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Buccaneer Homes of Alabama3/15/2001
Appellant, Bucaneer Homes, manufactures mobile homes and sells them to various retailers. Appellees, John and Pam Pelis, purchased one of appellant's mobile homes from a retailer. Appellees found defects in their mobile home and sued appellant and the retailer for Deceptive Trade Practices Act (DTPA ) violations when the defects were not satisfactorily repaired. Appellees settled with the retailer and tried their DTPA causes of action against appellant to a jury, which awarded appellees $1,065 in economic damages and $85,000 in attorney's fees. On appeal, the manufacturer contends it is entitled to a settlement credit under the One Satisfaction Rule. We reverse and render.
Factual and Procedural Background
Appellees purchased a new mobile home in August 1996 from Prestige Housing ("Retailer"). Appellees had several problems with the home when it was delivered, including a leak in the master bathroom, cracked siding, and broken cabinets. When Retailer refused to make the necessary repairs, appellees contacted Bucaneer Homes ("Manufacturer"). Manufacturer sent out a serviceman, but the repairs were not completed properly.
Appellees hired an attorney. They also hired a home inspector to specify all of the defects in the home, and used the inspector's list as the basis of their demands in a DTPA notice letter sent to Retailer and to Manufacturer. Manufacturer did not respond. Appellees became frustrated with all of the problems associated with the mobile home, and, after five months of payments on their note, they stopped making payments as required by their security agreement.
In February 1997, appellees sued Retailer and Manufacturer under the DTPA. Appellees hoped to recover mental anguish damages because Mrs. Pelis had been very upset by the problems with the mobile home. Appellees settled with Retailer, and proceeded to trial against Manufacturer. The jury found Manufacturer made no misrepresentations, and that Manufacturer did not engage in unconscionable conduct. Manufacturer was found liable for "failure to comply with a warranty." The jury awarded $1,065 for economic damages and $85,000 for attorney's fees to appellees. No mental anguish damages were awarded.
On appeal, Manufacturer contends the trial court erred in entering a judgment for the appellees because their settlement with Retailer exceeded the amount of economic damages awarded by the jury. Manufacturer also argues that the award of attorney's fees was erroneous.
Analysis
A. The One Satisfaction Rule
Manufacturer argues that, under the One Satisfaction Rule, appellees' settlement with Retailer for a value of $13,000 prevents recovery of the $1,065 jury award for economic damages.
The pleadings indicate that appellees sued Manufacturer and Retailer for identical causes of action: unconscionability, violations of the DTPA laundry list, and breach of warranty. The record reflects that appellees settled their claims against Retailer. The settlement agreement indicates that appellees agreed to release Retailer from all liability in connection with the mobile home. The settlement agreement was a "full settlement and discharge of all claims which or might have been the subject of the allegations in the Petition" filed against Retailer. In exchange, Retailer agreed to: 1) take back the mobile home; 2) assume and satisfy all of appellee's obligations under the security agreement; and 3) bear all costs associated with moving the mobile home. Retailer took back the mobile home and paid the balance due on the note, the late fees, and the property taxes. Retailer made some repairs and then resold the mobile home.
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