Daigle v. Ford Motor Co.

713 F. Supp. 2d 822, 71 U.C.C. Rep. Serv. 2d (West) 618, 2010 U.S. Dist. LEXIS 45649, 2010 WL 1875521
CourtDistrict Court, D. Minnesota
DecidedMay 10, 2010
DocketCivil 09-3214 (MJD/RLE)
StatusPublished
Cited by40 cases

This text of 713 F. Supp. 2d 822 (Daigle v. Ford Motor Co.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Daigle v. Ford Motor Co., 713 F. Supp. 2d 822, 71 U.C.C. Rep. Serv. 2d (West) 618, 2010 U.S. Dist. LEXIS 45649, 2010 WL 1875521 (mnd 2010).

Opinion

MEMORANDUM OPINION AND ORDER

MICHAEL J. DAVIS, Chief Judge.

This matter is before the Court upon Defendant Ford Motor Company’s (“Ford”) motion to strike class allegations and to dismiss the claims of the individually named Plaintiffs pursuant to Federal Rule of Civil Procedure 12(b)(6).

BACKGROUND

Plaintiffs Rex Lindsay, James Genovese, Henri Caron, Sylvester Hobbs, and Edward Daigle are owners of Ford Freestar minivans that have experienced a transmission failure. (Compl. ¶¶ 14, 18, 29, 34, 38.) Plaintiffs allege that the failures are caused by a design defect in the vehicles’ torque converter, a component that acts as a bridge between the engine and the transmission. (Id. ¶ 58.) The torque converter connects to the transmission through a shaft with grooved ends, called “splines.” (Id. ¶ 59.) If the torque converter fails, *825 the splines may strip and the connection between the engine and the transmission is lost. (Id. ¶ 63.) When this connection is lost, the vehicle loses propulsion. (Id. ¶ 2.) Each Plaintiff alleges that the splines on their vehicles stripped, causing their transmissions to fail. (Id. ¶ 2.)

Plaintiffs bring this action on behalf of all who own or lease Ford Freestar or Mercury Monterey minivans from the 2004, 2005, and 2006 model years. (Id. ¶ 2.) Both the Freestar and Monterey are built in the same factory and use the same design platform. (Id. ¶ 54.)

Plaintiffs commenced this putative class action suit on November 17, 2009. Their Complaint alleges six claims against Ford: breach of an express warranty, breach of an implied warranty, unjust enrichment, breach of a duty of good faith and fair dealing, strict liability for a product defect, and negligence. Ford has moved to dismiss all claims of the named Plaintiffs pursuant to Fed.R.Civ.P. 12(b)(6). All parties agree that Minnesota law is applicable to this motion.

MOTION TO DISMISS

Fed.R.Civ.P. 8(a)(2) requires a complaint to contain “a short and plain statement of the claim showing that the pleader is entitled to relief.” This requirement has been interpreted to require enough information to give the defendant fair notice of what the claim is and the grounds upon which it rests. Bell Atlantic v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). Although detailed factual allegations are not needed, Rule 8(a)(2) requires more than a formulaic recitation of the elements of a cause of action. Id. Moreover, a claim must contain enough factual content to allow the court to “draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, — U.S. -, 129 S.Ct. 1937, 1949, 173 L.Ed.2d 868 (2009).

A court proceeds through its analysis of a Rule 12(b)(6) motion by accepting “as true all of the factual allegations contained in the complaint, and reviewing] the complaint to determine whether its allegations show that the pleader is entitled to relief.” Schaaf v. Residential Funding Corp., 517 F.3d 544, 549 (8th Cir.2008) (citing Twombly, 550 U.S. at 572, 127 S.Ct. 1955). ANALYSIS

I. UCC-Based Contract Claims

A. Express Warranty Claim

Under Minnesota law, an express warranty arises when a seller makes an affirmation about a product that becomes part of the basis of the bargain between the parties. Minn.Stat. Ann. § 336.2-313 (West 2010). “To establish a warranty claim the plaintiff must basically prove: the existence of a warranty, a breach, and a causal link between the breach and the alleged harm.” Peterson v. Bendix Home Sys., Inc., 318 N.W.2d 50, 52-3 (Minn. 1982). Ford argues that the express warranty claim should be dismissed because Plaintiffs have failed to allege that any of the buyers saw or were aware of a representation about the product that became a basis of the bargain. Plaintiffs respond that when enacting the Uniform Commercial Code (“UCC”), Minnesota abandoned a reliance requirement for an express warranty claim. Moreover, even if a reliance requirement still exists, Plaintiffs contend their express warranty claim passes muster because they have alleged that each plaintiff relied on representations contained within Ford’s advertising when purchasing their vehicles.

Both parties conflate the basis-of-the-bargain concept with the reliance concept. Ford argues that Plaintiffs fail to allege any representation that became part of the basis of the bargain or made any claim upon which the Plaintiffs relied. Plaintiffs argue that a showing of reliance is not *826 required in Minnesota, but fail to address whether basis-of-the-bargain must be alleged.

Some courts in this district have held that an allegation of fact that is part of the basis of the bargain is essential to a claim brought under Minn.Stat. § 336.2-313(l)(a). See, e.g., Riley v. Cordis Corp., 625 F.Supp.2d 769, 788 (D.Minn.2009). The Eighth Circuit has held, with regard to a common law warranty claim, that reliance and basis-of-the-bargain allegations are almost indistinguishable and one or the other is required. Hendricks v. Callahan, 972 F.2d 190, 193-94 (8th Cir. 1992). The court noted, however, that it was not convinced Minnesota has completely abandoned the requirement of reliance with respect to a breach of warranty claim under the Uniform Commercial Code. Id. at 193. And other courts have held that a reliance requirement has been abandoned in Minnesota and needs not be pled. See, e.g., Drobnak v. Andersen Corp., Civ. No. 07-2249, 2008 WL 80632, at *7 (D.Minn. Jan. 8, 2008) aff'd 561 F.3d 778 (8th Cir.2009). Whatever the distinction between “reliance” and “basis of the bargain,” a plain reading of the statute requires that the bargain be based on a representation made by the seller. Therefore, this Court’s inquiry should consider whether Plaintiff has alleged that Ford made representations that caused an express warranty to form.

Plaintiffs allege that Ford, “through its authorized dealers, agents and marketing materials” warranted that the vehicles were merchantable and fit for ordinary purposes of use. (Compl. ¶ 75.) This allegation rises beyond a mere recitation of the elements of the claim and describes with specificity possible sources of representation upon which the vehicle buyers may rely.

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713 F. Supp. 2d 822, 71 U.C.C. Rep. Serv. 2d (West) 618, 2010 U.S. Dist. LEXIS 45649, 2010 WL 1875521, Counsel Stack Legal Research, https://law.counselstack.com/opinion/daigle-v-ford-motor-co-mnd-2010.