Counts v. General Motors, LLC

237 F. Supp. 3d 572, 2017 WL 588457, 2017 U.S. Dist. LEXIS 20277
CourtDistrict Court, E.D. Michigan
DecidedFebruary 14, 2017
DocketCase No. 16-cv-12541
StatusPublished
Cited by26 cases

This text of 237 F. Supp. 3d 572 (Counts v. General Motors, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Counts v. General Motors, LLC, 237 F. Supp. 3d 572, 2017 WL 588457, 2017 U.S. Dist. LEXIS 20277 (E.D. Mich. 2017).

Opinion

OPINION AND ORDER GRANTING IN PART DEFENDANT’S MOTION TO DISMISS

THOMAS L. LUDINGTON, United. States District Judge

On June 7, 2016, nine plaintiffs filed a 442-page, complaint alleging deceptive advertising, breach of contract, and fraudulent concealment claims under the. laws of thirty states against Defendant General Motors (“GM”). ECF No. 1. Fundamentally, Plaintiffs allege that GM installed a “defeat device” in the 2014 Chevrolet Cruze Diesel which results in significantly higher emissions when the vehicle is in use compared to when it is being tested in laboratory conditions. Plaintiffs purport to bring suit on behalf of a putative class of other 2014 Chevrolet Cruze Diesel buyers. On October 3, 2016, Defendant filed a motion to dismiss which argues that Plaintiffs suit should be dismissed because Plaintiffs lack standing to bring suit, the claims are preempted by the Clean Air Act, the primary jurisdiction doctrine mandates deference to an EPA investigation of the claims, and Plaintiffs.have failed to state a claim upon which relief can be. based. .ECF No. 12. For the reasons stated below, that motion will be granted in part.

I.

When considering a motion to dismiss, the plaintiffs adequately pleaded factual allegations must be accepted as true. Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). That is, the veracity of the factual allegations in Plaintiffs’ Complaint is to be assumed.

A.

Plaintiffs’ complaint names nine plaintiffs: Jason Counts, Donald Klein, Oscar Zamora, Brandon Stone, Jason Silveus, John Miskelly, Thomas Hayduk, Joshua [578]*578Hurst, and Joshua Rodriguez. Compl. at ¶ 2(M4, ECF No. 1. The complaint alleges that each Plaintiff is similarly situated. All bought a Chevrolet Cruze1 which was allegedly equipped with a “defeat device” that resulted in significantly increased emissions when tested during normal driving as compared to when tested in laboratory settings. Plaintiffs further allege that they purchased the vehicle on the “reasonable, but mistaken, belief that [the] vehicle was a ‘clean diesel’ as compared to gasoline vehicles, complied with United States emissions standards, and would retain all of its operating characteristics throughout its useful life, including high fuel economy.” See id. at ¶¶ 20, 23, 26, 27, 30, 33, 36, 39, 42. Further, Plaintiffs allege that they “selected and ultimately purchased [their] vehicles[s], in part, because of the Clean Diesel system, as represented through the advertisements and representations made by GM.” Id. Finally, Plaintiffs allege that if GM had disclosed the true details of the clean diesel system design or indicated that the 2014- Chevrolet Cruze actually “emitted pollutants at a much higher level than gasoline vehicles do,” they “would not have purchased the vehicle, or Would have paid less for it.” Id.

Defendant General Motors designs, markets, manufactures, and distributes automobiles, including those marketed under the Chevrolet brand, worldwide. Id. at 46. GM designed and manufactured the 2014 Chevrolet Cruze Diesel. Id. GM also developed and disseminated the advertising campaign for the vehicle. Id.

B.

According to Plaintiffs, diesel engines offer increased torque, low-end power, drivability, and fuel efficiency compared to gasoline engines. Id. at ¶ 4. However, those advantages are offset by the dirtier, more harmful, emissions which diesel engines produce. Id. Specifically, diesel combustion creates oxides of nitrogen (NOx), a “toxic pollutant” that “contributes to nitrogen dioxide, particulate matter in the air” and certain health problems. Id. at ¶ 54. Generally speaking, the “greater the power and fuel efficiency” of the diesel engine, “the dirtier and more harmful the emissions.” Id. at ¶ 54.

Because of the pollutants produced by diesel combustion, the Environmental Protection Agency has promulgated regulatory standards (pursuant to the Clean Air Act) which govern, among other things, the amount of NOx that diesel engine vehicles can produce. Id. at ¶ 56. GM, and other vehicle manufacturers, must obtain certifications that a new vehicle complies with EPA (and certain state) regulations before introducing the vehicle into the stream of commerce. Id.

When it designed the 2014 Chevrolet Cruze Diesel, GM sought to feature all the advantages of diesel engines while minimizing the emission of harmful pollutants. Id. at ¶¶ 60-62. By creating the “Cruze Clean Turbo Diesel” engine, GM apparently built a powerful, efficient, diesel engine that was environmentally-friendly. Id. Plaintiffs allege that GM marketed the 2014 Chevrolet Cruze as a “Clean Diesel” vehicle that was “environmentally friendly and fuel efficient.” Id. at ¶ 63. In their complaint, Plaintiffs include several images that GM disseminated during the advertising campaign. See id. at ¶¶ 65-68. Those images include the words “clean diesel,” indicate that the “Clean Turbo Diesel” engine “improves performance while decreasing emissions,” and state that “[a]dvanced [579]*579emissions-scrubbing technologies make today’s diesels run clean.” Id. In one especially relevant image, GM advertised that “[t]he turbocharged engine in Cruze Clean Turbo Diesel [sic] generates at least 90% less nitrogen oxide and particulate emissions when compared to, previous-generation diesels.” Id. at ¶ 68. Plaintiffs also cite numerous advertisements and public statements promulgated by GM which assert GM’s commitment to high quality standards and environmental responsibility. Id. at ¶¶ 69-72.

C.

All parties agree that GM received a certification of compliance with the relevant regulations from the EPA prior to releasing the 2014 Chevrolet Cruze Diesel. However, Plaintiffs allege 'that, despite that certification and GM’s “clean diesel” advertising campaign, the 2014 Chevrolet Cruze Diesel was equipped with a “defeat device” which triggered the Cruze Clean Turbo Diesel functions when the vehicle was being tested, but deactivated the system when the vehicle was actually in use. Id. at ¶¶ 73-75.

Specifically, Plaintiffs allege that multiple reports and tests indicate that GM vehicles equipped with “clean diesel” systems “emit far more pollution on the road than in lab tests.” Id. at ¶73. In one alleged study that was conducted by “TNO” at the direction of the Dutch Ministry of Infrastructure, real-world testing indicated that the “GM Opel emits NOx at levels much higher than in controlled dy-namometer tests and much higher than the ‘Euro 6 Standard,’ which is less stringent than the U.S. standard.” Id. at ¶ 74. The TNO study, which was released in May 2015, found that “on average [the GM Opel] vehicles were at eight times the [European] limit.” Id. at ¶75. Although the study involved European vehicles, Plaintiffs allege that the “core technologies of the Opel design are substantially similar to the Chevy Cruze.” Id. In one particularly relevant portion of the TNO report that Plaintiffs quote, TNO states: ‘“In most circumstances arising in normal situations on the road, the systems scarcely succeed in any effective reduction of NOx -emissions.’ ” Id. at ¶ 79.

Plaintiffs also allege that the British Department of Transportation released a study in April 2016 which reached similar conclusions.

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Cite This Page — Counsel Stack

Bluebook (online)
237 F. Supp. 3d 572, 2017 WL 588457, 2017 U.S. Dist. LEXIS 20277, Counsel Stack Legal Research, https://law.counselstack.com/opinion/counts-v-general-motors-llc-mied-2017.