Coelho v. Hyundai Motor America

District Court, N.D. California·Decided May 31, 2023·No. 5:22-cv-07670·Unknown

Opinion

NADIA COELHO, Case No. 22-cv-07670-BLF

Plaintiff, ORDER GRANTING IN PART AND v. DENYING IN PART MOTION TO DISMISS; DENYING MOTION TO Defendant. [Re: ECF No. 6]

This is a lemon law case involving an allegedly defective 2017 Hyundai Sonata that Plaintiff Nadia Coelho purchased in 2021. Coelho asserts claims under state and federal law against Defendant Hyundai Motor America (“HMA”) for alleged breaches of express and implied warranties. HMA moves under Federal Rule of Civil Procedure 12(b)(6) to dismiss Coelho’s claims and moves under Federal Rule of Civil Procedure 12(f) to strike Coelho’s requests for rescission and attorney’s fees in relation to her claim under the Magnuson-Moss Warranty Act. Mot., ECF No. 6; see also Reply, ECF No. 14. Coelho opposes HMA’s motion. Opp’n, ECF No. 13. This matter is suitable for determination without oral argument. See Civ. L.R. 7-1(b). For the following reasons, the motion to dismiss is GRANTED IN PART and DENIED IN PART. The motion to strike is DENIED. Plaintiff Nadia Coelho purchased a 2017 Hyundai Sonata on June 6, 2021. Compl. ¶ 5, ECF No. 1-1. Coelho alleges that she received written warranties and other express and implied warranties when she purchased the vehicle, including a warranty that the vehicle would be free Hyundai’s New Vehicle Limited Warranty, which includes basic warranty coverage with a term of 5 years or 60,000 miles and powertrain coverage with a term of 10 years or 100,000 miles. Id. ¶ 8. On December 1, 2021, Coelho delivered the vehicle to a repair facility authorized by HMA or one of its agents. Id. ¶¶ 4, 11. Coelho notified HMA or one of its agents that the vehicle was facing complications related to several recalls, the illumination of the “HEV” warning light, the “Check Engine” warning light, and battery failure. Id. Coelho alleges that HMA has not repaired the vehicle. Id. ¶ 11. Coelho brings claims against HMA for: (1) breach of express warranty under the Song- Beverly Act; (2) breach of implied warranty of merchantability under the Song-Beverly Act; (2) breach of express warranty under California Commercial Code Section 2313; and (4) violation of the Magnuson-Moss Warranty Act. HMA asks the Court to take judicial notice of three district court opinions: (1) Fish v. Tesla, 2022 WL 1552137 (C.D. Cal. May 12, 2022); (2) Neyra v. Mercedes-Benz USA, LLC, No. 2:22-cv-00950-JFW-JEM (C.D. Cal. May 24, 2022); and (3) Edwards v. Mercedes-Benz USA, LLC, No. 2:21-cv-02671-RSWL-JC (C.D. Cal. Oct. 5, 2022). See RJN, ECF No. 7. The opinions are attached to HMA’s request for judicial notice as Exhibits A, B, and C, respectively. Coelho does not object to the request or question the authenticity of the opinions. Documents in the public record and documents filed in other courts are proper subjects of judicial notice. Reyn’s Pasta Bella, LLC v. Visa USA, Inc., 442 F.3d 741, 746 n.6 (9th Cir. 2006). Accordingly, the Court takes judicial notice of the three district court opinions submitted with HMA’s request for judicial notice. The Court does not, however, take judicial notice of any of the facts found in the opinions. HMA’s request for judicial notice is GRANTED. A. Legal Standard Under Federal Rule of Civil Procedure 12(b)(6), a court must dismiss a complaint if it fails to state a claim upon which relief can be granted. To survive a Rule 12(b)(6) motion, the plaintiff Twombly, 550 U.S. 544, 570 (2007). A claim is facially plausible when the plaintiff pleads facts that allow the court to “draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citation omitted). There must be “more than a sheer possibility that a defendant has acted unlawfully.” Id. While courts do not require “heightened fact pleading of specifics,” a plaintiff must allege facts sufficient to “raise a right to relief above the speculative level.” See Twombly, 550 U.S. at 555, 570. When determining whether a claim has been stated, the Court accepts as true all well-pled factual allegations and construes them in the light most favorable to the plaintiff. Reese v. BP Expl. (Alaska) Inc., 643 F.3d 681, 690 (9th Cir. 2011). However, the Court need not “accept as true allegations that contradict matters properly subject to judicial notice” or “allegations that are merely conclusory, unwarranted deductions of fact, or unreasonable inferences.” In re Gilead Scis. Sec. Litig., 536 F.3d 1049, 1055 (9th Cir. 2008) (internal quotation marks and citations omitted). On a motion to dismiss, the Court's review is limited to the face of the complaint and matters judicially noticeable. MGIC Indem. Corp. v. Weisman, 803 F.2d 500, 504 (9th Cir. 1986); N. Star Int'l v. Ariz. Corp. Comm'n, 720 F.2d 578, 581 (9th Cir. 1983). B. Discussion 1. Breach of Express Warranty Under the Song-Beverly Act (Claim 2) Coelho asserts a claim for breach of express warranty under the Song-Beverly Act (“SBA”). “The Song-Beverly Act is a remedial statute designed to protect consumers who have purchased products covered by an express warranty.” Rodriguez v. FCA US, LLC, 77 Cal. App. 5th 209, 217 (2022) (quoting Robertson v. Fleetwood Travel Trailers of California, Inc., 144 Cal.App.4th 785, 798 (2006)). “To that end, it regulates warranty terms and imposes service and repair obligations on the parties who issue the warranties.” Id. (citing Joyce v. Ford Motor Co., 198 Cal. App. 4th 1478, 1486 (2011)). A buyer “who is damaged by a failure to comply with any obligation under [the Act] . . . may bring an action for the recovery of damages and other legal and equitable relief.” Cal. Civ. Code § 1794(a). Coelho seeks relief under the “refund or replace” provision of the SBA, California Civil or its representative in this state is unable to service or repair a new motor vehicle, as that term is defined in paragraph (2) of subdivision (e) of Section 1793.22, to conform to the applicable express warranties after a reasonable number of attempts, the manufacturer shall either promptly replace the new motor vehicle . . . or promptly make restitution to the buyer.” Cal. Civ. Code § 1793.2(d)(2). The statute defines “new motor vehicle” in relevant part as “a new motor vehicle that is bought or used primarily for personal, family, or household purposes,” and specifies that the definition includes “a dealer-owned vehicle and a ‘demonstrator’ or other motor vehicle sold with a manufacturer’s new car warranty.” Cal. Civ. Code § 1793.22(e)(2). HMA argues that Coelho has failed to state a claim for breach of express warranty under the SBA because her vehicle is not a “new motor vehicle.” See Mot. 9. HMA contends that Coelho cannot allege that

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