Greisman v. FCA US, LLC

CourtCalifornia Court of Appeal
DecidedAugust 5, 2024
DocketA166919
StatusPublished

This text of Greisman v. FCA US, LLC (Greisman v. FCA US, LLC) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greisman v. FCA US, LLC, (Cal. Ct. App. 2024).

Opinion

Filed 8/5/24 CERTIFIED FOR PARTIAL PUBLICATION ∗

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION TWO

MIRIAM GREISMAN, Plaintiff and Appellant, A166919 v. (Solano County FCA US, LLC, et al., Super. Ct. No. FCS051933) Defendants and Respondents.

Miriam Greisman bought a used 2014 Chrysler Town & Country, a vehicle that soon developed problems. When the problems could not be successfully addressed by the manufacturer, Greisman filed a lemon law action under the Song-Beverly Consumer Warranty Act against the manufacturer and the dealer. A mandatory settlement conference before the court was held over Zoom, at the conclusion of which the parties advised the judge that the case was settled for $100,000, a settlement confirmed on the record. An issue arose as to whether the settlement amount was inclusive or exclusive of attorney fees, resulting in the parties filing competing motions, Greisman to reset the case on the trial court calendar (and/or other relief), defendants to enforce the settlement. The trial court ordered an evidentiary

Pursuant to California Rules of Court, rules 976(b) and 976.1, only the ∗

Background and Part I and Subheadings thereunder are certified for publication.

1 hearing on the settlement issue, which was held over four days. Following that hearing, the trial court filed an 11-page order approving the settlement—and finding that the $100,000 was inclusive of attorney fees. Greisman appeals. We affirm. BACKGROUND The Setting In August 2015, Greisman purchased a used 2014 Chrysler Town & Country from CarMax Auto Superstores California, LLC (CarMax). The vehicle was manufactured by FCA US, LLC (FCA). Greisman paid $22,599, an amount she financed along with other expenses. In connection with her purchase, Greisman received a written warranty, including a three-year, 36,000 mile, bumper-to-bumper warranty and a five-year, 60,000 mile powertrain warranty that covered, among other things, the engine and transmission. The vehicle developed numerous mechanical issues, including oil light illumination, check-engine light illumination, loss of power, engine misfire, and rough running, issues the manufacturer FCA was unable to cure. The Lawsuit In November 2018, Greisman filed a complaint under the Song-Beverly Consumer Warranty Act (Civ. Code, § 1790, et seq.) naming two defendants, FCA and CarMax (collectively, defendants). The complaint alleged five causes of action, the first four of which were against FCA only, alleging claims under various Civil Code sections: (1) failure to repair within a reasonable number of opportunities (Civ. Code, § 1793.2, subd. (d)); (2) failure to commence repairs within a reasonable time and/or to repair the vehicle within 30 days (id., subd. (b)); (3) failure to make available to authorized repair facilities sufficient service literature and replacement parts (id., subd. (a)(3)); and (4) breach of express warranty. The fifth cause of action, alleged against both FCA and CarMax, was for breach of implied warranty of

2 merchantability. Greisman was represented by Tionna Dolin of Strategic Legal Practices, APC (Strategic Legal), which firm remained Greisman’s attorneys throughout the proceedings below, and Ms. Dolin and the firm are listed as co-counsel on appeal. In May 2022, the firm of Nemecek & Cole, APC associated in as Greisman’s counsel, and remains so today, being the other co-counsel on her brief. In the course of the proceedings below at least seven different individual attorneys appeared on behalf of Greisman in pleadings or court appearances. On January 11, 2019, represented by Schlichter & Shonack, LLP, CarMax filed a demurrer. The demurrer was overruled, and on June 3 CarMax filed its answer. Meanwhile, on January 17, FCA had filed an answer. FCA was represented by Universal & Shannon, LLP, specifically Jon D. Universal of that firm, who remained counsel throughout and is co-counsel on appeal. On July 12, CarMax substituted Mr. Universal as its attorney in place of Schlichter & Shonack. On July 11, Mr. Universal served a Code of Civil Procedure section 998 offer, an offer that stated it was from FCA on behalf of “itself and defendant CarMax.” Defendants offered to pay Greisman $70,000 “[i]n exchange for the subject vehicle and a dismissal of this action with prejudice in its entirety” and, in addition, her “reasonable costs, expenses and attorney’s fees based on actual time expended pursuant to Civil Code [section] 1794[, subdivision] (d) as stipulated by the parties, or if the parties cannot agree, upon motion to the court having jurisdiction over this action.” On May 27, 2020, Mr. Universal filed an amended answer on behalf of defendants in which they “admit[ted] [to] each and every allegation in the

3 complaint to the extent these answering defendants or its authorized repair facilities were unable to conform [Greisman’s] vehicle to the applicable express warranties after a reasonable number of attempts.” The amended answer further stated that defendants had “offered to reimburse” Greisman: “[Payment of] her actual damages under the Song-Beverly Consumer Warranty Act in the amount equal to the vehicle payments made by plaintiff, and including any charges for transportation and manufacturer-installed options, including any collateral charges such as sales tax, license fees, registration fees and other official fees, plus any incidental and consequential damages to which plaintiff is entitled, including but not limited to, reasonable repair, towing and rental car costs actually incurred by plaintiff, less that amount directly attributable to use by plaintiff prior to discovery of the nonconformities, plus the aggregate amount of costs and expenses, including attorney’s fees, reasonably incurred in connection with the commencement and prosecution of this action, all pursuant to Civil Code sections 1793.2[, subdivision] (d) and 1794[, subdivision] (d). Defendants have also offered two times actual damages.” Greisman’s opening brief asserts—an assertion apparently made to demonstrate how she would never accept $100,000 inclusive of her significant attorney fees—that “[n]otwithstanding the amended answer in which [defendants] . . . admitted liability . . . , the case went through over 17 months of additional intense litigation.” Greisman’s brief does not elaborate as to what that litigation involved—or which side was responsible for it. Defendants have a different spin on this, asserting—an assertion apparently made to demonstrate that Greisman’s conduct in the face of admitted liability was solely to generate attorney fees—that “[r]ather than joining in defendants’ request for entry of judgment for the plaintiff, plaintiff

4 and her counsel chose to prolong the litigation and run up fees, pursuing discovery, and eventually bringing two motions for summary adjudication.” As to all that happened in the “17 months of additional intense litigation,” what we glean from the record is that most of the litigation was caused by Greisman, a big chunk of which was for two motions for summary adjudication brought by her. Specifically: On July 1, 2020, Greisman filed a motion for summary adjudication that with its supporting papers was almost 100 pages in length. The motion sought summary adjudication on Greisman’s first cause of action, and by way of damages sought “$134,407.65 ([a]ctual damages of $37,935.91 + two times civil penalties of $75,871.82 + prejudgment interest of $20,599.91.)” Defendants’ opposition argued that Greisman had failed to produce evidence of her actual out-of-pocket costs, as required to determine her actual damages. Defendants also contended that the damage request included categories of damages unavailable as a matter of law.

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Greisman v. FCA US, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greisman-v-fca-us-llc-calctapp-2024.