Interpretation ID: nht73-5.44

DATE: 11/05/73

FROM: AUTHOR UNAVAILABLE; Richard B. Dyson; NHTSA

TO: Roy Stolpestad

TITLE: FMVSR INTERPRETATION

TEXT: This is in reply to your letter of October 11, 1973, concerning the 1966 Chrysler you recently purchased from Central Motors in Minneapolis. As Miss Porter correctly pointed out in her column, the Federal law on odometer fraud enables you to bring a civil action against Central. The amount of recovery in such an action can be substantial. If the court were to accept your estimate of damages of $ 1490.24, the damages assessable under Federal law would be three times that amount $ 4470.72. In no case would damages be less than $ 1500, a minimum value established by law. In addition, if you are successful, Central must pay your attorney fees as well as all court costs.

I appreciate your concern for the costs of litigation. However, by providing for the payment of attorney fees the odometer law places you in a better position than a personal injury litigant whose recovery is usually diminished by his attorney's contingency fee. Your best course at this point is therefore to retain counsel if Central persists in its refusal to reimburse you.

By way of advice to your attorney, I would point out that the "out" that Central claims to have taken -- checking the box on the disclosure form that indicates the true mileage is unknown -- was taken too late to be of benefit to them. The Federal regulation governing disclosure requires the disclosure statement to be made "before executing any transfer of ownership form." If they mailed the statement the next day, their disclosure was untimely. Moreover, the representations made in the newspaper advertisment are evidentiary of their representation of 33,000 miles as being the true mileage on the vehicle. Your success in finding the previous

owner is also useful in establishing that the actual mileage was greater than shown.

We will be willing to give you or your attorney further advice if questions arise concerning the intent and effect of the Federal odometer law. The enclosed copies of the law and regulations are provided to assist him in representing you.

ENC.