Azimi v. Ford Motor Co.

977 F. Supp. 847, 1996 WL 912470
CourtDistrict Court, N.D. Illinois
DecidedAugust 15, 1996
Docket97 C 0360
StatusPublished
Cited by9 cases

This text of 977 F. Supp. 847 (Azimi v. Ford Motor Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Azimi v. Ford Motor Co., 977 F. Supp. 847, 1996 WL 912470 (N.D. Ill. 1996).

Opinion

MEMORANDUM OPINION AND ORDER

BUCKLO, District Judge.

The plaintiff, Siamak Azimi, purchased a 1997 Ford F-150 Lariat (“Lariat”), a vehicle manufactured by the Ford Motor Company (“Ford”), from Ron Hopkins Suburban Ford, Inc. (“Ron Hopkins”). The Lariat turned out to be defective and repeated repairs did not correct the problems. The plaintiff sued Ford for violations of the Magnuson-Moss Warranty Act (“Warranty Act”) (Counts I and II), 15 U.S.C. § 2301 et seq., and the Illinois Consumer Fraud and Deceptive Business Practices Act (“Illinois Consumer Fraud Act”) (Count III), 815 ILCS 505/1 et seq. (West 1993 & Supp. 1997), and for common law fraud (Count IV). Ford moved to dismiss for a variety of reasons. For the following reasons, the motion is denied.

I.

There are two federal law and two state law counts in this complaint. Although a federal statute, the Warranty Act does not automatically confer federal subject matter jurisdiction. A federal court has jurisdiction over a Warranty Act claim only “if the amount in controversy is ... $50,000.00 (exclusive of interests and costs) computed on the basis of all [Warranty Act] claims.” 15 U.S.C. § 2310(d)(3); Marchionna v. Ford Motor Co., No. 94 C 275, 1995 WL 476591, at *7 (N.D.Ill. Aug.10, 1995) (“state claims may not be counted toward Magnuson-Moss’ jurisdictional threshold”). Mr. Azimi does not attempt to and I do not consider whether he can establish jurisdiction for Counts I and II under the Warranty Act.

However, if Mr. Azimi can establish diversity jurisdiction, 28 U.S.C. § 1332(a), with respect to one of his state law counts, the court can assert supplemental jurisdiction, 28 U.S.C. § 1367(a), over the Warranty Act counts, Haslam v. Lefta, Inc., No. 93 C 4311, 1994 WL 117463, at *2 (N.D.Ill. Mar.25, 1994), and over the remaining state law count, even if it does not meet the amount-in-controversy. ITT Commercial Fin. Corp. v. Unlimited Automotive, Inc., 814 F.Supp. 664, 669 (N.D.Ill.1992) (Aspen, J .) (exercising supplemental jurisdiction over two counts of four count diversity complaint, where two counts did not satisfy amount in controversy) (relied upon by Haslarn, supra); see also Lloyd v. Kull, 329 F.2d 168, 170 (7th Cir.1964) (where plaintiffs claim for negligence exceeded jurisdictional minimum, while claim for assault and battery was below minimum, court properly asserted jurisdiction over latter claim).

Since Mr. Azimi is a citizen of Illinois, while the defendant is a citizen of Michigan, the parties are diverse. Ford challenges Mr. Azimi’s ability to meet the $75,001.00 amount in controversy. 1 Where a complaint invokes diversity jurisdiction, “the amount in controversy claimed by a plaintiff in good faith will be determinative on the issue of jurisdictional amount.” NLFC, Inc. v. Devcom Mid-America, Inc., 45 F.3d 231, 237 (7th Cir.1995). However, if the defendant challenges the plaintiffs amount allegation, the plaintiff bears the burden of establishing jurisdiction by competent proof, i.e., “proof to a reasonable probability that jurisdiction exists.” Id. (quotation omitted). “This burden ... is not exaeting[, as] the plaintiff is entitled to considerable latitude in supporting his allegations; he must be given the benefit of any facts he could conceivably prove in support of his allegations.” ITT Commercial Fin. Corp., 814 F.Supp. at 667 (quotation omitted). Ford will prevail only if it appears “to a legal certainty that the claim is really for less than the jurisdictional amount.” Id. (quotation omitted).

*851 In each of his four counts, Mr. Azimi seeks to recover the Lariat’s purchase price of $27,203.50. This leaves a deficit of $47,797.50, which Mr. Azimi seeks to make up by aggregating attorneys’ fees, incidental damages, and punitive damages. All of these count towards the amount in controversy and are recoverable under the Illinois Consumer Fraud Act. Gent v. Collinsville Volkswagen, Inc., 116 Ill.App.3d 496, 72 Ill.Dec. 62, 66-68, 451 N.E.2d 1385, 1389-91 (1983); see also Samoff v. American Home Prods. Corp., 798 F.2d 1075, 1078 (7th Cir.1986) (attorneys’ fees may be included in amount in controversy if provided for by statute); 815 ILCS 505/10a(c) (West Supp.1997) (court may award reasonable attorneys’ fees under Illinois Consumer Fraud Act). Thus, since the Illinois Consumer Fraud Act Count will serve as the jurisdictional anchor for this suit, the issues become (1) whether the Illinois Consumer Fraud Act Count survives a motion to dismiss, and, if so, (2) whether Mr. Azimi can show his entitlement to the attorneys’ fees, incidental damages, and punitive damages under the Act to a reasonable probability. 2

II.

Fed.R.Civ.P. 12(b)(6)

Mr. Azimi alleges that the Ron Hopkins salesman made various misrepresentations. Ford argues that the salesman’s statements cannot be attributed to it because an agency relationship does not exist between it and the dealership. I agree with the defendant that Ron Hopkins is not Ford’s agent merely because it is an authorized Ford dealer or because, in the course of a sale, Ron Hopkins transferred to Mr. Azimi a Ford warranty. Washington v. Courtesy Motor Sales, Inc., 48 Ill.App.2d 380, 199 N.E.2d 263, 264-65 (1964). However, a dealership may be an agent of the manufacturer. Connick v. Suzuki Motor Co., 174 Ill.2d 482, 221 Ill.Dec. 389, 398, 675 N.E.2d 584, 593 (1997). An agency relationship exists when one “undertakes to manage some affairs to be transacted for [and] ... on account of the ... principal.” Wargel v. First Nat’l Bank, 121 Ill.App.3d 730, 77 Ill.Dec. 275, 278, 460 N.E.2d 331, 334(1984). “Apparent” agency exists where “a reasonably prudent [person], exercising diligence and discretion, in view of the principal’s conduct, would naturally suppose the agent to possess” principal’s authority. Id. 77 Ill. Dec. at 279, 460 N.E.2d at 335 (quotation omitted). The existence and scope of an agency relationship .are questions of fact for the jury. Id. 77 Ill. Dec. at 278, 460 N.E.2d at 334.

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Bluebook (online)
977 F. Supp. 847, 1996 WL 912470, Counsel Stack Legal Research, https://law.counselstack.com/opinion/azimi-v-ford-motor-co-ilnd-1996.