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PUBLISHED OPINION

COURT OF APPEALS

DECISION

DATED AND FILED

NOTICE

July 7, 1999

This opinion is subject to further editing. If published, the official version will appear in the bound volume of the Official Reports.

Marilyn L. Graves

Clerk, Court of Appeals

of Wisconsin

A party may file with the Supreme Court a petition to review an adverse decision by the Court of Appeals. See § 808.10 and Rule 809.62, Stats.

BACKGROUND

DISCUSSION

We review decisions on summary judgment de novo, applying the same methodology as the trial court. See Tower Ins. Co. v. Carpenter, 205 Wis.2d 365, 369, 556 N.W.2d 384, 386 (Ct. App. 1996); § 802.08, Stats. That methodology has been recited often and we need not repeat it here except to note that summary judgment is appropriate when there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. See M & I First Nat'l Bank v. Episcopal Homes Management, Inc., 195 Wis.2d 485, 496-97, 536 N.W.2d 175, 182 (Ct. App. 1995). Although summary judgment presents a question of law which we review de novo, we nonetheless value a trial court's decision on such a question. See id. at 497, 536 N.W.2d at 182.

The issues raised in this case involve the statutory interpretation of §218.015, Stats. This presents a question of law which this court decides without deference to the trial court. See Hughes v. Chrysler Motors Corp., 197 Wis.2d 973, 978, 542 N.W.2d 148, 149 (1996). The primary objective of statutory interpretation is to ascertain the legislature's intent. See id. To do this, we first consider the language of the statute; if the language clearly and unambiguously sets forth the legislative intent, we will not look outside the statutory language to ascertain the intent. See Lincoln Sav. Bank, S.A. v. DOR, 215 Wis.2d 430, 441, 573 N.W.2d 522, 527 (1998). "Statutory language is ambiguous if reasonable minds could differ as to its meaning." State ex rel. Angela M.W. v. Kruzicki, 209 Wis.2d 112, 122, 561 N.W.2d 729, 734 (1997). In construing ambiguous language, we examine the history, context, subject matter, scope and object of the statute. See id. at 121, 561 N.W.2d at 734.

A. "Comparable New Motor Vehicle"

The language "comparable new motor vehicle" is contained in §218.015(2)(b), Stats., which provides:

(b) 1. If after a reasonable attempt to repair the nonconformity is not repaired, the manufacturer shall carry out the requirement under subd. 2. or 3., whichever is appropriate.

2. At the direction of a consumer described under sub. (1) (b) 1., 2. or 3., do one of the following:

a. Accept return of the motor vehicle and replace the motor vehicle with a comparable new motor vehicle and refund any collateral costs. [Emphasis added.]

Dussault contends that Chrysler failed to comply with §218.015(2)(b), Stats., in providing a 1997 demonstrator to replace her 1994 demonstrator. She urges us to read the phrase "comparable new motor vehicle" as meaning a comparable "brand new" vehicle.2 Dussault asserts that the term "new" in the phrase "comparable new motor vehicle" cannot refer to a demonstrator because a demonstrator is by definition a "used" vehicle.

Chrysler counters that because a "motor vehicle" includes a demonstrator, a "comparable new motor vehicle" also includes a demonstrator. It asserts that Dussault's reading of § 218.015(2)(b), Stats., would render the term "comparable" meaningless because a used demonstrator (such as Dussault's vehicle) is not comparable to a brand new vehicle. Chrysler claims that an ambiguity exists as to the plain meaning of the phrase "comparable new motor vehicle," and therefore we must look to the purpose of the Lemon Law, which is "to return the purchaser of a lemon to the position he or she was in at the time the vehicle was purchased." Church v. Chrysler Corp., 221 Wis.2d 460, 470, 585 N.W.2d 685, 689 (Ct. App. 1998).

We first address Dussault's argument that the plain language of para. (2)(b) does not contemplate a demonstrator. In order for Dussault to make a claim under para. (2)(b), she must initially satisfy para. (2)(a), which provides:

If a new motor vehicle does not conform to an applicable express warranty and the consumer reports the nonconformity to the manufacturer, the motor vehicle lessor or any of the manufacturer's authorized motor vehicle dealers and makes the motor vehicle available for repair before the expiration of the warranty or one year after first delivery of the motor vehicle to a consumer, whichever is sooner, the nonconformity shall be repaired. [Emphasis added.]

Paragraph (2)(a) is triggered by the existence of a "new motor vehicle." Neither party disputes that the phrase "new motor vehicle" under para. (2)(a) applies to Dussault's 1994 demonstrator. Dussault asserts, and Chrysler acknowledges, that the demonstrator's nonconformities were to be repaired. When it comes to para. (2)(b), however, Dussault asks us to adopt a different definition of "new motor vehicle." She contends that "comparable new motor vehicle" under subp. (2)(b)2.a does not include a demonstrator. She states that because "new" means "new," it cannot by definition include a used car, such as a demonstrator. Therefore, under this rationale, a "new motor vehicle" includes a demonstrator under para. (2)(a) but not under para. (2)(b). Dussault cannot have it both ways.

As to the word "new," Dussault points out that Wis. Adm. Code § Trans. 139.02(11) defines a "new" motor vehicle as "any untitled or non-privately titled motor vehicle of the stated model year which has not been a demonstrator." We are not convinced that this definition applies to the Lemon Law. Section Trans. 139.01 states that the purpose of ch. 139 is "to establish the department's administrative interpretation of ss. 218.01 (3) (a) 6., 9., 14., 18., 19., and 22., 218.01 (5m), 218.01 (7a) and 342.16 (1m), Stats." Because § 218.015, Stats., is not listed within the coverage of § Trans. 139.01, and because §218.015 has its own definitional section, we choose not to rely on the administrative code definitions. Additionally, if we were to adopt the definition of "new" in § Trans. 139.02(11), then Dussault's 1994 demonstrator could not qualify in the first instance as a "new motor vehicle" under para. (2)(a) because §Trans. 139.02(11) expressly excludes demonstrators.

We believe that reasonable persons can differ as to the meaning of the phrase "comparable new motor vehicle." Because the definition of "motor vehicle" includes a demonstrator that is not titled, we are uncertain what the term "new" adds. If "new" meant "not titled," then "new" would be superfluous. If "new" meant "brand new," demonstrators would be excluded. If "new" referred to vehicles "before the expiration of the warranty or one year after first delivery of the motor vehicle to a consumer, whichever is sooner," see § 218.015(2)(a), Stats., then demonstrators, "brand new" vehicles and previously-owned vehicles would be covered.3 Because the meaning of "new" is unclear under the Lemon Law, we conclude that "comparable new motor vehicle" is ambiguous.

In order to reconcile this ambiguity, we must consider the purpose of the Lemon Law. In Hughes, our supreme court reviewed the history of Lemon Laws in general in an attempt to decipher the legislative intent. There, the court stated that "[t]he intent behind the law [is] to `improve auto manufacturers' quality control ... [and] reduce the inconvenience, the expense, the frustration, the fear and [the] emotional trauma that lemon owners endure.'" Hughes, 197 Wis.2d at 982, 542 N.W.2d at 151 (quoted source omitted; alteration in original). More importantly, for our purposes Lemon Laws seek "to provide an incentive for a manufacturer to put the purchaser of a new car back to the position the purchaser thought he or she was in at the time they bought the car." Id. at 976, 542 N.W.2d at 149.

When Dussault first purchased her 1994 Eagle Vision in July 1995, the vehicle was a demonstrator with 6302 miles, a six-cylinder engine, an automatic transmission and leather seats, and the suggested retail price was $25,787. In October 1997, Chrysler offered to replace her vehicle with a 1997 Eagle Vision that was a demonstrator with 5728 miles, a six-cylinder engine, an automatic transmission and leather seats, and the suggested retail price was $26,290. The replacement vehicle had similar features as the original vehicle; the only significant difference was that the replacement was three years newer than the original vehicle. We conclude that Chrysler fulfilled its obligation by offering to replace Dussault's "lemon" with a vehicle that put her in the position she thought she was in at the time she purchased the original car. See id. Thus, a manufacturer satisfies its obligation to provide a "comparable new motor vehicle" under para. (2)(b) by replacing a nonconforming demonstrator with a late-model demonstrator with comparable features.

B. Alternative Claim Under § 218.015(2)(a), Stats.

Dussault next contends that she was entitled to pursue an alternative claim under § 218.015(2)(a), Stats., notwithstanding her para. (2)(b) claim. While the trial court acknowledged that an alternative claim existed pursuant to Vultaggio, the court ruled that Dussault had nonetheless "elected her remedy" by offering to transfer title to her vehicle back to the manufacturer under para. (2)(b). The court concluded that Dussault had waived her para. (2)(a) claim. Dussault argues that the court's decision was in error because § 218.015(6) expressly provides that "[a]ny waiver by a consumer of rights under this section is void."

Chrysler responds that paras. (2)(a) and (2)(b) do not provide separate and independent causes of action. It argues that even if Vultaggio were interpreted to recognize separate actions, summary judgment would still be appropriate because the Lemon Law is only triggered when the manufacturer fails to replace a vehicle or offer a refund within thirty days of the demand.

In Vultaggio, the plaintiffs appealed the trial court's grant of summary judgment to General Motors on the plaintiffs' breach of warranty and Lemon Law claims. The plaintiffs argued that para. (2)(a) "creates a separate basis for relief under sec. 218.015(7) and is a remedy independent of sec. 218.015(2)(b)." Vultaggio, 145 Wis.2d at 889, 429 N.W.2d at 98 (footnotes omitted). General Motors asserted, as Chrysler argues here, that para. (2)(a) is merely an introductory paragraph that does not create a cause of action in and of itself. We rejected General Motors' argument, stating:

Section 218.015(7), Stats., provides in pertinent part that "[i]n addition to any other remedies, a consumer damaged by violation of this section may bring an action ...." (Emphasis added.) A manufacturer who fails to repair a nonconformity reported to it pursuant to sec. 218.015(2)(a) has violated its duty under "this section"-sec. 218.015. Had the legislature intended to limit the availability of actions under sec. 218.015(7) to those arising under [para.] (2)(b) rather than the section as a whole, it could have easily done so.

Vultaggio, 145 Wis.2d at 890-91, 429 N.W.2d at 99 (alteration in original).

[paragraph] (2)(a) protects the consumer from those instances in which the consumer is unable to establish the "reasonable attempt to repair" necessary under sec. 218.015(2)(b), Stats., but can show that the dealer has not, cannot, or will not repair a nonconformity brought to its attention during the warranty period. In accord with the remedial purpose of sec. 218.015, that consumer should still be afforded relief.

Vultaggio, 145 Wis.2d at 891, 429 N.W.2d at 99 (emphasis added; footnote omitted). We concluded that a question of fact remained as to whether General Motors had been provided a "reasonable attempt to repair" the vehicle. Presumably, upon remand the trial court would have then addressed a para. (2)(b) claim if it had found a "reasonable attempt to repair" or a para. (2)(a) claim if the "reasonable attempt to repair" requirement had not been met.

C. Other Issues

1 Dussault also alleged violations of § 402.608, Stats. (Uniform Commercial Code (U.C.C.) revocation provision), §402.719, Stats. (U.C.C. remedy provision), Wisconsin contract law, and the Magnuson-Moss Warranty-Federal Trade Commission Improvement Act, 15 U.S.C. § 2301. These claims were dismissed on January 30, 1998.

2 We interpret "brand new" motor vehicle to mean a vehicle that is not titled and is neither a demonstrator nor executive vehicle.

3 Recently in Schey v. Chrysler Corp., No. 98-1277, slip op. (Wis. Ct. App. May 26, 1999, ordered published June 30, 1999), we determined that §218.015(2)(a), Stats., is ambiguous as to whether a previously-owned vehicle qualifies as a "new motor vehicle." We concluded that the legislature did not intend the Lemon Law to include such vehicles.