Crayton v. FCA US LLCAnnotate this Case
Plaintiff filed suit against defendant, alleging violations of the Song-Beverly Consumer Warranty Act, Civ. Code, 1790 et seq, after the new vehicle he leased developed unrepairable defects. The trial court entered a judgment awarding plaintiff restitution and civil penalties under the Act, as well as an order awarding him attorney fees.
In the published portion of the opinion, the court held that, under section 1793.2, subdivision (b)(2), if a manufacturer is unable to repair a vehicle after a reasonable number of attempts, then it must either replace the vehicle in accordance with subparagraph (A) or make restitution in accordance with subparagraph (B). In this case, awarding plaintiff the residual value of the vehicle—an amount he admits he did not pay and was not obligated to pay under the terms of the lease—would leave him in a better position than he was in at the time he leased the vehicle. Therefore, it would be contrary to the Legislature's intent in using the term restitution to describe a lessee's damages remedy under the Act. The court was unpersuaded by plaintiff's assertion that excluding the residual value from the restitution award would result in unequal treatment of lease transactions, as compared to purchase transactions, in violation of the Act. Therefore, the restitution award did not violate the equal treatment mandate of the Act. The court rejected plaintiff's contention that he was obligated to terminate the lease and purchase the vehicle when he sought restitution under the Act. Rather, the court read the Act as expressly imposing reacquisition, branding, and disclosure requirements solely on manufacturers who cannot repair a vehicle after a reasonable number of attempts.