Greater New York Automobile Dealers Ass'n v. Environmental Systems Testing, Inc.

211 F.R.D. 71, 2002 WL 31465896
CourtDistrict Court, E.D. New York
DecidedMarch 14, 2002
DocketNo. 00-CV-2862
StatusPublished
Cited by20 cases

This text of 211 F.R.D. 71 (Greater New York Automobile Dealers Ass'n v. Environmental Systems Testing, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greater New York Automobile Dealers Ass'n v. Environmental Systems Testing, Inc., 211 F.R.D. 71, 2002 WL 31465896 (E.D.N.Y. 2002).

Opinion

MEMORANDUM AND ORDER

SEYBERT, District Judge.

Pending before this Court are Environmental Systems Testing, Inc., f/k/a, Environmental Systems Products, Inc. (“ESP”), SPX Corporation (“SPX”) and Snap-On Diagnostics (Manufacturing), a division of IDMC, Inc., and Snap-On Diagnostics (Sales & Service), a division of IDSC Holdings, Inc. (jointly referred to as “SUN”) (referred to collectively herein as “Defendants”) motions (1) for a more definite statement of the allegations contained in the complaint pursuant to Fed.R.Civ.P. 9(g), 10(b), and 12(e); (2) to dismiss Plaintiff Greater New York Automobile Dealers’ Association (“GNYADA”) as a party pursuant to Fed.R.Civ.P. 12(b)(6); and (3) to dismiss Plaintiffs’ claims for negligence pursuant to Fed.R.Civ.P. 12(b)(6). Additionally, SUN has moved, in a separate motion, to dismiss the claims of seven of the individual SUN Plaintiffs1 on the ground that choice of forum clauses in their respective contracts and/or leases require them claims against SUN to be litigated in Illinois or Wisconsin or, in the alternative, be severed from the present action and transferred to Wisconsin or Illinois pursuant to Fed.R.Civ.P. 12(b)(3).

On March 29, 2000, Plaintiff’GNYADA, an automobile trade association, and 148 individual automobile dealerships located in New York State alleging membership in GNYA-DA (collectively referred to as “Plaintiffs”), commenced this action in the Supreme Court, County of Nassau against Defendants. Defendants removed the action to Federal district court on May 18, 2000 pursuant to the Court’s diversity of citizenship jurisdiction, 28 U.S.C. § 1332. On July 17, 2000, Plaintiffs filed a first amended complaint and on August 9, 2000, Plaintiffs filed a fifteen count second amended complaint (the “Am. Compl”), bringing the total number of individual automobile dealership Plaintiffs to 155.

FACTUAL ALLEGATIONS

GNYADA is a not-for-profit corporation and an association of automobile dealers located in New York. Am. Compl. ¶¶ 1-2. The remaining 155 Plaintiffs are automobile dealers organized under the laws of New York and are members of GNYADA. See id. at H 2. The individual dealer Plaintiffs are each engaged in the business of selling and servicing various makes and models of new and used motor vehicles. See id. at ¶ 4. Each of the individual dealer Plaintiffs is licensed as an emissions inspection station in the State of New York. See id. at ¶ 5.

Defendants are foreign corporations authorized to transact business and, are actually doing business, in New York. Am. Compl. ¶¶ 6-8. Defendants design, manufacture, distribute and sell, among other products, equipment used in the testing of automobile emissions. See id. at ¶ 119.

In or about January 1997, the State of New York, in compliance with the environmental and pollution standards established by the Federal Environmental Protection Agency and the New York State Department of Environmental Conservation (the “DEC”), created more stringent testing standards governing automobile emissions. See id. at ¶ 10. In response, the New York State Department of Motor Vehicles (“DMV”) and the DEC created and implemented the New York State High-Enhanced Emission Inspection Program (the “Emission Program”). See id. at ¶ 11. The Emission Program mandated new emissions testing standards and procedures and in order to continue to inspect automobiles under the Emission Program, inspection stations were required to purchase or lease newly manufactured testing equipment. See. id. at ¶¶ 12, 14. In particular, all licensed inspection stations were required to purchase or lease a new gas [75]*75analyzer, dynamometer, video camera and V-MAS analyzer (“emissions testing equipment”) and to have their certified inspectors undergo training to learn to operate the emissions testing equipment. See id. at ¶¶ 14-15.

The DMV approved three manufacturers, ESP, SPX and SUN, to manufacture this equipment. Am. Compl. ¶¶ 17-18. Accordingly, the Defendants, in conjunction with the DMV, implemented specifications for and manufactured the emissions testing equipment. See id. at ¶ 19.

In 1997 and 1998, the ESP Plaintiffs2 purchased or leased the emissions testing equipment from ESP pursuant to sale or lease contracts. Am. Compl. ¶ 20. In 1997 and 1998, the SPX Plaintiffs3 purchased or leased the emissions testing equipment from SPX pursuant to sale or lease contracts. See id. at ¶ 21. In 1997 and 1998, the SUN [76]*76Plaintiffs purchased or leased the emissions testing equipment from SUN pursuant to sale or lease contracts. See id. at ¶22. Each of the contracts or leases entered into by each plaintiff contained “various warranties including, inter alia, an express warranty concerning the emissions testing equipment.” Id. at ¶ 23. According to the terms of the various sale and lease contracts, “defendants were obligated and agreed to provide training to the dealer Plaintiffs to operate the emissions testing equipment.” Id. at ¶ 24. Since the purchase or lease of the emissions testing equipment by the Dealer Plaintiffs, several problems have occurred, including, but not limited to:

a. incomplete and substandard installation of emissions testing equipment;
b. excessive noise levels when dynamom-eter is in use;
c. systemic and continuing equipment software “glitches” and failures;
d. systemic and continuing breakdown of equipment accessories including, but not limited to, safety straps, belts, bolts, and hoses;
e. breakdown of emissions testing equipment on a regular basis rendering it impossible to perform inspections;
f. defendants’ failure to provide timely repair service pursuant to warranties;
g. failure of emissions testing equipment to perform inspections within reasonable period of time;
h. defendants’ failure to properly repair and service emissions testing equipment under warranties; and
i. incomplete and inadequate training of technicians.

Id. at ¶ 25. Despite timely notification by the dealer Plaintiffs of the alleged defects and malfunctioning, Defendants have allegedly failed to provide timely and proper service, repair and/or replacement of the emissions testing equipment. Am. Compl. ¶¶ 26-31. As a result, Plaintiffs are seeking repair and/or replacement of the emissions testing equipment, or alternatively, a refund of all monies paid by Plaintiffs under either the sale contract or lease together with money damages in an amount no less than $25,000,000 (twenty-five million dollars) for the alleged loss of business and good will.

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

Related

Untitled Case
N.D. New York, 2026
Santos v. Dcf
Vermont Superior Court, 2026
Stanton v. Sauceda
D. Colorado, 2025
Cote v. Anr
Vermont Superior Court, 2025
Roodenburg v. Sandy
N.D. New York, 2025
Hawkins v. Synhrony Bank
E.D. New York, 2025
Rutledge v. Rutledge
Vermont Superior Court, 2025
Scrivani v. Capital One
N.D. New York, 2024
Smith v. Evans
W.D. New York, 2022
Powers-Barnhard v. Butler
N.D. New York, 2021
Harris v. Tioga County
N.D. New York, 2019
Holmes v. Fischer
764 F. Supp. 2d 523 (W.D. New York, 2011)
Kuklachev v. Gelfman
600 F. Supp. 2d 437 (E.D. New York, 2009)
Anderson v. Brokers, Inc. (In Re Brokers, Inc.)
396 B.R. 146 (M.D. North Carolina, 2008)
Vaden v. Lantz
459 F. Supp. 2d 149 (D. Connecticut, 2006)
S.K.I. Beer Corp. v. Baltika Brewery
443 F. Supp. 2d 313 (E.D. New York, 2006)
Freedman v. America Online, Inc.
294 F. Supp. 2d 238 (D. Connecticut, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
211 F.R.D. 71, 2002 WL 31465896, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greater-new-york-automobile-dealers-assn-v-environmental-systems-testing-nyed-2002.