Ford Motor Company v. Jennifer Parks, Individually and as Guardian of the Person and Estate of Samuel Rivera Gama, and Nicolasa Gama Dale

CourtTexas Supreme Court
DecidedJune 7, 2024
Docket23-0048
StatusPublished

This text of Ford Motor Company v. Jennifer Parks, Individually and as Guardian of the Person and Estate of Samuel Rivera Gama, and Nicolasa Gama Dale (Ford Motor Company v. Jennifer Parks, Individually and as Guardian of the Person and Estate of Samuel Rivera Gama, and Nicolasa Gama Dale) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Ford Motor Company v. Jennifer Parks, Individually and as Guardian of the Person and Estate of Samuel Rivera Gama, and Nicolasa Gama Dale, (Tex. 2024).

Opinion

Supreme Court of Texas ══════════ No. 23-0048 ══════════

Ford Motor Company, Petitioner,

v.

Jennifer Parks, Individually and as Guardian of the Person and Estate of Samuel Rivera Gama, and Nicolasa Gama Dale, Respondents

═══════════════════════════════════════ On Petition for Review from the Court of Appeals for the Fifth District of Texas ═══════════════════════════════════════

Argued February 21, 2024

CHIEF JUSTICE HECHT delivered the opinion of the Court.

As applied here, the statute of repose requires that a products- liability action be brought within 15 years of the sale of a product. 1 Plaintiffs do not dispute that the vehicle in question was transferred from Ford to its dealer to the customer more than 15 years before the plaintiffs filed suit, but the court of appeals reversed summary judgment for Ford because it did not prove the exact date the dealer paid for the

1 TEX. CIV. PRAC. & REM. CODE § 16.012(b). vehicle in full. 2 We hold that such proof is not required and that Ford conclusively established its entitlement to repose. We reverse the court of appeals’ judgment and render judgment for Ford. I A Samuel Gama suffered serious injuries when his 2001 Ford Explorer Sport rolled over on the President George Bush Turnpike. Two years later, on May 17, 2016, Gama’s wife, Jennifer Parks, brought products-liability claims individually and as Gama’s guardian against Ford Motor Company. Parks alleged that the Explorer’s design made it unstable and prone to rollovers and that the design of its roof and restraint system increased the risk of injury in a crash. Ford moved for summary judgment, arguing that Parks’ suit is foreclosed by the statute of repose in Section 16.012(b) of the Texas Civil Practice and Remedies Code. With exceptions not applicable here, “a claimant must commence a products liability action against a manufacturer or seller of a product before the end of 15 years after the date of the sale of the product by the defendant.” 3 The proceedings were protracted and winding. Both sides’ arguments evolved in the three years between Ford’s initial summary- judgment motion and the trial court order being appealed. The trial court granted Ford’s initial summary-judgment motion; then vacated that order and granted Parks’ motion for new trial; then denied Ford’s

2 ___ S.W.3d ___, 2022 WL 17423590 (Tex. App.—Dallas Dec. 6, 2022).

3 TEX. CIV. PRAC. & REM. CODE § 16.012(b).

2 renewed summary-judgment motion; then denied Ford’s motion for reconsideration of that order; before reversing course again and granting yet another summary-judgment motion by Ford, which was the court’s final order. When all was said and done, the evidence that Ford sold the Explorer to a dealership more than 15 years before Parks filed suit was overwhelming. Ford’s witnesses were Robert Pascarella, an engineer with Ford since 1989, and Michael O’Brien, a 28-plus-year Ford employee 4 who was serving as its U.S. Sales Strategy Manager when his testimony was taken. With respect to Pascarella, the evidence included two affidavits he made for this case and his deposition in Camacho v. Ford Motor Co., a similar case then-pending in federal court. 5 With respect to O’Brien, the evidence included his affidavit in this case, his deposition in this case, and his deposition in Camacho. Ford’s documentary evidence included a “Mini 999” report and a vehicle information report for the Explorer, which are compilations of data recorded by Ford or a dealership in the NAVIS (North American Vehicle Invoicing System) database; Ford’s Sales and Service Agreement with dealerships; and its Vehicle Terms of Sale Bulletin, which is incorporated by reference into the Sales and Service Agreement. The Mini 999 report, vehicle information report, and Pascarella’s affidavit testimony establish that the Explorer was manufactured by Ford at its Louisville, Kentucky plant on May 8, 2000; that Ford

4 O’Brien testified at his December 2020 deposition in this case that he

had been employed by Ford for 28 1/2 years. 5 993 F.3d 308 (5th Cir. 2021).

3 “released” the Explorer to the Town East Ford dealership in Mesquite, Texas on May 9, 2000; that the Explorer was shipped or delivered to Town East on May 12, 2000; and that Town East sold or leased the Explorer to a retail customer in June 2000. 6 At the deposition taken in this case, O’Brien testified that Ford sells its vehicles to independently owned Ford and Lincoln franchise dealers and that it never sells or leases new vehicles directly to the public. “All sales are done through our dealership network”, and leases are “also done through dealerships”, he said. 7 O’Brien then explained that after a vehicle leaves the assembly line, “it is at that point released to the carrier, and the release to the carrier is the trigger point in which the dealership pays us for the vehicle and the vehicle becomes what is essentially sold to the dealer.” O’Brien was asked about Ford’s sales process multiple times, and each time he gave the same answer. “[W]e sell it one time and that is to the dealership.” “[U]pon delivery to the carrier” is “when Ford gets its money[,] and . . . that’s the only sale that . . . Ford records. Obviously there’s a subsequent sale to an end user that gets reported back to us,

6 Pascarella’s September 2019 affidavit states that the Mini 999 report

for the Explorer reflects that Town East reported that it sold the Explorer to a retail customer. Parks filed an affidavit of Charles Stewart, who averred that he leased the Explorer from Town East for three years beginning June 30, 2000. It does not matter to our analysis whether Town East sold or leased the Explorer to Stewart. 7 In Texas, vehicle manufacturers are prohibited by law from selling

new vehicles directly to the public. See TEX. OCC. CODE § 2301.252(a) (“A person may not engage in the business of buying, selling, or exchanging new motor vehicles unless the person: (1) holds a franchised dealer’s license issued under this chapter . . . ; or (2) is a bona fide employee of the holder of a franchised dealer’s license.”).

4 but the only sale Ford makes directly is that one to the dealer.” O’Brien also explained how a dealership typically pays Ford. “They often have a line of credit with a bank”—which is called floorplan financing—“and so we draft that bank on that simultaneous with [the vehicle’s] being released . . . from the plant . . . .” When asked if every vehicle is sold the same way, O’Brien responded, “[y]es.” O’Brien was questioned about Ford’s Sales and Service Agreement, which he described as “essentially the binding document between Ford Motor Company and the dealer”, as well as Ford’s Vehicle Terms of Sale Bulletin. Under paragraph 11(a) of the Agreement, “[p]ayment by the Dealer for each Company Product shall be in accordance with the terms and conditions set forth in” the Bulletin. 8 Under paragraph 11(b), “[t]itle to each Company Product purchased by the Dealer shall (unless otherwise provided in the [Bulletin]) pass to the Dealer, or to such financing institution or other party as may have been designated to the Company by the Dealer, upon delivery thereof to the carrier or to the Dealer, whichever occurs first”. But “the Company shall retain a security interest in and right to repossess any product until paid therefor”, it says. The Bulletin, in turn, reiterates that “[t]he Dealer shall pay the Company for each Vehicle . . . sold to the Dealer the Wholesale Delivered Price” upon “delivery of the Vehicle to the Dealer or the carrier, whichever occurs first”. O’Brien was also questioned about the Explorer’s Mini 999 report and the NAVIS database the report pulls information from. O’Brien

8 For readability, words appearing in all caps in the Agreement or the

Bulletin are merely capitalized here.

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Ford Motor Company v. Jennifer Parks, Individually and as Guardian of the Person and Estate of Samuel Rivera Gama, and Nicolasa Gama Dale, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ford-motor-company-v-jennifer-parks-individually-and-as-guardian-of-the-tex-2024.