Plaintiff buyer sued defendant car dealer under the Automobile Sales Finance Act (ASFA), Civ. Code, § 2981 et seq., the unfair competition law (UCL), Bus. & Prof. Code, § 17200 et seq., and the Consumers Legal Remedies Act (CLRA), Civ. Code, § 1750 et seq. The San Diego County Superior Court (California) found the dealer not liable under the ASFA to a backdating class, but liable under the ASFA to an insurance class. Both parties appealed.
Overview: business and professions code 17200 jury instructions
The trial court, which had certified the matter as a class action with the backdating class and the insurance class, also found the dealer liable to both classes under the UCL, but not under the CLRA. The court found as to the backdating class that the dealer's violation of Civ. Code, § 2982, subd. (a), rendered its backdated contract with the buyer unenforceable under Civ. Code, § 2983. As to the insurance class, the dealer violated Civ. Code, § 2981.9, by placing the parties' agreements regarding insurance in a separate document. The trial court erred to the extent it found the ASFA allowed the insurance class members to recover from the dealer what they paid under their contracts, and keep their vehicles. The buyer had standing to pursue claims under the UCL. The court found no authority supporting the remedy of rescission in a UCL action. The trial court correctly found the dealer not liable to the insurance class under the CLRA, but erred when it found the dealer not liable to the backdating class under the CLRA. The dealer's Code Civ. Proc., § 998, offer was invalid because it was a lump-sum offer to multiple classes, which were the equivalent of separate parties.
Outcome
The court reversed the judgment finding the dealer not liable to the backdating class under the ASFA and the CLRA, the remedies awarded to the insurance class under the ASFA and the UCL, the permanent injunction issued under the UCL as to the insurance class, and the returning to the dealer any sums remaining after the payment of all valid claims. The matter was remanded with directions. In all other aspects, the judgment was affirmed.