Martinez

Under California law, a dealer cannot sell a new or used vehicle that is not in compliance with the Vehicle Code. However, a dealer-to-dealer sale is exempt from this requirement. At issue is whether this exemption applies to an alleged title defect.

Appellants, David and Gloria Martinez, claimed in their class action that respondent, Enterprise Leasing Company West, violated the law when it did not obtain a total-loss salvage certificate for a damaged rental car before selling that car to another dealer. However, the trial court disagreed. The court concluded that the dealer-to-dealer exemption applied and therefore Enterprise Leasing Company West could not be held liable to appellants for any failure to comply with the Vehicle Code. The court further opined that the subject car did not qualify as a total-loss salvage vehicle in any event.

This appeal challenges the trial court’s statutory construction. As discussed below, the trial court was correct. The dealer-to-dealer exemption applies to all Vehicle Code requirements. Further, a vehicle is not a total-loss salvage vehicle unless, based on an objective standard, the cost of repairs exceeds the vehicle’s predamage…

I concur in the holding that summary judgment was properly granted based on Vehicle Code section 24007. The dealer-to-dealer sale exemption under section 24007 prevented Enterprise Leasing Company West from being held liable to appellants for any failure to comply with the Vehicle Code. As a result, I find section 24007 dispositive on the issue.

In my opinion, the analysis with respect to whether the subject vehicle qualified as a total-loss salvage vehicle under Vehicle Code section 544 is unnecessary to the decision and dictum. In fact, during oral argument, the parties agreed that if we found that section 24007 barred the claims, it would be unnecessary to reach the issue under section 544. “Ordinarily, when an appellate court concludes that affirmance of the judgment is proper on certain grounds it will rest its decision on those grounds and not consider alternative grounds which may be available.” (Filipino Accountants’ Assn. v. State Bd. of Accountancy (1984) 155 Cal.App.3d 1023, 1029 [ 204 Cal.Rptr. 913 ]; see also Young v. Three for One Oil Royalties (1934) 1 Cal.2d 639, 647-648 [ 36 P.2d 1065 ] [leaving question that was unnecessary to decision for future proceeding].) I…

Gibson, Dunn & Crutcher, Gail E. Lees, Austin V. Schwing, Los Angeles, and Darren Lisitza for Avis Rent A Car System, Inc., and Budget Rent A Car System, Inc., Amici Curiae on behalf of Defendants and Respondents.

Under California law, a dealer cannot sell a new or used vehicle that is not in compliance with the Vehicle Code. However, a dealer-to-dealer sale is exempt from this requirement. At issue is whether this exemption applies to an alleged title defect.

Appellants, David and Gloria Martinez, claimed in their class action that respondent, Enterprise Leasing Company West, violated the law when it did not obtain a total loss salvage certificate for a damaged rental car before selling that car to another dealer. However, the trial court disagreed. The court concluded that the dealer-to-dealer exemption applied and therefore Enterprise Leasing Company West could not be held liable to appellants for any failure to comply with the Vehicle Code. The court further opined that the subject car did not qualify as a total loss salvage vehicle in any event.

This appeal challenges the trial court's statutory construction. As discussed below, the trial court was correct. The…