 "Dealer Hit With $20,000 Judgement for Not Using Spanish -Language Contract "
By: Thomas Hudson As the Hispanic population of the U.S. grows, watch for more lawsuits claiming that dealers have an obligation to use Spanish-language contracts and other documents. Consumers who rely on state unfair and deceptive trade practices statutes to assert these claims face an uphill fight. But in states like California, that have laws requiring dealers to provide Spanish-language translations of contracts negotiated in Spanish, the fight isn't so uphill, as this case illustrates.
Juan Mario Gutierrez and his son-in-law, Alberto Melchor Martinez, sued PCH Roulette, Inc. d/b/a Courtesy Mitsubishi, alleging violations of the California Consumer Legal Remedies Act and the Spanish contract statute (Cal. Civ. Code § 1632).
Martinez wanted to buy an Eclipse for $16,000. The dealer's sales representative told him he did not have enough credit and would need a co-signer. Martinez returned the following evening with his father-in-law. According to the court's opinion, these parties all spoke Spanish during the negotiations for the purchase.
The salesman later told Martinez he could not buy the Eclipse, but he could get financing for the Montero, even though it was a more expensive vehicle. Ultimately, Martinez and Gutierrez entered into a lease transaction for the Montero, though it was Gutierrez that signed the documents. The finance manager apparently did not speak Spanish, and all that was said during the last phase of the transaction was "sign here, sign here." The documents were all in English.
Later Martinez tried to return the Montero because he could not afford the payments. Another sales representative offered to take the vehicle off his hands and assume the payments and return his down payment. There was no follow-through on any of this, however, so Martinez had no vehicle, was out his down payment and Gutierrez's credit was affected because of the default on the Montero payments.
When repossession agents came looking for the vehicle, Martinez directed them to the sales representative's house. According to the court's opinion, the dealer later fired the sales representative, but that did not help Martinez.
After a jury verdict, the trial court ordered the dealer to pay the plaintiffs $1,724 in restitution, their costs and legal fees and $20,000 in punitive damages. The dealer appealed the judgment, raising numerous issues. The California Court of Appeals affirmed the lower court, however, finding that the evidence supported the judgment, including the award of punitive damages. The appellate court had no problem concluding that the negotiations between the dealer and the plaintiffs were conducted primarily in Spanish and, therefore, the dealer violated the Spanish contract statute by failing to provide Spanish-language translations of its documents.
Do your sales representatives and F&I personnel conduct negotiations in Spanish? If so, federal law and the laws in some states impose additional requirements for such transactions. Time to take your lawyer to lunch again. Gutierrez v. PCH Roulette, Inc. , 2003 WL 22422431 (Cal. App. October 24, 2003).
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For more information about Thomas Hudson and Spot Delivery® go to www.spotdelivery.com or contact: tbhudson@hudco.com
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