Grayton v. CarMax Auto Superstores CA4/1

California Court of Appeal·Decided December 30, 2014·No. D064967·Unpublished

Opinion

Filed 12/30/14 Grayton v. CarMax Auto Superstores CA4/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

COURT OF APPEAL, FOURTH APPELLATE DISTRICT DIVISION ONE

STATE OF CALIFORNIA

MAURICE GRAYTON, D064967 Plaintiff and Appellant,

v. (Super. Ct. No. 37-2013-00029236-

CU-PL-CTL)

CARMAX AUTO SUPERSTORES CALIFORNIA LLC et al.,

Defendants and Respondents.

APPEAL from a judgment of the Superior Court of San Diego County, Randa Trapp, Judge. Affirmed.

Maurice Grayton, in pro. per., for Plaintiff and Appellant.

Schlichter & Shonack, Kurt A. Schlichter, Steven C. Shonack, Kim T. Mann; Doll Amir & Eley, Hunter R. Eley and Chelsea L. Diaz, for Defendants and Respondents.

INTRODUCTION

Maurice Grayton sued CarMax Auto Superstores California, LLC (CarMax) and Capital One N.A. (Capital One) contending the car he purchased was defective. He appeals a judgment of dismissal following the trial court's order sustaining a demurrer to his second amended complaint (SAC) in its entirety without leave to amend. Although difficult to decipher, Grayton appears to contend on appeal (1) his complaint adequately pleaded a cause of action for violation of the Song-Beverly Consumer Warranty Act (Song-Beverly Act) (Civ. Code, § 1790 et seq.) and (2) the court abused its discretion in denying his request for leave to amend. Finding no merit in either contention, we affirm.

FACTUAL AND PROCEDURAL BACKGROUND

A

Factual Allegations

We derive the facts from the complaints. (Howard Jarvis Taxpayers Assn. v. City of La Habra (2001) 25 Cal.4th 809, 814.)

Grayton purchased a 2002 Chevrolet Corvette in September 2012 from CarMax after looking for a Corvette for several months. Since CarMax advertised vehicles as "carefully inspected and reconditioned" Grayton felt "assured that any vehicle undergoing such a rigorous inspection would not have mechanical problems."

Three days after purchasing the vehicle, the steering wheel locked up while Grayton was driving. Grayton alleges he placed the vehicle in reverse with both the clutch and the gas pedal engaged when the "steering wheel locked up at a speed of ten to fifteen miles per hour." Grayton slammed on the brakes because he could not guide the

vehicle away from bystanders or objects behind the vehicle. Grayton alleged this experience caused him undue anxiety and emotional distress.

CarMax towed the vehicle to the dealership and determined there was "an open recall on the steering wheel column." CarMax then had the Corvette repaired.

The SAC added an allegation stating the anti-lock braking system (ABS) light came on after the electronic steering column mechanism was replaced. According to the SAC, the Chevrolet dealer required a deposit to inspect the braking system and CarMax "provided that it would send out its inspector but has failed to do so." Grayton now refuses to operate the vehicle.

B

The Pleadings

The original complaint named CarMax and Capital One and alleged causes of action for negligence, breach of express and implied warranty, strict products liability, false representation, and personal assault.

After CarMax filed a demurrer, Grayton obtained leave to file a first amended complaint (FAC). The FAC alleged only three causes of action for (1) violation of the Song-Beverly Act based on allegations of breach of both express and implied warranties, (2) violation of the Consumer Legal Remedies Act (CLRA), and (3) violation of the unfair competition law (UCL) (Bus. & Prof. Code, § 17200 et seq.). Although the FAC named Capital One as a defendant, it did not include Capital One in the allegations.

The court sustained the demurrer of CarMax and Capital One to the first cause of action for violations of the Song-Beverly Act based on an express warranty "because

plaintiff pled the alleged steering defect was repaired and has not pled any further defect in the vehicle or any failure to replace or reimburse." It overruled the demurrer to the cause of action based on implied warranty of merchantability. The court sustained the demurrer as to second and third causes of action for violations of the CLRA and UCL. The court determined Grayton had not alleged facts showing how either the CLRA or UCL were violated or standing under the UCL. The court granted Grayton leave to amend.

The SAC, which reads like an opposition to a demurrer rather than a complaint, again alleged causes of action for (1) violation of the Song-Beverly Act (now based only on express warranty), (2) violation of the CLRA, and (3) violation of the UCL. The SAC alleged CarMax advertised it "carefully inspected and reconditions the vehicle," provided an express "30-day CarMax warranty," and represented the vehicle was "safe to drive and had no defects."

The SAC alleged Capital One is vicariously liable for the torts of CarMax in the sales transaction. The SAC also alleged Capital One provided a lower credit score for him than a prior lender had given him. Capital One allegedly represented it would refinance the vehicle loan after the purchase, but has failed to do so. Grayton alleged this constitutes an unfair business practice and he was harmed because he was required to pay a higher interest rate and his credit score has been negatively impacted.

C

Demurrer to SAC

CarMax and Capital One filed a demurrer to the SAC contending Grayton did not state a cause of action for breach of express warranty under the Song-Beverly Act because the steering column was repaired in a single attempt and he does not allege he presented the vehicle for repair of the ABS system to CarMax on at least two occasions. CarMax and Capital One also contended Grayton did not state a cause of action under the CLRA or the UCL based on vehicle financing or based on allegedly failing to complete repairs of "open recalls" on used vehicles. Additionally, they contended Grayton did not allege he suffered "actual damage" as required to have standing for CLRA and UCL claims.

Grayton did not oppose the demurrer, but requested leave to amend at oral argument. Grayton also argued the Commercial Code provides express and implied warranties are "cumulative." Counsel for CarMax and Capital One argued the SAC did not contain allegations for beach of implied warranty.

The trial court confirmed its tentative ruling sustaining the demurrer in its entirety without leave to amend. The court ruled the first cause of action for breach of express warranty failed to state sufficient facts to support a violation of the Song-Beverly Act against CarMax based on illumination of the ABS light because the SAC does not allege Grayton brought the vehicle back to CarMax for repair. As to Capital One, the court determined there were no allegations showing the Song-Beverly Act covers vehicle financing or that Capital One made any misleading statements about the car loan. The

court also ruled the second and third causes of action failed to state sufficient facts for specific violations of the CLRA or the UCL. The court denied Grayton's request for leave to amend noting this was the second demurrer and Grayton did not inform the court how the complaint could be amended to state a viable cause of action.

DISCUSSION

I

Standard of Review

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