Johnson v. Holmes Tuttle Lincoln-Mercury, Inc.
California Court of Appeal
325 P.2d 193 (1958)
Caldera purchased a Mercury vehicle from Holmes Tuttle Lincoln-Mercury, Inc. (Holmes) (defendant). When negotiating the sale of the vehicle, Caldera stated to Holmes’ salesperson that he wanted “full coverage insurance.” The salesperson stated, “Oh yes, you are getting it.” When Caldera received the conditional sale contract, however, he discovered that Holmes had provided him with fire, theft, comprehensive, and collision insurance, but not public liability and property damage insurance. About three weeks after purchasing the vehicle, Caldera was involved in an accident while driving the Mercury. Johnson (plaintiff) and Jones (plaintiff) were passengers of Caldera and were injured in the accident. Johnson and Jones both filed actions in California state court against Caldera. Johnson obtained a judgment for $4,413.89, and Jones obtained a judgment for $2,070 against Caldera. The judgments were unsatisfied. Johnson and Jones brought separate actions in California state court against Holmes seeking the amount of the damages they secured against Caldera on the grounds that Holmes failed to provide liability insurance as agreed with Caldera. The trial court entered judgment for Johnson and Jones, and Holmes appealed.
Rule of Law
Holding and Reasoning (Vallee, J.)
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