CYNTHIA L. MARTIN, Judge.
Billy Shiplet ("Billy") sued Larry Copeland ("Larry") and Judith Copeland ("Judith")
The Copelands are the owners of C & C Car Sales, a used car dealership licensed in the state of Missouri.
Before completing the 2001 license application for a motor vehicle dealer, Larry approached Lees with a business proposition regarding the physical location of C & C Car Sales. Larry and Lees never reduced their agreement to writing, but the testimony at trial established that the two men struck a deal in which C & C Car Sales would be physically located at Auto Body Plus for the purpose of motor vehicle dealer licensing, and in exchange, Larry would allow Lees to use dealer tags allotted to C & C Car Sales. Larry and Lees took several actions that demonstrated their agreement, including (1) installing a "C & C Car Sales" sign in front of the Auto Body Plus building; (2) printing business cards that listed Lees as an owner of C & C Car Sales; (3) using sales made by Lees to meet the requirements of C & C Car Sales for motor vehicle dealer licensing; (4) authorizing Lees to act as a representative of C & C Car Sales for the purpose of inspections by the Department of Revenue or law enforcement; and (5) naming Lees as an owner of C & C Car Sales on the applications for a motor vehicle dealer license.
In 2008, while Larry and Lees's business arrangement regarding C & C Car Sales remained in place, Billy attempted to purchase two vehicles located at 202 Evans in Raymore. The first vehicle Billy purchased was a 1993 Pontiac owned by Lees's son. The Pontiac was in a wrecked condition and required automobile body repair. Billy gave Lees's son cash and personal property valued at $5,705.73 in exchange for the Pontiac. Testimony at trial was conflicting as to whether the purchase price included the parts and labor required for the Pontiac's repair. Nonetheless, Lees never completed the repairs on the Pontiac, and Billy never took possession of the Pontiac.
The second vehicle Billy purchased was a 2002 Volkswagen also owned by Lees's son. Billy agreed to purchase the Volkswagen for $12,000. Billy gave Lees a cashier's check in the amount of $10,500 made payable to C & C Car Sales and promised to pay the remaining $1,500 at a later unspecified date. Billy took possession of the Volkswagen, and Lees provided Billy with a temporary permit to use until he could license the vehicle. Billy did not, however, receive the title to the Volkswagen at the time of purchase. When Billy attempted to license the Volkswagen, the Department of Revenue rejected his application because he did not have the title. Billy talked to Lees about receiving the title to the Volkswagen. Lees did not deliver the title, but offered Billy a C & C Car Sales's dealer tag to use on the Volkswagen. Billy accepted the dealer tag and continued driving the Volkswagen.
The Volkswagen started having mechanical issues following Billy's purchase of it. Lees repaired the Volkswagen once. Approximately four months after Billy's purchase, the Volkswagen again had mechanical problems. Billy returned the Volkswagen to Lees. Billy demanded return of the $10,500 he paid for the vehicle, as he had never paid the $1,500 balance of the purchase price. While the vehicle was in Billy's possession, it was driven approximately 3,500 to 4,000 miles.
Billy filed suit alleging, inter alia, that the Copelands d/b/a C & C Car Sales and Lees d/b/a Auto Body Plus violated the MMPA in connection with the sale of the Pontiac and the sale of the Volkswagen. The petition asserted that, with respect to the sale of each vehicle, the "Defendants made certain false or misleading representations and led [Billy] to believe certain falsehoods about the vehicle, specifically
The case was tried to the court on April 15, 2013.
On April 24, 2013, the trial court noted its decision by docket entry. With respect to the sale of the Pontiac, the docket sheet notation reflects the entry of judgment in favor of Julie
On April 30, 2013, before a formal written judgment was entered, Julie filed a motion for attorney's fees and a motion to clarify the judgment. Both motions were opposed by the Copelands.
Julie's motion for attorney's fees sought an award of reasonable attorney's fees as permitted under the MMPA for the "prevailing party," and attached a statement of fees.
Julie's motion to clarify the judgment argued that the "uncontroverted evidence submitted a[sic] trial was that [Billy] had paid the sum of $10,500 for the purchase of the Volkswagen" and that "[t]here was further evidence that there was a remaining sum due of $1,500 which was to be paid at a later date." Julie's motion argued that the trial court mistakenly "deducted the $1,500 which was due at a later date from the amount actually paid for the vehicle in determining a $9,000 damage amount." The trial court denied the motion to clarify.
On May 14, 2013, the trial court entered a written judgment that comported with its April 24, 2013 docket entry ("Judgment").
On June 12, 2013, the Copelands timely filed a motion for a new trial,
The trial court denied the Copeland's motion for new trial on August 5, 2013. The docket sheet reflects no action taken by the trial court on Julie's renewed motion for attorney's fees.
Julie and the Copelands each filed a notice of appeal on August 12, 2013. Julie appeals the trial court's failure to award her attorney's fees and the trial court's calculation of damages regarding the sale of the Volkswagen. The Copelands appeal the trial court's determination that they were jointly and severally liable to Julie in connection with the sale of the Volkswagen. Though named as a respondent along with the Copelands in Julie's appeal, Lees has not filed a brief.
In her first point on appeal, Julie argues that the trial court erred in denying her request for attorney's fees "because the issue of attorney's fees under the [MMPA] is not ripe until after judgment in that attorney's fees are not recoverable until there is a prevailing party and until a judgment exists there is not a prevailing party." Julie thus argues that the trial court "abused his discretion in denying attorney's fees ... based on a misstatement and misapplication of the law" by requiring Julie to put on evidence of her fees before the court determined that she was the prevailing party. [Appellant's Brief, p. 10]. We review a trial court's denial of a request for attorney's fees for an abuse of discretion. Berry v. Volkswagen Grp. of Am., Inc., 397 S.W.3d 425, 430 (Mo. banc 2013). "`To demonstrate an abuse of discretion, the complaining party must show the trial court's decision was against the logic of the circumstances and so arbitrary and unreasonable as to shock one's sense of justice.'" Id. at 431 (quoting W. Blue Print Co. v. Roberts, 367 S.W.3d 7, 23 (Mo. banc 2012)).
Julie's point on appeal is premised on the belief that the only reason her request for attorney's fees was denied was because she failed to offer evidence of her attorney's fees during trial. Though the trial court's docket entry denying the request for attorney's fees does observe that Julie presented no evidence of attorney's fees at trial, the trial court did not, as Julie contends, operate under the misapprehension that it therefore had no power to award attorney's fees. To the contrary, the trial court expressly noted that it was well aware that it possessed the authority and the discretion to award fees. The trial court concluded, however that "[i]t is the judgment of the court that no attorney fees be awarded to
In fact, Section 407.025.1 plainly provides that "[t]he court
As to Lees, though Julie prevailed on both MMPA claims she asserted, the transcript suggests some level of complicity in the relationship between Billy and Lees, raising equitable concerns that may well have influenced the trial court's exercise of its discretion in electing not to award attorney's fees. Moreover, though a statement of fees was attached to Julie's motion for attorney's fees, that statement is not a part of the record on appeal, leaving us no way to discern whether the amount of the claim was "reasonable."
These collective circumstances suggest that the trial court did not abuse its discretion in declining to award Julie attorney's fees even presuming, arguendo, that Julie preserved this claim of error for our review.
Julie's second point on appeal argues that the trial court erred in its assessment of damages. In particular, Julie contends that in assessing damages at $9,000 for the sale of the Volkswagen, the trial court "created credits against the plaintiff's damages which were not supported by evidence nor requested by defendants." According
The trial court explained its Judgment in denying Julie's motion to clarify as follows:
We will affirm the trial court's award of damages unless it is not supported by the evidence, is against the weight of the evidence, or is based on an erroneous application of the law. Williams v. Williams, 99 S.W.3d 552, 557 (Mo.App.W.D.2003). "We accord great weight to the trial court's findings on actual damages, which we will not disturb `unless the damages awarded are clearly wrong, could not have been reasonably determined, or were excessive.'" Riddell v. Bell, 262 S.W.3d 301, 305 (Mo.App.W.D.2008) (quoting Williams, 99 S.W.3d at 557).
Section 407.025.1 allows a plaintiff who has "suffer[ed] an ascertainable loss of money or property" as a result of a breach of the MMPA to recover "actual damages." "Although no Missouri cases outline the method the court should use in determining actual damages in an unlawful merchandising practices case, we take guidance from similar causes of action." Sunset Pools of St. Louis, Inc. v. Schaefer, 869 S.W.2d 883, 886 (Mo.App.E.D.1994). "The purpose of the Merchandising Practices Act is to supplement the definitions of common law fraud in an attempt to preserve fundamental honest, fair play and right dealings in public transactions. Therefore, we ... refer to the remedies for common law fraud." Id. (citation omitted).
Damages under the MMPA customarily are measured using the lost benefit of the bargain rule. Walsh v. Al West Chrysler, Inc., 211 S.W.3d 673, 675 (Mo. App.S.D.2007). However, "[t]he benefit of the bargain rule does not apply where the purchaser rescinds and returns the property received." Heberer v. Shell Oil Co., 744 S.W.2d 441, 443 (Mo. banc 1988). "In such a case, [the purchaser] may properly recover the amount he paid with interest from the date of payment, plus incidental losses and expenses suffered as a result of the seller's misrepresentations." Id. (citing Salmon v. Brookshire, 301 S.W.2d 48, 54 (Mo.App.1957)). However, a purchaser cannot continue to use property aware of its defect and later claim the benefit of rescission. See, e.g., Bryant v. Prenger, 717 S.W.2d 242, 244-45 (Mo.App.W.D. 1986) (holding that continued use of vehicle after purported attempt to rescind purchase because of odometer dispute nullified right to rescind).
Here, Julie's petition sought actual damages with respect to Billy's purchase of the Volkswagen. There is no dispute that Billy knew during the entire
We thus disagree with Julie's characterization of the trial court's explanation for its Judgment. The trial court did not improvidently consider an unpled affirmative defense of credit or offset. Rather, based on the evidence, which included Lees's son's testimony that Billy was in possession of the Volkswagen for approximately four months and that over those four months, the vehicle was driven for 3,500 to 4,000 miles, the trial court calculated an amount that approximated Julie's actual damages.
Julie's second point on appeal is denied.
The Copelands' single point on appeal argues that the trial court erred in concluding that the Copelands and Lees were jointly and severally liable with respect to the sale of the Volkswagen. The Copelands contend that there was insufficient evidence to establish that Lees was an agent of the Copelands so that they could be found vicariously liable for Lees's actions. The Copelands assert that the evidence presented at trial did not support a finding of agency because there was no evidence that Lees had either actual authority or apparent authority to act on the Copelands' behalf. Without the agency relationship, the Copelands argue, they cannot be found liable for the MMPA violation in connection with the sale of the Volkswagen so that the entry of judgment finding the Defendants jointly and severally liable constituted error.
"Whether an agency relationship exists is generally a factual question...." West v. Sharp Bonding Agency, Inc., 327 S.W.3d 7, 11 (Mo.App.W.D.2010). Because this appeal arises from a bench trial, we will review the trial court's finding of an agency relationship between the Copelands and Lees and will affirm that finding unless it is not supported by the evidence, is against the weight of the evidence, or is based on an erroneous application of the law. Williams, 99 S.W.3d at 557.
"Agency is the fiduciary relationship resulting from the manifestation of consent by an agent to a principal that the agent will act on the principal's behalf and subject to his control." Bach v. Winfield-Foley Fire Prot. Dist., 257 S.W.3d 605, 608 (Mo. banc 2008). An agency relationship requires the existence of three
There are two types of authority sufficient to create an agency relationship: actual and apparent. Lynch v. Helm Plumbing & Elec. Contractors, Inc., 108 S.W.3d 657, 660 (Mo.App.W.D.2002). Actual authority relates to the
The evidence presented at trial concerned the business arrangement that Larry and Lees had with one another regarding the physical location of C & C Car Sales. In exchange for allowing the Copelands to designate the address of Auto Body Plus as the physical location for C & C Car Sales for the purpose of motor vehicle dealer licensing, Larry would allow Lees to use dealer tags allotted to C & C Car Sales. In furtherance of this business arrangement, Larry authorized Lees to act as a representative of C & C Car Sales for the purpose of inspections by the Department of Revenue, and Larry issued business cards to Lees that listed Lees as an owner of C & C Car Sales to give to the inspectors. Larry listed Lees as an owner on C & C Car Sales' yearly applications for a motor vehicle dealer license. Further, Larry and Lees installed a C & C Car Sales sign in front of the Auto Body Plus building and posted C & C Car Sales' motor vehicle dealer license and business license in the Auto Body Plus building. Some of Lees's car sales were attributed to C & C Car Sales for purposes of reporting to the Department of Revenue. In connection with the sale of the Volkswagen, paperwork identified the seller as C & C Car Sales, and Billy made his initial payment with a cashier's check made payable to C & C Car Sales. When an issue arose about title to the Volkswagen, Lees offered Billy, and Billy accepted, a C & C Car Sales dealer tag for use on the vehicle.
This evidence could be reasonably interpreted to support either a finding of actual authority or apparent authority. Lees plainly had the authority to hold himself
The Copelands argue that even if evidence supports a finding of actual or apparent authority between Lees and C & C Car Sales, no evidence established an agency relationship between Lees and the Copelands. This argument conveniently ignores that as a sole proprietorship, C & C Car Sales was indistinguishable from the Copelands. Though Billy never met or communicated with the Copelands, Billy plainly could have believed that he was dealing with C & C Car Sales. The Copelands cite no authority for the proposition that a third party must interact with the sole proprietors/owners of an unincorporated business to establish apparent authority of another to act for the business. "The failure to cite relevant authority supporting a point or to explain the failure to do so preserves nothing for review." Jay Wolfe Used Cars of Blue Springs, LLC v. Jackson, 428 S.W.3d 683, 689 (Mo.App. W.D.2014) (internal quotation marks omitted).
The trial court did not err in assigning joint and several liability to the Copelands and Lees for the MMPA violation concerning the sale of the Volkswagen.
The Copelands' point on appeal is denied.
Pursuant to Local Rule XXIX, Julie filed a motion for attorney's fees on appeal, and we elected to take the motion with the case. Julie asserts that she is entitled to attorney's fees reasonably expended on appeal pursuant to section 407.025.1. In its ruling on Julie's motion for attorney's fees, the trial court stated that "[i]t is the judgment of the court that no attorney fees be awarded to any party in this case." We see no basis to disrupt that determination on appeal, particularly as Julie is not the prevailing party with respect to the claims she has asserted on appeal. The motion for attorney's fees on appeal is denied.
The trial court's Judgment is affirmed.
All concur.