Berghuis v. Ford Motor Company, Inc.

District Court, S.D. California·Decided October 7, 2024·No. 3:22-cv-00871·Unknown

Opinion

VICTORIA BERGHUIS, on behalf of Case No.: 3:22-cv-00871-JES-KSC herself and others similarly situated, ORDER GRANTING DEFENDANT Plaintiff, FORD MOTOR COMPANY’S v. MOTION TO DISMISS THE SECOND AMENDED COMPLAINT FORD MOTOR COMPANY, INC.; and DOES 1 to 10, inclusive, [ECF No. 35-1] Defendant. Pending before the Court is Defendant Ford Motor Company, Inc.’s (“Ford”) motion to dismiss (“Motion”) Plaintiff Victoria Berghuis’s (“Berghuis”) Second Amended Complaint for deficient pleading, failure to state a claim upon which relief can be granted, lack of equitable jurisdiction and lack of subject matter jurisdiction due to lack of Article III standing. ECF No. 35-1. Plaintiff filed an opposition (ECF No. 36), and Defendant filed a reply (ECF No. 39). After due consideration and for the reasons discussed below, the Motion is GRANTED. // // // A. Regulatory Background California Health & Safety Code § 43200 authorized the California Air Resources Board (“CARB”) to adopt regulations for vehicle emissions, including the California Emissions Warranty (Cal. Code Regs. Tit. 13 § 2035 et seq.). The warranty provides for defects (13 C.C.R § 2037) and performance (13 C.C.R § 2038). Under 13 C.C.R § 2037(b), manufacturers must warrant that the vehicle or engine is “designed, built, and equipped so as to conform with all applicable regulations adopted by [CARB],” and “free from defects in materials and workmanship which cause the failure of a warranted part . . . including any defect in materials or workmanship which would cause the vehicle’s on-board diagnostic malfunction indicator light to illuminate." Under 13 C.C.R § 2038(b), manufacturers must warrant that the vehicle or engine is “designed, built, and equipped so as to conform with all applicable regulations adopted by [CARB],” and “will . . . pass an inspection established under section 44012 of the Health and Safety Code” (“smog check”). For both defects and performance, the warranty generally provides coverage for a period of up to three years or 50,000 miles. 13 C.C.R § 2037(b); § 2038(b). For partial zero emissions vehicles (“PZEV”), California extends the warranty coverage period set forth in 13 C.C.R §§ 2037(b) and 2038(b) to 15 years or 150,000 miles. 13 CCR § 1962.1(c)(2)(D). The California Emissions Warranty defines a “warranted part” as “any part installed on a motor vehicle or motor vehicle engine . . . which affects any regulated emission . . . subject to California emission standards.” 13 C.C.R § 2035(c)(3)(B). An “emissions- related part” is defined as “any automotive part which affects any regulated emissions from a motor vehicle . . . subject to California or federal emissions standards.” 13 C.C.R § 1900(b)(3); 13 C.C.R § 2601(i). Such parts include those listed on the “Emissions-Related Parts List” adopted by CARB, last amended in June 1990. Id. Further, an “emissions- related motor vehicle part” is defined as “any direct replacement automotive part or any automotive part certified by executive order of the state board that may affect emissions from a motor vehicle.” Cal. Health & Safety Code § 39027.3(e). B. Procedural Background On June 14, 2022, Plaintiff initially filed this putative class action alleging violations of California’s Unfair Competition Law (“UCL”) (Cal. Bus. & Prof. Code § 17200 et seq.). ECF No. 1. On September 19, 2022, Defendant filed its first motion to dismiss the complaint for lack of subject matter jurisdiction and failure to state a claim. ECF No. 6. On September 30, 2022, the parties filed a joint motion to vacate the motion to dismiss the complaint. ECF No. 9. On October 10, 2022, Plaintiff filed a First Amended Complaint (“FAC”). ECF No. 12. On October 24, 2022, Defendant filed a motion to dismiss the FAC. ECF No. 14. On November 28, 2022, Plaintiff filed an opposition. ECF No. 19. On December 19, 2022, Defendant filed a reply. ECF No. 20. On July 31, 2023, the parties filed a joint motion to file a Second Amended Complaint and set a briefing schedule for a motion to dismiss. ECF No. 29. On September 15, 2023, Plaintiff filed her Second Amended Complaint (“SAC”). ECF No. 32. This is the operative complaint in this matter. C. Plaintiff’s Allegations Plaintiff is a citizen of California and the owner of a 2014 Ford Focus (VIN 1FADP3K28FL185844), purchased and registered in California. SAC ¶¶ 4, 77. Plaintiff’s vehicle was manufactured by Defendant, a Delaware corporation. Id. ¶ 5. On December 28, 2021, Plaintiff presented the vehicle for repairs at a Ford authorized repair facility. Id. ¶ 78. Plaintiff paid $180.00 for a diagnostic fee, and the repair order indicated a defective transmission clutch. Id. ¶¶ 80-81. At that time, the vehicle’s odometer read 77,283 miles. Id. ¶ 78. The mileage placed the vehicle outside of Ford’s Powertrain Warranty, which covers transmission repairs up to five years or 60,000 miles. ECF No. 35-1 at 10. Ford refused to cover the repair under the California Emissions Warranty and advised Plaintiff that she would need to pay for repairs to the transmission clutch. SAC ¶ 83. Plaintiff has since paid to repair or replace her transmission. Id. ¶¶ 2, 224. Plaintiff alleges that the California Emissions Warranty, which provides extended coverage up to 15 years or 150,000 miles, applies to her vehicle and that the transmission clutch is a warranted part entitled to coverage. Id. ¶¶ 79, 88, 91-92. Plaintiff alleges that the transmission clutch is a warranted part based on the following: (1) the transmission clutch was slipping outside of expected limits, causing an increase in regulated emissions; (2) the defective transmission clutch should have caused the vehicle’s Malfunction Indicator Light (“MIL” or “check engine light”) to illuminate; and (3) the defective transmission clutch would cause the vehicle to fail a smog check. Id. ¶¶ 38, 82, 84, 91. Thus, Plaintiff alleges that her vehicle should have been repaired at no cost to her. Id. ¶¶ 33-34. Plaintiff further alleges that Defendant was legally required, but failed, to list the transmission clutch as a warranted part under the California Emissions Warranty in their application for certification to CARB. Id. ¶¶ 168, 217-18. Based on the above facts, Plaintiff alleges that Defendant violated the UCL, which prohibits “any unlawful, unfair or fraudulent business act or practice.” Id. ¶¶ 212-27. Plaintiff alleges that she only pursues claims under the unlawful and unfair prongs of the UCL and does not assert a claim for fraud. Id. ¶ 141. Plaintiff seeks equitable relief including, but not limited to: (1) restitution for amounts wrongfully paid by Plaintiff and Class members; (2) declaratory relief that Defendant violates the California Emissions Warranty, thus constituting an unfair and unlawful business practice in violation of the UCL; and (3) public injunctive relief requiring Defendant to identify the transmission and transmission-related parts as covered under the California Emissions Warranty. Id. at 58- 61. A. Federal Rule of Civil Procedure 12(b)(6) A motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim tests the legal sufficiency of a plaintiff’s claim. Navarro v. Block, 250 F.3d 729, 732 (9th Cir. 2001). When considering the motion, the court must accept as true all well-pleaded factual allegations in the complaint. Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555 (2007). The court need not accept as true legal conclusions cast as factual allegations. Id.; Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (“[t]hreadbare recitals of the elements of a cause of action, supported by me

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Berghuis v. Ford Motor Company, Inc., (S.D. Cal. 2024).

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