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Bmw V. Gore

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BMW V GORE: 517 U.S. 559, 116 S. Ct. 1589, 134 L. Ed. 2d 809 (1996)
By
Bianca Prado
Sue Ganske
BUL4310
2/11/16

Copyright 2016 Bianca Prado

BMW V GORE: 517 U.S. 559, 116 S. Ct. 1589, 134 L. Ed. 2d 809 (1996)
When I was first looking through the list of cases, the letters BMW stood out to me. The reason for this is because I am person who’s always been into luxury high class vehicles and never in my mind did I believe BMW had a case with a buyer. This is when I immediately knew I had to look further into the case and find the main key points that made me find this case so intriguing.
In this particular case BMW V GORE the petitioner who is BMW, was selling slightly damaged cars for their full price values and never reported the damages to the buyers as they purchased their cars. The respondent Dr. Gore, was one of many who had purchased one of these damaged BMW and was then awarded actual damages, from the 4 million dollars on punitive damage he was given, it was later reduced to 2 million dollars by the Alabama Supreme Court.
In BMW V GORE, it began in 1990 when Gore had purchased a black two door BMW from an Alabama franchise of BMW of North America which happens to be the Plaintiff. Gore went nine months driving the car with no problems. He even mentioned that he wanted this car to make him feel “Young and alive” again like his teenage years. After having the car for nine months, Gore decided it was time for his car to get detailed which led him to take it to an independent detailer that goes by the name “Slick Finish.’’ The detailer Mr. Slick, the proprietor had noticed that the car had been repainted. Which lead him to tell Dr. Gore that he had been cheated. Gore bought suit in Alabama state court against BMW of North America. Mr. Gore had alleged “ Inter alia” meaning among other things “ that the failure to disclose that the car had been repainted constituted suppression of a material fact.’’ ("BMW OF NORTH AMERICA, INC., PETITIONER v. IRA GORE, Jr." BMW OF NORTH AMERICA, INC., PETITIONER v. IRA GORE, Jr. N.p., n.d. Web.) The Complaint also had asked for $500,000 in compensatory and punitive damages cost. Dr. Gore issued that his painted car had no real value, just like any other BMW that had been refurnished. In order to prove the actual damages of Four-thousand dollars, Gore had evidence testimony from a former BMW dealer claiming that “A value of a repainted BMW was approximately 10 percent less than the value of a new car that had not been damaged and repaired.’’ (BMW OF NORTH AMERICA, INC., PETITIONER v. IRA GORE, Jr." BMW OF NORTH AMERICA, INC., PETITIONER v. IRA GORE, Jr. N.p., n.d. Web.) Dr. Gore also supported his Claimed against punitive damages by showing evidence that between the “year of 1983 BMW had sold 983 refinished vehicles as new, including 14 in Alabama without disclosing that the cars had been repainted before sale at a cost more than $300 per vehicle.’’ (Cornell Law). Dr. Gore concluded with arguments that a punitive award of 4 million dollars would be appropriate for selling all the refurbished cars for more than they were worth. The 4 millions dollars would only be assed if and only BMW’s nondisclosure policy constituted “gross, oppressive, or malicious fraud” (Cornell Law). The Supreme Court of Alabama did reject BMW facts that the punitive damages violated the due process rights and so later on reduced the award to 2 million in punitive damages. Now, the main issue in this case is if the state’s trial award of 2 million dollars in punitive damages is grossly excessive and does it violate the Due Process Clause of the Fourteenth Amendment? The answer to this is yes, the main purpose in having punitive damages is to conform to the law of punishing unlawful conduct and preventing this unlawful conduct to happen again. In a state interest an award of punitive damages can be determined under “ Grossly excessive” it risk the rule of authority which ends up violating the Due Process Clause of the Fourteenth Amendment. In this case particularly what the state is trying to pursue is to punish BMW by not having any more future misconduct like in this case. One thing Alabama can do to prevent this case from happening again, is to regulate BMW Conduct, but it cannot imply this conduct nationwide as this will interfere with BMW rules in other states. Three factors to consider if the punitive damages are excessive. I. A consideration is made of the degree of reprehensibility of BMW conduct, II. There is an excessive amount of ratio of the punitive damages awarded, in this case the 2 million award was five hundred times more than award of 4,000 dollars in compensatory damages. III. There is a comparison of the punitive damages award with the civil or criminal penalties that can be imposed for comparable misconduct (Quimbee). The court believed based on what was given the punitive damages imposed violation of the constitution.
The way I see this case is what Dr. Gore did was in all of his direction to do. Like I mentioned in the beginning of this case study, I am a person who is very into cars, who likes to learn about them and most importantly loves luxury cars. If it were me buying this BMW from a franchise, I would believe the car is perfect and it has no damages to it. After all I am paying full price for the car since technically I am buying it new, to then later find out that the car was repainted. That would really bother me because here I am in trust with the company who sold me the car. Dr. Gore drove the car for nine months without noticing any flaws with his new purchased vehicle. If I were him, I probably wouldn’t have noticed any flaws as well, until someone would have told me that the car was repainted. This case matters because as I mentioned before buyers are putting their trust in the company as well as with the people who they are purchasing the car from. If I were an owner of a BMW franchise, I would expect for headquarters to give me a heads up on the cars that were repainted or had to go back into the shop for some work to be done, that way the car can be put for sale at a lower price than what the car would normally cost full price. I would agree that in some way this is technically fraud because BMW is getting more money for a vehicle that what they deserve to be receiving. Also in a situation like this Gore could have just finished his case by receiving his 4,000 dollars and the case would have been done with; but instead he pushes the extra mile, at least his lawyers did and he made the world aware of this serious situation, because it could have happened to many other BMW or any luxury vehicle owners.
If it were up to me, not being pessimistic but more realistic more than anything, I wouldn’t have believed to be awarded 4 million dollars, to later be turned into 2 million dollars in punitive damages. If anything I would have tried to return the car and ask the franchise, if not even the BMW company to trade in my car for a new one without any cost and would have worked out a deal as well. I believe this is what should have been done or what I would have done if this was my case. What I do hope people learn from this case especially a big corporate business like BMW is in order for them to prevent something like this to happen again they should inform whomever is in charge of selling the vehicle so they can warn potential buyers and to be fair they will be legible for some sort of discount. You won’t want to ruin your company’s reputation simply because you decided to make a profit and decided not to warn a buyer that the car they are about to purchase has been re-painted Things would have run smoothly with Gore and BMW if he was warned at first or the dealership was honest to begin with.

Citation BMW of North America, Inc. v. Gore, 517 U.S. 559 (1996)." BMW of North America, Inc. v. Gore, 517 U.S. 559 (1996). N.p., 20 May 1996. Web. 09 Feb. 2016.

"BMW of North America, Inc. v. Gore Case Brief - Quimbee." BMW of North America, Inc. v. Gore Case Brief - Quimbee. N.p., n.d. Web. 09 Feb. 2016.

"BMW of North America, Inc. v. Gore." Casebriefs BMW of North America Inc v Gore Comments. N.p., n.d. Web. 09 Feb. 2016

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