Jones v. Nissan North America, Inc.

895 N.E.2d 303, 385 Ill. App. 3d 740, 324 Ill. Dec. 140, 2008 Ill. App. LEXIS 926
CourtAppellate Court of Illinois
DecidedSeptember 11, 2008
Docket2-07-0448
StatusPublished
Cited by2 cases

This text of 895 N.E.2d 303 (Jones v. Nissan North America, Inc.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jones v. Nissan North America, Inc., 895 N.E.2d 303, 385 Ill. App. 3d 740, 324 Ill. Dec. 140, 2008 Ill. App. LEXIS 926 (Ill. Ct. App. 2008).

Opinion

PRESIDING JUSTICE ZENOFF

delivered the opinion of the court:

Plaintiff, Edmund Jones, appeals from three orders of the circuit court of Kane County dismissing his claims in his amended complaint against defendant, Nissan North America, Inc., for breach of express (count I) and implied (count II) warranties under the Magnuson-Moss Warranty — Federal Trade Commission Improvement Act (MagnusonMoss Act, Magnuson-Moss, or Act) (15 U.S.C. §2301 et seq. (2000)). We reverse and remand for further proceedings.

BACKGROUND

In 2005, plaintiff purchased a new Nissan Armada from St. Charles Nissan. The vehicle was manufactured by defendant, which provided a written 3-year or 36,000-mile limited warranty. Within the first week that plaintiff had it, the vehicle allegedly began to demonstrate various problems, including an inoperable seat belt and a defective braking system, gas gauge, mirror, and trim. The warranty contained the following provision:

“Nissan makes available to you, and you are specifically required by Federal Law to use BBB AUTO LINE [(800) 955-5100] before exercising rights or seeking remedies under the Federal MagnusonMoss Warranty Act, 15 U.S.C. §2301, et seq. You are not required to first use BBB AUTO LINE if you seek remedies not created by Title I of that Federal law, but may be required to do so under state law, including your state lemon law. Please refer to pp. 2-3 of this booklet and the ‘Supplement to 2005 Nissan Warranty Information Booklet & 2005 Nissan Owner’s Manual’ for additional information.”

Pages two and three of the warranty provided a telephone number and address for the BBB Auto Line program (Auto Line), as well as the following pertinent information:

“In the event that you believe Nissan has been unable to satisfactorily address the issue with your vehicle, a special automotive complaint resolution program called BBB AUTO LINE is available to you. The BBB AUTO LINE program is independently operated by the Council of Better Business Bureaus, Inc. (BBB).
The BBB AUTO LINE program consists of two parts, mediation and arbitration. The BBB will attempt to assist you to resolve the problem during mediation. If a satisfactory resolution has not been achieved during mediation, you will have the opportunity to personally present your case before an impartial arbitrator or three-person panel. The arbitrator(s) will make a decision after the arbitration hearing.
The BBB will, in most cases, send you a final decision within forty (40) days (plus 7 if you have not contacted the proper person from the dealership or Nissan) unless you delay the process. If you accept the decision, it will be legally binding on you and Nissan. If you do not accept the decision, it will not be legally binding on you or Nissan. (However, in some states, if the decision is not accepted, it may be introduced either by you or by Nissan, as evidence in any potentially related court action.) ***
Nissan vehicles less than three years old from date of original delivery with fewer than 36,000 miles, are eligible for the BBB AUTO LINE program.”

On September 23, 2005, after approximately 12 allegedly unsuccessful repair attempts, plaintiff applied to Auto Line pursuant to the warranty. Plaintiff opened a claim by submitting a customer claim form, in which he requested a refund and payment of attorney fees. In a letter dated September 26, 2005, plaintiff’s attorney notified Auto Line that, “[i]f requested, we will honor your request for an inspection by the arbitrator at the closest BBB inspection location to our client on the hearing date.” Plaintiff also requested a decision based only on document review.

The Auto Line Program Summary, which plaintiff received on September 23, 2005, contained the following provision:

“OTHER IMPORTANT INFORMATION
■ You must own or lease the vehicle throughout the entire arbitration process.
■ If you file suit against Nissan prior to the completion of the arbitration process, Nissan will not be obligated to continue with the arbitration.”

Auto Line allegedly sent a notice of inspection to plaintiff’s attorney on October 14. From the record, it is not clear whether plaintiff received it, and plaintiff does not address the notice on appeal. The notice 1 contains the following instructions:

“1. Notify your Dispute Resolution Specialist at once if you cannot make the vehicle available for the inspection. The BBB reserves the right to make the final determination as to the date and time of the inspection.
2. Current vehicle registration and insurance is required for all test-drives.
3. If the vehicle is inoperable, please contact your Dispute Resolution Case Specialist immediately.
4. Refer to How BBB AUTO LINE Works for more detailed information on the inspection process.”

A separate document, which referenced the notice of inspection, 2 provides that “[p]er Rule 9, if the customer fails to appear for the scheduled inspection, the case will be closed and a decision will not be rendered.” The record contains no information as to whether plaintiff received this document.

On October 26, 2005, plaintiff learned that Auto Line had closed his claim because he failed to present the vehicle for inspection on October 21. Plaintiff requested a new inspection date on November 9, 2005. Auto Line did not respond.

On November 28, 2005, plaintiff brought suit against defendant pursuant to Magnuson-Moss. The vehicle was repossessed on March 10, 2006. On May 26, 2006, plaintiff filed an amended complaint, which added a claim (count III) against Nissan Motor Acceptance Corporation (NMAC), pursuant to section 433.2 of Title 16 of the Federal Trade Commission (FTC) regulations (16 C.F.R. §433.2 (2002)). NMAC is not a party and count III is not at issue in this appeal.

On May 3, 2006, defendant filed a motion to dismiss plaintiff’s complaint, pursuant to section 2 — 619 of the Code. Defendant argued that plaintiff was required to exhaust defendant’s informal dispute settlement procedure as a prerequisite to filing suit. Plaintiff responded that he satisfied the requirements of Magnuson-Moss because (1) he tried to reschedule the missed vehicle inspection in an effort to complete the informal dispute settlement procedure, and (2) he waited until after the 40 days in which Auto Line was required to render a decision pursuant to section 703.5(d)(1) of Title 16 of the FTC regulations (16 C.F.R.

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Cite This Page — Counsel Stack

Bluebook (online)
895 N.E.2d 303, 385 Ill. App. 3d 740, 324 Ill. Dec. 140, 2008 Ill. App. LEXIS 926, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-nissan-north-america-inc-illappct-2008.