Adbul-Mumit v. Alexandria Hyundai, LLC

896 F.3d 278
CourtCourt of Appeals for the Fourth Circuit
DecidedJuly 13, 2018
DocketNo. 17-1582; No. 17-1587; No. 17-1611
StatusPublished
Cited by116 cases

This text of 896 F.3d 278 (Adbul-Mumit v. Alexandria Hyundai, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adbul-Mumit v. Alexandria Hyundai, LLC, 896 F.3d 278 (4th Cir. 2018).

Opinion

THACKER, Circuit Judge:

This appeal arises from the dismissal of three consumer actions based on Virginia state law claims. The actions focus on a series of misrepresentations made by Hyundai Motor America ("Hyundai") regarding the Environmental Protection Agency ("EPA") estimated fuel economy for the 2011, 2012, and 2013 models of the Hyundai Elantra. A Judicial Panel on Multidistrict Litigation ("JPML") consolidated dozens of similar consumer suits in the United States District Court for the Central District of California (the "MDL court"). But the JPML remanded to the United States District Court for the Western District of Virginia the three actions at issue in this appeal: Gentry v. Hyundai Motor Am., Inc. , No. 3:13-cv-00030; Adbul-Mumit v. Hyundai Motor Am., Inc. , No. 3:14-cv-00005; and Abdurahman v. Alexandria Hyundai, LLC , No. 3:14-cv-00002.

The Western District of Virginia dismissed with prejudice the claims in all three actions, save one claim in the Gentry action, for failure to satisfy federal pleading standards. Because one claim remains pending before the district court, we dismiss the Gentry appeal for lack of jurisdiction. We affirm the district court's dismissal of the Adbul- Mumit and Abdurahman actions and its denial of the plaintiffs' post-dismissal request for leave to amend their complaints in those actions.

I.

A.

In 2011 and 2012, a series of Hyundai advertisements claimed that 2011-2013 models of the Hyundai Elantra delivered an EPA fuel economy rating of 40 miles per gallon. But according to the United States Department of Justice and the California Air Resources Board, Hyundai used improper testing parameters to calculate greenhouse gas emissions. See United States v. Hyundai Motor Co. , 77 F.Supp.3d 197, 198-99 (D.D.C. 2015). Hyundai used those parameters to compute an inaccurate fuel economy estimate. On November 2, 2012, after discussions with the EPA, Hyundai issued a press release adjusting the fuel economy rating "by one or two mpg" for "most vehicle[s]."

*288J.A. 398.1 Hyundai ultimately agreed to pay the largest civil penalty in the history of the Clean Air Act: $93,656,600 to the United States and $6,343,400 to the California Air Resources Board. See Hyundai and Kia Clean Air Act Settlement , EPA, https://www.epa.gov/enforcement/hyundai-and-kia-clean-air-act-settlement (June 19, 2018) (saved as ECF opinion attachment). Hyundai also forfeited greenhouse gas emissions credits valued "in excess of $200 million." Id.

B.

Numerous consumer lawsuits followed. On February 6, 2013, the JPML consolidated more than 50 suits in the Central District of California. Shortly after consolidation, plaintiffs in several consumer suits claimed to have reached a settlement with Hyundai for a single nationwide class. The proposed class consisted of "[a]ny individual who owned or leased a Class Vehicle on or before November 2, 2012." J.A. 1061. The proposed settlement permitted class members to either take a lump sum payment or participate in a reimbursement program offered by Hyundai.

In late 2013 and early 2014, consumers in Virginia filed the three actions at issue in this appeal, alleging state law consumer protection claims. Each asserts the same three Virginia state law causes of action: (1) a Lemon Law claim;2 (2) a Virginia Consumer Protection Act claim; and (3) a false advertising claim. Gentry involves a class action complaint with five named plaintiffs filed in the District Court for the Western District of Virginia on August 13, 2013. The named plaintiffs purport to represent a class of similarly situated consumers who purchased Elantras in Virginia. Abdurahman and Adbul-Mumit are mass tort actions filed in Virginia state court on December 18, 2013, and January 10, 2014, respectively. These two actions were removed to the Western District of Virginia in early 2014. Hyundai moved to dismiss the complaints in all three actions.

In June 2014, before the district court ruled on the motions to dismiss, the JPML transferred Gentry , Adbul-Mumit , and Abdurahman to the MDL court in the Central District of California so as to participate in the ongoing settlement efforts. And, in 2015, the MDL court certified a class for settlement purposes and approved the settlement that permitted class members to either take a lump sum payment or participate in a reimbursement program offered by Hyundai. The JPML later entered remand orders on September 9, 2015, with respect to Gentry , Adbul-Mumit , and Abdurahman , remanding to the Western District of Virginia all plaintiffs who either (1) opted out of the settlement or (2) were not members of the certified class (i.e. , individuals who purchased Elantras after November 2, 2012).

C.

Upon remand to the Western District of Virginia, the parties filed status reports with the district court. In its status report, Hyundai asserted, "[T]he current complaints are outdated and will only promote confusion going forward" because the complaints "include a mix of pre- and post November 2, 2012 consumers, as well as many settlement class members who did not opt out of the settlement." Hyundai Status Report at 6, *289Gentry v. Hyundai Motor Am. , No. 3:13-cv-00030 (W.D. Va. Aug. 14, 2013; filed Jan. 8, 2016) ECF No. 82.3 Thereafter, on June 21, 2016, the district court allowed the plaintiffs in each action 21 days to amend their respective complaints, observing that "the complaints now may be stale and in need of updating." Order to Confer at 2, Gentry , ECF No. 86 (filed June 21, 2016). Of note, the district court warned that, if the plaintiffs declined to amend, "the original complaints will be deemed operative" and Hyundai may "renew[ ] their original motions to dismiss." Id. at 3. The 21 day deadline passed without amendment.

Nonetheless, the district court granted plaintiffs an additional 20 days to amend. The district court noted that Hyundai had "sought [clarification] from Plaintiffs for almost two years" and that the "cases ha[d] lingered in a state of inactivity for too long." Order Granting Extension at 2, Gentry , ECF No. 89 (filed July 22, 2016). The district court again warned that it did "not intend to further extend this deadline" and that the "prior complaints [will] become operative" if the plaintiffs failed to amend. Id. at 3. Once again, the plaintiffs failed to amend.

On August 22, 2016, Hyundai moved to dismiss all pending claims in Gentry , Adbul-Mumit , and Abdurahman . On January 23, 2017, the district court granted the motion in part, dismissing all claims with the exception of one claim in the Gentry action. In doing so, the district court observed that the complaints did not satisfy the Federal Rule of Civil Procedure 8(a)(2) pleading standard, as explained in Bell Atlantic Corp. v. Twombly

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896 F.3d 278, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adbul-mumit-v-alexandria-hyundai-llc-ca4-2018.