Automotive News Canada - February 2024 - 23

* FEBRUARY 2024
23
Tribunal rejects customer's
claim for hypothetical expenses
By ERIC FREEDMAN
LEGAL CORRESPONDENT
A CUSTOMER WHO OPTED TO BUY A NEW
vehicle rather than wait five weeks for an engine
replacement under warranty can't collect for
expenses
he never incurred, the British Columbia
Civil Resolution Tribunal has ruled.
The engine in Kim Hollett's 2013
Hyundai Santa Fe died during a 2022 road
trip to Castlegar, B.C., from the Lower
Mainland, according to the decision. The
distance is about 600 kilometres. The
engine was fully covered by an extended
service contract, but the dealership
Hollett took it to was unable to provide a
loaner vehicle for the expected repair period. He
traded in the vehicle instead.
Hollett wanted Hyundai Auto Canada Corp. to
pay $4,524 for travel, rental and taxi expenses he
would have incurred had he not traded in the vehicle.
No
way, tribunal member Kristin Gardner held.
Hollett never asked Hyundai Canada for a free
rental vehicle and the company isn't responsible
for the actions of the dealership, which wasn't
sued, Gardner said. In addition, the service contract
excluded " consequential damages " such as
travel and inconvenience.
" Hyundai Canada honoured the extended warranty
to repair Hollett's vehicle, but he chose to
buy a new vehicle because it was more convenient, "
the Jan. 16 decision said.
On a second issue, Gardner rejected the claim
that Hyundai Canada improperly disclosed
Hollett's confidential customer survey responses
to the store. The automaker said it provides
dealerships with survey feedback and coaching to
improve customer service.
PLAINTIFF AWARDED $5.5M IN FATAL CAR CRASH
THE BRITISH COLUMBIA COURT OF APPEAL
has found a Victoria dealership to be the legal
owner in possession of a vehicle involved in a fatal
crash caused by a drugged-up relative of the prospective
purchaser and her partner.
Harris Victoria-Chrysler-Dodge-Jeep-Ram had
allowed Aggatha Siah, a subprime borrower, to
keep a Jeep Cherokee for 10 days while the store
looked for financing. The sale had not been finalized,
the court said.
In 2018, plaintiff Tracey Ward was seriously
injured and her sister was killed when they were
struck by the Cherokee after it crossed onto the
wrong side of the road into the opposite shoulder,
according to the Dec. 20 decision.
The 25-year-old driver admitted using meth,
Xanax and alcohol before the crash. He was criminally
convicted.
A trial judge awarded Ward $5.5 million in damages.
Although
Siah signed a $50,373 purchase agreement,
it wasn't a binding contract, the court said,
noting that the dealership kept the title documents
and a set of keys.
" The dealership remained the 'owner'
within the meaning of the law " and " contemplated
that friends and family of Siah
would borrow the Jeep, " the court said.
" The circumstances a reasonable observer
would consider include the fact that
Harris had been attempting the entire time
Siah was at the dealership to find appropriate
financing, without which she would not
buy. Further, Harris had a clear policy that
to make a sale, it was desirable that Siah drive the
car off the lot that day, " it said.
The plaintiff's lawyer, Darren Williams of
Victoria, said the lesson for dealers is " be careful to
follow the 10-day temporary transfer [of insurance]
very carefully. Be mindful of the disparity on the
bargaining positions between customers and dealers
and what effect that can have on the binding
nature of the purchase agreement. "
COMPENSATION DISPUTE HEADED TO TRIAL
A KING'S BENCH OF ALBERTA JUDGE HAS
ruled that two former finance and insurance managers
at a Calgary store must prove their constructive-discharge
claim at trial.
Ronnie Johnson and Tony Bedard claim they felt
forced to quit their positions at Varsity ChryslerDodge-Jeep-Ram
when the dealership unilaterally
changed their compensation plan in a way that
would require them to work more hours while earning
less commission.
The store, which was renamed Country Hills
Chrysler-Dodge-Jeep-Ram this year, disputes their
allegations.
The compensation plan change came in 2018 after
one of the store's four F&I managers left. Bedard
and Johnson then resigned, according to the Sept.
28 decision by Justice April Grosse.
Under the previous formula, all F&I managers
equally shared at least 20 per cent of the store's F&I
gross as their base commission, the decision said,
while the new formula calculated commissions individually.
In addition, it said Johnson and Bedard
contended that the schedule change meant that
each would average 48.7 hours of work, up from a
37.25-hour average under the old schedule.
Citing conflicting and incomplete evidence,
Grosse overturned a lower court ruling in favour of
Johnson and Bedard and said a trial is necessary to
resolve the constructive-discharge issue, as well as
to determine potential damages. - ANC
J.D. Power program employs a mystery shopper
CONTINUED FROM PAGE 9
The undercover evaluator,
an auto retail expert, reviews
online-lead processes, the dealership's
response to the inquiry
and customer-relations management
processes when that
" buyer " later arrives at the
store.
The mystery shopper is a critical
first step in the J.D. Power
dealership assessment, London
said. Once a scheduled visit to
the store takes place, the evaluator
conducts interviews with
staff and reviews documentation,
measuring it against J.D.
Power criteria, all essential steps
in the in-person assessment.
J.D. Power relies on customer-satisfaction
surveys conducted
by the automaker to get
a pulse on a dealership's performance
compared with the
brand/region/district average,
London said.
" The customer experience
survey is considered as part
of manufacturers' customer
research and is the prequalifier
to applying for the Dealer of
Excellence program, " he said.
" All dealers must verify top-tier
performance compared to their
brand/region/district average as
part of the application. "
A dealership's Dealer of
Excellence status is reviewed
annually. Dealerships that
continue to meet the criteria
advance through silver, gold,
platinum and diamond, the latter
for those that meet the criteria
for five years or more.
The evaluation was rewarding
for the team at MercedesBenz
Richmond because it confirmed
they are on the right
track but also pointed out areas
for improvement, Liu said.
" For me, it was a great experience,
a learning experience, " he
said. " If there are shortcomings,
they'll let you know. "
Onqa of Mercedes-Benz
Boundary agreed.
" Part of business depends on
what our best practices are. "
Both stores are incorporating
the Dealer of Excellence designation
into their marketing. Onqa
said his dealership is highlighting
the honour on its website
homepage and in its staff's email
signatures.
" It gives customers confidence
in us, " he said. " You want to be
showing your reputation to customers. "
Liu
said the honour is being
promoted through MercedesBenz
Richmond's website and
digital social channels. " I hope
this award will build more trust
and confidence in customers
wanting to do business with us. "
- ANC
JANUARY 26
Ryan Robinson
Automotive Research Leader
Deloitte
DECEMBER 15
Ralph Gilles
Chief Design Officer
Stellantis
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Automotive News Canada - February 2024

Table of Contents for the Digital Edition of Automotive News Canada - February 2024
