On Behalf of the Consumer
Ohio Consumer Sales Practices Act (CSPA)
The Ohio Supreme Court recently clarified what money damages a consumer may recover
under the Consumer Sales Practices Act (“CSPA”). The Court held that a consumer
may collect “all forms of compensatory relief, including ‘noneconomic damages,’”
and that these damages are subject to tripling under the CSPA.
What does this mean to the average consumer? It means that, in a properly proven
case, a consumer may collect from a seller/supplier monetary compensation not only
for the out-of-pocket losses related to the transaction, but also for intangible
things like pain, suffering, humiliation, embarrassment, and mental anguish. These
damages can be tripled by the judge who can also award the consumer attorney fees
and case expenses.
The case in which the Court made this ruling was Whitaker v. M.T. Automotive, Inc.
Whitaker had agreed to lease a truck from Montrose Toyota for $230 a month and signed
several documents, including one which allowed Whitaker to take the truck before
receiving financing approval. Whitaker then sold his old vehicle and paid $1,537
to Montrose Toyota for the lease. Whitaker put a new stereo in the truck and returned
to Montrose Toyota for previously agreed upon repairs to the truck. After the repairs
were made, Montrose Toyota told Whitaker the payments would now be $297 a month
instead of the agreed upon $230 a month. When Whitaker refused these new terms, Montrose Toyota declared the
deal over, took back the truck, and refused to refund Whitaker’s $1,537 deposit.
Montrose Toyota instructed Whitaker to return the additional keys and original stereo,
which he promptly did. But Montrose Toyota failed to return the upgraded stereo
to Whitaker, claiming it could not be located.
In the lawsuit filed by Whitaker against Montrose, the jury found that Montrose
had wrongfully converted the stereo and had committed 11 violations of the CSPA.
The jury awarded Whitaker $105,000 for mental anguish and aggravation and $367.15
for the stereo. The judge tripled the damage award to $315,000 and also ordered
Montrose to pay $155,056.70 in attorney and case expenses.
The Ohio Supreme Court held that the award for noneconomic losses was proper, and
that it was proper for the trial court to triple these damages under the CSPA. This
case is good news for consumers and should help prevent sellers and suppliers from
violating the CSPA in the future.
In December of 2006, the Ohio General Assembly hastily passed legislation designed
to overrule Whitaker by limiting noneconomic damages for CSPA violations to $5,000.
On his first day in office, Governor Ted Strickland vetoed this bill. There remains
some controversy as to whether his veto will be upheld based on how the 10 day period
in which the governor can veto the bill is counted. Whitaker, however, remains good
law for CSPA violations occurring before January 2007; and, if the veto stands,
Whitaker will also apply to CSPA violations occurring after January 2007.