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Lloyd v. General Motors Corp.

Citations: 275 F.R.D. 224; 2011 U.S. Dist. LEXIS 63436; 2011 WL 2433091Docket: Civil No. L-07-2487

Court: District Court, D. Maryland; June 16, 2011; Federal District Court

Narrative Opinion Summary

The case involves Plaintiffs seeking to certify a class of Maryland residents who own specific Ford vehicles alleged to have defective seats prone to collapse in rear-impact collisions. The court denied the Plaintiffs' Renewed Motion to Certify Class, primarily due to manageability and superiority issues under Rule 23(b)(3). The decision emphasized the unmanageable jury burden of applying the risk-utility test across numerous crash scenarios and the potential preemption conflicts with NHTSA standards. The Plaintiffs had narrowed their class proposal and dropped claims of negligent failure to disclose and fraudulent concealment, focusing on negligence and strict products liability. However, the court found that the complexities of proving economic loss claims, the inadequacy of class representatives, and the overarching jury burden precluded certification. The court also declined to adopt the consumer expectation test over the risk-utility test, aligning with precedents such as Kawasaki. Despite the denial of class certification, the Plaintiffs are allowed to pursue individual claims under Maryland law, particularly in cases of personal injury resulting from seatback failures. The court instructed the Plaintiffs to submit a status report on their subsequent actions following the denial.

Legal Issues Addressed

Adequacy of Class Representatives

Application: The court expressed concerns about the adequacy of the named Plaintiffs, emphasizing that the litigation appeared to be driven by attorneys rather than affected individuals.

Reasoning: Ford claims that the litigation is driven by class action attorneys rather than affected individuals, citing a 'revolving door' of named Plaintiffs.

Class Certification Under Rule 23

Application: The court denied the Plaintiffs' Renewed Motion to Certify Class due to failure to meet the manageability and superiority requirements of Rule 23(b)(3).

Reasoning: The Plaintiffs' proposed class action fails to meet the manageability and superiority requirements for certification.

Economic Loss Doctrine and Class Certification

Application: The court emphasized that Plaintiffs must demonstrate the cost and method of repair for economic loss claims under Maryland law, which they failed to do.

Reasoning: For economic loss claims, they must demonstrate the cost and method of repair. Plaintiffs estimated repair costs in the thousands but provided no concrete plans for how repairs would be executed.

Jury Burden in Complex Litigation

Application: The court found that the proposed class action would impose an overwhelming burden on the jury to apply the risk-utility test across various crash scenarios and passenger demographics.

Reasoning: The jury would face an overwhelming task in applying the risk-utility test, necessitating an understanding of the safety performance of the seating system across various crash scenarios and passenger demographics.

Preemption Under the National Traffic and Motor Vehicle Safety Act

Application: The court noted that Plaintiffs' request for the jury to overrule NHTSA standards raises issues under the preemption clause, complicating the manageability of the case.

Reasoning: Plaintiffs’ request for the jury to effectively overrule NHTSA raises issues under the preemption clause of the National Traffic and Motor Vehicle Safety Act.

Risk-Utility Test Versus Consumer Expectation Test

Application: The court maintained the application of the risk-utility test over the consumer expectation test for this products liability case, rejecting Plaintiffs' argument to apply the latter.

Reasoning: The Court's preference for the risk-utility test in Lloyd 1 is supported by the reasoning in Kawasaki, where the court applied this test in a motorcycle crash case involving design defects.