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McGill v. General Motors Corp.

Citations: 231 A.D.2d 449; 647 N.Y.S.2d 209; 1996 N.Y. App. Div. LEXIS 9358

Court: Appellate Division of the Supreme Court of the State of New York; September 19, 1996; New York; State Appellate Court

Narrative Opinion Summary

In this case, the Supreme Court of Bronx County considered a motion by General Motors Corporation (GM) to dismiss a complaint alleging deceptive business practices under General Business Law § 349(a). The plaintiffs accused GM of failing to disclose defects in their vehicle brake systems, offering repairs only to certain complainants. The court upheld the sufficiency of the complaint under § 349(a), finding that the plaintiffs demonstrated the necessary consumer impact and material deception, without needing to prove pecuniary harm. However, the court dismissed other claims, including those under General Business Law § 350, fraud, negligent misrepresentation, and breach of warranty. The plaintiffs failed to establish reliance or contractual privity necessary for these claims, nor did they sufficiently detail inducement or specific promises by GM. Consequently, the breach of express warranty claim was also inadequate, and the plaintiffs withdrew their implied warranty claim. The court's decision modified the initial ruling by dismissing these additional causes of action while affirming the remainder of the complaint without costs.

Legal Issues Addressed

Breach of Warranty Claims

Application: The court found the breach of express warranty claim inadequate due to lack of specific promises or failures under warranty, and the breach of implied warranty claim was withdrawn by plaintiffs.

Reasoning: Lastly, the breach of express warranty claim was found inadequate, as plaintiffs did not cite a failure to repair under the warranty terms or identify any specific promises made by GM. The plaintiffs also withdrew their breach of implied warranty claim.

Deceptive Acts under General Business Law § 349(a)

Application: The court held that the plaintiffs sufficiently alleged a violation of General Business Law § 349(a) by claiming GM failed to acknowledge brake defects and selectively offered repairs, meeting the statute's requirements for consumer impact and material deception.

Reasoning: The court upheld the complaint's sufficiency regarding a violation of General Business Law § 349(a), which prohibits deceptive acts in business practices.

Failure to Establish Reliance in Fraud and Misrepresentation Claims

Application: The court dismissed claims of fraud and negligent misrepresentation due to plaintiffs' inability to demonstrate reliance on GM's advertisements or establish a relationship of contractual privity.

Reasoning: The court noted that the plaintiffs did not demonstrate reliance on GM's misleading advertisements when purchasing the vehicles, nor did they provide sufficient detail on how they were induced to buy based on GM's representations.

Proof of Pecuniary Harm Not Required

Application: The case established that plaintiffs do not need to prove actual pecuniary harm to maintain a claim under General Business Law § 349(a) as long as they show material deception.

Reasoning: The court found that the plaintiffs met the requirements for this claim, as no proof of actual pecuniary harm was necessary.