Beaty v. Ford Motor Company

CourtDistrict Court, W.D. Washington
DecidedFebruary 11, 2020
Docket3:17-cv-05201
StatusUnknown

This text of Beaty v. Ford Motor Company (Beaty v. Ford Motor Company) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beaty v. Ford Motor Company, (W.D. Wash. 2020).

Opinion

1 HONORABLE RONALD B. LEIGHTON 2 3 4 5

6 UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON 7 AT TACOMA 8 JACOB and JESSICA BEATY, CASE NO. C17-5201RBL 9 Plaintiff, ORDER GRANTING FORD’S 10 v. MOTION FOR SUMMARY JUDGMENT 11 FORD MOTOR COMPANY, 12 Defendant. 13

14 THIS MATTER is before the Court on Defendant Ford’s Motion for Summary Judgment. 15 [Dkt. # 102]. Plaintiff Jessica1 Beaty purchased a 2013 Ford Escape with a panoramic glass sun 16 roof (“PSR”) in September 2012. She claims her Escape’s PSR spontaneously shattered while 17 she was driving on the freeway in February 2017, due to a manufacturing defect common to a 18 wide range of Ford vehicles. She claims that Ford PSRs’ tempered glass is too thin, leading to 19 failure. She sued, seeking to represent a class of purchasers of such vehicles. She asserts claims2 20 21

22 1 Jacob and Jessica Beaty, husband and wife, are the named plaintiffs. Jessica was the Escape’s primary user and this Order refers to her in the singular for clarity. 23 2 The Court dismissed with leave to amend Beaty’s express and implied warranty claims. [Dkt. # 24 46]. Beaty did not amend those claims. 1 fraudulent concealment and breach of Washington’s Consumer Protection Act, based on her 2 allegation that Ford knew about and concealed the defect. 3 Ford seeks summary judgment on both of Beaty’s claims, arguing: 4 (1) There is no “defect,” because PSRs’ tempered glass breaks in the exact way the 5 Federal Motor Vehicle Safety Standard specifies it must break: into small, round pieces rather

6 than in shards that can cause far more serious injuries; 7 (2) The 2013 Escape was the first model year to include a PSR, and Beaty bought hers at 8 the very beginning of production. Ford could not have “known,” much less concealed, the defect 9 (an unreasonably high PSR failure rate) at the time she purchased, as a matter of law. It therefore 10 had no duty to disclose the claimed defect to Beaty; 11 (3) The allegedly known and concealed defect would not have been material to a 12 purchaser, given its extremely low (0.05%) occurrence rate. Ford argues a failure rate below 1% 13 is not material as a matter of law; and 14 (4) Beaty cannot demonstrate her claimed benefit-of-the-bargain damages as a matter of

15 law. Beaty’s experts have not yet performed their “conjoint analysis survey” to determine the 16 difference in market value between an Escape as represented (with PSR that will not fail), and 17 the one Beaty bought (with a PSR that will fail at a 0.05% rate). Ford claims the proposed 18 conjoint analysis does not and cannot account for the supply side of the fair market value 19 equation. 20 I. DISCUSSION. 21 A. Summary Judgment Standard. 22 Summary judgment is proper “if the pleadings, the discovery and disclosure materials on 23 file, and any affidavits show that there is no genuine issue as to any material fact and that the 24 movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(c). In determining whether 1 an issue of fact exists, the Court must view all evidence in the light most favorable to the 2 nonmoving party and draw all reasonable inferences in that party’s favor. Anderson v. Liberty 3 Lobby, Inc., 477 U.S. 242, 248-50 (1986); Bagdadi v. Nazar, 84 F.3d 1194, 1197 (9th Cir. 1996). 4 A genuine issue of material fact exists where there is sufficient evidence for a reasonable 5 factfinder to find for the nonmoving party. Anderson, 477 U.S. at 248. The inquiry is “whether

6 the evidence presents a sufficient disagreement to require submission to a jury or whether it is so 7 one-sided that one party must prevail as a matter of law.” Id. at 251-52. The moving party bears 8 the initial burden of showing that there is no evidence which supports an element essential to the 9 nonmovant’s claim. Celotex Corp. v. Catrett, 477 U.S. 317, 322 (1986). Once the movant has 10 met this burden, the nonmoving party then must show that there is a genuine issue for trial. 11 Anderson, 477 U.S. at 250. If the nonmoving party fails to establish the existence of a genuine 12 issue of material fact, “the moving party is entitled to judgment as a matter of law.” Celotex, 477 13 U.S. at 323-24. There is no requirement that the moving party negate elements of the non- 14 movant’s case. Lujan v. National Wildlife Federation, 497 U.S. 871 (1990). Once the moving

15 party has met its burden, the non-movant must then produce concrete evidence, without merely 16 relying on allegations in the pleadings, that there remain genuine factual issues. Anderson, 477 17 U.S. 242, 248 (1986). 18 B. Ford’s knowledge of and duty to disclose a material defect. 19 Beaty’s core claim is that Ford knew and had a duty to disclose that its PSRs could 20 spontaneously shatter and were therefore defective. She argues that Ford had similar problems 21 with shattering PSRs in other model lines dating back to 2007, years before she purchased her 22 Escape, and that other manufacturers had had similar problem with PSRs. She claims Ford 23 concealed its knowledge of the defect after it began receiving complaints and warranty claims, 24 and after the NHTSA began investigating shattering PSRs on the Hyundai Veloster in late 2012. 1 Beaty’s fraudulent concealment and Washington Consumer Protection Act claims are based on 2 these same allegations, and on the same evidence. 3 In Washington, plaintiff claiming fraud must prove nine elements by clear, cogent, and 4 convincing evidence: (1) representation of an existing fact; (2) materiality; (3) falsity; (4) the 5 speaker's knowledge of its falsity; (5) intent of the speaker that it should be acted upon by the

6 plaintiff; (6) plaintiff’s ignorance of its falsity; (7) plaintiff’s reliance on the truth of the 7 representation; (8) plaintiff’s right to rely upon it; and (9) damages. Stieneke v. Russi, 145 Wash. 8 App. 544, 563, 190 P.3d 60, 69–70 (2008), citing Stiley v. Block, 130 Wash.2d 486, 505, 925 9 P.2d 194 (1996). 10 A Washington CPA claim requires a plaintiff to prove (1) an unfair or deceptive act or 11 practice; (2) occurring in trade or commerce; (3) a public interest impact; (4) injury to plaintiff in 12 her business or property; and (5) causation. Hangman Ridge Training Stables, Inc. v. Safeco Title 13 Ins. Co., 105 Wn.2d 778, 780 (1986). Beaty argues that Ford’s failure to disclose the PSR 14 shattering defect was an unfair or deceptive practice causing her injury in the form of benefit-of-

15 the-bargain damages. 16 Beaty emphasizes that in the fraudulent concealment context, she need only “demonstrate 17 that the defendant breached an affirmative duty to disclose a material fact,” Crisman v. Crisman, 18 85 Wn. App. 15, 21, 931 P.2d 163, 166 (1997), and accurately claims that the heightened “fraud” 19 pleading requirement is relaxed in cases of fraudulent omissions. Zwicker v. General Motors 20 Corp., No. C07—0291 JCC, 2007 WL 5309204 at *5 (W.D. Wash. July 26, 2007). 21 The Court need not parse the distinction here, because the heart of the dispute is Beaty’s 22 claim that Ford knew about and failed to disclose a material defect in its vehicles: Ford PSRs 23 could shatter spontaneously.

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Beaty v. Ford Motor Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beaty-v-ford-motor-company-wawd-2020.