Hirschbach Motor Lines, Inc.; John Christner Trucker, LLC; Three Diamond Leasing, LLC; Gr Equipment Leasing, Inc.; Schuster Company; Schuster Enterprises, Ltd.; AEG Leasing LLC; Schuster Company, LLC, Individually and on Behalf of All Others Similarly Situated v. Navistar, Inc.; Paccar Inc.; and Bendix Commercial Vehicle Systems LLC

CourtDistrict Court, N.D. Illinois
DecidedMarch 30, 2026
Docket1:24-cv-11979
StatusUnknown

This text of Hirschbach Motor Lines, Inc.; John Christner Trucker, LLC; Three Diamond Leasing, LLC; Gr Equipment Leasing, Inc.; Schuster Company; Schuster Enterprises, Ltd.; AEG Leasing LLC; Schuster Company, LLC, Individually and on Behalf of All Others Similarly Situated v. Navistar, Inc.; Paccar Inc.; and Bendix Commercial Vehicle Systems LLC (Hirschbach Motor Lines, Inc.; John Christner Trucker, LLC; Three Diamond Leasing, LLC; Gr Equipment Leasing, Inc.; Schuster Company; Schuster Enterprises, Ltd.; AEG Leasing LLC; Schuster Company, LLC, Individually and on Behalf of All Others Similarly Situated v. Navistar, Inc.; Paccar Inc.; and Bendix Commercial Vehicle Systems LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hirschbach Motor Lines, Inc.; John Christner Trucker, LLC; Three Diamond Leasing, LLC; Gr Equipment Leasing, Inc.; Schuster Company; Schuster Enterprises, Ltd.; AEG Leasing LLC; Schuster Company, LLC, Individually and on Behalf of All Others Similarly Situated v. Navistar, Inc.; Paccar Inc.; and Bendix Commercial Vehicle Systems LLC, (N.D. Ill. 2026).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION HIRSCHBACH MOTOR LINES, INC.; JOHN CHRISTNER TRUCKER, LLC; THREE DIAMOND LEASING, LLC; GR No. 24 CV 11979 EQUIPMENT LEASING, INC.; SCHUSTER COMPANY; SCHUSTER Judge Thomas M. Durkin ENTERPRISES, LTD.; AEG LEASING LLC; SCHUSTER COMPANY, LLC, INDIVIDUALLY AND ON BEHALF OF ALL OTHERS SIMILARLY SITUATED,

Plaintiffs,

v.

NAVISTAR, INC.; PACCAR INC.; AND BENDIX COMMERCIAL VEHICLE SYSTEMS LLC,

Defendants.

MEMORANDUM OPINION AND ORDER Plaintiffs allege that Defendants Navistar, Inc.,1 Paccar Inc., and Bendix Commercial Vehicle Systems LLC conspired to defraud Plaintiffs by selling them trucks with defective safety systems. Defendants separately move to dismiss the complaint pursuant to Rules 9(b) and 12(b)(6). For the following reasons, Defendants’ motions are granted.

1 Navistar, Inc. underwent a corporate reorganization and name change to International Motors, LLC (“International”) effective October 1, 2024. R. 88 n.1. Because Navistar is the name used in Plaintiffs’ complaint and consequently the Court’s docket, the Court will use Navistar here. Background Plaintiffs are national motor carriers in the business of freight hauling throughout the country using 18-wheeler trucks. R. 74 at 1–2. Bendix manufactures

and sells two Frontal Crash Avoidance and Mitigation Systems called the Wingman Fusion System and the Wingman Advanced System (together, the “FCA Systems”)— safety systems meant to prevent or mitigate rear-end crashes—to truck manufacturers such as Navistar and Paccar. Id. at 2. Navistar and Paccar install the FCA Systems in trucks which are then sold to customers. Id. Plaintiffs allege that Navistar conducted product testing in April 2015 that revealed significant deficiencies in the functionality of the FCA Systems. Id. ¶¶ 51–

52. Navistar thereafter corresponded with Bendix’s lead engineer for the FCA Systems regarding detection and braking failures. Id. ¶ 53. But Bendix allegedly proceeded with its product launch schedule without making any responsive changes. See id ¶ 54. On or about July 2015, Navistar again contacted Bendix regarding performance complaints for the FCA Systems. Id. ¶ 55. At that point, Bendix ran a competitor comparison with other FCA Systems on the market. Id. ¶ 57. Despite

knowing the defective nature of the FCA Systems and the alternative FCA technology available, Defendants allegedly conspired to fraudulently conceal the defects and to advertise and sell trucks with faulty FCA Systems. See id. ¶¶ 58–62. According to Plaintiffs, between July 2015 through January 2024, Defendants engaged in a concerted marketing effort to misrepresent the quality, effectiveness, and capability of the defective FCA Systems. See id. ¶¶ 34–37. Each Defendant provided identical written representations in marketing materials including brochures, documents, and advertisements given directly to Plaintiffs. Id. ¶¶ 75. Relying on the representations from Defendants, Plaintiffs purchased thousands of trucks from Navistar and Paccar featuring the FCA Systems. Id. ¶¶ 25, 27. These

trucks have since been involved in numerous crashes in which the FCA Systems allegedly failed to perform as marketed, promoted, and designed, leading to millions of dollars in economic damage. Id. ¶ 88. On October 11, 2024, Bendix notified the National Highway Traffic Safety Administration (“NHTSA”) of the defective nature of the FCA Systems, among other technology, and issued a recall. See id. ¶ 85. On November 20, 2024, Plaintiffs filed this lawsuit. R. 1. In their amended complaint

Plaintiffs assert five claims against all Defendants and on behalf of a putative class of truck purchasers: (I) Fraud in the Inducement; (II) Breach of Contract; (III) Breach of Express Warranty; (IV) Breach of Implied Warranty of Merchantability; and (V) Breach of Implied Warranty of Fitness for a Particular Purpose. R. 74. Legal Standard A Rule 12(b)(6) motion challenges the “sufficiency of the complaint.” Gunn v. Cont’l Cas. Co., 968 F.3d 802, 806 (7th Cir. 2020). A complaint must provide “a short

and plain statement of the claim showing that the pleader is entitled to relief,” Fed. R. Civ. P. 8(a)(2), sufficient to provide defendant with “fair notice” of the claim and the basis for it. Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007). This standard “demands more than an unadorned, the-defendant-unlawfully-harmed-me accusation.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). While “detailed factual allegations” are not required, “labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Twombly, 550 U.S. at 555. The complaint must “contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Iqbal, 556 U.S. at 678 (quoting Twombly, 550 U.S. at 570). “Facial plausibility exists ‘when the plaintiff pleads factual content that

allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.’” Thomas v. Neenah Joint Sch. Dist., 74 F.4th 521, 523 (7th Cir. 2023) (quoting Iqbal, 556 U.S. at 678). In applying this standard, the Court accepts all well-pleaded facts as true and draws all reasonable inferences in favor of the non- moving party. See Hernandez v. Ill. Inst. of Tech., 63 F.4th 661, 666 (7th Cir. 2023). In addition, a party alleging fraud or mistake “must state with particularity

the circumstances constituting [the] fraud or mistake. Malice, intent, knowledge, and other conditions of a person’s mind may be alleged generally.” Fed. R. Civ. P. 9(b). To meet this particularity requirement, “a plaintiff ordinarily must describe the ‘who, what, when, where, and how’ of the fraud.” Pirelli Armstrong Tire Corp. Retiree Med. Benefits Tr. v. Walgreen Co., 631 F.3d 436, 441–42 (7th Cir. 2011) (quoting United States ex rel. Lusby v. Rolls-Royce Corp., 570 F.3d 849, 853 (7th Cir. 2009)). But the Seventh Circuit has “warned that courts and litigants often erroneously take an

overly rigid view of the formulation” and that “[t]he precise level of particularity required under Rule 9(b) depends upon the facts of the case.” Camasta v. Jos. A Bank Clothiers, Inc., 761 F.3d 732, 737 (7th Cir. 2014). At bottom, to satisfy the Rule 9(b) particularity standard, “[i]t is enough to show, in detail, the nature of the charge, so that vague and unsubstantiated accusations of fraud do not lead to costly discovery and public obloquy.” Rolls-Royce, 570 F.3d at 854–55 (citations omitted). Discussion As a preliminary matter, the Court must first address a choice-of-law issue raised by two Defendants. Bendix and Paccar both assert that Plaintiffs have not

provided sufficient factual allegations to conduct a choice-of-law analysis and therefore they must apply the law of this forum. See R. 82 n.2; R. 86 p. 5–6. Neither Navistar nor Plaintiffs dispute that Illinois law applies. Because all parties rely exclusively on Illinois law, the Court will apply Illinois law for the purpose of this motion. I.

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Hirschbach Motor Lines, Inc.; John Christner Trucker, LLC; Three Diamond Leasing, LLC; Gr Equipment Leasing, Inc.; Schuster Company; Schuster Enterprises, Ltd.; AEG Leasing LLC; Schuster Company, LLC, Individually and on Behalf of All Others Similarly Situated v. Navistar, Inc.; Paccar Inc.; and Bendix Commercial Vehicle Systems LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hirschbach-motor-lines-inc-john-christner-trucker-llc-three-diamond-ilnd-2026.