Heather Floyd v. American Honda Motor Co., Inc.

966 F.3d 1027
CourtCourt of Appeals for the Ninth Circuit
DecidedJuly 28, 2020
Docket18-55957
StatusPublished
Cited by52 cases

This text of 966 F.3d 1027 (Heather Floyd v. American Honda Motor Co., Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heather Floyd v. American Honda Motor Co., Inc., 966 F.3d 1027 (9th Cir. 2020).

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

HEATHER FLOYD; JODY SCHUTTE; No. 18-55957 KATE ZAIGER, individually and on behalf of all others similarly situated, D.C. No. Plaintiffs-Appellants, 2:17-cv-08744- SVW-AS v.

AMERICAN HONDA MOTOR CO., INC., OPINION a California Corporation; HONDA NORTH AMERICA, INC., a Delaware Corporation, Defendants-Appellees.

Appeal from the United States District Court for the Central District of California Stephen V. Wilson, District Judge, Presiding

Argued and Submitted December 11, 2019 Pasadena, California

Filed July 28, 2020 2 FLOYD V. AMERICAN HONDA MOTOR CO.

Before: Danny J. Boggs, * Carlos T. Bea, and Andrew D. Hurwitz, Circuit Judges.

Opinion by Judge Boggs

SUMMARY **

Magnuson-Moss Warranty Act/Class Action Fairness Act

The panel affirmed in part and vacated in part the district court’s dismissal of a putative class action raising warranty claims under the Magnuson-Moss Warranty Act and state law arising out of crashes or injuries caused by the alleged “rollaway effect” of certain Honda Civic vehicles.

The parties disputed whether the district court’s order of dismissal was final and appealable. The panel held that it had jurisdiction to review the dismissal because the subsequent final disposition of the case by a final order cured any prematurity of plaintiffs’ appeal.

Affirming the dismissal of the federal MMWA claim, the panel held that the Class Action Fairness Act does not override the MMWA’s requirement to name one hundred plaintiffs.

* The Honorable Danny J. Boggs, United States Circuit Judge for the U.S. Court of Appeals for the Sixth Circuit, sitting by designation. ** This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. FLOYD V. AMERICAN HONDA MOTOR CO. 3

Vacating the dismissal of plaintiffs’ state law claims based on lack of supplemental jurisdiction and remanding, the panel held that the district court erred in failing to consider whether the state law claims met the diversity requirements of CAFA even if the MMWA claim failed.

COUNSEL

Gregory F. Coleman (argued), Adam A. Edwards, Mark E. Silvey, Lisa A. White, and Rachel Soffin, Greg Coleman Law PC, Knoxville, Tennessee; Robert R. Ahdoot and Theodore W. Maya, Ahdoot & Wolfson PC, Los Angeles, California; for Plaintiffs-Appellants.

Eric Y. Kizirian (argued) and Michael Grimaldi, Lewis Brisbois Bisgaard & Smith LLP, Los Angeles, California; Jeffry A. Miller and Brittany B. Sutton, Lewis Brisbois Bisgaard & Smith LLP, San Diego, California; for Defendants-Appellees.

OPINION

BOGGS, Circuit Judge:

In this putative class action, plaintiffs raise warranty claims arising out of crashes or injuries caused by the alleged “rollaway effect” of certain Honda Civic vehicles. Plaintiffs appeal from the dismissal of their Magnuson-Moss Warranty Act (“MMWA”) claim and their state-law claims for express and implied warranty against American Honda Motor Co., Inc. and Honda North America, Inc. (collectively, “Honda”). 4 FLOYD V. AMERICAN HONDA MOTOR CO.

The question for decision is whether the Class Action Fairness Act (“CAFA”) overrides the MMWA’s requirement to name one hundred plaintiffs. This is an issue of first impression in this circuit, and we hold today that CAFA may not be used to evade the specific numerosity requirement of the MMWA.

I. BACKGROUND

Plaintiffs are owners or lessors of 2016, 2017, and 2018 models of Honda Civic vehicles who experienced a “rollaway effect” of the vehicle’s continuously variable transmission that, on occasion, failed to activate the electric parking brake automatically. Plaintiffs allege that Honda’s reliance on visual feedback in the absence of tactile feedback in the affected vehicles caused them to be unable to determine whether the parking brake had been properly engaged, which resulted in vehicles unintentionally rolling away and sometimes causing crashes or injuries. Plaintiffs allege that the transmission is inherently defective and that Honda failed to disclose the defect.

In December 2017, Plaintiff Heather Floyd, a citizen of Tennessee, filed a putative class action in the district court raising a federal claim under the MMWA and a variety of state-law claims. An amended complaint 1 joined Jody

1 Plaintiffs’ claims for relief in the First Amended Complaint were as follows: (I) breach of express warranty (on behalf of the national class or, alternatively, on behalf of each state subclass); (II) breach of implied warranties (on behalf of the national class or, alternatively, on behalf of each state subclass); (III) violation of the Magnuson-Moss Warranty Act, 15 U.S.C. §§ 2301 et seq. (on behalf of the national class); (IV) breach of implied warranty of merchantability under Tennessee law, Tenn. Code Ann. §§ 47-2-314 and 47-2A-212 et seq. (on behalf of the Tennessee subclass); (V) breach of express warranty under Tennessee law, Tenn. FLOYD V. AMERICAN HONDA MOTOR CO. 5

Schutte, a citizen of Wisconsin, and Kate Zaiger, a citizen of California, as plaintiffs, added Wisconsin and California subclasses, and alleged additional state-law claims.

The district court dismissed the First Amended Complaint, holding that the MMWA claim was not cognizable due to the complaint’s failure to name one hundred plaintiffs. Noting that Plaintiffs had invoked supplemental jurisdiction over their state-law claims, the district court declined to exercise jurisdiction over those claims in light of its dismissal of the only federal claim. The district court, however, did not separately address whether jurisdiction existed over the state-law claims under CAFA.

Plaintiffs did not amend the First Amended Complaint and instead filed their notice of appeal on July 12, 2018, while final disposition of the district-court case was pending.

Code Ann. §§ 47-2-313 and 47-2A-210 et seq. (on behalf of the Tennessee subclass); (VI) violation of the Wisconsin Deceptive Trade Practices Act, Wis. Stat. Ann. §§ 100.18 et seq. (on behalf of the Wisconsin subclass); (VII) breach of implied warranties under Wisconsin law, Wis. Stat. Ann. § 402.314 (on behalf of the Wisconsin subclass); (VIII) breach of express warranties under Wisconsin law, Wis. Stat. Ann. § 402.313 (on behalf of the Wisconsin subclass); (IX) violation of the California Consumer Legal Remedies Act, Cal. Civ. Code §§ 1750 et seq. (on behalf of the national class or, alternatively, on behalf of the California subclass); (X) violation of the California Unfair Competition Law, Cal. Bus. & Prof. Code §§ 17200 et seq. (on behalf of the national class or, alternatively, on behalf of the California subclass); (XI) breach of express warranty under the California Song-Beverly Consumer Warranty Act, Cal. Civ. Code §§ 1792 and 1791.1 et seq. (on behalf of the national class or, alternatively, on behalf of the California subclass); (XII) breach of implied warranty under the California Song- Beverly Consumer Warranty Act, Cal. Civ. Code §§ 1792 and 1791.1 et seq. (on behalf of the national class or, alternatively, on behalf of the California subclass); and (XIII) equitable injunctive and declaratory relief (on behalf of the national class). 6 FLOYD V. AMERICAN HONDA MOTOR CO.

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966 F.3d 1027, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heather-floyd-v-american-honda-motor-co-inc-ca9-2020.