In re Onstar Contract Litigation

278 F.R.D. 352, 2011 U.S. Dist. LEXIS 145846, 2011 WL 6337793
CourtDistrict Court, E.D. Michigan
DecidedDecember 19, 2011
DocketNo. 2:07-MDL-01867
StatusPublished
Cited by25 cases

This text of 278 F.R.D. 352 (In re Onstar Contract Litigation) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Onstar Contract Litigation, 278 F.R.D. 352, 2011 U.S. Dist. LEXIS 145846, 2011 WL 6337793 (E.D. Mich. 2011).

Opinion

OPINION & ORDER DENYING PLAINTIFFS’ MOTIONS FOR CLASS CERTIFICATION

SEAN F. COX, District Judge.

Buyers and lessees of automobiles equipped with OnStar telematics equipment filed prospective class action complaints against four automobile manufacturers (General Motors Corporation (“GM”), American Honda Motor Company (“Honda”), Subaru of America (“Subaru”), and Volkswagen of America (“VW”)), and OnStar Corporation (“OnStar”), asserting consumer protection act and warranty claims. Those actions were consolidated for pretrial proceedings by the Judicial Panel on Multidistrict Litigation. The complaints have since been combined in a Second Master Amended Complaint that seeks certification of nationwide classes.

This matter is currently before the Court on Plaintiffs’ Motions for Class Certification as to Defendant OnStar and three manufacturer Defendants: Honda, Subaru, and VW. Plaintiffs ask the Court to certify a nationwide class as to their Michigan Consumer Protection Act claims against OnStar. Plaintiffs also seek class certification of their consumer fraud and express warranty claims against: 1) Honda under the laws of Washington, California, New York, and Florida; 2) Subaru under the laws of Washington, Pennsylvania, New York, and Oregon; and 3) VW under the laws of California, Colorado, New York, and West Virginia.

The parties have conducted extensive class-certification discovery and have fully briefed the issues. A hearing on the motions was held on November 10, 2011. As explained below, because the consumer protection and warranty laws of several states govern Plaintiffs’ claims, and because factual variations among the claims abound, Plaintiffs have not met Fed. R. Crv. P. 23(b)(3)’s predominance requirement. Accordingly, the Court shall DENY Plaintiffs’ Motion for Class Certification.

BACKGROUND

A. Procedural Background

Case Management Order No. 1, which was submitted and agreed to by the parties, was entered in this action on January 25, 2008. (D.E. No. 44). That order provided that Plaintiffs would file a Master Amended Complaint (“MAC”) and that Defendants may file motions to dismiss the MAC. It also required Plaintiffs to file their Initial Class Statement within 10 days of the Court’s ruling on Motions to Dismiss and provided that the statement to be filed by Plaintiffs “shall define the putative elass(es) (including any subclasses for which Plaintiffs will seek class treatment.)” (D.E. No. 44 at 7). It further provides that class certification discovery would [358]*358commence upon the filing of that Initial Class Statement. (Id.).

Plaintiffs filed their MAC on February 25, 2008. (D.E. No. 46). Thereafter, Defendants filed Motions to Dismiss. This Court issued its Opinion & Order on the Motions to Dismiss on February 19, 2009. (D.E. No. 100). Notably, at the time that the Court ruled on the Motions to Dismiss, the Court had not made any rulings regarding choice of law. The Court made rulings concerning several of the grounds presented in the motions to dismiss based on generally applicable law and declined to make rulings on other grounds that required a choice-of-law determination before they could be addressed.

Among other things, this Court ruled that the MAC, as it existed at that time, failed to state an express warranty claim as to any Plaintiff whose express written warranty had expired prior to the cut-off of analog service. The Court did not rule whether or not a Plaintiff whose express written warranty had expired, but who alleged unconscionability, stated a breach of warranty claim.

Plaintiffs’ Initial Class Statement

On March 2, 2009, Plaintiffs filed them Initial Class Statement, wherein Plaintiffs stated that they intended to seek certification of the following nationwide classes as to the Manufacturer Defendants:

Honda Class
All individuals and entities in the United States who, as of December 31, 2007, either owned or leased a Honda vehicle originally sold or leased on or after August 8, 2002 and equipped with analog-only or analog/digital-ready OnStar equipment which had not been upgraded or who paid for an upgrade on or before December 31, 2007.
Subaru Class
All individuals and entities in the United States who, as of December 31, 2007, either owned or leased a Subaru vehicle originally sold or leased on or after August 8, 2002 and equipped with analog-only or analog/digital-ready OnStar equipment which had not been upgraded or who paid for an upgrade on or before December 31, 2007.
VW Class
All individuals and entities in the United States who, as of December 31, 2007, either owned or leased a VW vehicle originally sold or leased on or after August 8, 2002 and equipped with analog-only or analog/digital-ready OnStar equipment which had not been upgraded or who paid for an upgrade on or before December 31, 2007.
GM
All individuals and entities in the United States who, as of December 31, 2007, either owned or leased a GM vehicle originally sold or leased on or after August 8, 2002 and equipped with analog-only or analog/digital-ready OnStar equipment which had not been upgraded or who paid for an upgrade on or before December 31, 2007.

(D.E. No. 101 at 1-2).

Plaintiffs’ SMAC

On April 30, 2009, Plaintiffs filed their Second Master Amended Complaint (“SMAC”). (D.E. No. 113).

The following five counts of the SMAC are asserted against Honda, Subaru, VW, and GM: Count I, asserting claims under the Michigan Consumer Protection Act; Count II, alleging “Unfair and Deceptive Trade Practices In Violation Of All States’ Consumer Protection Acts”; Count III, alleging “Breach of Express Warranty” claims; Count IV, alleging breach of implied warranty claims; and Count V, alleging violations of the Magnuson-Moss Warranty Act. The SMAC states that Plaintiffs seek to bring this action on behalf of the same nationwide classes that were identified in Plaintiffs’ Initial Class Statement. (See SMAC at ¶ 193). The Breach of Express Warranty Count in the SMAC differs from the MAC in that it alleges that the durational limitations in the Manufacturer Defendants’ warranties with respect to analog OnStar equipment were “unreasonable,” “unconscionable, invalid and unenforceable.” (SMAC at ¶¶ 220-21).

Only Counts I and II of the SMAC, the consumer protection act claims, are asserted against OnStar.

[359]*359Claims Against GM Are Stayed

On June 1, 2009, GM filed a voluntary petition seeking bankruptcy protection under 11 U.S.C. § 101 et seq. in the United States Bankruptcy Court for the Southern District of New York. (D.E. No. 126). As of December 16, 2009, Counsel for GM advised the Court that the bankruptcy case was still pending and all claims against GM remain stayed. (See D.E. No. 199). Plaintiffs are not seeking class certification as to any claims asserted against GM. To date, the Court has not received any notice from Plaintiffs indicating that the stay has been lifted, that the claims against GM have been discharged, or that Plaintiffs wish to dismiss the claims against GM.

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278 F.R.D. 352, 2011 U.S. Dist. LEXIS 145846, 2011 WL 6337793, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-onstar-contract-litigation-mied-2011.