Hatch v. Murphy

WHITE, J. By his complaint in the within action plaintiff alleged that on or about July 12, 1944, the defendants sold him a used automobile for the sum of $1,795 plus taxes, license and transfer fees; that at the time of the sale the maximum price fixed by the Office of Price Administration was $1,090 plus sales taxes and other charges, making the total maximum price $1,133.25, and resulting in an overcharge of $724.53. It was further charged that the alleged violation of OPA regulations was willful on the part of defendants. The prayer was for damages in the amount of three times the overcharge, plus attorney’s fees. After trial before the court, sitting without a jury, findings were made in favor of plaintiff, fixing his damages at $1,000 plus attorney’s fees of $350, and judgment was entered accordingly. From such judgment defendants prosecute this appeal. An appeal by plaintiff, on the ground that the court should have awarded him treble damages, has been dismissed.

On July 9, 1944, prior to the establishment of an OPA ceiling on used cars, plaintiff entered into an agreement for the purchase of a used Pontiac coupe from defendant Murphy Motors, the sale being handled by the defendants Flynn, a salesman, and Neill, the sales manager. The transaction was evidenced by a “car order” for the ear in question as well as insurance thereon, the price of the car being $1,695, plus sales tax of $42.38, license and transfer fees of $17.90, a total of $1,755.28. The plaintiff on this date made a cash payment of $735.28 and took delivery of the vehicle. It was provided in the agreement that plaintiff might pay the balance of $1,020 in cash by July 15, that he should have a “5-day trial exchange,” and that “title of ownership does not pass to me (plaintiff) until the final cash payment is made.” With the delivery of the car plaintiff also received a so-called “Good Will Automobile Guaranty,” which included in its terms the provision that “this car may be returned by the purchaser within five days if it proves unsatisfactory and the money paid on it will be applied as a credit on the immediate purchase of any other car of equal or greater price (new or used) which is our property, providing the car being returned is in the same condition as when originally delivered.”

On July 10, 1944, a ceiling was placed on the price of used cars by Maximum Price Regulation 540. Under the regulation the price of a car of the type purchased on July 9, [589]was fixed at $995 “as is,” plus 25 per cent if sold under the warranty prescribed by the regulation.