smelser’s ownership of the vehicle.”
Price, the settlement included a “lifetime warranty.”
In other words, according to Mr.
Once again, where there is conflicting
testimony, the credibility of witnesses is for the trial judge to determine, and the court defers
to the superior position of the trial judge in matters of credibility.
74, ___ S.W.3d ___ (2008).
Koster v. State, 374 Ark.
Based upon our review of the record in the instant case, we
cannot say that the circuit court clearly erred in finding that there was no settlement of the
matter. In view of our affirmance for the reasons stated above, we need not address the issue
of whether Appellee’s attorney lacked authority to settle the case.
The circuit court ruled, pursuant to Ark. Code Ann. § 4-90-415(c), that Appellee was
entitled to recover copy costs and mileage expenses in the amount of $197.50. For his second
- 7-
point on appeal, Appellant challenges the circuit court’s ruling, citing Rule 54(d) of the
Arkansas Rules of Civil Procedure.
According to Appellant, Rule 54(d) delineates what costs
a prevailing party may recover, and copy costs and mileage expenses are not expressly
permitted by the rule.
Appellant further posits three reasons why section 4-90-415(c) should
not be broadly construed to include mileage expenses or copy costs: (1) statutes providing for
costs are strictly construed against the party seeking the award; (2) if the statute is broadly
construed, requests for all types of travel and other expenses related to witnesses, attorneys,
and paralegals will pour forth; and (3) it is unfair to construe the statute broadly since only “a
consumer” can be a prevailing party under the statute.
Appellee, on the other hand, points out that, even assuming “costs” is a term of art under
Rule 54(d), section 4-90-415(c) is not limited to the recovery of costs.
The statute also
allows a consumer to recover “expenses . . . reasonably incurred . . . for or in connection with
the commencement and prosecution of the action.” Ark. Code Ann. § 4- 90- 415(c). Appellee
asserts that expenses in this case easily include the cost of copying exhibits and mileage.
We review issues of statutory construction de novo, as it is for this court to decide what
a statute means. Middleton v. Lockhart, 344 Ark. 572, 43 S.W.3d 113 (2001). In this regard,
we are not bound by the trial court’s decision; however, in the absence of a showing that the
trial court erred, its interpretation will be accepted as correct on appeal. Id. The circuit court
relied upon Arkansas Code Annotated section 4-90-415(c) in awarding copy costs and mileage.
Section 4-90-415(c) reads as follows:
A consumer who prevails in any legal proceeding under this
- 8-
subchapter is entitled to recover as part of the judgment a sum
equal to the aggregate amount of costs and expenses, including
attorney’s fees based upon actual time expended by the attorney,
determined by the court to have been reasonably incurred by the
consumer for or in connection with the commencement and
prosecution of the action.
Ark. Code Ann. § 4-90-415(c) (Repl. 2001).
The basic rule of statutory construction is to give effect to the intent of the legislature.
State Office of Child Support Enforcement v. Morgan, 364 Ark. 358, 219 S.W.3d 175
(2005).
Where the language of a statute is plain and unambiguous, we determine legislative
intent from the ordinary meaning of the language used.
Id.
In considering the meaning of a
statute, we construe it just as it reads, giving the words their ordinary and usually accepted
meaning in common language.
Id.
We construe the statute so that no word is left void,
superfluous, or insignificant, and we give meaning and effect to every word in the statute, if
possible. Id. When the language of the statute is plain and unambiguous, conveying a clear and
definite meaning, we need not resort to the rules of statutory construction.
Cooper Clinic,
P.A. v. Barnes, 366 Ark. 533, 237 S.W.3d 87 (2006). However, when a statute is ambiguous,
we must interpret it according to the legislative intent, and our review becomes an examination
of the whole act.
Id.
We reconcile provisions to make them consistent, harmonious, and
sensible in an effort to give effect to every part.
Id.
A statute is ambiguous only where it is
open to two or more constructions, or where it is of such obscure or doubtful meaning that
reasonable minds might disagree or be uncertain as to its meaning.
legislative history, the language, and the subject matter involved.
- 9-
Id.
We also look to the
State Office of Child
Support Enforcement v. Morgan, supra.
The statute at issue does not define the terms “costs and expenses,” or delineate what
types of costs and expenses the legislature intended to include or exclude.
4-90-415(c).
Ark. Code Ann. §
The only guidance in the statute is that costs and expenses shall include
attorney’s fees and shall be “determined by the court to have been reasonably incurred by the
consumer for or in connection with the commencement and prosecution of the action.”
Id.
Rule 54(d) of the Arkansas Rules of Civil Procedure specifically delineates what fees
are taxable as “costs”:
Costs taxable under this rule are limited to the following: filing fees and
other fees charged by the clerk; fees for service of process and subpoenas; fees
for the publication of warning orders and other notices; fees for interpreters
appointed under Rule 43; witnesses fees and mileage allowances a provided in
Rule 45; fees of a master appointed pursuant to Rule 53; fees of experts
appointed by the court pursuant to Rule 706 of the Arkansas Rules of Evidence;
and expenses, excluding attorney’s fees, specifically authorized by statute to be
taxed as costs.
Ark. R. Civ. P. 54(d) (2008). Even if we assume that costs are limited to those items set forth
in Rule 54(d), section 4-90-415(c) also allows a consumer who prevails to recover
“expenses,” including attorney’s fees.
superfluous.
We do not construe statutes to leave any word void or
State Office of Child Support Enforcement v. Morgan, supra.
Thus, the
legislature must have contemplated a distinction between costs and expenses.
“Expense,” as defined in Black Law Dictionary, means “[t]hat which is expended, laid
out or consumed; an outlay; charge; cost; price.”
Black ’s Law Dictionary 687 (Revised 4th
ed. 1968). The legislature has expressly designated attorney’s fees as a recoverable expense.
- 10-
Otherwise, the only limitation on the recovery of any expenditure or outlay is that the court
must determine it to have been reasonable and incurred in connection with the prosecution of
an action under the Arkansas Lemon Law.
Such a limitation insures against a windfall for
Lemon Law claimants. In essence, section 4-90-415(c) seeks to make a prevailing consumer
whole.
This interpretation is consistent with other provisions that provide a broad range of
remedies to a consumer.
Section 4-90-406(b)(1)(B) provides that a consumer can recover all
collateral or reasonably incurred incidental charges as part of the replacement or refund.
Code Ann. § 4-90-406(b)(1)(B) (Repl. 2001).
Ark.
Section 4-90-414(b)(6) provides that a
consumer may not be charged with a fee to participate in an informal dispute proceeding. Ark.
Code Ann. § 4-90-414(b)(6) (Repl. 2001).
Finally, Appellant claims it is unfair to construe the statute broadly since “only ‘a
consumer’ can ever be a prevailing party under the statute.”
It is evident from the plain
language of the Arkansas Lemon Law that the legislature sought to address the hardship a
defective vehicle creates for a consumer.
Ark. Code Ann. § 4-90-402 (Repl. 2001).
The
legislature intended that a good-faith motor vehicle warranty complaint by a consumer be
resolved by the manufacturer within a specific period of time.
The statute also provides for
an informal dispute settlement proceeding at the option of the manufacturer.
§ 4-90-414 (Repl. 2001).
Ark. Code Ann.
If the manufacturer fails to resolve a good-faith complaint, it will
be at the manufacturer’s peril to let the dispute be resolved in court.
The circuit court determined that copy costs and mileage expenses totaling $197.50
- 11-
were reasonably incurred in connection with the instant litigation.
Accordingly, we hold that
the circuit court did not err in interpreting section 4-90-415(c) to allow for the recovery of
those expenses.
Affirmed.
- 12-
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.