Lawsuit: San Juan misrepresented trade-in value of fire truck

City of San Juan

A Florida-based company that sells firetrucks has sued the city of San Juan alleging the municipality misrepresented the value of a ladder truck when it traded it in for a new one.

Hall-Mark Fire Apparatus-Texas LLC filed a lawsuit against the city on Tuesday, alleging city officials told the company the 2006 HP75 ladder truck it was trading in for a 2016 HP78 ladder truck had only 3,224 miles on it when in truth it had in excess of 100,000 miles, according to the lawsuit.

The deal went down in 2017 and the city of San Juan told the company that the vehicle’s odometer was the original one and that the mileage was accurate.

“Based upon the reported mileage and representations of the City, a trade-in value of $265,000 was calculated and the transaction closed in October 2017. However, when the 2006 truck was received by Hallmark’s wholesaler, it was determined that the truck had an actual mileage in excess of 100,000,” the lawsuit stated. “Based upon this difference in mileage, the 2006 truck was sold for only $170,000 (its actual value), $95,000 less than the calculated tradie-in value.”

According to Hallmark, its wholesaler absorbed $10,000 in losses, but the company had to return an $85,000 difference to the wholesaler.

“Hallmark has made demand upon the City for the reimbursement of the $85,000 that constitutes the difference between the trade-in value given to the City and the amount the truck was actually worth, minus the $10,000 credit,” the lawsuit stated. “However, the City has failed and refused to reimburse this amount to Hallmark.”

The company is seeking $85,000 and attorney fees.

As of Wednesday afternoon, court records reflect that the city of San Juan had not yet been served.