Fleck v. General Motors LLC

154 F. Supp. 3d 30, 2015 U.S. Dist. LEXIS 173445
CourtDistrict Court, S.D. New York
DecidedDecember 30, 2015
Docket14-CV-8176; 14-MD-2543 (JMF)
StatusPublished
Cited by9 cases

This text of 154 F. Supp. 3d 30 (Fleck v. General Motors LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fleck v. General Motors LLC, 154 F. Supp. 3d 30, 2015 U.S. Dist. LEXIS 173445 (S.D.N.Y. 2015).

Opinion

[32]*32OPINION AND ORDER

JESSE M. FURMAN, United States District Judge:

The first bellwether trial in this multi-district litigation (“MDL”), familiarity with which is presumed, involves claims brought by Plaintiff Robert Scheuer (“Plaintiff’ or “Scheuer”) against General Motors LLC (“Defendant” or “New GM”) stemming from a May 28, 2014 car accident involving Scheuer’s 2003 Saturn Ion. That car was manufactured by General Motors Corporation (“Old GM”) — which filed for bankruptcy in 2009, a bankruptcy from which New GM emerged. New GM now moves, pursuant to Rule 56 of the Federal Rules of Civil Procedure, for summary judgment on all of Scheuer’s claims, contending, first, that he cannot show that an alleged ignition switch defect in the car caused or enhanced his injuries and, second, that all of his claims based solely on New GM’s conduct — the only claims that could expose New GM to punitive damages — fail as a matter of law. (Docket No. 1810). For the following reasons, New GM’s motion is almost entirely DENIED.

FACTUAL BACKGROUND

The following undisputed facts are taken from admissible evidence in the record and the parties’ statements pursuant to Local Rule 56.1. Plaintiff, a resident of Oklahoma, purchased a 2003 Saturn Ion manufactured by Old GM in Nevada in the summer of 2003. (See Pl.’s Local Rule 56.1 Resp. Opp’n New GM’s Statement Undisputed Material Facts & Statement Additional Material Disputed Facts (Docket No. 1880) (“Pl.’s 56.1 Statement”) ¶1¶1-2; Third Am. Compl. (Docket No. 1696) [33]*33(“TAC”) ¶ 9). On February 25, 2014, New GM notified the National Highway Safety Administration (“NHTSA”) of a potentially deadly defect in the ignition switches installed in many GM-brand vehicles, including the 2003 Saturn Ion; and New GM’s determination to conduct a safety recall of the affected vehicles. (See Pl.’s 56.1 Statement ¶5; Affirmation R. Allan Pixton (Docket No. 1821) (“Pixton Dec!.”), Ex. 3). The NHTSA letter stated that “[t]he ignition switch torque performance [in these vehicles] may not meet General Motors’ specification. If the. torque performance is not to specification, the ignition switch may unintentionally move from the ‘run’ position to The ‘accessory’ or ‘off position with a corresponding reduction or loss of power.” (Pixton Decl., Ex. 3, at 1).

In April and May 2014, Plaintiff received two recall notices from New GM. (See PL’s 56.1 Statement ¶¶ 12-15; Pixton Decl., Exs. 4-5). The notices advised Plaintiff that replacement parts were being made available and that, in the meantime, he should “remove all items fi’om your key ring, leaving only the vehicle key. The key fob (if applicable) should also be removed from the key ring.” (Pixton Deck, Ex. 4). Following receipt of the May notice, Plaintiff called his local car dealership and was informed that replacement parts were not then available. (See Ph’s 56.1 Statement ¶¶ 16-18). The dealership also reminded Plaintiff to take everything but his ignition switch key off his key ring, which Plaintiff did. (See id. ¶¶ 18-19).. Plaintiff continued to drive the Saturn Ion. (See id. ¶¶ 19-20).

On May 28, 2014, Plaintiff was driving on a highway in Oklahoma when he was forced off the road by another car. (See id. ¶¶ 20-22). The precise sequence of what followed is heavily disputed, but Plaintiff’s car ended up crashing head-on into two trees. (See id. ¶¶ 21-22). Plaintiffs frontal airbags, however, did not deploy. (See Deck Robert C. Hilliard Supp. Ph’s Mem. Law Opp’n New GM’s Mot. Summ. J. (Docket No. 1882) (“Hilliard Deck”), Ex. 14 (“Sclieuer Dep.”), at 126). Shortly after the accident, Plaintiffs insurer, State Farm, “determined that the vehicle was a total loss,” and paid him a sum representing “the value of the vehicle.” (Mem. Law Supp.- PL’s Mot. In Limine No. 4 (Docket No. 1712) (“PL’s Fourth MIL Mem.”) 4; see id., Ex. 1). Thereafter, State Farm transferred title for the car to a salvage yard, and on September 22, 2014, the salvage yard destroyed the car. (See Pl.’s Fourth MIL Mem. 4; id., Ex. 3; New GM’s Combined Opp’n PL’s Mot. In Limine No. 4 (Docket No. 1816) 5). On October 10, 2014, Plaintiff filed this action against New GM, alleging that he suffered various inju-riés as a result of the airbag non-deployment in his crash and that the airbag non-deployment was a result of the widely publicized ignition! switch defect. (Complaint, Fleck, et al. v. General Motors, LLC, No. 14-CV-8176 (JMF) (S.D.N.Y. Oct. 10, 2014), Docket No. 1; see also ‘TAC ¶¶7-8). Plaintiffs case' was consolidated with the MDL and eventually selected to be tried as the first of several “bellwether” cases. (See MDL Consolidated Order, Fleck, 14-CV-8176 (S.D.N.Y. Oct. 20, 2014), Docket No. 4; Order No. 25, 14-MD-2543, Docket No. 422; 14-MD-2543, Docket No. 590; 14-MD-2543, Docket No. 1217).

BANKRUPTCY PROCEEDINGS

Before turning to New GM’s arguments for summary judgment, it is necessary to briefly summarize certain proceedings before the Honorable Robert. E. Gerber, United States Bankruptcy Judge for the Southern District of New York, who presided over the bankruptcy of Old GM in 2009. After New GM’s disclosure of the ignition switch defect in early 2014, many claims were filed against New GM — some alleging economic losses and some alleging [34]*34personal injuries and wrongful deaths. In April and August 2014, New GM filed motions before the Bankruptcy Court alleging that many of those claims were barred by the 2009 Sale Order through which New GM assumed many of Old GM’s assets and some of its liabilities. In April 2015, Judge Gerber ruled that many of the claims brought against New GM were in fact barred by the 2009 Sale Order. See In re Motors Liquidation Co,, 529 B.R. 510 (Bankr.S.D.N.Y.2015). In particular, he determined that New GM could be .held liable for certain assumed liabilities of Old GM (namely, products liability claims that were included in the Sale Agreement), but distinguished between liability based on Old GM’s conduct and liability for “claims based solely on any wrongful conduct its own part.” Id at 583. A later Order implementing that opinion defined claims “based solely on New GM’s own, independent, post-Closing acts or conduct” as “Independent Claims.” See In re Motors Liquidation Co., 09-50026 (REG), Docket No. 13177 ¶4 (Bankr.S.D.N.Y. June 1, 2015).

The definition of “Independent Claims” reemerged as significant-in Judge Gerber’s recent opinion on punitive damages and “imputation.” See In re Motors Liquidation Co., 541 B.R. 104 (Bankr.S.D.N.Y. 2015) (“November Decision”). There, Judge Gerber made two findings that bear on this bellwether trial. First, he determined that, as a matter of bankruptcy law, knowledge of Old GM personnel or knowledge of information contained in Old GM files could be imputed to New GM only to the extent that it could be shown, as a matter of non-bankruptcy law, that New GM actually had that knowledge (for example, through an Old GM employee who later became an employee of New GM). See November Decision at 108. Second, Judge Gerber ruled that claims for punitive damages could only be “based on New GM knowledge and conduct alone” because New GM did not assume liability for punitive damages under the Sale Agreement. See id.

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154 F. Supp. 3d 30, 2015 U.S. Dist. LEXIS 173445, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fleck-v-general-motors-llc-nysd-2015.