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Garcia v. Chrysler Group LLC

Citations: 127 F. Supp. 3d 212; 87 U.C.C. Rep. Serv. 2d (West) 597; 2015 U.S. Dist. LEXIS 116733; 2015 WL 5123134Docket: No. 14-cv-8926 (KBF)

Court: District Court, S.D. New York; September 1, 2015; Federal District Court

Narrative Opinion Summary

The case involves a class action against FCA U.S. LLC (Chrysler) for alleged defects in the Totally Integrated Power Module (TIPM) affecting vehicles manufactured between 2010 and 2014. Plaintiffs from multiple states claim breaches of warranty and violations of consumer protection laws, asserting that Chrysler was aware of these defects but failed to disclose them. The court addresses claims under express and implied warranties, fraudulent concealment, and the Magnuson-Moss Warranty Act (MMWA). Although many claims are dismissed for lack of sufficient factual detail or failure to meet legal standards, certain claims, such as those by Probasco and Garcia under the Maximum Care Coverage warranty and Taylor's implied warranty claim, are allowed to proceed. Claims for fraudulent concealment and under consumer protection statutes are also evaluated, with Probasco's claim under Arizona law surviving due to adequate allegations of Chrysler's non-disclosure of known defects. The court grants plaintiffs leave to amend their complaint, emphasizing the importance of detailed allegations to establish plausible claims for relief.

Legal Issues Addressed

Breach of Express Warranty under State Law

Application: The court finds that only Probasco and Garcia sufficiently alleged breach of express warranty claims under the Maximum Care Coverage, while other claims are dismissed due to insufficient allegations of defects within warranty limits.

Reasoning: Only the breach of express warranty claims by Probasco and Garcia under the Maximum Care Coverage warranty survive at this stage.

Breach of Implied Warranty of Merchantability

Application: Taylor's implied warranty claim is allowed to proceed as it falls within the warranty period, while others are dismissed due to lack of privity or falling outside the warranty period.

Reasoning: Taylor, who bought a used 2011 Chrysler Town & Country and experienced similar issues in October 2013, remains viable in her implied warranty claim as it falls within the three-year Basic Limited Warranty period.

Fraudulent Concealment and Consumer Protection Claims

Application: Probasco's fraudulent concealment claim under Arizona law is sufficient due to Chrysler's alleged knowledge and concealment of the defect, while claims in other states are dismissed for lack of duty to disclose.

Reasoning: Probasco's allegations against Chrysler in Arizona are sufficient to present a plausible claim of fraudulent concealment, as they assert Chrysler's knowledge of a defect and intentional non-disclosure.

Magnuson-Moss Warranty Act Claims

Application: The success of MMWA claims is dependent on the viability of state law warranty claims, allowing Probasco's and Garcia's claims to proceed while others are dismissed.

Reasoning: MMWA claims were dismissed because they relied on state law claims of breach of express and implied warranties, which were also dismissed.

Pleading Standards under Rule 9(b)

Application: Plaintiffs' omission-based fraud claims meet Rule 9(b) standards as they effectively detail the context of omissions, whereas affirmative misrepresentation claims require specific details.

Reasoning: The Amended Complaint effectively details the context of these omissions, addressing the who, what, when, and where of Chrysler’s alleged failures to disclose.