Hammerschmidt v. General Motors, LLC

CourtDistrict Court, D. Minnesota
DecidedFebruary 3, 2022
Docket0:20-cv-01773
StatusUnknown

This text of Hammerschmidt v. General Motors, LLC (Hammerschmidt v. General Motors, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hammerschmidt v. General Motors, LLC, (mnd 2022).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA

Joseph Hammerschmidt and Edward Jackson, Civil No. 20-1773 (DWF/BRT) individually and on the behalf of all others similarly situated,

Plaintiffs,

v. MEMORANDUM OPINION AND ORDER General Motors LLC,

Defendant.

Brant D. Penney, Esq., and Garrett D. Blanchfield, Jr., Esq., Reinhardt Wendorf & Blanchfield; Charles Williams, Esq., Williams & Skilling, P.C.; and Danielle L. Manning, Esq., and Marc L. Godino, Esq., Glancy Prongay & Murray LLP; and Mark Greenstone, Esq., counsel for Plaintiff.

Archis A. Parasharami, Esq., Daniel Jones, Esq., John Nadolenco, Esq., and Marjan A. Batchelor, Esq., Mayer Brown LLP, counsel for Defendant.

INTRODUCTION This matter is before the Court on Defendant General Motors, LLC’s (“GM” or “Defendant”) Motion to Dismiss Consolidated Class Action Complaint for Failure to State a Claim (Doc. No. 90) and Motion to Strike Nationwide Class Allegations in Consolidated Class Action Complaint (Doc. No. 96). For the reasons below, the Court grants the motion to dismiss and denies the motion to strike as moot. BACKGROUND This lawsuit relates to an alleged defect in the “right front passenger airbag on-off indicator light”1 in Plaintiffs’ respective vehicles.2 (Compl. ¶¶ 20, 24.) According to the

allegations in the Complaint3, both Plaintiff Joseph Hammerschmidt (“Hammerschmidt”) and Plaintiff Edward Jackson (“Jackson”) purchased Chevrolet Camaros designed and manufactured by GM. (Id. ¶¶ 16, 22, 28.) Hammerschmidt purchased a 2010 Chevrolet Camaro from a third party, Summit Auto & Cycle, in Zumbrota, Minnesota on September 20, 2016, and Jackson purchased a 2011 Chevrolet Camaro from Dudley

Martin Chevrolet in Manassas, Virginia in January 2012. (Id. ¶¶ 16, 22.) GM provided a warranty on both Vehicles.4

1 The Court refers to the “right front passenger airbag on-off indicator light” as the “airbag indicator light.” 2 The Court refers to each Plaintiff’s respective car as their “Vehicle” and to the cars collectively as the “Vehicles.” 3 The operative Complaint here is the Consolidated Class Action Complaint (Doc. No. 87 (“Compl.”).) This is the third-amended complaint filed by Plaintiffs. (See Doc. Nos. 1, 40, 67.) 4 The New Vehicle Limited Warranty reads, in relevant part: What Is Not Covered . . . Any implied warranty of merchantability or fitness for a particular purpose applicable to this vehicle is limited in duration to the duration of this written warranty. Performance of repairs and needed adjustments is the exclusive remedy under this written warranty or any implied warranty. GM shall not be liable for incidental or consequential damages, such as, but not limited to, lost wages or vehicle rental expenses, resulting from breach of this written warranty or any implied warranty.* Hammersmith alleges that around March 2019, the airbag indicator light in his Vehicle “began to malfunction—reading ‘OFF’ even when an adult passenger was seated.” (Id. ¶ 20.) Jackson alleges the same occurred in his Vehicle around May 2019.

(Id. ¶ 24.) Hammerschmidt alleges that he took his car to a third-party repair shop, where they ran a diagnostic and found “error codes” that were the subject of a Technical Service Bulletin (“TSB”)5 that was issued by GM in September 2010. (Id. ¶¶ 20, 24 & Ex. 1 (“September 2010 TSB”).) Jackson alleges that he took his Vehicle to a Chevrolet dealer in November 2020, where they ran a diagnostic and found a “Diagnostic Trouble Code”

that was the subject of the September 2010 TSB. (Id. ¶ 24 & September 2010 TSB.) The September 2010 TSB states, in relevant part: Condition/Concern

Some customers may comment on the SIR/Airbag indicator/light on in the instrument panel cluster (IPC). Upon further investigation, the technician may find DTCs B0074 and B0081 set.

Recommendation/Instructions

Important: DO NOT replace the passenger presence system (PPS) module or sensing diagnostic module (SDM) or attempt to reprogram the SDM for this concern.

*Some states do not allow limitations on how long an implied warranty will last or the exclusion or limitation of incidental or consequential damages, so the above limitations or exclusions may not apply to you.

(Doc. No. 53, Exs. 1 & 2 at 7-10.) 5 A TSB informs authorized service technicians about pervasive issues affecting particular models and model years of cars. [image omitted]

The PPS pad may have a tear (1) in the sensor circuit where the plastic push pins/retainers are pressed into the seat frame as shown above. If this condition is discovered, replace the PPS sensor. . . .

(September 2010 TSB.)6

Although no tear in the sensor circuit was discovered, Hammerschmidt alleges that the third-party repair shop recommended replacement of the PPS sensor pad for an estimated $959.82, but that he declined because of the cost. (Id. ¶ 20.) Jackson alleges that a tear was discovered in the sensor in his Vehicle, and that he replaced it at the cost of $967.55. (Id. ¶ 24.) Both Vehicles were “out of warranty” when the airbag indicator light issues arose. (Id. ¶¶ 20, 25.) In September 2010, GM introduced a redesigned PPS pad intended to prevent push-pin interference with the sensors. (Id. ¶ 38.) Because Plaintiffs’ Vehicles were manufactured before the redesign, they were not upgraded. (Id.) In the Complaint, Plaintiffs cite to numerous consumer complaints filed with the National Highway Traffic Safety Administration (“NHTSA”) regarding issues with the airbag indicator light, but Plaintiffs do not allege that the NHTSA has issued a recall or otherwise acted on the complaints. (Id. ¶¶ 5, 46-48.)

6 Plaintiffs attach the September 2010 TSB to their Complaint. (See Compl. ¶ 24, Ex. 1.) The Complaint, however, does not attach a March 2010 Service Bulletin that is mentioned in the Complaint. (See id. ¶ 42; Doc. No. 93, Ex. 3 (“March 2010 SB”).) Because the March 2010 SB is incorporated by reference in the Complaint, it is properly considered by the Court. Plaintiffs bring the following causes of action: Violation of the Minnesota Consumer Fraud Act, Minn. Stat. §§ 325.68 et seq. (“MCFA”) (Count One); Violation of the Minnesota False Statement in Advertising Act, Minn. Stat. §§ 325 F.67 et seq.

(“MFSAA”) (Count Two); Violation of the Minnesota Unfair and Deceptive Trade Practices Act, Minn. Stat. §§ 325D.44 et seq. (“MUDTPA”) (Count Three); Breach of Implied Warranty of Merchantability, Minn. Stat §§ 336.314 et seq. (Count Four); Violation of Virginia’s Consumer Protection Act, Va. Code Add. §§ 59.1-196, et seq. (Count Five); Breach of Implied Warranty of Merchantability, Va. Code Ann. § 8.2-314

(Count Six); Breach of Implied Warranty of Merchantability Under the Magnuson-Moss Warranty Act, 15 U.S.C. § 2301, et seq. (Count Seven); and Fraudulent Omission (Count Eight). Plaintiffs also propose the creation of a nationwide class (excluding California), and Minnesota and Virginia subclasses, of individuals who purchased or leased 2010 or 2011 Camaros.

GM now brings two separate motions. First, GM moves to dismiss the Complaint for failure to state a claim. In short, GM argues that in each count, Plaintiffs allege that GM knew but failed to disclose an “Airbag Defect” in their Vehicles, namely a defect in its airbag systems that causes the airbag indicator light to be off when an adult is seated, “such that the passenger airbag will not deploy in the event of an accident.” (Compl. ¶ 2

(emphasis added).) GM asserts that Plaintiffs’ lawsuit is based on speculation about risks that have never materialized and underscores that Plaintiffs do not allege an instance in which the airbag in either Vehicle or any other 2010 or 2011 Camaro failed to deploy.

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