Heater v. General Motors LLC

CourtDistrict Court, N.D. West Virginia
DecidedOctober 20, 2021
Docket1:21-cv-00024
StatusUnknown

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

Bluebook
Heater v. General Motors LLC, (N.D.W. Va. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF WEST VIRGINIA

ROGER HEATER, Individually and on behalf of all others similarly situated,

Plaintiffs,

v. // CIVIL ACTION NO. 1:21CV24 (Judge Keeley)

GENERAL MOTORS, LLC,

Defendant.

MEMORANDUM OPINION AND ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO DISMISS [DKT. NO. 23] This putative class action arises from an alleged engine defect existing in certain vehicles sold by the defendant, General Motors, LLC (“GM”) in West Virginia and nationwide. On February 10, 2021, the plaintiff, Roger Heater (“Heater”), filed a class action complaint alleging that, although GM knew its vehicles excessively consumed oil, it failed to disclose, and actively concealed, this defect from consumers. Pending is GM’s motion to dismiss Heater’s complaint pursuant to Federal Rule of Civil Procedure 12(b)(6) (Dkt. No. 23). For the reasons that follow, the Court GRANTS IN PART and DENIES IN PART the motion. I. BACKGROUND In 2012, Heater purchased a 2011 Chevrolet Silverado equipped with GM’s Generation IV 5.3 Liter V8 Vortec 5300 LC9 engine (“Generation IV Engine”) and covered by GM’s Limited Warranty. Id. MEMORANDUM OPINION AND ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO DISMISS [DKT. NO. 23] at 8.1 He alleges that his vehicle, like the other Class Vehicles,2 excessively consumes oil, which can result in low oil levels, insufficient lubricity levels, internal engine component damage, and engine failure. Id. at 2, 5–7. The primary cause of this “Oil Consumption Defect” is that the “piston rings that GM installed within the [Generation IV Engine] fail to keep oil in the crankcase.” Id. at 3. Other issues with the Active Fuel Management System, the Positive Crankcase Ventilation (“PCV”) system, the Oil Life Monitoring System, and the oil pressure gauge indicator on the dashboard exacerbate the defect. Id. at 3–5. Together, these defects cause “drivability problems” and place occupants at an increased risk of injury or death. Id. at 5. Heater alleges that GM became aware of the Oil Consumption Defect as early as 2008 because, among others, GM consumers had filed a significant number of complaints regarding excessive oil consumption in the Class Vehicles. In addition, GM had issued several Technical Service Bulletins (“TSBs”) to its dealers addressing excessive oil consumption in vehicles with the Generation IV Engine, and had abandoned the Generation IV Engine

1 The Court takes the facts from the complaint and construes them in the light most favorable to Heater. See De'Lonta v. Johnson, 708 F.3d 520, 524 (4th Cir. 2013). 2 The Class Vehicles include the 2011-2014 model year Chevrolet Avalanche, Chevrolet Silverado, Chevrolet Suburban, Chevrolet Tahoe, GMC Sierra, GMC Yukon, and GMC Yukon XL equipped with the Generation IV Engine. Id. at 1-2. MEMORANDUM OPINION AND ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO DISMISS [DKT. NO. 23] for its redesigned Generation V 5.3 Liter V8 Vortec 5300 LC9 engine (“the Generation V Engine”). Moreover, in 2009, Old GM3 had investigated the root cause of excessive oil consumption. Id. at 5–6, 14, 22–28. Despite this knowledge, GM did not publicly disclose the Oil Consumption Defect and continued to sell Class Vehicles equipped with the Generation IV Engine to consumers like Heater. Id. at 6. Heater alleges that he first became aware of his vehicle’s defect when there were fewer than 50,000 miles on its odometer. Had GM disclosed the Oil Consumption Defect, Heater contends he would not have purchased the vehicle, or “certainly would have paid less for it.” Id. at 8. Heater asserts six causes of action against GM: (1) violation of the West Virginia Consumer Credit and Protections Act (“WVCCPA”), (2) breach of express warranty, (3) breach of the implied warranty of merchantability, (4) fraudulent concealment, (5) unjust enrichment, and (6) violation of the Magnuson-Moss Warranty Act (“MMWA”). See Id. at 64–76. Heater asserts Counts One through Five on behalf of “[a]ll current and former owners or

lessees of a Class Vehicle (as defined herein) that was purchased

3 Old GM refers to General Motors LLC prior to its bankruptcy. Old GM developed, manufactured, and sold vehicles equipped with the Generation IV Engine it filed Chapter 11 bankruptcy in 2009. Id. at 10. After the defendant GM acquired Old GM’s assets and emerged from bankruptcy, it continued to manufacture and sell vehicles equipped with this engine. MEMORANDUM OPINION AND ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO DISMISS [DKT. NO. 23] or leased in the state of West Virginia (‘the West Virginia Class’),” and purports to assert a claim in Count Six on behalf of a nationwide class consisting of “[a]ll current and former owners or lessees of a Class Vehicle (as defined herein) that was purchased or leased in the United States (‘the Nationwide Class’).” Id. at 61. On April 13, 2021, GM moved to dismiss Heater’s complaint pursuant to Federal Rule of Civil Procedure 12(b)(6), and to strike Heater’s nationwide class allegation pursuant to Federal Rule of Civil Procedure 12(f) (Dkt. No. 24). This motion is fully briefed and ripe for review. II. MOTION TO DISMISS Federal Rule of Civil Procedure 12(b)(6) allows a defendant to move for dismissal on the grounds that a complaint does not “state a claim upon which relief can be granted.” When reviewing a complaint, the Court “must accept as true all of the factual allegations contained in the complaint.” Anderson v. Sara Lee Corp., 508 F.3d 181, 188 (4th Cir. 2007) (quoting Erickson v. Pardus, 551 U.S. 89, 94 (2007)). “While a complaint . . . does not

need detailed factual allegations, a plaintiff’s obligation to provide the ‘grounds’ of his ‘entitle[ment] to relief’ requires more than labels and conclusions, and a formulaic recitation of MEMORANDUM OPINION AND ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO DISMISS [DKT. NO. 23] the elements of a cause of action will not do.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007) (citation omitted). A court is “not bound to accept as true a legal conclusion couched as a factual allegation.” Papasan v. Allain, 478 U.S. 265, 286 (1986). “[A] complaint must contain ‘enough facts to state a claim to relief that is plausible on its face.’” Anderson, 508 F.3d at 188 n.7 (quoting Twombly, 550 U.S. at 547). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). A. Violation of the West Virginia Consumer Credit and Protections Act (“WVCCPA”) – Count One Heater first alleges that GM violated the WVCCPA by omitting material facts about the Oil Consumption Defect (Dkt. No. 1 at 65– 66).

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Heater v. General Motors LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heater-v-general-motors-llc-wvnd-2021.