Freidman v. General Motors Corp.

721 F. Supp. 2d 218, 2010 U.S. Dist. LEXIS 62172, 2010 WL 2540950
CourtDistrict Court, S.D. New York
DecidedJune 22, 2010
Docket08 Civ. 2458(SAS)
StatusPublished
Cited by4 cases

This text of 721 F. Supp. 2d 218 (Freidman v. General Motors Corp.) 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
Freidman v. General Motors Corp., 721 F. Supp. 2d 218, 2010 U.S. Dist. LEXIS 62172, 2010 WL 2540950 (S.D.N.Y. 2010).

Opinion

OPINION AND ORDER

SHIRA A. SCHEINDLIN, District Judge:

I. INTRODUCTION

Plaintiffs, a group of taxi companies and the individual owners of handicap-accessible taxicab medallions permitting the operation of handicap-accessible taxicabs in New York City (collectively, the “Taxi Companies”), brought the instant diversity action 1 against Areola Sales & Service Corporation (“Areola” or “defendant”), the last remaining defendant. 2 Areola now *220 moves for summary judgment seeking to dismiss plaintiffs’ remaining breach of contract claim. 3 For the following reasons, Areola’s motion for summary judgment is granted, the TAC is dismissed in its entirety, and this case is closed.

II. BACKGROUND

The New York City taxicab industry is a private industry, closely regulated by the New York City Taxi & Limousine Commission (“TLC”). 4 “A ‘taxicab medallion’ is a metallic emblem affixed to the hood of a New York City taxicab that represents a license from the City, authorizing the operation of a taxicab within the City of New York.” 5 “An ‘Accessible Medallion’ is a restricted medallion and is defined as a taxicab license valid for use only with a vehicle accessible to a passenger using a wheelchair.” 6 The total number of taxicab medallions in New York City is limited by law. 7

Plaintiffs Evgeny Freidman and two co-investors, Vladimir Basin and Mamed Dzhaniyev, won the bid for fifty-four Accessible Medallions at the TLC’s June 2006 auction. In late 2006, plaintiffs contracted with Areola for the purchase of fifty-two handicap-accessible vehicles (the “Vehicles”) pursuant to fifty-two separate Vehicle Orders, all of which were valid, enforceable, and identical in format. 8 The Vehicles were to be supplied by GM, retrofitted by ElDorado, and then delivered by Areola, 9 the Dealer. 10 Each Vehicle Order *221 contains a list of manufacturing specifications and modifications to be made to the Vehicles before delivery. 11 Each Vehicle Order also includes Additional Terms and Conditions, one of which states as follows:

8. Warranty: This vehicle is sold under one of the following conditions: (Initial appropriate line)
Warranty-SALE OF NEW VEHICLE: The only warranties applying to this Vehicle are those offered by the Manufacturers. The selling Dealer sells this Vehicle “AS IS” and hereby disclaims all warranties, either express or implied, including any implied warranties-of-merchantability-and-fitness for a particular purpose. Any liability of the selling Dealer with respect to defects or malfunctions of this Vehicle including, without limitation, those which pertain to performance or safety, whether by way of “strict liability,” based upon the selling Dealer’s negligence, or otherwise, is expressly excluded and Purchaser hereby assumes any such risks. The Manufacturers’ warranties are not affected by this disclaimer of warranties by the selling Dealer. Purchaser hereby acknowledges that Dealer has no relationship with the Chassis Manufacturer and any claims relating to the chassis or chassis components must be pursued by the Purchaser directly with the Chassis Manufacturer or through one of its authorized dealers. 12

In addition, the Vehicle Description section of the Vehicle Orders includes the following description: “Tic Approved Taxi Excl Tinted Glass And Paint.” 13

The Vehicles were purchased with the understanding that they would last for approximately three years, if used in a reasonably consistent, manner with other handicap-accessible taxicabs. 14 Plaintiffs claim that they informed people at GM, ElDorado and Areola of the requirement that the “ ‘vehicles ... be compliant with [the] TLC’s specifications and suitable for use as wheelchair accessible taxicabs in New York City.’ ” 15 Despite this notification, the Vehicles delivered by Areola did not conform to TLC specifications for handicap-accessible taxicabs. 16 According to plaintiffs, issues of non-compliance with the Vehicles were not immediately evident. 17 In any event, problems resulting *222 from defects in the Vehicles’ design and manufacture became apparent over time. 18 Problems also arose with regard to the subsequent repairs and modifications made to the Vehicles, 19 with which Areola was directly involved. 20 Plaintiffs were unhappy with the subsequent repairs and modifications made by defendants and eventually “deposited” the Vehicles with Areola, without the titles. 21 Below is a chart summarizing the dates the Vehicles were delivered by Areola to plaintiffs, 22 the dates the Vehicles were returned by plaintiffs to Areola, 23 the latest dates of TLC inspections (P for Passed, F for Failed), 24 and the Vehicles’ accrued mileage upon return to Areola. 25

Date of Last VIN #_Date Delivered TLC Exam Date Returned Days Used Mileage

7D102429 12/08/06_05/21/07 (P) 08/02/07_237_29.415

6D246249 09/06/06_05/14/07 (P) 07/30/07_327_42,277

7D175294 04/26/07_09/13/07 (P) 10/17/07_174_28,189

6D247532 09/06/06 09/10/07 (P) 10/17/07_406_65,404 09/12/07 (F)

7D128507 04/11/07_05/10/07 (P) 09/24/07_166_24,132

7D129091 04/11/07_10/01/07 (P) 11/16/07_219_39,940

7D123024 03/13/07_09/18/07 (P) 11/16/07_248_44,665

7D128257 03/27/07_09/13/07 (P) 11/16/07_234_49,247

7D123239 02/28/07_09/05/07 (P) 11/16/07_Ml_41,881

7D128984 04/11/07_09/13/07 (P) 11/16/07_219_39,828

7D127898 03/20/07_09/06/07 (P) 11/16/07_241_37,220

7D172251 04/30/07_09/17/07 (P) 11/16/07_M2_31,323

7D176816 04/17/07_09/19/07 (P) 12/14/07_241_39,732

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Cite This Page — Counsel Stack

Bluebook (online)
721 F. Supp. 2d 218, 2010 U.S. Dist. LEXIS 62172, 2010 WL 2540950, Counsel Stack Legal Research, https://law.counselstack.com/opinion/freidman-v-general-motors-corp-nysd-2010.