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Parlato v. Chrysler Corp.

Appellate Division of the Supreme Court of New York, Second Department
Feb 4, 1991
170 A.D.2d 442 (N.Y. App. Div. 1991)

Opinion

February 4, 1991

Appeal from the Supreme Court, Westchester County (Ruskin, J.).


Ordered that the order is reversed insofar as appealed from, with costs, the motion of the Chrysler Corp. is denied, and the amended complaint is reinstated insofar as asserted against that defendant.

On December 2, 1987, the plaintiff Ronald H. Parlato leased a 1988 Chrysler Jeep Cherokee LTD in the name of 15 South Division Corp., a corporation of which Parlato is the sole shareholder. The lease agreement clearly stated that Parlato intended to use the vehicle solely for personal purposes; that intended personal use was restated in Parlato's answers to interrogatories and in his affidavit in opposition to the defendants' summary judgment motion. Within months, after having been driven only a few thousand miles, the vehicle became disabled and had to be towed to an authorized Chrysler dealership for servicing and repairs. From that time until the plaintiffs instituted this action under General Business Law § 198-a, known as the "New Car Lemon Law", and thereafter, the defendants were unable to repair the vehicle satisfactorily and return it to Parlato's use.

The defendants alleged that the corporate lessee was not a "consumer" as defined under General Business Law § 198-a (a) (1) and thus lacked standing to bring a claim thereunder. Since the amendment of the statute on July 18, 1990, a consumer has been defined as a "purchaser, lessee, or transferee, other than for purposes of resale", of a motor vehicle who uses the vehicle "primarily for personal, family or household purposes" (General Business Law § 198-a [a] [1], as amended by L 1990, ch 530).

The recent case law has emphasized this use test, rather than the technicalities of whether title is held in an individual or corporate name (see, Loomis v Maguire's Equip. Sales, 124 A.D.2d 82 [decided under the companion statute, General Business Law § 198-b]; Matter of Volkswagen of Am. v Friedman, 166 A.D.2d 709; Chrysler Motors Corp. v Schachner, 138 Misc.2d 501, 508, revd on other grounds 166 A.D.2d 683; Colabella v Europa Intl., 168 A.D.2d 534 [under General Business Law § 198-b]). In light of the recent trend, we conclude that the facts of this case compel the conclusion that the plaintiff 15 South Division Corp. qualifies as a consumer under General Business Law § 198-a. Brown, J.P., Balletta, Rosenblatt and Ritter, JJ., concur.


Summaries of

Parlato v. Chrysler Corp.

Appellate Division of the Supreme Court of New York, Second Department
Feb 4, 1991
170 A.D.2d 442 (N.Y. App. Div. 1991)
Case details for

Parlato v. Chrysler Corp.

Case Details

Full title:RONALD H. PARLATO et al., Appellants, v. CHRYSLER CORP., Respondent, et…

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: Feb 4, 1991

Citations

170 A.D.2d 442 (N.Y. App. Div. 1991)
565 N.Y.S.2d 230

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