Justia Consumer Law Opinion Summaries
Articles Posted in New Hampshire Supreme Court
Pelissier v. GEICO Gen. Ins. Co
The plaintiffs, Shane and Maura Pelissier, insured their automobile through GEICO General Insurance Company. They sought underinsured motorist benefits four and a half years after a motor vehicle accident with an underinsured driver. GEICO moved for summary judgment, citing a policy provision requiring lawsuits for underinsured motorist benefits to be filed within three years of the accident. The trial court denied the motion and transferred three interlocutory appeal questions to the Supreme Court of New Hampshire.The trial court found that the contractual limitations provision was unenforceable because it could require insureds to file suit before a justiciable cause of action exists. It also found that using the date of the accident as the triggering event for the limitations period was contrary to public policy and that there was a material factual dispute regarding the plaintiffs' ability to discover the tortfeasor’s policy limits before the limitations period expired. The trial court denied GEICO’s motion for reconsideration but granted an interlocutory appeal.The Supreme Court of New Hampshire reviewed whether the contractual limitations provision violated public policy. The court held that the provision was unenforceable because it could force insureds to file suit before their cause of action for underinsured motorist benefits had accrued, thus restricting their ability to recover damages. The court noted that the provision contravened the public policy underlying New Hampshire’s uninsured motorist statute, RSA 264:15, which aims to place insured persons in the same position as if the offending motorist had adequate liability insurance. The court affirmed the trial court’s decision in part, did not address the second interlocutory question, and remanded the case for further proceedings. View "Pelissier v. GEICO Gen. Ins. Co" on Justia Law
Red Oak Apartment Homes, LLC v. Strategis Floor & Decor, Inc.
Plaintiff Red Oak Apartment Homes, LLC, appealed a superior court decision dismissing its complaint against defendant Strategis Floor & Decor, Inc. (Strategis), and dismissing plaintiff’s claims against Strategis on grounds that the court lacked personal jurisdiction. Plaintiff contracted with New Hampshire-based Holmes Carpet Center, LLC to install plank-style flooring in approximately 195 of its apartment units. Holmes recommended vinyl plank flooring that it represented would withstand rental use for many years. The majority of the floors installed by Holmes consisted of Versaclic LVT vinyl plank flooring manufactured by Strategis. The flooring was sold with a fifty-year warranty for residential applications. Shortly after the flooring was installed, plaintiff’s residents and employees began noticing that the flooring was shifting and large gaps were appearing between the flooring planks, near walls, and in doorway thresholds. Holmes performed repair work on the flooring in two of the affected units. Plaintiff thereafter filed a complaint in New Hampshire against Holmes, alleging breach of contract and violations of the Consumer Protection Act. Plaintiff amended its complaint to add: (1) N.R.F. Distributors, Inc. (N.R.F.), a flooring distributor that sold the flooring at issue to Holmes and, although a foreign corporation, was registered to do business in New Hampshire and had a registered business address in Augusta, Maine; (2) eight other defendants, seven of whom were subcontractors hired by Holmes to perform the flooring installation at plaintiff’s properties; and (3) Strategis, a foreign corporation with a principal business address in Quebec, Canada, that marketed and sold the flooring to N.R.F. The New Hampshire Supreme Court concurred with the trial court that plaintiff failed to establish Strategis, through in-state contacts, purposefully availed itself of the protection of New Hampshire's laws. None of Strategis' actions, either separately or jointly, constituted purposeful availment sufficient for the court to exercise personal jurisdiction. Thus, the Court affirmed dismissal of plaintiff's complaint against Strategis. View "Red Oak Apartment Homes, LLC v. Strategis Floor & Decor, Inc." on Justia Law
Automated Transactions, LLC v. American Bankers Assn.
Plaintiffs Automated Transactions, LLC (ATL) and David Barcelou, appealed a superior court order dismissing their defamation and New Hampshire Consumer Protection Act (CPA) claims against the defendants, American Bankers Association (ABA), Credit Union National Association (CUNA), Robert Stier, and Pierce Atwood, LLP. Plaintiffs argued the trial court erred because it could not determine, at the motion to dismiss stage, that the statements upon which plaintiffs premised the defendants’ liability were nonactionable. The New Hampshire Supreme Court found no reversible error and affirmed the superior court judgment. View "Automated Transactions, LLC v. American Bankers Assn." on Justia Law
Fat Bullies Farm, LLC v. Devenport
Plaintiff Fat Bullies Farm, LLC (Fat Bullies), and the counterclaim defendants, Donald Gould and Peter Simmons, appealed certain superior court findings and rulings made during the course of litigation with defendants Alan and Donna Perkins and Lori and Bret Devenport, involving the sale of a 3.1 acre horse farm in North Hampton known as Runnymede Farm. When the Devenports purchased the property in 1998, they promised to operate it as a horse farm in perpetuity, and to allow the former owner to maintain an office on site. Simmons told the Devenports that he was interested in purchasing the property. The Devenports told Simmons they would only sell if the buyer agreed to the horse farm and on site office conditions. Simmons spoke with Gould about purchasing the property jointly with the intent to develop and/or resell it. The two created Fat Bullies “for the purpose of acquiring real estate for development or resale.” After amendments to the purchase contract, the Devenports reiterated that they would sell the property only if Fat Bullies committed to operating it as a horse farm. Despite their intentions to develop the property, Simmons and Gould agreed. The parties executed a sales agreement. No payment had been made on the property; word got back to Lori Devenport that Simmons had talked to others in North Hampton about purchasing the farm. The Devenports rescinded the agreement, believing Simmons lied to them about promising to operate Runnymede as a horse farm. Fat Bullies invoked an option, but the Devenports refused to sell. In 2011, the Devenports sold Runnymede to the Perkinses. After trial, the jury returned a verdict in favor of the Devenports on Fat Bullies’ breach of contract claim, finding that Fat Bullies failed to prove the existence of a contract by a preponderance of the evidence, and a verdict in favor of Fat Bullies, Simmons, and Gould on the Devenports’ fraudulent inducement claim. The New Hampshire Supreme Court reversed the trial court with respect to a Consumer Protection Act violation decision; the Court reversed with respect to attorney fees related to that Act decision. The Court affirmed in all other respects, and remanded for further proceedings. View "Fat Bullies Farm, LLC v. Devenport" on Justia Law
Holloway Automotive Group v. Giacalone
Plaintiff Holloway Automotive Group (Holloway) appealed a circuit court order ruling that the liquidated damages clause contained in the parties’ contract was unenforceable. Holloway was an authorized franchisee of Mercedes-Benz North America. Defendant Steven Giacalone purchased a new vehicle from Holloway. At the time of the purchase, the defendant signed an “AGREEMENT NOT TO EXPORT:” “MBUSA prohibits its authorized dealers from exporting new Mercedes-Benz vehicles outside of the exclusive sales territory of North America and will assess charges against [Holloway] for each new Mercedes-Benz vehicle it sells . . . which is exported from North America within one (1) year.” By signing the agreement, defendant promised “not [to] export the Vehicle outside North America . . . for a period of one (1) year” from the date of the Agreement and, if he did so, to pay Holloway $15,000 as liquidated damages. The vehicle was subsequently exported within the one-year period. Holloway sued claiming breach of contract and misrepresentation and seeking liquidated damages in the amount of $15,000, plus interest, costs, and attorney’s fees. The trial court found that the Agreement was entered into “between the parties to protect [Holloway] from a claim by [MBUSA],” but that MBUSA did not, in fact, charge Holloway any fees despite the vehicle having been exported. The trial court declined to enforce the liquidated damages clause in the agreement. After review, the Supreme Court concluded that the $15,000 liquidated damages provision was enforceable because Holloway’s damages resulting from the breach were not “easily ascertainable.” Accordingly, the Court held the trial court’s determination that the liquidated damages provision in the parties’ Agreement was unenforceable was not supported by the record and was erroneous as a matter of law. View "Holloway Automotive Group v. Giacalone" on Justia Law
Smith v. Pesa
Plaintiff Jeffrey Smith appealed a circuit court granting judgment to defendant Milko Pesa d/b/a Auto Milko, on plaintiff’s small claim action seeking damages and other relief on the grounds that he validly revoked acceptance of the used motor vehicle the defendant sold him and that, by selling him the vehicle, the defendant violated RSA chapter 358-F. In February 2014, plaintiff purchased a 2004 Subaru from defendant “as is as seen.” Before purchasing it, he signed and/or initialed four documents, namely a receipt from defendant’s car dealership stating that plaintiff purchased the motor vehicle “as is as seen,” and containing statements in which defendant, as the seller of the motor vehicle, disclaimed “ALL WARRANTIES, EITHER EXPRESS OR IMPLIED.” After purchasing the motor vehicle, the plaintiff had it inspected by a Subaru dealership, and the vehicle failed inspection. Thereafter, the parties agreed that the vehicle would be inspected by an independent mechanic. According to plaintiff, the independent mechanic corroborated the opinion of the Subaru dealership that the vehicle was beyond repair. According to defendant, the independent mechanic opined that the vehicle required only the replacement of a missing part. Plaintiff subsequently brought a small claim action against the defendant, seeking damages and rescission of the sale. Finding no reversible error in the circuit court's order, the Supreme Court affirmed. View "Smith v. Pesa" on Justia Law
Posted in:
Consumer Law, New Hampshire Supreme Court
Roy v. Quality Pro Auto, LLC
Plaintiff Jeffrey Roy appealed a circuit court order approving a recommendation of the Judicial Referee that judgment be entered in favor of defendant Quality Pro Auto, LLC on plaintiff’s small claim action. Plaintiff bought a used motor vehicle from defendant for $1,895. The bill of sale indicated that the vehicle was sold “As is As seen.” The sale also included a form from the New Hampshire Division of Motor Vehicles (DMV) titled “NOTICE OF SALE OF UNSAFE MOTOR VEHICLE.” In his small claims suit, plaintiff alleged, among other things, that the defendant had breached the implied warranty of merchantability when it sold the vehicle to him. Agreeing with the trial court that plaintiff waived this implied warranty, the Supreme Court affirmed. View "Roy v. Quality Pro Auto, LLC" on Justia Law
Posted in:
Consumer Law, New Hampshire Supreme Court
New Hampshire v. Mandatory Poster Agency, Inc.
Defendant was a Michigan-based company that “assists corporations in complying with regulations associated with the conduct of corporate business by supplying annual corporate consent documents” by way of direct mail. Defendant mailed solicitations to potential customers. Its New Hampshire mailing address was “a private mailbox used as a clearinghouse to receive and bundle orders from New Hampshire customers.” According to defendant, as a result of these direct mailings, it made sales in New Hampshire totaling $12,625. A grand jury indicted defendant on 27 felony violations of the Consumer Protection Act, encompassing three sets of nine charges, all stemming from defendant’s allegedly deceptive use of the New Hampshire mailing address in 2013. The State appealed a Superior Court order dismissing the 27 indictments, ruling that the indictments were defective because they alleged that the defendant acted with the mental state of “knowingly,” and not “purposely.” Finding no reversible error, the Supreme Court affirmed the Superior Court’s judgment. View "New Hampshire v. Mandatory Poster Agency, Inc." on Justia Law
Case v. St. Mary’s Bank
Plaintiff Mark Case appealed a superior court order that granted summary judgment to defendant St. Mary's Bank and denied his cross-motion for summary judgment on his claims that the bank engaged in trespass and violated state law and the New Hampshire Consumer Protection Act (CPA). The matter arose from the bank's foreclosure on property Plaintiff leased from his landlord, Jean Marcelin. Months before the foreclosure sale, pipes burst in an apartment above plaintiff's, causing a flood. The City of Manchester turned off water and electricity to the building. Plaintiff spoke about the problem to Marcelin, who denied that he still owned the property. Plaintiff then spoke about the problem to a Bank representative; the representative asked plaintiff to allow her, a plumber, and an electrician into the building. The plaintiff complied with this request. The City placed a legal notice on the property’s front door, stating that it was unsafe and prohibiting occupancy. Plaintiff had not resided at the property since the flood, though most of his possessions remained at the property. When the Bank allowed him access to the apartment to remove his possessions, plaintiff observed that his apartment door was "wide open" and subsequently alleged that many of his possessions were missing. Finding no error with the superior court order, the Supreme Court affirmed the decision. View "Case v. St. Mary's Bank " on Justia Law
Rainville v. Lakes Region Water Company, Inc.
The Supreme Court granted an interlocutory appeal from the superior court that partially granted and partially denied the summary judgment motion filed by Defendants Lakes Region Water Company and Thomas Mason (collectively LRWC). The question before the Court was whether the superior court erred in concluding that Defendants were not exempt from the Consumer Protection Act to the extent that they allegedly misrepresented that the water they provided was safe for use and consumption. Answering in the affirmative, the Supreme Court reversed the trial court’s denial of partial summary judgment as to the claims of the plaintiffs Jo Anne Rainville, Carl Beher, Lisa Mullins d/b/a The Olde Village Store, and approximately fifty others, under the Consumer Protection Act (CPA) which sought damages for alleged misrepresentations about the quality of water provided.
View "Rainville v. Lakes Region Water Company, Inc." on Justia Law