Gaines v. General Motors Company

District Court, S.D. California·Decided March 17, 2020·No. 3:17-cv-01351·Unknown

Opinion

KELLEY GAINES, Case No.: 17cv1351-LAB (JLB)

Plaintiff, ORDER DENYING MOTION FOR v. LEAVE TO AMEND; AND

ORDER OF DISMISSAL Defendant. This putative class action arises from the sale of Cadillac SRX vehicles with allegedly defective sunroofs. In a substantial order (Docket no. 26), the Court granted Defendant General Motors LLC’s (GM’s) motion to dismiss, without granting Plaintiff Kelley Gaines leave to amend. Ordinarily, leave to amend is granted unless the complaint cannot be saved by amendment. Kendall v. Visa U.S.A., Inc., 518 F.3d 1042, 1051 (9th Cir. 2008). Leave to amend is properly denied where the amendment would be futile, or where the amended complaint would be subject to dismissal. Saul v. United States, 928 F.2d 829, 843 (9th Cir. 1991). Gaines’ untimely breach of express warranty claim clearly could not be salvaged. It appeared unlikely, though not certain, that the other claims could be successfully amended. The Court permitted Gaines to file a motion for leave to file a second amended complaint (“SAC”), and made clear it would have to correct the defects the Court had pointed out. If the proposed amended complaint did not correct the identified defects, the Court would understand it to mean that she could not. The Court directed Gaines to consider whether a class could be certified. The diversity and amount in controversy requirements under the ordinary diversity statute are obviously not met. The Court has jurisdiction — if at all — only under the Class Action Fairness Act (CAFA). Under Fed. R. Civ. P. 23(c)(1)(A), the Court is directed to determine class certification as early as practicable. See also China Agritech, Inc. v. Resh, 138 S. Ct. 1800, 1802 (2018). But more importantly, certification is necessary for the Court to be able to exercise jurisdiction. The Court must examine its own jurisdiction, sua sponte if necessary. See Chapman v. Pier 1 Imports (U.S.) Inc., 631 F.3d 939, 954 (9th Cir. 2011) (en banc). Because the Court pointed out particular defects, Gaines is expected to remedy those, unless she shows a reason why she cannot or should not be required to. Ambiguities, vagueness, or factual gaps that might be excused at an earlier stage are less excusable after they have been pointed out and she has been given opportunity to amend and correct them. See Zucco Partners, LLC v. Digimarc Corp., 552 F.3d 981, 1007 (9th Cir. 2009) (quoting In re Read-Rite Corp. Sec. Litig., 335 F.3d 843, 848 (9th Cir. 2003)) (“[W]here the plaintiff has previously been granted leave to amend and has subsequently failed to add the requisite particularity to its claims, ‘[t]he district court's discretion to deny leave to amend is particularly broad.’”) Background The following facts are taken from the proposed second amended complaint (“SAC”). Gaines leased a model year 2010 Cadillac SRX around May of 2010, and apparently later bought it. Her car first experienced a sunroof leak on or around February 28, 2017, when she found the floorboard carpet soaked. Shortly after that, she took her car to be repaired. The padding between the firewall and instrument panel assembly was saturated with water. The repair shop discovered that the right front sunroof drain hose was loose, and the right front sunroof drain was not seated in the grommet at the firewall. The shop ran an electrical system diagnostic, but Gaines does not allege any electrical repairs were made. The shop replaced both sunroof drain tubes and charged her $442.48. It also charged her $563 for removing, drying, shampooing, and cleaning the carpet. Gaines made an insurance claim, but still ended up paying the $250 deductible out of pocket. Gaines seeks to represent a class of purchasers of model year 2010–2013 Cadillac SRX vehicles who experienced the Leaking Sunroof Defect and who were required to pay for repairs. The Defect The Court pointed out that Gaines had not clearly alleged that what she calls the Leaking Sunroof Defect was actually a single defect, as opposed to various different defects that could cause the sunroof to leak. The SAC alleges that the defect is either a design defect or a defect in the manufacture of the sunroof and its component parts. (SAC, ¶ 2.) It alleges that the defect stems alternatively from three other defects. (Id., ¶ 3.) In support of this, it attaches and cites to Exhibits 1–4, which are internal General Motors documents. (Id. at ¶¶ 3, 23–26.) The Court can, and does, consider these exhibits as part of the complaint at the pleading stage. See Outdoor Media Grp., Inc. v. City of Beaumont, 506 F.3d 895, 899–900 (9th Cir. 2007). Exhibit 4 documents a customer satisfaction program that was extended until February 28, 2017, but which excluded vehicles in California. (SAC, ¶ 26 and Ex. 4.) The chief effect of this document is to extend the program one month, from January 31, 2017 to February 28, 2017. The Court ruled earlier on similar allegations (see Docket no. 26 at 5:12– 6:2), and its analysis is just as applicable here. The exhibits the SAC again relies on make clear that the defect is not present in all cars, and that only some car owners experience leaks. The defect (or group of defects) can have several different causes, which the SAC includes in its pleading. But the exhibit it cites for this proposition show that the causes are not the same in every car. The document mentions only the most common causes of sunroof leaks, and they are listed in the disjunctive, such that any of a number of problems can cause a leak. (See Ex. 1.) Some cars may have a void in the cowl seam sealer. In some, the front drain hose grommet(s) may not be connected, or may not be fully seated, either in the cowl panel or at the sunroof frame spigot. In some, the sunroof drain hoses are misrouted, or are too short, and therefore display a higher level of tension which in turn “may tend to cause a future disconnect or unseating of the grommet.” The document gives different instructions for repairing the problem, depending on which of the various causes are behind the leak. These all appear to have different causes (e.g., too-short drain hoses used; drain hoses were misrouted when installed; drain hoses may shrink due to temperature fluctuations; a gap is present in the cowl seam sealer; or drain hose grommets were not properly connected or seated, or have come loose.) Exhibits 3 and 4 document a subset of defects, caused by drain hoses having shrunk due to temperature fluctuations. The SAC summarizes this as “designed and/or manufactured with defective sunroof seals and/or sunroof drains” (SAC, ¶ 17) and claims that the same “component parts . . .and/or manufacturing technique” were used for all cars. (Id., ¶ 4.) But this is contradicted by the exhibits, which show that some hoses were too short, some sealers had gaps, and other components were incorrectly assembled. In Gaines’ own car, the drain hose was loose and the drain was not seated in the grommet at the firewall. (SAC, ¶ 53.) It is not clear whether this is the same defect documented in Exhibits 3 and 4. Allegations that this constitutes a design defect are purely conclusory. It is clear the flaws are all manufacturing defects, not design defects. See McCabe v. / / / Am. Honda Motor Co., 100 Cal. App. 4th 1111, 1120 (Cal. App. 2 Dist. 2002) (defining design defect under California law). Because GM has not challenged the treatment of this gro

Free access — add to your briefcase to read the full text and ask questions with AI

Gaines v. General Motors Company, (S.D. Cal. 2020).

Gaines v. General Motors Company (Gaines v. General Motors Company) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Chapman v. Pier 1 Imports (U.S.) Inc.
631 F.3d 939 (Ninth Circuit, 2011)
Wilson v. Hewlett-Packard Co.
668 F.3d 1136 (Ninth Circuit, 2012)
Zucco Partners, LLC v. Digimarc Corp.
552 F.3d 981 (Ninth Circuit, 2009)
Outdoor Media Group, Inc. v. City of Beaumont
506 F.3d 895 (Ninth Circuit, 2007)
Kendall v. Visa U.S.A., Inc.
518 F.3d 1042 (Ninth Circuit, 2008)
Birdsong v. Apple, Inc.
590 F.3d 955 (Ninth Circuit, 2009)
United States v. Wade
992 F. Supp. 6 (District of Columbia, 1997)
Crain v. Pure Oil Co.
25 F.2d 824 (Eighth Circuit, 1928)
Cholakyan v. MERCEDES-BENZ USA, LLC
796 F. Supp. 2d 1220 (C.D. California, 2011)
McCabe v. American Honda Motor Co.
123 Cal. Rptr. 2d 303 (California Court of Appeal, 2002)
Lance Camper Manufacturing Corp. v. Republic Indemnity Co. of America
44 Cal. App. 4th 194 (California Court of Appeal, 1996)
Smith v. Ford Motor Co.
749 F. Supp. 2d 980 (N.D. California, 2010)
Jose Ibarra v. Manheim Investments, Inc.
775 F.3d 1193 (Ninth Circuit, 2015)
Doe v. Federal Democratic Republic of Ethiopia
851 F.3d 7 (D.C. Circuit, 2017)
China Agritech, Inc. v. Resh
584 U.S. 732 (Supreme Court, 2018)
Baker v. Gee
1 U.S. 333 (Supreme Court, 1863)
Hodgers-Durgin v. De La Vina
199 F.3d 1037 (Ninth Circuit, 1999)