Legal Question in Business Law in California
Sold a Damaged Boat
We recently purchased a two year old boat from a private party. He indicated he was the orginal owner and the boat had never been damaged / in an accident. We just found 30 days later -- signs of a major repair to the side of the hull. He also is not the orginal owner and the warranty is not transferable.
5 Answers from Attorneys
Re: Sold a Damaged Boat
What do you mean, "indicated"? Like, indicated in writing?
Re: Sold a Damaged Boat
There are several options. You may be able to demand damages for the reduced value of the boat (if the boat is worth less), or you can demand that your money be given back in return for the boat. If the seller doesn't agree to any of these, you may have to go to court.
Re: Sold a Damaged Boat
Whether it was in writing or oral, "indicated" is not quite enough. If you can fairly say that he "represented" (orally or in writing) that the boat had never been damaged and that he was the original owner, this may be fraud.
Of course, a written representation is always better, because it is easier to prove to the satisfaction of a judge or jury.
The elements of actionable fraud are a false representation (or concealment) of a material fact, your reliance upon the representation or absence of the problem concealed, the reasonableness of your reliance, and damages caused by your reliance.
If you think you can prove all of this, you should try to negotiate with the seller based on threat of suit. If negotiations don't work, you can try small claims (where the limit is now $7,500) or consider an action in spuerior court if your damages are considerably more than that.
Re: Sold a Damaged Boat
IF there is enough provable monetary damage to make it worthwhile, you could sue for it. Offer to settle on a rebate with him first. Contact me if you need legal help.
Re: Sold a Damaged Boat
The measure of your damages (and how a court would likely measure your loss) is the difference between the value of the boat now versus the value of what you thought you were purchasing.
If your seller will not cooperate in making up the difference, then in the absence of a contractual provision requiring mediation and/or arbitration (or some other alternative dispute resolution procedure), you would file suit for breach of contract, breach of implied warranty, and fraud, among other claims.
If you need assistance with your claims, let us know, and we can provide additional help once we have more facts specific to your case.
Good luck.
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