Mayberry v. Volkswagen of America, Inc.

In October 2000, Jessica Mayberry (plaintiff) purchased a new 2001 Jetta from a dealer for Volkswagen of America, Inc. (Volkswagen) (defendant). The car came with a two-year limited warranty. The Jetta’s cash price was $17,800. With tax, title, and fees, the price was $18,526. Mayberry financed her purchase, and according to her, the total financed price was $22,548. Soon after Mayberry took possession, the Jetta experienced problem after problem, including engine problems. The car was serviced and repaired free of charge under the warranty. Mayberry attempted to revoke her acceptance of the car, but Volkswagen refused. In June 2002, Mayberry sued Volkswagen, claiming breach of warranty among other claims. Mayberry submitted an affidavit stating her belief that the Jetta had been worth only $12,526 at the time she purchased it. While the lawsuit was pending, Mayberry traded in her Jetta for a 2003 Mazda priced at over $24,000. The Mazda dealership gave Mayberry a trade-in allowance of $15,100. At the time, the Jetta had 32,737 miles on it and a fair market value of $14,200. Volkswagen moved for summary judgment, arguing that Mayberry had not suffered any compensable damages because she had been able to trade in the Jetta for more than its fair market value. The trial court agreed with Volkswagen and dismissed Mayberry’s complaint. The court of appeal reversed. The Wisconsin Supreme Court granted review.