Cholakyan v. Mercedes-Benz USA, LLC

281 F.R.D. 534, 2012 WL 1066755, 2012 U.S. Dist. LEXIS 44073
CourtDistrict Court, C.D. California
DecidedMarch 28, 2012
DocketNo. CV 10-05944 MMM (JCx)
StatusPublished
Cited by29 cases

This text of 281 F.R.D. 534 (Cholakyan v. Mercedes-Benz USA, LLC) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cholakyan v. Mercedes-Benz USA, LLC, 281 F.R.D. 534, 2012 WL 1066755, 2012 U.S. Dist. LEXIS 44073 (C.D. Cal. 2012).

Opinion

ORDER DENYING PLAINTIFF’S MOTION FOR CLASS CERTIFICATION

MARGARET M. MORROW, District Judge.

On August 10, 2010, plaintiff Tigran Cholakyan filed this putative class action against Mercedes-Benz, USA, LLC (“MBUSA”) alleging (1) violation of California’s Consumer Legal Remedies Act (CLRA), California Civil Code § 1750 et seq.; (2) violation of California’s Secret Warranty Law, California Civil Code § 1795.90 et seq.; (3) violation of California’s Unfair Competition Law (“UCL”), California Business & Professions Code § 17200 et seq.; and (4) breach of implied warranty under the Song-Beverly Consumer Warranty Act, California Civil Code §§ 1792 and 1791.1 et seq.1 On December 13, 2010, defendant filed a motion to dismiss and/or strike, which the court granted in part and denied in part on June 30, 2011.2 On July 20, 2011, plaintiffs filed a second amended class action complaint.3

Prior to that time, on June 20, 2011, plaintiff had filed a motion for class certification under Rule 23(a) and 23(b)(3).4 Although he filed the motion to comply with the court’s ease management schedule, plaintiff requested that the court extend the schedule to give the parties time to resolve various discovery disputes that had allegedly prevented him from obtaining evidence supporting certification.5 Based on plaintiffs showing, the court extended the date for filing a motion for class certification to January 23, 2012.6

On that date, plaintiff filed a new motion for class certification. In contrast to plaintiffs original motion, the pending motion seeks to certify a class under Rule 23(b)(2).7 Defendant opposes the motion.8

I. FACTUAL BACKGROUND

A. The Complaint’s Allegations

Plaintiff Tigran Cholakyan is a California citizen who resides in Los Angeles County.9 On August 7, 2008, Cholakyan purchased a Certified Pre-Owned 2005 E-320 Mercedes Benz, with approximately 28,841 miles on its odometer, from Mercedes-Benz of Calaba[538]*538sas, California.10 In January 2010, he parked the vehicle at Burbank Airport before leaving for a weekend trip to Las Vegas.11 Upon his return, Cholakyan discovered that it had rained in Los Angeles, and that water had entered and flooded the interior cabin of his vehicle. Subsequently, in March 2010, the interior cabin of plaintiffs vehicle flooded again; there were approximately 44,226 miles on the odometer at the time of this second incident.12

Following the March 2010 incident, Cholakyan brought the vehicle to a Mercedes-Benz authorized dealer, and complained about the water leak and the damage it had caused.13 He asserts that the dealer “verified” that the vehicle was experiencing a “water leak defect,”14 and advised Cholakyan that he would have to pay several hundred dollars, in addition to a diagnostic fee, to repair the water leak defect and resulting damage.15 The cost of repairs was not covered by the Certified Pre-Owned vehicle warranty on the vehicle.16 Cholakyan alleges that the dealer “failed to inform [him] about one of the many causes of the water leak defect,” and stated that the water drainage system was blocked with “ ‘leaves and debr[is].’ ”17

Thereafter, water leaked into the overhead dome light located next to the sunroof on Cholakyan’s vehicle.18 After noting this, Cholakyan looked at the vehicle’s head liner to see if he could identify any other problems.19 He noticed that water was leaking into the light that illuminates the front passenger side vanity mirror as well.20

Cholakyan alleges that “over the last approximately seven months,” his vehicle has experienced “unusual electrical problems.”21 These include failure to make a sound when the doors are locked and unlocked or when the alarm is activated, a malfunction in the sensor that indicates whether the front passenger has fastened his or her seatbelt (which, Cholakyan alleges on information and belief, also tells the vehicle if the passenger side airbag should deploy during an accident), and problems with the vehicle’s navigation system.22 These electrical problems allegedly coincided with multiple water leaks in the vehicle.23

Cholakyan seeks to represent a class of similarly situated persons who purchased or leased certain “defective Mercedes-Benz E-Class vehicles sold by defendant,” specifically 2003 to 2009 Mercedes-Benz E-Class W-211 vehicles (“class vehicles”).24 He alleges that the class vehicles’ water drainage system is defective because it fails to prevent water from entering the vehicles’ interior cabins.25 Cholakyan asserts that the defect is “substantially and unreasonably dangerous” because the water leaks and water damage cause the vehicles to experience electrical failures.26 He asserts that, in light “of the [539]*539danger of catastrophic engine and/or electrical system failure as a result of water entering and flooding a vehicle’s interior cabin while the vehicle is in operation,” the class vehicles pose a safety hazard and are unreasonably dangerous to consumers. Specifically, Cholakyan contends that “the water leak defect can cause engine failure, suddenly and unexpectedly, at any time and under any driving condition or speed, thereby contributing to traffic accidents, which can result in personal injury or death.”27

In addition to these safety hazards, Cholakyan asserts that the cost of repairing the water leak defect is exorbitant, since consumers are “required to pay hundreds, if not thousands, of dollars both to diagnose and repair the water leak defect and to repair the extensive damage that it causes to a vehicle’s electrical system, computer system, and other” parts of the vehicle.28 As a result, he alleges, on information and belief, that the Class Vehicles are not fit for their intended purpose of providing consumers with safe and rehable transportation.29

Cholakyan contends that defendant actively concealed the water leak defect from him and other putative class members at the time they purchased or leased their vehicles, and at all times thereafter. He asserts that defendant “acknowledged” the defect as early as October 22, 2002, when it published a Dealer Technical Bulletin (“DTB”) stating that the class vehicles were experiencing “water ingress into the front footwells ... resulting in electrical malfunctions.”30 He asserts that between 2003 and 2007, defendant undertook at least three “clandestine service campaigns” to address the water leak defects.31 In March 2004, defendant issued a bulletin noting that “[i]n certain vehicles, it is possible that the water drains located in the front wheelhouses ... may not drain water properly.”32 An October 2004 bulletin stated that “[Mercedes-Benz] ha[d] determined that on affected vehicles ... it is possible that the water drains ...

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Cite This Page — Counsel Stack

Bluebook (online)
281 F.R.D. 534, 2012 WL 1066755, 2012 U.S. Dist. LEXIS 44073, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cholakyan-v-mercedes-benz-usa-llc-cacd-2012.