Hope v. Nissan North America, Inc.

353 S.W.3d 68, 2011 Mo. App. LEXIS 1206, 2011 WL 4356203
CourtMissouri Court of Appeals
DecidedSeptember 20, 2011
DocketWD 73299
StatusPublished
Cited by41 cases

This text of 353 S.W.3d 68 (Hope v. Nissan North America, Inc.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hope v. Nissan North America, Inc., 353 S.W.3d 68, 2011 Mo. App. LEXIS 1206, 2011 WL 4356203 (Mo. Ct. App. 2011).

Opinion

JAMES M. SMART, JR., Judge.

This case involves a putative class action lawsuit filed against Nissan North America, Inc. (“Nissan”) on behalf of five named plaintiffs, Trade Hope, Michael Meyer, Pamala Meyer, Ginger Bridger, and Robert Hurst (collectively, “Plaintiffs”) based on allegations of a cosmetic bubbling defect in the dashboard of certain Infiniti FX35 and FX45 vehicles for model years 2003 through 2007 (“FX Vehicles”). The putative class members include all Missouri residents who currently own an FX; class membership under the current class definition is based strictly on ownership rather than on the experience or observation of a defect. The trial court certified the class. Pursuant to Rule 52.08(f), Nissan sought permission to appeal the certification. We granted permission. We now affirm in part and reverse in part.

Background

The manufacturing of the Infiniti FX35 and FX45 cars began in late 2002. By 2006, Nissan had become aware of instances of bubbling dashboards of FX Vehicles, namely in the “hot and humid” states of Florida, Texas, Georgia, North Carolina, and Alabama. No instance of dashboard bubbling was reported in Missouri until 2007. After conducting an investigation of these instances, Nissan ordered changes to the curing process used on the dashboards to prevent future bubbling instances. However, after the production run for the 2007 Model Year, it became apparent the change in the curing process was not sufficiently addressing all dashboard bubbling problems.

Production of the FX Vehicles ceased in April of 2007. At that time, Nissan launched another inquiry into the dashboards regarding the revised manufacturing process. As a result, in January 2009, Nissan changed dashboard suppliers for replacement dashboards for the FX Vehicles. The new dashboards were manufactured with a new raw material.

In early 2010, Nissan implemented a warranty extension program for the FX Vehicles. Under this program, Nissan extended the warranty for FX Vehicle dashboards to eight years and unlimited mileage. Nissan agreed to replace bubbled dashboards at no cost to the consumer experiencing bubbling. Nissan agreed to provide free loaner vehicles during dashboard replacement. Nissan also agreed to reimburse any customer who might have paid for a dashboard replacement. The warranty went into effect on issuance and was automatically fully transferrable to all future owners of the vehicle.

The Plaintiffs in this action are current owners of FX Vehicles. None of the Plaintiffs have experienced dashboard bubbling. The nature of the theory of monetary damages is less concrete than a theory based on an experience of bubbling, because it is independent of whether the dashboard of each owner has in fact bubbled. At its essence, it is a claim that every FX owner has been damaged economically because each paid for the vehicle as though there were no latent defect to which the vehicle is subject, when in fact there is a taint that applies to the vehicle due to the possibility of dashboard bub *73 bling. 1

The class membership is based on “ownership” of an FX Vehicle on the theory that Nissan breached express warranties, the implied warranty of merchantability, and violated the Missouri Merchandising Practices Act (“MMPA”) as a result of the alleged defect. Specifically, Plaintiffs allege that the bubbling defect “diminishes the value of the [FX], regardless of whether the defect has actually manifested in any particular vehicle, because the existence of the defect places a stigma upon the Subject Vehicle that reduces [its] marketability and resale value.”

After consideration of arguments, the trial court granted Plaintiffs’ motion for certification and certified the class (“putative class”). The trial court certified the following class (excluding the parties and their counsel and similarly conflicted persons), for each of the Plaintiffs’ causes of action:

All persons who purchased and currently own an Infiniti FX35 or FX45, model years 2008 through 2007 inclusive, in the State of Missouri, with the dashboard installed as original manufacturer’s equipment.

The trial court’s order defined the putative class using the Plaintiffs’ submitted definition, but the order also recognized the definition “should be further refined.” As of this date, the definition has not been further refined.

On December 17, 2010, this court stayed the underlying action until the interloeu-tory appeal is complete. Nissan seeks a ruling from this court decertifying the class.

Standard of Review

Rule 52.08 2 governs class action proceedings. “Determination of whether an action should proceed as a class action under Rule 52.08 ultimately rests within the sound discretion of the trial court.” State ex rel. Am. Family Mut. Ins. Co. v. Clark, 106 S.W.3d 483, 486 (Mo. banc 2003) (citing Ralph v. Am. Family Mut. Ins. Co., 835 S.W.2d 522, 523 (Mo.App.1992)). Review of a class certification order is for an abuse of discretion. See State ex rel. Union Planters Bank, N.A. v. Kendrick, 142 S.W.3d 729, 735 (Mo. banc 2004). A circuit court “abuses its discretion if ‘its order is clearly against the logic of the circumstance, is arbitrary and unreasonable, and indicates a lack of careful consideration.’ ” State ex rel. Ford Motor Co. v. Manners, 239 S.W.3d 583, 586-87 (Mo. banc 2007) (quoting State ex rel. Ford Motor Co. v. Messina, 71 S.W.3d 602, 607 (Mo. banc 2002)).

“A class action is designed to promote judicial economy by permitting the litigation of the common questions of law and fact of numerous individuals in a single proceeding.” Craft v. Philip Morris Cos., Inc., 190 S.W.3d 368, 378 (Mo.App.2005). The determination of certification is a matter for the trial court’s discretion. Plubell v. Merck & Co., Inc., 289 S.W.3d 707, 711 (Mo.App.2009). Rule 52.08 provides that “[a]s soon as practicable after *74 the commencement of an action brought as a class action, the court shall determine by order whether it is to be so maintained.” Rule 52.08(c)(1). This means the trial court is normally required to make its determination regarding certification “before the benefit of full discovery or the actual presentation of evidence.” Smith v. Am. Family Mut.-Ins. Co., 289 S.W.3d 675, 688 (Mo.App.2009).

“[T]he party seeking class certification has the burden of proof.” Dale v. Daimler Chrysler Corp., 204 S.W.3d 151, 164 (Mo.App.2006). “This burden is satisfied if there is evidence in the record, which if taken as true, would satisfy each and every requirement of the rule.” Id. at 164-65. “In class certification determination, the named plaintiffs’ allegations are accepted as true.” Hale v. Wal-Mart Stores, Inc.,

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353 S.W.3d 68, 2011 Mo. App. LEXIS 1206, 2011 WL 4356203, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hope-v-nissan-north-america-inc-moctapp-2011.