In Re Nissan North America, Inc. Odometer Litigation

739 F. Supp. 2d 1017, 2010 WL 3732073
CourtDistrict Court, M.D. Tennessee
DecidedSeptember 20, 2010
DocketMDL Docket 3:08-md-1921
StatusPublished
Cited by1 cases

This text of 739 F. Supp. 2d 1017 (In Re Nissan North America, Inc. Odometer Litigation) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Nissan North America, Inc. Odometer Litigation, 739 F. Supp. 2d 1017, 2010 WL 3732073 (M.D. Tenn. 2010).

Opinion

MEMORANDUM

ALETA A. TRAUGER, District Judge.

Pending before the court is the Motion for Summary Judgment as to the Odometer Act claim filed by defendants Nissan North America, Inc. and Nissan Motor Co., Ltd. (Docket No. 85), to which the plaintiffs have filed a response (Docket No. 98), and in support of which the defendants have filed a reply (Docket No. 107). Also pending is the Motion to Disqualify filed by the plaintiffs (Docket No. 101), to which the defendants have filed a response (Docket No. 111). For the reasons discussed below, the defendants’ motion will be granted and the plaintiffs’ motion will be denied.

FACTS

The defendants (collectively, “Nissan”) design, manufacture, market, and sell Nissan- and Infiniti-brand automobiles. 1 The named plaintiffs in this multidistrict litigation are residents of California, Texas, and Pennsylvania who own vehicles manufactured by the defendants. The plaintiffs have filed a Consolidated Amended Class Action Complaint (Docket No. 26), and their claims center on the allegation that the odometers in their vehicles purposely over-register the number of miles traveled. This, in turn, has allegedly caused the manufacturer’s warranties to expire sooner than they otherwise would.

The plaintiffs seek to represent one nationwide class and several state-specific classes of people who have purchased new Nissan or Infiniti vehicles. They have asserted a number of state-law claims, including claims for fraud, breach of warranty, and unjust enrichment, all of which survived the defendants’ Motion to Dismiss. (See Docket No. 54 at 14-33.) The plaintiffs also claim that the defendants have violated the federal Odometer Act, 49 U.S.C. § 32701 et seq. The Odometer Act claim is the only claim at issue in the instant motion.

An odometer monitors the rotation of the vehicle’s wheels and uses that information to calculate and display the distance that the vehicle has traveled. The number of wheel revolutions, multiplied by the tire’s circumference, yields the distance traveled. The actual circumference of the tire changes during driving, however, based on factors that include vehicle speed, tire pressure, vehicle load, and variations in tire manufacturing. This necessarily introduces some level of variability into odometer performance. 2

*1020 The named plaintiffs’ vehicles employ one of three types of odometer systems: (1) a transmission speed sensor (“TSS”) system; (2) an anti-lock braking system controller area network (“ABS CAN”) system; or (3) a hybrid ABS system. 3 The basic facts regarding the operation of these odometer systems are undisputed.

A TSS system measures wheel rotation by measuring the number of revolutions of the transmission output shaft. The output shaft is the component that ultimately drives the wheels — as it revolves, the wheels revolve. The output shaft features a worm gear that is mated with a pinion gear, and as the worm gear turns, the pinion gear turns in a perpendicular direction. The overall result is that the pinion gear turns when the car’s wheels turn.

A speed sensor is attached to the pinion gear, and it generates an electrical pulse each time a tooth on the pinion gear passes. Thus, the number of pulses generated by the speed sensor depends directly on the number of teeth in the pinion gear; an increase in the number of gear teeth results in more pulses. The sensor sends the pulses via a wire to the Combimeter, which is an electronic component in the vehicle’s dashboard that is manufactured by a third party. The Combi-meter contains the odometer display, as well as the displays for the speedometer and other dashboard instruments. It records one kilometer for every 5,096 electrical pulses it receives from the speed sensor.

More advanced vehicles use the ABS CAN system. Rather than relying on a pinion gear, an ABS CAN system uses the wheel-speed information generated by the anti-lock braking system to measure mileage. In these vehicles, the inside of each wheel contains a tone wheel, which is a small circular disc with a number of teeth cut into the perimeter. A wheel-speed sensor monitors the rotation of the tone wheel. Each time a tooth passes, the sensor sends an electrical pulse to the ABS controller, which averages the data from the four wheels and calculates the speed of the vehicle. The controller then periodically sends a “speed message” to, among other components, the Combi-meter.

The Combi-meter converts the vehicle speed to distance traveled. In doing so, it uses a number called an “A constant,” which accounts for certain inaccuracies introduced by the ABS controller. To calculate wheel speed, the ABS controller uses a tire circumference figure that, by necessity, is set by engineers early in the car’s design process. If the tire circumference of the final vehicle is different from the earlier circumference figure used in the ABS controller, the engineers account for this by changing the A constant in the Combi-meter.

In a hybrid system, the vehicle measures speed as in an ABS CAN system, but it has a Combi-meter that was designed to read electrical pulses generated by a TSS system. In these cars, the speed message from the ABS controller is sent to a component called an integrated amplifier, which converts the speed message into electrical pulses that can be read by the older Combi-meter.

The plaintiffs claim that the defendants have designed their odometers to purposely over-register mileage by one of two ways: (1) in TSS systems, by using a pinion gear with an inappropriate number of teeth; and (2) in ABS CAN or hybrid *1021 systems, by using an inaccurate A constant. (Docket No. 98 at 10-11.)

ANALYSIS

The defendants have filed a Motion for Summary Judgment pursuant to Federal Rule of Civil Procedure 56, arguing that the Odometer Act does not apply here.

I. Summary Judgment Standard

Federal Rule of Civil Procedure 56(c) requires the court to grant a motion for summary judgment if “the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). If a moving defendant shows that there is no genuine issue of material fact as to at least one essential element of the plaintiffs claim, the burden shifts to the plaintiff to provide evidence beyond the pleadings “set[ting] forth specific facts showing that there is a genuine issue for trial.” Moldowan v. City of Warren, 578 F.3d 351, 374 (6th Cir.2009); see also Celotex Corp. v.

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Bluebook (online)
739 F. Supp. 2d 1017, 2010 WL 3732073, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-nissan-north-america-inc-odometer-litigation-tnmd-2010.