Chamberlan v. Ford Motor Co.

314 F. Supp. 2d 953, 2004 U.S. Dist. LEXIS 11576, 2004 WL 615090
CourtDistrict Court, N.D. California
DecidedMarch 24, 2004
DocketC 03-2628 CW
StatusPublished
Cited by10 cases

This text of 314 F. Supp. 2d 953 (Chamberlan v. Ford Motor Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chamberlan v. Ford Motor Co., 314 F. Supp. 2d 953, 2004 U.S. Dist. LEXIS 11576, 2004 WL 615090 (N.D. Cal. 2004).

Opinion

ORDER DENYING DEFENDANT’S MOTION TO DISMISS

WILKEN, District Judge.

Defendant Ford Motor Company has filed a motion to dismiss Plaintiffs’ claims on the ground of preemption. Plaintiffs oppose this motion. The matter was heard on October 17, 2003. Having considered all of the papers filed by the parties and oral argument on the motion, the Court denies Defendant’s motion.

BACKGROUND

Plaintiffs bring this action on behalf of themselves and all similarly situated persons residing in California who purchased certain automobiles (Subject Automobiles) 1 manufactured by Defendant. In relevant part, the complaint alleges that, beginning in 1996, Defendant manufactured, sold, and distributed Subject Automobiles containing defective intake manifolds. Compl. at ¶ 2. Plaintiffs allege that no later than January 1, 1997, and possibly earlier, Defendant became aware that a large number of intake manifolds in the Subject Automobiles were cracking prematurely, exposing drivers and their passengers to serious risk of injury. Id. at ¶ 4. Plaintiffs allege that Defendant’s testing and records showed that the intake manifolds failed at a “much higher rate than was to be expected from a properly functioning manifold, and was occurring much more quickly than the expected life of the part.” Id. at ¶ 5.

Starting in January, 1998, Defendant began to offer several extended warranty protection, or “recall,” programs for free replacement or repair of the defective intake manifolds for some of the Subject Automobiles. Id. at ¶ 6. Plaintiffs allege, however, that Defendant extended this offer almost exclusively to fleet purchasers of Subject Automobiles such as taxi cab companies, limousine companies, and police forces. Id. Plaintiffs allege that by failing to send the recall letter or offer the recall program to the vast majority of consumer purchasers of Subject Automobiles, Defendant “concealed from and/or failed to disclose to Plaintiffs and the Class the defective nature of the intake manifolds contained in the Subject Automobiles.” Id. at ¶ 7. As a result of these defective intake manifolds, the Subject Automobiles purchased by Plaintiffs and the Class “did not perform in accordance with the reasonable expectations of Plaintiffs and the Class-namely, that the automobiles were suitable for normal use as a passenger vehicle.” Id. at ¶ 8.

The complaint alleges that Plaintiff Brian Champine bought a 1996 Ford Thunderbird on September 13, 2000 and the intake manifold cracked on March 28, 2002 at about 88,000 miles. Id. at ¶ 12. Plaintiff Susan Chamberlan bought a used 1997 Mercury Grand Marquis. In June, 2002, the intake manifold in her car cracked at about 60,000 miles. Id. at ¶ 13. Plaintiff Henry Fok bought a used 1998 Mustang GT convertible, and in March, 2003, the car’s intake manifold cracked at 70,000 *956 miles. Id. at ¶ 14. Plaintiffs allege that Defendant, “through its own efforts and through its network of authorized dealerships acting as its agents ... warranted, advertised, distributed, and sold its automobiles throughout the state of California.” Id. at ¶ 16.

Plaintiffs’ claim under the Unfair Competition Law (UCL), Cal. Bus. & Prof. Code §§ 17200 et seq. alleges that Defendant engaged in “unfair competition or unlawful, unfair or fraudulent business practices in violation of the Unfair Business Practices Act when [it] omitted to disclose that the Subject Automobiles have defective intake manifolds.” Id. at ¶ 34.

PROCEDURAL HISTORY

On August 6, 2003, this Court granted Defendant’s motion to dismiss Plaintiffs’ UCL claim because the restitutionary relief requested was unavailable under the facts as alleged in the complaint and granted Plaintiffs leave to amend their UCL claim. In their amended UCL claim, Plaintiffs seek “[a]n order temporarily and permanently enjoining Defendants from continuing the unfair business practices alleged” in their complaint. Defendant now seeks to dismiss Plaintiffs’ amended UCL claim on the ground that it is preempted.

LEGAL STANDARD

1. Motion to Dismiss

A motion to dismiss for failure to state a claim will be denied unless it appears that the plaintiff can prove no set of facts which would entitle it to relief. Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957). Dismissal of a complaint can be based on either the lack of a cognizable legal theory or the lack of sufficient facts alleged under a cognizable legal theory. Balistreri v. Pacifica Police Dept., 901 F.2d 696, 699 (9th Cir.1990).

All material allegations in the complaint will be taken as true and construed in the light most favorable to the plaintiff. NL Indus., Inc. v. Kaplan, 792 F.2d 896, 898 (9th Cir.1986). Where a State law claim is preempted by federal law, that claim must be dismissed for failure to state a claim because the claimant cannot prove any set of facts that will support the claim for relief. Kent v. Daimlerchrysler Corp., 200 F.Supp.2d 1208, 1212 (N.D.Cal.2002).

II. California’s UCL

The UCL prohibits “unfair competition,” which includes “any unlawful, unfair or fraudulent business act or practice and unfair, deceptive, untrue or misleading advertising and any act prohibited by Chapter 1 2 (commencing with Section 17500) of Part 3 of Division 7 of the Business and Professions Code.” Cal. Bus. & Prof.Code § 17200.

The UCL provides for monetary relief in the form of restitution as well as injunctive relief:

“Any person who engages, has engaged, or proposes to engage in unfair competition may be enjoined in any court of competent jurisdiction. The court may make such orders or judgments, including the appointment of a receiver, as may be necessary to prevent the use or employment by any person of any practice which constitutes unfair competition, as defined in this chapter, or as may be necessary to restore to any person in interest any money or property, real or personal, which may have been acquired by means of such unfair competition.”

Cal. Bus. & Prof.Code § 17203.

III. Preemption

Under the Supremacy Clause, State law that conflicts with federal law has no ef- *957 feet. Cipollone v. Liggett Group, Inc., 505 U.S. 504, 516, 112 S.Ct. 2608, 120 L.Ed.2d 407 (1992)(citing U.S. Const, art. VI, cl. 2). Federal preemption of State law may be express or implied. Shaw v. Delta Air Lines, Inc., 463 U.S. 85, 95, 103 S.Ct. 2890, 77 L.Ed.2d 490 (1983).

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Bluebook (online)
314 F. Supp. 2d 953, 2004 U.S. Dist. LEXIS 11576, 2004 WL 615090, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chamberlan-v-ford-motor-co-cand-2004.