HURST v. BMW OF NORTH AMERICA LLC

CourtDistrict Court, D. New Jersey
DecidedJuly 26, 2023
Docket2:22-cv-03928
StatusUnknown

This text of HURST v. BMW OF NORTH AMERICA LLC (HURST v. BMW OF NORTH AMERICA LLC) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
HURST v. BMW OF NORTH AMERICA LLC, (D.N.J. 2023).

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

BRIAN HURST, individually and on behalf of all others similarly situated, Civil Action No. 22-3928 (SDW) (AME)

Plaintiff, OPINION v.

BMW OF NORTH AMERICA LLC, July 26, 2023

Defendant.

WIGENTON, District Judge. Before this Court is Defendant BMW of North America, LLC’s (“Defendant” or “BMW NA”) Motion for Judgment on the Pleadings (D.E. 21) of Brian Hurst’s (“Plaintiff”) Class Action Complaint (D.E. 1 (“Compl.”)), pursuant to Federal Rule of Civil Procedure (“Rule”) 12(c). Jurisdiction and venue are proper pursuant to 28 U.S.C. §§ 1332(d)(2) and 1391, respectively. For the reasons stated herein, Defendant’s motion is GRANTED. I. BACKGROUND AND PROCEDURAL HISTORY A. Plaintiff’s Factual Allegations1 Plaintiff is a New Jersey resident. (Compl. ¶ 29.) Defendant is a subsidiary of the automobile manufacturer Bayerische Motoren Werke Aktiengesellschaft (“BMW AG”), incorporated in Delaware, with a principal place of business in New Jersey from where it conducts

1 For purposes of the present Motion, the facts are drawn from the Complaint and accepted as true. See Zimmerman v. Corbett, 873 F.3d 414, 417–18 (3d Cir. 2017). United States activities including marketing, warranty operations, and consumer relations. (Id. ¶ 30.) In October 2018, Plaintiff purchased a certified pre-owned 2015 BMW i3 with Range Extender (“i3 REx”) from an authorized New Jersey BMW dealer. (Id. ¶¶ 21, 29.) At the time of

purchase, Plaintiff’s i3 REx (the “Vehicle”) was still under the manufacturer’s new vehicle warranty and it had 23,261 miles on it. (Id. ¶¶ 21, 29.) The BMW i3 REx is an electric vehicle equipped with a gasoline engine that extends the driving range beyond what can be reached with an electric battery alone, and it costs $3850 more than the purely electric i3. (Id. ¶ 18–19.) The i3 REx has a lower all-electric range than a purely electric i3, because of the added weight of this extra gasoline engine. (Id. ¶ 18.) In advertising the i3 REx and other i3 model electric vehicles (collectively, the “Class Vehicles”), Defendant did not disclose, concealed, or misrepresented, the Class Vehicles’ real- world cold weather ranges, and only provided vehicle range figures from testing in optimal conditions. (See id. ¶¶ 2, 6–7, 10–11, 20, 22–23, 54.) Plaintiff purchased the Vehicle in large part

because of Defendant’s advertisements stating that the i3 REx had a range of 80 miles on battery only and 150 miles with the range extender. (Id. ¶¶ 9, 22.) A window sticker on the Vehicle similarly indicated that its electric battery mileage range was 72 miles. (Id. ¶ 7.) However, Plaintiff was only able to travel 39 miles on a fully charged battery in winter months. (Id.) The Vehicle’s dashboard display indicated an electric range of less than 50 miles during cold weather, even after it was fully charged, and indicated a decline of 10 more miles after driving 1 to 2 miles. (Id. ¶ 37.) Defendant misrepresented the Vehicle and Class Vehicles’ driving ranges in the following advertisements and printed materials (collectively, the “advertisements”). First, the window sticker indicated that Plaintiff’s Vehicle had a range of 72 miles on electric alone. (Id. ¶ 7.) Second, a page on the Nalley BMW dealership’s website, which Plaintiff viewed and relied upon prior to buying his vehicle, states that the range of a BMW i3 with Range Extender is 150 miles. (Id. ¶¶ 9, 12.) Third, the i3 Owner’s Manual stated that the range “can be abruptly reduced” by, inter alia,

“climate and terrain conditions” without disclosing the dramatic reduction in range caused by cold weather—a reduction of more than 50% in the case of Plaintiff’s Vehicle. (Id. ¶¶ 52, 54–55.) Fourth, a Service and Warranty Information pamphlet set forth the wrong range and failed to inform buyers that cold weather would significantly reduce the range. (Id. ¶¶ 104, 119.) Fifth, in two promotional YouTube videos from 2011 and 2013, BMW representatives boasted that the range extender doubled the range of the i3 and that the range was 100 miles. (Id. ¶¶ 15–17.) In the 2011 video, the speaker was a Manager of Electric Vehicle Operations and Strategy for BMW NA, and in the 2013 video, the speaker was the Head of Electric Vehicle Operations and Strategy for BMW NA. (Id.) In addition to these advertisements, several of Defendant’s sales representatives directly

reassured Plaintiff that cold weather does not significantly, if at all, decrease the electric range of the i3. (Id. ¶¶ 22–23, 89.) Plaintiff contacted various BMW dealerships around the country to inquire about how outdoor temperatures affected the i3, and several representatives responded assuring him that cold weather does not affect the range, while others stated that it affects performance “a bit” but not significantly. (Id. ¶¶ 59–60.) Defendant knew prior to the date it introduced Class Vehicles into the U.S. market that cold weather severely diminishes the Class Vehicles’ driving range and that the Class Vehicles would not attain the ranges indicated in advertising or promotional material. (Id. ¶¶ 34, 47, 57, 85.) Defendant maintains cold weather testing sites in Sweden and elsewhere to test the effects of cold weather on its vehicles’ performance. (Id. ¶ 34.) Defendant also carefully monitors online forums in which customers have complained about Class Vehicles’ reduced range in winter. (Id. ¶ 58, 85.) Moreover, Defendant distributed internally—but did not disclose to consumers—a dealer training chart titled “Real-World Electric Range Experience” which shows that cold weather diminishes

driving ranges for electric and hybrid vehicles. (Id. ¶ 60.) Plaintiff notified Defendant of the significantly lower than advertised range and was told to bring his vehicle to an authorized service center for diagnostic testing, which Plaintiff did on or about February 18, 2021. (Id. ¶¶ 40–41.) The BMW technician fully charged the car batteries at room temperature, but the vehicle still indicated a range of only 55 miles. (Id. ¶ 41.) The technician informed Plaintiff that there were no flaws found in his battery during testing, but that the cold weather reduced the Vehicle’s range and that storing the car outside in 15–20 degree weather would result in the range dropping down to almost nothing. (Id. ¶¶ 41–42.) Thus, Plaintiff learned of the false representations giving rise to his claims in February 2021. (Id. ¶ 42.) Plaintiff would not have purchased the Vehicle, or would have paid less for it, had he known

that cold weather severely decreases its driving range. (Id. ¶ 23.) Because the Vehicle has a significantly shorter ranger than Defendant advertised, Plaintiff has used the car only half as much as he intended to, and he was unable to use the car for its intended purpose—his wife’s commute of approximately 50 miles round trip. (Id. ¶¶ 36–39.) He has also paid more for gasoline, and his car has less resale value. (Id. ¶¶ 8, 23, 39, 117.) B. Procedural History Plaintiff filed this putative class action on June 15, 2022 on behalf of himself and similarly situated individuals who have owned or leased a Class Vehicle. (Compl. ¶¶ 1, 124). The Complaint asserts the following claims: breach of express warranties under UCC § 2-313 (Count I); breach of an implied warranty of merchantability under UCC § 2-314 (Count II); employment of unconscionable commercial practices in violation of the New Jersey Consumer Fraud Act (“NJCFA”), N.J. Stat. Ann. §§ 56:8-2 et seq.

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HURST v. BMW OF NORTH AMERICA LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hurst-v-bmw-of-north-america-llc-njd-2023.