## Facts

- Rita Jo Holloway sued Gulf Motors, Inc. (the selling dealer) to rescind the sale of an allegedly defective 1989 Buick Century and to recover the purchase price, incidental expenses, damages, attorney’s fees, and costs.
- At the default-confirmation hearing, Holloway testified she bought the car from Gulf on October 18, 1988, for $18,116 and also paid $326.10 in insurance premiums and $919.88 for tax, title, and license.
- Holloway testified that shortly after purchase she experienced multiple problems, including a ticking noise, brake problems requiring near-floor pedal pressure, front-end noise, tire clicking, a malfunctioning gas gauge, and severe pulling to the right.
- Holloway also testified that her husband (a mechanic) heard the engine ticking and told her the car was not safe to drive.
- Holloway brought the car to Gulf on October 25, 1988, but Gulf returned it the same day, telling her nothing was wrong.
- Two days later, Holloway returned again; Gulf’s service manager, Mr. Carter, told her a torque converter clutch problem was causing the issues. Gulf replaced the clutch, but the problems continued.
- Holloway testified that after the clutch work, additional issues developed, including a popping sound on sharp turns. Gulf later replaced the transmission, but the problems persisted.
- Holloway testified that in December 1988 she spoke with Gulf’s new manager, Mr. Veazey, and again brought the car in; some noises were slightly improved, but additional problems appeared.
- Holloway testified that she eventually told Carter she no longer wanted the car and asked Gulf to take it back; Gulf refused.
- Gulf failed to answer the lawsuit, and the trial court entered a default judgment for Holloway that included rescission-type recovery (price and related charges) plus separate awards for mental pain and anguish and attorney’s fees.
- Gulf moved for a new trial. After an earlier appellate ruling that the new-trial motion was timely, the trial court denied a new trial on the merits, and Gulf appealed.

## Issues

1. Whether Holloway presented competent evidence at the default-confirmation hearing sufficient to prove a prima facie case for rescission in redhibition.
2. Whether Holloway’s testimony repeating her husband’s mechanical assessment was inadmissible hearsay that fatally undermined proof of a redhibitory defect.
3. Whether the default awards for mental anguish and attorney’s fees were supported by competent evidence in the record.

## Decision

- The court of appeal affirmed the default judgment in part and reversed (or amended) it in part.
- The court held that Holloway’s firsthand testimony describing serious, persistent problems beginning soon after the sale—together with the history of repeated, unsuccessful repair attempts—was sufficient to establish a prima facie case for rescission in redhibition at a default confirmation.
- The court rejected Gulf’s argument that the judgment failed solely because Holloway recounted her husband’s opinion; even if the husband’s statements were treated as hearsay, Holloway’s own observations and the repair history provided competent proof of substantial defects and continued inconvenience.
- The court scrutinized the non-rescission components of the default judgment and modified the judgment to the extent mental-anguish damages and attorney’s fees were not supported by competent proof on the default-confirmation record.

## Legal Principles

- A plaintiff confirming a default must prove the essential allegations with competent evidence sufficient to establish a prima facie case as if the defendant had denied the allegations.
- In redhibition, rescission is available when a defect existing at the time of sale renders the thing useless or so inconvenient that a reasonable buyer would not have purchased it had the defect been known.
- A buyer’s detailed, firsthand testimony about the vehicle’s performance problems, combined with evidence of repeated repair attempts that do not correct the problems, may constitute competent proof of a redhibitory defect at a default-confirmation hearing.
- Hearsay may not serve as the main proof of a technical diagnosis; however, a judgment may still stand if the remaining admissible evidence independently proves the claim.
- Monetary awards entered by default, including general damages and attorney’s fees, must be supported by proof in the record; an appellate court may reduce or delete amounts that are not proven at the confirmation hearing.

## Conclusion

Holloway v. Gulf Motors holds that a buyer can prove a prima facie redhibition case at a default confirmation through specific lay testimony and a repair history showing persistent defects, even where portions of the testimony include hearsay, but the court will modify a default judgment to remove or reduce mental-anguish and attorney-fee awards that lack competent support in the record.


Holloway v. Gulf Motors, 588 So. 2d 1322 (1991)