Brand v. Hyundai

California Court of Appeal·Decided July 16, 2014·No. G048880M·Published

Opinion

Filed 7/16/14 Unmodified opinion attached

CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA FOURTH APPELLATE DISTRICT DIVISION THREE

ILAN BRAND, G048880

Plaintiff and Appellant, (Super. Ct. No. 30-2012-00541006)

v.

ORDER DENYING REHEARING

HYUNDAI MOTOR AMERICA et al., AND MODIFYING OPINION; NO CHANGE IN JUDGMENT

Defendants and Respondents.

Respondent’s rehearing petition is DENIED. The opinion filed June 17, 2014 is MODIFIED as follows:

On page 6, in the first new paragraph, in that paragraph’s last sentence ending “. . . whether there were other similar flaws in the sunroof wiring, or whether the problem might reoccur,” add a new footnote at the end of the sentence as follows:

1

Brand acknowledged in his testimony that a service technician told him “probably” on the day he attempted to rescind his purchase that the sunroof problem had been fixed. But of course that did not establish the problem had been fixed, nor that it was “easily fixable” as Hyundai now claims. Hyundai previously had told Brand several times the problem had been fixed.

Renumber the ensuing footnote on page 12 as footnote number 2.

The modification effects no change in the judgment.

ARONSON, J.

WE CONCUR:

RYLAARSDAM, ACTING P. J.

IKOLA, J.

Filed 6/17/14 Unmodified opinion

CERTIFIED FOR PUBLICATION IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA FOURTH APPELLATE DISTRICT DIVISION THREE

ILAN BRAND, G048880

Plaintiff and Appellant, (Super. Ct. No. 30-2012-00541006)

v.

OPINION

HYUNDAI MOTOR AMERICA et al.,

Defendants and Respondents.

Appeal from a judgment of the Superior Court of Orange County, Robert J.

Moss, Judge. Reversed and remanded.

Hutchens & Hutchens, Lawrence J. Hutchens and Kalman A. Hutchens for

Plaintiff and Appellant.

Horvitz & Levy, Peder K. Batalden and John A. Taylor; Beatty & Myers,

Sean D. Beatty, John W. Myers and Soheyl Tahsildoost for Defendants and Respondents.

* * *

Ilan Brand appeals from the trial court’s entry of judgment in favor of defendants Hyundai Motor America and Allen Used Cars, LLC (dba Allen Hyundai; collectively hereafter Hyundai) after granting Hyundai’s nonsuit motion on Brand’s breach of implied warranty of merchantability lawsuit. (Civ. Code, § 1792; all subsequent statutory references are to this code unless noted.) Brand argues the trial court erred in granting the motion on grounds that no reasonable jury could conclude a new vehicle sunroof that spontaneously opens and closes while driving constitutes a safety hazard in violation of the implied warranty. As we explain, Brand is correct and we therefore reverse the judgment and remand the matter for further proceedings consistent with this opinion.

I

FACTUAL AND PROCEDURAL BACKGROUND Brand leased a new Hyundai Genesis sedan from Allen Hyundai on January 2, 2012. Brand, a tax accountant, returned home in his old vehicle that day because he planned to sell it in Las Vegas, where he commuted regularly to the other office in his practice, especially during tax season between January and April. A dealer

salesman drove the new Hyundai about 20 miles to Brand’s home in Irvine the next day, Brand drove the salesman back to the dealership, and then continued without incident

another 10 miles to his office, where he parked for the remainder of the day.

On his drive home on the 5 freeway, however, the Hyundai sunroof spontaneously and repeatedly began opening and closing. It moved “back and forth” without Brand pushing any buttons, and he was powerless to stop it. The odd, uncontrollable movement of the sunroof was itself distracting, but the inrush of wind also caused tax returns and other documents to suddenly swirl about the cabin. Brand tried to

close the sunroof to no avail and while trying to catch and tamp down the various documents, he exited the freeway. He immediately returned the vehicle to the Hyundai dealership.

The next day the Hyundai dealership informed Brand it had diagnosed the problem as a defective sunroof switch assembly.

The following day the dealership informed Brand the switch assembly it had in stock was not suitable to make the repair, but it would order a new one, and his vehicle would be ready in 24 hours.

The next day, a Friday, the vehicle was not ready and Brand was referred to the dealership’s general manager when he expressed frustration at Hyundai’s inability to resolve the problem. The general manager assured him the vehicle would be ready on Monday.

Brand drove his old vehicle to his office in Las Vegas the next day, and arranged to have the car sold there.

On Monday, January 9, a week after he leased the new Hyundai, he received a call from the dealership informing him his vehicle was “ready to be picked

up.” Later that day, however, the dealership called to inform him the car was not ready. The dealership’s attempt to repair the sunroof with a different switch assembly had failed.

The dealership informed him it would attempt the repair with a new sunroof motor assembly. Brand was still in Las Vegas, with plans to return on a flight the next day and pick up his car.

The next day he received a call in the morning from the dealership informing him the new Hyundai was not ready. The dealership assured him a Hyundai factory technician specializing in sunroofs would be at the dealership that day to fix his

vehicle. Brand flew back from Las Vegas and his wife drove him directly to the dealership in the evening. His car was not ready because the Hyundai technician had not shown up. The dealership assured him the technician would be there the next morning. The general manager promised to call him by 10:00 a.m.

The next day, Wednesday, January 11th, the dealership did not call by 10:00 a.m. Brand waited an hour. The dealership did not call by 11:00 a.m., and when Brand had not received a call by noon, he decided he wanted to return the defective Hyundai. He wrote the general manager the following e-mail, in pertinent part: “As you know, I delivered the car back to you on Tuesday January 3, after I had it for only a couple of hours since finalizing the transaction the prior day. The moonroof kept opening and closing on its own. [¶] Since then I have been informed by Steve Vargas, your service manager, that the problem was in the defective switch assembly. The part was ordered and installed but that did not solve the problem so a new motor assembly was ordered and installed. On Monday Jan[uary] 9[,] Mr. Vargas called to say the car was ready to be picked [up] only to call back the following morning to inform [me] that the moonroof was acting up again and that his technician was trying to resolve the

problem, to no avail as of today. [¶] At this point I would like to rescind the contract and demand that you refund my $6000 deposit.” Brand noted in another e-mail later that day

to the general manager: “I must tell[] you that I have lost my faith in the Hyundai brand after this bad experience.”

Brand also called Hyundai’s corporate toll-free customer service number to report his dissatisfaction and demand rescission. In an e-mail to the dealership’s general manager the next day, January 12th, Brand noted that the service department “left a voice mail at 7:37 am saying that corporate is willing to pay my first lease payment due

February 1. He also said that he would check with his manager to find out the status of the car. In other words, the problem has not been solved yet after 9 days! [¶] You called me at 10:14 am saying that the matter is now up to corporate . . . .” Two weeks later, on January 25, Brand received a letter from Hyundai’s corporate office offering to waive his first two lease payments of approximately $450 each, but rejecting his rescission request.

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