[coffeeman]

Today, I canceled my order for a 2008 335xi Coupe. This pertains to MINI Coopers, but BMW's may well be affected by the same issue:

The following commentary is true. I am posting this not to gain sympathy, or support, but to alert others who may be unknowingly affected by similar circumstances.

First, some history...If you are familiar with Gore v. BMW, skip the two next paragraphs, if not, read on.

In 1996, a Kentucky doctor named Gore, purchased a new BMW 5 series. Nine months after purchase, Dr. Gore had the vehicle detailed, and during this detailing, he was advised by the detailing shop that the entire vehicle had been painted. Needless to say, Dr. Gore was incensed, as this had not been disclosed to him at the time of delivery. Dr. Gore filed suit against BMW of North America, and the selling dealer, for fraud. During trial, it was revealed that BMW had re-painted Dr. Gore's vehicle, due to acid rain damage. Dr. Gore was seeking compensatory damages in the amount of $4,000.00, for diminished value, and punitive damages based on the amount of unjust enrichment that BMW NA had received from other non-disclosure sales of vehicles.

Dr. Gore was awarded $4,000 in compensatory damages, and $10,000,000.00 in punitive damages. BMW appealed, and the case went all the way to the U.S. Supreme Court. The Supreme Court reversed the punitive damage award, and remanded the case back to State Court. The Kentucky Supreme Court lowered the punitive damage award to $2,000,000.00. BMW also agreed to, in the future, disclose ANY damage, no matter how minor, to prospective buyers of their vehicles...It appears that BMW did not learn their lesson.

In April of 2007, I factory ordered a heavily optioned MINI Cooper S, from BMW/MINI of Towson, Md. I have had a long relationship with this dealer, leasing many BMW's from them. M.S.R.P. On my Cooper S was $34,500.00, which was also the agreed upon purchase price.

In May of 2007, I took delivery of the Cooper S, and was not advised of any latent defects, or damage that occurred prior to my taking delivery.

As much as I loved the MINI, my personal circumstances changed, and in October, I was in need of a larger vehicle. In November of 2007, I ordered a BMW 335xi, from BMW of Towson. When I asked my salesman if I should trade the MINI, he advised me that I would probably get the best price for the MINI by either selling it myself, or taking it to CarMax. Not wanting to deal with selling it myself, I took the MINI to CarMax.

CarMax appraised the MINI, and I commented to the appraiser that the vehicle was perfect, with no damage, dings, or other defects. The CarMax appraiser then asked me why the right rear quarter panel had been painted. I was shocked at this statement, and I advised him that I had no idea. He then proceeded to show me a tape line on the passenger side door jamb that ran from top, to bottom. He also demonstrated the texture difference between the door jamb paint, and the paint on the rear quarter panel.

The MINI, with 8,200 miles, was appraised at $18,500.00, a far cry from the $34,500.00 that I had paid just six months ago. The appraiser would not tell me how much the re-painted rear quarter panel had diminished the value, but because I could not detail the extent of the undisclosed damage, I suspect that the diminished value was substantial.

Now furious, I drove directly to BMW/MINI of Towson, for some answers. I approached the sales manager, and my salesman, and explained the situation. They were both stunned, and claimed that they knew nothing about any prior damage to the vehicle. The sales manager took the vehicle to the shop, to show the service manager.

Upon his return, he stated that their inspection of the rear quarter panel was inconclusive, but that he would ask Marc Cohen, the owner's son, and General Manager of the dealership, to contact MINI USA.

Now suspicious, I took the MINI to two different body shops. Both measured the paint thickness of each panel on the car. Every panel except the right rear quarter panel measured 6mm of paint. The right rear quarter panel measured 9 mm of paint. Both shops concluded that the right rear quarter panel had been painted, prior to delivery. The tell tale tape line in the door jamb was additional evidence of this. Both shops advised me that they would testify under oath, of their findings.

I called the MINI sales manager and advised him of my findings. I also demanded that MINI, USA repurchase the vehicle, for full price paid, less a reasonable amount for mileage. I reminded him that in the State of Maryland, it is illegal for a new car dealer to sell a vehicle that has sustained body or paint damage, without disclosing this damage to the buyer.

I believe that the selling dealer (BMW/MINI of Towson) was unaware of this damage. It is my belief that the damage occurred at either the Factory, the port of exit, or the port of entry. In light of Gore v. BMW, it was MINI USA's responsibility to inform the dealer that this vehicle had been damaged, and repaired.

I have retained attorneys to file suit against MINI USA, BMW USA, and BMW/MINI of Towson, for Fraud, Non-disclosure, Diminished value, and Conspiracy.

I would strongly advise anyone considering the purchase of a new MINI Cooper, to reconsider their purchase. Failing this, I would strongly advise anyone purchasing a new MINI Cooper to have the vehicle inspected by a competent third party, PRIOR to taking delivery. Finally, if you have already purchased a new MINI Cooper, I would strongly advise you to take the vehicle to a competent body shop, and have the vehicle inspected for any undisclosed body damage, or repair.

I would also encourage anyone still considering purchasing a vehicle from BMW/MINI of Towson, Md., to consider purchasing from another dealer, as this dealer seems only to be interested in taking your money, and taking no responsibility for defects in the products that they sell.

I have registered the domain name MiniUsaLies.com, to document this incident. If any MINI owner finds that his/her vehicle has undisclosed damage, you are encouraged to submit details of your vehicle to fraud@miniusalies.com.

My attorneys have advised me that if there are other cases of undisclosed damage, these cases may be eligible for certification of class action status.

Finally, to address the concerns of those (including myself) who feel that we are too litigious in the United States, I offer the following: I am only interested in receiving compensatory damages, in the form of a re-purchase by MINI USA of this vehicle. Any and all punitive damages that I may be awarded will be donated to charity. My intent is to teach MINI USA, and BMW USA a lesson...a lesson that they should have learned in 1997.

[iatacs19]

The whole situation is fvcked up. I hope it works out for you.

[The Cleaner]

Before you dump a ton of money into this, my understanding is a new car can have up to 3% if it's total value in damage repaired prior to delivery without disclosure.

no expert but I read that before I took delivery and was very careful to ask for disclosure and a copy of the inspection made by the VPC when the car arrived.

[Spool]

That is crazy...but from their stand point, can't they just say you went to a shop yourself and painted the rear quarter panel then held them accountable for it?


Anyways, i have a dust bump in driver's side door im curious if it could've been repainted or some sort..thanks for the heads up

[BK]

Originally Posted by coffeeman

BMW appealed, and the case went all the way to the U.S. Supreme Court. The Supreme Court reversed the punitive damage award, and remanded the case back to State Court. The Kentucky Supreme Court lowered the punitive damage award to $2,000,000.00. BMW also agreed to, in the future, disclose ANY damage, no matter how minor, to prospective buyers of their vehicles...It appears that BMW did not learn their lesson.

First, the situation with your Mini sucks, and I hope you win your case. I'd be furious.

Second, are you sure about the $2M punitive damages being a final number? I think you got the chronology a little mixed up. If I remember that case, the original award was $4M, the KY SCt dropped punitives to $2M, and THEN it went to the US SCt, which remanded to the original Circuit Court. After remand, the parties settled for an undisclosed figure, which I'm sure was far less than $2M (probably not much more than attorneys' fees and a replacement car).

Also, BMW's agreement to disclose all damage to new cars during transit wasn't mandated by the court or part of a settlement -- though it obviously was prompted by the suit. To The Cleaner - the 3% figure was BMW's old threshold for disclosing damage. Since this case in the early 90s, BMW's policy is to disclose ANY damage, even less than 3%. Presumably, Mini follows the same policy.

Again, I'd be furious if I were in your shoes, coffeeman. I'm just clarifying some of the facts posted here.