DeNike v. Mathew Enterprise, Inc.
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In 2014, DeNike purchased a 2014 hardtop Jeep Wrangler from SCJ. DeNike subsequently discovered that, contrary to a salesman’s representation, the vehicle was originally manufactured as a soft top. The hardtop was improperly installed after it left the factory. DeNike filed suit. A jury found in favor of DeNike on his claims under the Consumers Legal Remedies Act (CLRA) (Civ. Code 1750 ), the Song-Beverly Consumer Warranty Act (section 1790), and for intentional misrepresentation. The trial court issued a permanent injunction against SCJ and, in a post-judgment order, awarded DeNike attorney fees.
The court of appeal reversed with respect to restitution under the CLRA. Having found that SCJ’s response to DeNike’s CLRA demand letter was “reasonable and appropriate,” the trial court erred in allowing DeNike’s claim for restitution under the CLRA to proceed to the jury. The court rejected arguments that there was insufficient evidence of reasonable reliance to support the verdict on the intentional misrepresentation cause of action and that the trial court misinstructed the jury on the Song-Beverly Act cause of action and erred in granting DeNike’s request for injunctive relief under the CLRA.
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