Opinion ID: 2428959
Heading Depth: 2
Heading Rank: 3

Heading: double recovery cross-appeal

Text: For reversal of the judgment, WBF contends the trial court erred in entering a judgment that awards both restitutionary damages and statutory damages under the Act. WBF claims Smith elected his remedy of proceeding under the Federal Odometer Fraud Act and should therefore be limited to the actual damages permitted under the Act. WBF asserts the Act's actual damages are limited to difference-in-value damages (affirmance damages) and do not include restitutionary damages (disaffirmance damages) as awarded in the judgment. WBF further asserts that the award of both restitutionary damages and the statutory minimum $1,500.00 amounts to a double recovery in violation of Thomas Auto Co., 297 Ark. 492, 763 S.W.2d 651. Smith responds with the argument that he only received disaffirmance damages ($17,860.31 return of payments), and the remaining $1,335.00 of the $19,195.31 verdict could be characterized as consequential damages for repairs. Since one can have disaffirmance damages and consequential damages under both Thomas Auto Co., 297 Ark. 492, 763 S.W.2d 651, and Ark.Code Ann. § 4-2-711 (Repl.1991), Smith contends the judgment was not in error. We agree with Smith's assertion that one can recover disaffirmance damages, consequential damages, and punitive damages. However, we cannot affirm the judgment on this basis because it is impossible for us to tell, without speculation, what the $1,500.00 awarded to Smith represents, be it affirmance damages, consequential damages, punitive damages, or the statutory minimum damages under the trebling policy of the Act. It is impossible to tell from the verdict itself, or any of the interrogatories, how the jury arrived at the figure of $19,195.31. However, from the evidence presented, the jury could have awarded $17,860.31 as payments Smith made on the truck. There was also evidence presented that would have allowed the jury to characterize the remaining $1,335.00 as either repair damages or past lost profits. Both repair damages and past lost profits are consequential damages. However, the record indicates that the trial court considered the consequential damages in this case to be less than $1,500.00, and that it awarded the $1,500.00 on that basis. This was error, because if indeed the remaining $1,335.00 of the jury's award represented consequential damages, then when the $1,335.00 is trebled the sum is greater than the $1,500.00 minimum and therefore the $1,335.00 should have been trebled as actual damages under 15 U.S.C. § 1989(a)(1). If however, the $1,335.00 does not represent consequential damages, then the trial court still erred in awarding the $1,500.00 because, in that situation, the $1,500.00 could only represent affirmance damages which when combined with the $17,860.31 in disaffirmance damages, would amount to a prohibited double recovery of both affirmance and disaffirmance damages. Thomas Auto Co., 297 Ark. 492, 763 S.W.2d 651. We agree with WBF's contention that Smith elected a remedy in this case. We disagree with WBF, however, as to the particular remedy Smith elected. Smith elected the disaffirmance remedy of restitution when he returned the truck to WBF and WBF accepted it. Thus, the disaffirmance remedy of restitution, not affirmance damages, is the appropriate remedy to be granted here. However, just because a disaffirmance remedy is appropriate, does not mean Smith is prevented from recovering consequential damages and punitive damages. Thomas Auto Co., 297 Ark. 492, 763 S.W.2d 651. For the reasons stated in the foregoing, we reverse the judgment on cross-appeal.