SEPTEMBER 10-16, 2015
11-3-7909 Barbarino v. Paramus Ford, Inc., Law Div.-Bergen Cy. (Wilson, J.S.C.) (9 pp.) Plaintiffs Nicole Barbarino and Gregory Duke filed suit on behalf of a putative class who executed and entered into automobile lease agreements which contained language that allegedly violated the Truth-in-Consumer Contract, Warranty and Notice Act. Defendants All American Ford, Inc. and Paramus Ford, Inc. are Ford dealerships. This matter concerned the sales and use taxes imposed on vehicle lease transactions. Taxes imposed for vehicle leasing transactions are governed by the Sales and Use Tax Act. The act imposes an obligation on customers to pay sales tax applicable to their vehicle lease transactions. Plaintiffs contended that the order signed by plaintiffs violated TCCWNA because it included the provision in which plaintiffs assumed and agreed to pay, “unless prohibited by law,” any sales, use or occupational taxes imposed on or applicable to the lease transactions. Plaintiffs asserted that this language constituted a technical violation of TCCWNA. Plaintiffs alleged that the phrase “unless prohibited by law” following the enumerated sales tax provision suggests that the preceding provision is or may be void, enforceable, or inapplicable somewhere and does not explicitly state whether the provision is enforceable in New Jersey. The court found that the phrase “unless prohibited by law” does not offend TCCWNA because it does not state that the provision’s enforceability varies by state. The contractual provision that obligates consumers to pay the taxes associated with leasing the vehicles fully complies with New Jersey law. The contractual provisions unambiguously obligated plaintiffs to pay all taxes associated with leasing the vehicles and the inclusion of flexible language such as “unless prohibited by law” did not deceive or create confusion as to the rights and responsibilities of plaintiffs. In addition, All American did not fail to disclose that a provision was unenforceable in New Jersey. Because the challenged provision accurately and unambiguously informed plaintiffs of their obligations to pay sales tax under New Jersey law and the flexible language of “unless prohibited by law” did not violate TCCWNA, defendant’s motion to dismiss plaintiffs’ complaints was granted.
